Posted by Tom Carolan on Wed, Nov 18, 2009 @ 02:33 PM
Many entrepreneurs have a unique skill that will allow their business to succeed, but very rarely is it business insurance expertise. Most small business owners 
venture out to prove that they are the best in what they do. However, there are often many areas of managing a business that are neglected only because of lack of knowledge and specific experience. Too many small companies fail maintain adequate business insurance coverage simply because it is often misunderstood, so it is imperative that several things are made clear and easy to understand.
The first type of business insurance is liability coverage, and it's also often seen as the most important as well. There is a fair amount of risk associated with doing business and the result is the presence of potential lawsuits virtually every day. Business liability insurance provides protection in the event of any injuries or damage done to clients, employees, or property. There are many different limits available, but one million dollars in liability coverage is usually considered to be typical.
One lawsuit can completely wipe out an unprotected company. While such legal actions may not completely be avoided, taking the necessary steps to secure protection will help ensure that the business will not be so severely negatively impacted that bankruptcy is the only option. Many clients will not work with a company that is not properly insured, and it's actually required by law in many areas as well.
The second type of business insurance is property coverage and although it may not be mandatory, it absolutely should not be viewed as optional. Retail stores carry business property insurance to protect their inventories and their actual location and property. Other businesses carry such insurance for inventory or materials required to complete jobs or orders. Anything that can burn or be stolen must be covered by an appropriate business property insurance policy. Few companies can afford to continually replace materials, so it is imperative that all property is protected.
Entrepreneurs are often focused on the bottom line and attempt to cut costs wherever possible. However, failing to adequately insure a business can cause significant financial damage or even bankruptcy. Many policies can be catered to the exact needs of a company and it truly doesn't have to be expensive. Selecting higher deductibles may be a good choice for a small business that can handle minor losses, but needs coverage for major catastrophes. A lot of business premiums are based on the type of activity done on a daily basis, so it is imperative that the company is appropriately described and the potential level of risk is accurate. The best way to save money is to compare multiple quotes online as this has proven to be the most effective method to get a great deal on business insurance.
Posted by Tom Carolan on Wed, Nov 18, 2009 @ 02:08 PM
Are you paying too much insurance premium? Are the co-payments and deductibles
affecting your business cash flow? Is it possible to save money on home-based business insurance? Yes, you can! We are here to show you how. Read through the following 5 easy ways to pay less for insurance.
Before you begin shopping around, prioritize your needs. What are the types of insurance you need for your home-based business? Apart from the usual eventualities that are covered under property and liability insurance, are you vulnerable to any other risks? Let's say you are setting up a tax consulting business and need to drive from place to place; would you really need commercial auto liability insurance? This article will give you a good idea of what exactly to look for when buying your insurance.
Look for business insurance packages - Many insurance companies offer packages that bundle different types of business insurance together. For instance, you could get a package insurance coverage that combines property, liability, loss of income and records. By opting for an insurance package deal, you can save money by paying one premium rather than multiple premium amounts on different types of insurance separately.
Take advantage of group rates - Different business support organizations like the local Chamber of Commerce or The Better Business Bureau offer insurance plans and/or discounts on business insurance to their members. The bigger the group is, the lower the insurance rates. Of course, first you will have to become a member of the group or association, by paying an annual fee. Notwithstanding that, you could still end up saving money compared to the cost of buying the same kind of business insurance on your own.
Lower your liability risk - Talk to your agent to find out how you can lower your business insurance costs. Would installing a security system reduce your business insurance premiums? Can modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage make your business premises a lower risk proposition?
Relocate your business - The cost of business insurance can vary depending on the location of your operations. Conduct some research to see if relocating is worth the money you save.
Compare, compare, compare - The most important step that you must take before buying your business insurance is to shop around. Do your homework and get quotes from several companies. Ask your friends, check the internet or contact your state insurance department. Get price quotes from at least three companies before taking a decision.
Once you have completed your research, choose the insurance that will work best for your business. Insurance protects you against losses you cannot afford. Since you cannot predict what will happen in the future, it is important to protect yourself and your business against potential damage. Despite doing all you can and getting the best deal, you might still feel that the insurance rates you are paying are too high, but remember that the cost of not having business insurance could end up being so much higher.
Posted by Tom Carolan on Tue, Nov 17, 2009 @ 05:52 PM
More and more, we see people leaving the comfort of a big organization to branch out on their own. Whether they are tired of being micromanaged or are just interested in doing something different, people are making this move in record numbers.
Becoming a business owner comes with many considerations. While small business owners face a number of obstacles, securing health insurance is probably one of the most common. Surveys report that 23% of small business owners state that the rising cost of insurance stifles success. Today, it is estimated that only about 49% of all small companies offer insurance compared to 98% of the larger corporations.
The reality for most small business owners is that the cost of insuring themselves, in addition to staff, would have a dramatic impact on the business. For some people, health insurance is provided by a spouse, but as people get to retirement age, these benefits often go away. Young people may get coverage through their parents, struggle to get and keep an individual policy, or simply go without.
Some Chambers of Commerce in towns and cities across the nation provide options. In this case, if you were a member of the Chamber, you might have some choices for health coverage, but keep in mind that many times these insurance plans are expensive. However, if there were no other resources, it would be a consideration.
While there is no perfect solution to addressing health insurance coverage in your business, the news isn't all bad. There are a number of reputable and qualified companies dedicated to helping small business owners establish health and other types of insurance. Here are a few recommendations for your consideration:
Posted by Tom Carolan on Tue, Nov 17, 2009 @ 05:41 PM
It's no secret that most small business owners do NOT have separate insurance policies for their automobile usage. Many business owners simply conflate their personal insurance with their business insurance without even realizing the risks they are actually taking. Simply put: by not obtaining auto insurance specific for your business, you may be in for a big surprise after your first accident.
Part of the problem in the small business world is a matter of size and complexity. This is especially true if you are a solo entrepreneur and you spend most of your time working out of your home or a small office. When you use your car to drive to the grocery store, you are in the personal usage zone of insurance concerns. However, as soon as you turn the key in the ignition and begin driving to a sales presentation or to a work site, you are now entering the commercial or business insurance zone.
It is entirely possible that you may not actually need separate insurance policies for your auto or vehicle usage. Still, it is not clear what position you are really in until you perform the proper research. Fortunately, these days you can perform a wide variety of business insurance and personal insurance online.
You may also be a business owner with many different vehicle types and very regular usage. Do you use SUVs, trucks, cars, and a variety of other vehicles in your business? Do you require your employees to use these autos in your daily operations? If so, you are a strong candidate for small business automobile insurance. If you do not already have this type of insurance it is IMPERATIVE that you get it as soon as possible.
Most business managers are savvy enough to understand the importance of insuring their company transport system. You are probably one of them. Still, did you get the best rate on the policy? Are you paying unnecessary fees? And, perhaps most importantly, do you have the right type of coverage for your business system? These are the questions you are probably already asking.