Business Insurance – Today’s Business Lifeboat
Do you run a small business? Is your business insured? If not you could be risking your and your business’ future.
Learn about business insurance, and see why its today’s business lifeboat.
Expensive if You Don’t Use It – Cheap if You Do
The cost of doing business today is rising all the time, its true. Salaries and worker’s benefits are taking a bigger chunk of your profits.
Taxes are always a key consideration, and material costs are rising as well. Add to this insurance, and you have a real significant number on your cost of doing business column (on your profit and loss statement).
When looking at insurance you will be amazed as the amount of risks you are obliged to cover.
There are the obvious accidents or acts of nature risks, worker’s compensation, health and retirement plans, but then there are a host of other risks that can, and many should be insured.
It’s a maximum that all insurance is expensive if you don’t use it, but very cheap if you do.
The “Got To Have” Business Insurance Risks
Here is a list of basic insurance risks that every business should cover;
o Fire, Theft, Water Damage, and Malicious Damage to your business location
o All required worker insurance obligations, and for good worker relations, some perk insurance for employees, like some group private health plan, and retirement fund.
o Product liability if you are producing a product
o Transportation insurance for all your vehicles (full Casco advised)
o Fidelity insurance if your employees handle money. This may be a really indispensable pre-paid asset to your business.
The “Nice to Have” Business Insurance Risks
o Business interruption insurance
o 3rd Party Liability if you are producing a product for wide distribution
o Litigation insurance
o Damage due to civil disobedience and terrorist activity
o Business specific items
Buying Insurance
The choice of buying insurance is becoming a tiresome activity with so many options and prices (and insurance terms), that finding and using a good broker may be your best bet
The insurance broker has some advantages over using one company exclusively.
The broker can shop around, negotiate directly with underwriters (which you cannot do), and tailor make some policies for you.
The cost of using a broker may be easily absorbed by the lower cost of the insurance he provides you and your business.
You must make very sure of the broker’s qualifications, and demand a list of companies and underwriters he deals with.
Ask for a client list, and his inclusion in professional insurance societies. A search on the internet is also helpful. When you are satisfied, start using the broker to plan your business insurance risk profile and coverage plan.
Business Insurance
When you started your business, you probably dreamed of the freedom you would have doing something every day that you love. However, you may find that running a business doing something you love also brought with it other responsibilities, like finding business insurance. When you find the right business insurance for your organization, though, you will see that it brings you more peace of mind than the burden of responsibility.
When it comes to running your business and obtaining business insurance, you have a number of options. Knowing that one type of business insurance does not fit all will enable you to open your mind to finding the right business insurance for your company. Your first step in finding business insurance is to do a quick assessment of your type of business, your financial situation, and the laws in your area. These three things will help you determine what you need your business insurance policy to accomplish.
The first type of business insurance that you may want to consider is business owner coverage. This is an all-encompassing type of business insurance coverage that allows you protection in the case of fire and other accidents. This type of business coverage also offers a minimal amount of liability coverage, too. Also, you have another option in property insurance. This type of business insurance coverage will enhance the property coverage included in your business owner insurance.
An important type of business insurance that you may want to consider is liability insurance. We are in a society where people sue one another on whims, so liability insurance covers any damage to property or injuries to another person for which you may be responsible. Product liability insurance is another type of liability business insurance that protects you if your product causes harm to a person.
If you run a service-based organization, product liability may not be an issue, but errors and liability insurance is an important type of business insurance for your organization. This type of business insurance protects you if you make an error or forget to do something that causes harm to one of your clients. Also, you may want to consider business income insurance, which provides a source of income to you should something happen that causes your business to cease or limit operations. Finally, if any employee operates a vehicle for your business, you will want to purchase business insurance for your automobiles.
Read the rest of the article here: Business Insurance.
Business Credit: Every Small Business Owner and Entrepreneur Should Know This
America prides itself on the entrepreneurial spirit. Consequently, small business owners are increasingly becoming major key economic stimulators. When a small business owner decides to incorporate his or her business, that small business owner has just begun the process of creating a brand new and separate entity. Basic business law dictates that a corporation is a “separate and distinct legal entity having its own privileges and liabilities distinct from those of its member.”
Given this information, it then becomes essential and relevant that small business owners develop and maintain a unique and separate business profile. Every small business can and should establish their business credit. Just as it is important to maintain a personal credit profile, the same care, if not more, is needed to maintain a business profile.
The rules and regulations that govern business credit are totally different that the rules that govern your personal credit. Furthermore, the advantages as well as the necessities are apparent to some and not to others.
With the opportunities provided by government agencies, whether local or national, small business owners should be aware that an established business profile is valuable and necessary when partnering with the government for contracts and other ventures.
Additionally, limiting or avoiding personal liability is another key factor why a small business owner needs to be aware of and develop his or her business profile history. Purchasing goods or services under the name of a properly structured business entity can possibly afford the owner or owners some personal protection if the business finds itself in a position of litigation or debt.
The long term gain of a properly maintained business credit profile can afford the small business owner with better financing terms. A financial institution today will usually take into consideration a company’s business credit profile when making business loan decisions. This can also assist in receiving S.B.A. backed loans. Additionally, retailers and vendors can offer great revolving terms or net terms all based on your company’s business credit history.
As a result, when possible, attempt to do business with companies that report your payments to the business credit agencies. This can be a huge plus in developing your corporate credit profile.
Another aspect associated with establishing and maintaining a business credit profile comes in the form of creditability. As well as appearing legitimate to the banks, suppliers or vendors that you do business with, your business credibility can be scrutinized and looked over by individuals as well.
More and more individuals are willing to explore a small businesses’ credibility by actually reviewing the company’s business credit history. This gives information such as – How long has the company been in business. Are they paying their bills on time? Does this company have any judgments or liens against them that the individual should be made aware of?
For example, Joe Smith can take a look at ABC Roof and Repair Inc, and find out if any judgments or liens were ever placed against the company for possible faulty work. This can be a valuable tool when deciding to choose a contractor for major projects.
Business credit can be understood and achieved by any properly structured organization. Whether you are a mobile business, storefront, street vendor, personal trainer, stylist, personal barber, eBay seller, home business or consultant, it is beneficial to you as a business owner to understand the basics creating and maintaining your business credit profile.