Q:I am new to the area and in the market for insurance for my small business. I do not have any local contacts. Any suggestions you may have will be appreciated.

Answer: Most entrepreneurs underestimate the importance of insurance, as well as the costs involved and difficulties encountered in trying to obtain the right coverage.

Insurance should not be treated as just another commodity. The owner of an automotive repair shop has an entirely different set of exposures than the owner of a hardware store or a landlord owner of commercial rental property.

The first step is to select a qualified insurance agent. Because you are new to the area, solicit recommendations from other business owners. Local trade associations and the Chamber of Commerce are also good reference sources.

Compile a list of several agents and then interview each one. What you are looking for is experience with businesses similar to yours.

Ask the agent for the names of other clients, and check references with the Better Business Bureau.

Insurance is broadly grouped into two categories: Property & Casualty and Life & Health. Both are specialties, and it is uncommon that one agent is an expert in both.

Some types of Property & Casualty insurance you might need for your business are:

•Commercial Auto to protect your business from automobile-related losses, liability and physical damage.

•Commercial General Liability to protect against certain lawsuits arising from the conduct of your business.

•Product & Completed Operations Liability to protect you from claims for damages sustained by customers' use of your products, either sold or installed.

•Workers' Compensation to cover claims by employees who are injured on the job.

•Commercial Property to protect for loss to your building and contents from fire, lightning, theft, vandalism, etc.

•Flood insurance

•Business Interruption & Extra Expense to pay for lost revenue and additional expenses resulting from covered damages to your building and contents.

•Builders Risk coverage to afford protection while your building is under construction.

•Boiler & Machinery to pay for repairs or replacement of damaged expensive electrical and mechanical equipment.

•Inland Marine to cover property in transit or away from your premises. Also replacement of damaged computer hardware and software, and restoring lost data.

Some types of insurance to be considered in the area of Life & Health include:

•Group Life & Health insurance to protect you, your employees and their families from the financial consequences of death, sickness or non-job-related accidents.

•Disability insurance to cover lost wages resulting from prolonged sickness or disability.

Life insurance for funding buyout agreements between business partners, securing business loans and providing compensation for the loss of key people, as a result of untimely death.

Volunteers with the Richmond Chapter of SCORE, Counselors to America's Small Business, will answer questions from small-business owners and managers. Go to http://www.richmondscore.org and click on the link to "Ask SCORE." A counselor will respond within 48 hours. Select questions and answers will be featured in Metro Business on the second and fourth Mondays. To learn more about management issues facing small businesses and SCORE's workshops, go to http://www.richmondscore.org or call (804) 771-2400, ext. 131.