It's not there! Your client is watching as you reach into your bag of tricks for that laptop with all the presentation materials, and it isn't there! Instead, there's a black-painted board about the same size and weight of your computer. You've been ripped off, and you haven't the slightest idea of when or where. It could have been in that restaurant, or on the flight over, or anywhere!

Lucky for you you've got your backup folder with B&W or Color prints you printed out back at the office! You've been the victim of lost files before and now come prepared for the worst.

But what are you going to do about the lost computer--and all those files, and what about your contact data base? It will take months to rebuild these, and you don't have months.

If you are like most small and medium sized businesses, you never gave more than a passing thought to what would happen to your business if you lost files, computers, accounts receivable data, furniture, fixtures, inventory, and all the other things that make up your business. Oh you have a 'business' policy, but when you called asking for help in recreating files and replacing your computer, it was hard to keep talking while you agent was doubling over with laughter.

If you think these things are important, realize it really could happen to you, and want to protect yourself, read on, we have the answers.

THE INSURANCE COMPANY
Most insurance companies don't care a hill of beans about your small business. Most of them classify what you do under the heading of 'Hobby'. Oh, a few insurance companies are realizing there are somewhere around 90 million small businesses in the United States, and every one of these is a potential money tree for them; but most insurers still have their head stuck firmly in the sands of yesterday.

What this means is you are going to have to do some real research to find insurers who will provide a policy that meets your needs. Don't stop with the local telephone directory, search the Internet under BUSI NESS INSURANCE or INSURANCE or HOME INSURANCE or any other search topics you can find.

BUILD A NEEDS LIST
Next, using the list at the end of this article, write up a list of the types of coverage you require. Submit this list to every single insurer that say they have business insurance coverage. Wait for their replies.

When you have received the material, sort through it and select the top 5 or 10 companies that seem to have what you need. Don't pay any attention to price at this point.

QUALIFY YOUR RESPONSES
Qualify each of these companies by first calling (or writing) your own state's insurance commission to determine whether the companies you selected are licensed to do business in your state. This will weed out a few. Continue your qualification by going to the public library and looking up the firm's rating in Moody, Standard & Poor and Best. Ask the librarian to help you decipher the information. This will weed out a few more.

ORDER POLICIES
Now, fill out the paperwork for ALL the remaining companies (don't worry, if you don't pay for the policy it is not a valid contract, and even if you must pay in advance, you can get your money back under your state's insurance laws). Study the policies, listing what they cover and don't cover, how much they pay for each loss, and how fast they come through with the check.

It's time to price shop. Using everything you have learned, select the one that gives you the most bang for the buck. Here are some of the things you might wish covered:

• COVERAGE
  Chances are you will have to switch all your coverage to the new company, especially if you work from your home. Worry about: theft, water damage, fire, earthquake loss of income, breakage, file reconstruction, accounts receivable reconstruction, temporary replacement, temporary relocation, equipment replacement, theft and damage on the road, in your car, in a customer's office, inventory replacement, liability of all types, and anything else that matters to you.

• OTHER PROTECTION: COMPUTERS
  Encrypt your sensitive data (www.rsa.com) on the web, install automatic theft reporting software for your modem (www.absolute.com), buy a contrasting color felt marking pen to write your name & phone number on the equipment.

• OTHER PROTECTION: FACILITIES
  Burglar alarms, video cameras & recorders, intrusion alarms that call the police, heavy duty doors and frames and double-key locks.

• OTHER PROTECTION: TRAVEL
  Try sending a duplicate set of discs, slides, overheads or printouts to yourself at your customer's facilities. This way you can use your customer's display materials if yours is stolen or damaged; or put a set in your luggage as well as in your briefcase.

IS IT WORTH THE HASSLE?
That's for you to decide. Weigh the costs of losing your equipment and files against the cost of insurance, then make a decision!