Friday, May 2, 2008

Small Business Insurance - Is Your Company Under Insured?

Many people who study small business report that 80% of small businesses do not carry enough insurance to protect themselves. One mishap can be a disaster to an underinsured business, and can ruin or setback all of the hard work that the owners and employees have put in to develop, grow, and maintain the venture.A small company with one location can be very vulnerable to losses caused by storms or vandalism, and are seldom in a good position to replace their equipment and supplies. One flood or fire could take out computers, machines, or account records. Small companies do not usually have replacements at their fingertips, and without insurance coverage, the business could be ruined financially. Beyond the danger of natural damage caused by fire or storm, intentional theft or vandalism could be even worse because it could target a company right where is the weakest.Beyond damage, liability can be underestimated by many small business owners. However, just one injured employee or customer, who files a suit, can ruin a small business. Even if the company is not at fault, the cost of a legal defense may be so huge that it can cause losses and layoffs. If your business provides professional service, rather than physical products, you may need to consider a type of professional liability insurance.Every business should consider the need for three basic types of coverage. The first is property insurance which will cover a building, equipment, and supplies against manmade and natural damage. Secondly, a business should consider liability insurance. One type of liability insurance may cover a business against professional errors, and that is usually purchased by lawyers, accountants, and insurance agents. Another type of liability insurance will protect a company against any injury caused by its products, and that would be purchased by a manufacturer. Also, workers compensation insurance is another type of insurance that will protect a business owner from employee injury claims.Compare Commercial Insurance Rates and learn about Types of Business Insurance You Needhttp://www.minibiz.usArticle Source:

Thursday, May 1, 2008

What 90% of All Small Business Owners Don't Know About Small Business Insurance!

There are several factors that you should take into account when determining what forms of insurance coverage you want: how large or small your small business is, how it's organized (partnership, sole proprietorship, corporation, LLC), the number of employees, how you get paid (commissions, salary, fees), whether your small business is service or product oriented, your exposure to liability and location.Things to ponder:Heaven forbid, but do you have more than enough insurance to protect your spouse and children? If you have a small service business, your small business is worth Zero when you die. For example, the spouse of a deceased doctor or lawyer can only sell the tools of the trade, not the clients (the true bread and butter of any small service business). If you can predict when you might die, you could sell it ahead of time. But that's not very likely, so you and every small service business owner should make sure that you protect your family with at least seven times your gross income. So, if you make $100,000 per year then you should have over $700,000 in insurance.If your goal is to have a member of your family take over your small business at your demise, are they capable (and licensed) to do so?What happens if you get ill or suffer an injury and can no longer run your small business? Do you have disability insurance? Disability insurance will generally pay about 60% of your income for a stated period of time. The benefit may be taxable or non-taxable (depending on whether or not you deducted the premium as a business expense.)Even more important is your answer to this question: Do you have "business overhead insurance"? Who will cover the costs of running your small business (utilities, insurance, salaries) while you're out of commission? Unless it is an add-on, your small business overhead expenses will not be covered by your disability insurance.Got business partners? Do you have a buy/sell agreement? Well, if you or your partner should suddenly die, your interest in the business will be protected. Here's a great example of this: your partner dies and his wife wants to claim her share of the business. What if your partner's relatives have no idea how to operate the business? Would they be asset or a liability? Well, if you have this type of insurance coverage, you could avoid all of this interference by outside parties by simply buying out your partner's share of the business.What about "disability buy-out coverage"? Do you have it? If your partner becomes severely disabled, what would you do? Would you simply keep paying him or her even though you are doing all of the work... possibly for months or even years to come? Well, when you have "disability buy-out coverage", you would never have to wory about this situation because after a period of time, your disabled partner would be forced to sell his share of the business to you.Of course, many of these situations may not occur, but it's your small business. Now, all you have to do is speak to a professional to determine what forms of insurance coverage you want to protect your small business.Edward Brancheau created The Bank of Green to advise small businesses about subjects like workers compensation insurance and to help individuals build wealth through their home equity.Article Source:

Wednesday, April 30, 2008

Florida Health Insurance Presents - Small Business Insurance

As a business owner, managing risks is a crucial factor in business success. However, first you must understand your risks. Review your operations to identify critical activities, such as:Responding to customersSupplying a product or serviceBilling and collecting moneyUsing outside suppliers and vendorsIdentify risks that could disrupt your businessThink about the following hazards that could disrupt your business activities:· A severe storm could interrupt power, making computers and phones unusable.· An earthquake could damage your business, making it impossible for suppliers to get to you or for your employees to get to your customers.· Computer theft could remove your customer and accounts receivable records.· Software theft could expose your customers to identity theft.· Your delivery driver could be involved in a serious accident with several other vehicles, damaging your truck, tools, and merchandise.· A customer could trip on a rug in your office and break his or her ankle or wrist, then sue you for liability.· Your product or utility suppliers could interrupt your business even though you suffer no direct damage at your premises.Reduce your business riskInsurance offers business owners a method to transfer the risk of property or financial loss in exchange for paying a premium to an insurance company. As a businessperson, it is your decision how much risk you want to transfer and how much you want to assume yourself. Legal requirements may demand that you carry insurance for some risks; depending on the type of business you operate. Think about the cost of premiums in relation to the chance a loss will occur, and how much it could cost. Improving building security, backing up online records or providing other power sources might help reduce the likelihood or severity of a loss.Choose an agent or broker· There are many kinds of insurance available to cover most types of losses. An agent or broker serves as an invaluable asset for your business. He or she can help you decide which policy you need, help you shop for the best coverage, and advise you when your coverage is not cost effective.· Agents can represent one or several different insurance companies. The company they represent pays them on a sales commission basis.· An insurance company does not appoint brokers. They represent you in the marketplace and can charge fees for their services.· Whether you decide to use an agent or broker, it’s very important that he or she act as your representative to the insurance company. A good agent or broker understands your business, not just the coverage they are selling you. They also understand the insurance company, how it handles and pays claims, and the rating and audit provisions of commercial policies.· Talk with friends, associates, an attorney, and financial consultant to ensure that your business advisors can work together.· Contact the Office of the Insurance Commissioner to determine if an agent or broker is licensed and in good standing. You also can find out if consumers have lodged complaints against your agent or broker and if they’ve received any disciplinary actions.Florida Health Insurance Lee Simanoff866-755-9009http://www.floridahealthinsurancecorp.comArticle Source:

Tuesday, April 29, 2008

Personal Injury Cases and Small Business Insurance

One of the most scandalous attacks on small business has come from personal injury lawyers as they file suits against innocent small business people claiming that negligence of upkeep or repair in their business location caused unnecessary injury to their client. Indeed some businesses are problematic yet in taking responsibility away from the shopper, customer or slip and fall fake it professional seems a little unfortunate.

You see it is widely known that many of these personal injury cases are in fact the fault of the faller and everyone knows it. Many fallers who later sue have an average of 2 or more previous cases where they have sued for monetary compensation from a small or large business. Indeed they find this to be a good way to make a living.

Often we also find chiropractors, doctors and lawyers all in the scam together with the client who claims to be so injured they are in constant pain. Lately private investigators and defense lawyers have gotten smarter and video taped those who claim to have injury doing all sorts of things like water skiing or lifting ATVs in and out of high-rise pick-up trucks. So if you think you are going to scam a business with a personal injury claim, just know we will be watching you every step of the way and then sue you for fraud.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; Lance is a guest writer for Our Spokane Magazine in Spokane, WashingtonArticle Source:

Small Business Insurance: Do You and Your Subcontractors Need It?

Of course, you need to check with an accountant or lawyer for specific information, but in this article, you'll learn what small business insurance has worked for our computer consultants and customers in the past.What Type of Small Business Insurance Do You Need?

You should definitely have both a general liability as well as a professional liability policy for your services. That professional liability should have the errors and omissions insurance rider folded into it as part of your small business insurance coverage.

How Much Will It Cost You?
This insurance will range in cost, but $3500 is about average. Typically, small business insurance companies will base your price on your size, in terms of employees, the sales volume you’re doing, and how they characterize you by risks.

Take time to carefully explain and look at the categories with your agent before they lump you into something that you’re not. A lot of times they might classify you into software developers which could be a very different risk category than network installers or resellers.

Do Your Subcontractors Need Small Business Insurance?
Yes, each of your subcontractors should definitely have general and professional liability and errors and omissions insurance. You should not be covering them. Otherwise what you’re doing is probably providing benefits that are more like what you would do for an employee as opposed to a contractor.

What's The Next Step With Your Small Business Insurance?
Talk to your attorney and talk to your insurance agent. If you have an insurance agent that takes care of your property and contents insurance needs, you should definitely sit down and talk with them. You might want to ask this question of your accountant also because they have a relatively similar business model in your same area.

Copyright MMI-MMVI, Small Biz Tech Talk. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}Joshua Feinberg helps computer consultant business owners get steady, high-paying clients. Learn how you can too. Sign-up now for Joshua's free audio training program that shows you how to use field-tested, proven Small Biz Tech Talk tools.Article Source: