Questions To Ask Your Business Insurance Agent

Questions To Ask Your Business Insurance Agent

Business insurance is a must-have if you want to protect your venture from any catastrophic event that could strike anytime. It is your cushion from loss, mishap or lawsuit and will keep you afloat during hard times. It keeps your assets safe and protects your acquired assets when business hits bottom. As an entrepreneur, you do not want your financial investment gone all of a sudden.

To know which type of policy is appropriate for your business, getting information from agents of various insurance companies in your area is the first step. Once you find the right agent, he will be your partner-adviser as you go through the process of choosing a policy that offers optimum coverage.

Five critical questions you must ask your business insurance agent:

What is the right insurance for my business?

Every business needs different coverage protection. It is necessary to study each type of insurance to get adequate protection.

Property and casualty insurance – provides coverage for physical property in case of flood, fire and theft.

Liability insurance – mitigates potential financial loss when someone sues your company for negligence.

Workers’ compensation insurance – mandatory insurance to protect injured employees

Product liability insurance – pays for the damages that your product caused.

Commercial auto insurance – pays for any accident that damage your vehicle or cause harm to others during business.

Life and disability insurance – provides a fund for the owner, employee or business partners in case of disability or death.

Health insurance – covers a portion of your employees’ medical services fee as well as yours.

Business interruption insurance – provides a fund to cover profit loss and cash flow during the time that your business operation has stopped.

Professional liability insurance (Errors & Omissions insurance) – covers the damage due to an error during professional consultation or omission of facts that caused harm to clients.

When is the right time to get business insurance?

The best answer is as soon as you open your business. You need to protect your investment and yourself from potential hazard or liability. If you employ people, it is mandatory for employers to secure workers’ compensation insurance within the first month of operation.

What are the salient features of insurance policy that I need to understand?

Every insurance company has unique policy package. Study the scope of coverage, the limitations, the nature of liability limitations, the benefits and the premium. Ask your agent to give you pointers on how to file claims.

What is the government’s required insurance?

To secure a business license from any state, you are required to get general liability insurance with minimum coverage. It is up to you to upgrade the policy if you want broader protection or retain what you already have. Other types include workers’ compensation insurance, unemployment insurance and health insurance.

How can I reduce my premium payments?

Many insurance firms offer lower or discounted premium if you get a comprehensive insurance policy or get bundled package. The size and structure type of business are also determining factors. Other cost-cutting measures are hiring a risk manager, employee training, fire safety precautions and sound security system.

As the cliche says, preparation is the best protection!

Why Do I Need A Business Insurance?

Why Do I Need A Business Insurance?

Starting a business a huge commitment and is quite a risky matter. Most entrepreneurs are more focused on raising funds, creating effective marketing strategies and it’s essential to assure that everything is well taken care of.

Business insurance is one of the things that’s need to look out for before starting up a business. You have a lot of things to consider and check before you can make a wise decision. The outcome of not having a firm insurance policy should on the top of any entrepreneur’s initial to-do list.

Here are some reasons to consider why you need business insurance.

It’s the Law

The law requires businesses to give certain types of insurance to their employees such as unemployment, disability, and workers compensation; it depends on the state where the business place is.

Failure to sustain command legally would result in penalties, fines, and exclusion from public contracts.

Keeps Your Business Running

What will happen to your business if natural calamities occur? What will you do about the loss of money during your business closed?

That’s where Business Owner Policy plays the critical role; this will help a business survive after a severe disaster by protecting from loss of income.

Human Assets Protector

As an owner, you need to keep the business up and running. But what if you suddenly you had serious accidents or some unfortunate circumstances that take you out of your business for years?

Company-owned life and disability insurance coverage give payments to cover the income you cause. It also offers funds for the acquire of your interest under a buy-sell agreement.

Attract and Retain Employee

Having insurance can have the positive benefit of attracting and retaining qualified employees. Aside from salary, job hunters look for benefits packages that cover health, life, and long-term care insurance. To avoid losing the right employees in your company, you should offer this kind of perks.

Gives You Credibility

Having business insurance makes you look credible. This will show your potential clients that you’re a safe bet. It would be easier for you to compensate if anything goes wrong with the work you do for them.

This is most probably the reason home services companies carry statement “licensed, bonded and insured” on their signage and trucks. This will help build trust, the currency of a modern-day economy.

You Could Get Sued

We are living a contentious community. When lawsuit or liability claim happens, without insurance, your business could bend. One dissatisfied employee, one accident everything will be over. Liability insurance can help you enable to concentrate on what truly matters and will give you peace of mind.

Employee Protection

You might be thinking that your most valuable asset is your services or products that you offer but it’s not. Your employees are your most valuable assets, and it will also pay to protect them an from an accident. Protecting your employees’ interest is also an excellent way to protect you from lawsuits and liability claims.

As you can see, there is a lot of reason to invest in business insurance. To put this simple, protecting what you’ve built and invested in should be enough reason, right?

What Does A Business Insurance Cover?

What Does A Business Insurance Cover?

We never know what the future holds, so it is always best to be prepared. Getting business insurance is probably the best investment that you can do for your business.

According to The Hartford, “business insurance can help pay the costs of property damage, lawsuits, lost business income, and other covered losses”.

Often, businesses will buy multiple coverages and combine several in one policy to protect themselves against specific risks that are unique to their situation.

A Business Owner’s Policy or BOP is among the most popular business policies and includes business property, general liability and business income coverages in one policy.

Chron also advises determining the type of insurance coverage needed to minimize any potential risks to the businesses.

Don’t know where to start? Here are some of the essential business insurance coverage options:

Business property insurance

This will help protect your business’s buildings and personal property. It might include furniture, tools, equipment and inventory.

Business income insurance

Helps replace lost income if you close temporarily due to a covered loss like theft or property damage from a fire. It can also help you continue paying expenses while your property is replaced or repaired.

Professional liability insurance

Liability insurance will help cover costs related to claims that your business made errors in providing its services.

For example, if you make a clerical error and it causes a client to lose thousands of dollars, professional liability insurance can help cover the costs if the client makes a claim. A business doesn’t need to do anything wrong to be sued.

Depending on the scenario, coverage would apply to defend a business if sued.

Workers’ compensation insurance

Compensation insurance helps cover costs to employees while they are unable to work after suffering a work-related injury or illness.

A commercial auto policy

This policy helps protect your business from the costs of a work-related auto accident. If you or an employee is in a crash while driving for business reasons, commercial auto can help cover the costs that result from the accident.

Commercial umbrella insurance

This add-on insurance acts as a safety net that provides additional coverage when other liability policies reach their limits. For example, say a customer slips and injures himself in your store. He then makes a claim against your business for $200,000.

If your general liability policy has a limit of $150,000, commercial umbrella insurance will help cover the remaining $50,000. Businesses find this coverage is essential for helping protect against financially devastating lawsuits and claims.

Data breach insurance

This kind of insurance will help protect your business from the costs of cyber threats or attacks.

Commercial flood insurance

This insurance helps protect your business from the costs of covered flood damage. This includes damage to the physical location of your business as well as its assets. For example, say melting snow floods the basement of your business. The floodwater damages the floor and some tools. If this happens, commercial flood insurance can help cover the cost to repair the damaged floor and appliances.

Employment practices liability

[EPL] helps protect your business if an employee sues you. Even if you are not at fault, defending a lawsuit can be costly. Employees may make a claim against your company for reasons such as discrimination, harassment or wrongful termination. If they do, EPL can help cover the related costs.

Risk engineering

Risk engineering professionals evaluate your business’s risk exposures and then create improvement plans, and programs to train you and your staff to safely handle accidents and follow safety protocols. This can result in a safer, more productive and profitable business.

Multinational insurance

This insurance can help streamline coverages if your business has operations outside the U.S.

Surety & fidelity bonds

A surety bond is a contract between three parties that help ensure a project gets completed or a commitment is met and guarantees payment if they are not. Fidelity bonds are a form of insurance that protects businesses from financial loss due to employee theft or fraud.

Home-based business insurance

Home-based insurance helps cover the costs of property and liability risks to businesses that operate out of a business owner’s home. If you keep supplies, equipment or other business property at your home, or have customers stopping by, consider adding this coverage.

Chron also listed Commercial Liability Insurance which covers claims against the business by third parties. The claims generally stem from accidents that occur on the business premises or injuries to third parties for which the company becomes legally liable.

The business owner must be legally responsible for the injury, typically depending on the location of the accident. In addition to insurance coverage for injuries to third parties, commercial liability policies may cover damage to the property and company products and may provide independent contractor coverage.

Standard business insurance policies don’t cover everything, but it is possible to add coverage riders to standard procedures to help cover additional risks.

How Much Should You Spend On Your Insurance?

How Much Should You Spend On Your Insurance?

First, let’s take a quick view about insurance. Insurance, in general, gives protection for a possible happening in either your personal life, your business or any other events. Insurance covers a wide range

A reminder in finding an insurance

Why do we need an insurance? This is usually the first question that reaches our minds. Think of some reasons why you need an insurance. Do you need some for health, for your car, life insurance, and so on? The scope of insurance is wide, think of what event in your life should you need it.

Tips on finding an insurance

Before investing in insurance, examine it first. Know what it gives, and how to gain from it. The following are tips to help in finding one.

  • Check its security coverage. Providing a good security standard is important. You don’t want to invest in something that won’t give you a kind of security that you deserve.
  • Pricing and Budget. One should think this as essential consideration. For business starters, you don’t want to enter into something that you can’t afford. People look in affordability. Value for money is a must.
  • Flexibility. Consider an insurance that offers a wide coverage and provides flexibility. Everyone has their own, different needs. Find one that will fit your needs.

Types of insurance to prioritize

Since insurance has a wide coverage, we’ll focus on what is important for a person to have. Typically, insurance has two types to prioritize: Health and Life.

Health insurance – Protection and help in hospitalization or health expenses is what this insurance provides. As we age, sometimes too much work is the key problem, we feel discomfort at times. Sometimes, we need to visit a specialist, like doctors, to check the problem immediately. Hospitalization is not a big joke. Expenditures on hospitalization is a loss on our part. This is a must have insurance for everyone.

Life insurance – An insurance that gives you and your family some protection, financially, in case of death. This is a guaranteed payment of death benefit to the beneficiaries upon the insured holder’s death.

Spending for your insurance

Consider first your budget, how are you willing to give for an insurance? The importance of owning an insurance at an early age provides a greater benefit in the future.  Jot down your list of expenditures, this will help you decide how much are you willing to spend for an insurance. Write down your expenses like food, transport, mortgage, and anything you need to spend for a month. Calculate the possible money that remains after deducting all the necessary expenses.

Don’t overspend on insurance. Give just a specific amount. We should avoid lapsing on insurance premiums. If you spend too much, sustaining the premium, in the long run, is impossible.

Insurance, as a protection, is important in people’s lives. Take into consideration what types of insurance do you need and how you should spend. Study each insurance carefully. Don’t overspend, it will give you hard time dealing with your premium afterwards.

How Can A Disaster Recovery Plan Protect Your Business

How Can A Disaster Recovery Plan Protect Your Business

“Disaster Recovery Plan (DRP) summarizes the step-by-step procedure your business will execute to recover from a devastating calamity or disaster.

A DRP is a business plan that describes how work can be resumed quickly and efficiently after a disaster,” Techopedia, an IT Education site, sums it up.

However, developing a DRP is not a one-time task to get done with. Since an organization continually evolves, a DRP must be adaptable to any changes.

An effective disaster recovery plan, according to The, “must be regularly reviewed and updated to make sure it reflects the current state of the business and meets the goals of the company.”

Purpose of making a DRP

Techopedia implied in its article that “a Disaster Recovery Plan enables the IT group to recover enough data and system functionality to permit a business or office, to be specific, to operate – even possibly at a minimal level.”

After a disastrous event, an effective DRP guides an organization to retrieve the necessary data and information. That is, in spite of what may happen with your system.

This way, your business bounces back and rerun its operations.

How to prepare a Disaster Recovery Plan?

This sample scheme from The focuses on a DRP for a possible loss of your business office, because of fire or a natural disaster like flood.

1. List of Jobs. Jot down and sort jobs according to its importance which needs to be functioning at once. Include here the list, which jobs need to be relocated.

2. Inventory needed office equipment. Include only the most important items and equipment’s needed to resume work as immediately as possible. (Desk and chair, computer, computer software, telephone, calculator and cash register)

3. List supporting equipment. These are the items utilized behind the scenes. (servers, server software, data backups, business phone system and office safe)

4. Alternate office location. Research in advance where do you plan to put up your Disaster Recovery site; remember you don’t have to rent out a place.

5. Insurance and budget. Determine how much do you need to get all the items or equipment’s you need and be sure to allocate and save that amount for your recovery plan.

6. Share the Plan and Store It Offsite. Share the plan with at least one person or a team. Make another copy as a back-up and keep it on a secure place outside or away from your office. Be sure you have easy access to it in case a disaster happens.

The advantage of creating DRP ahead of time

It protects and minimizes the chance of losing your business’ important data and system. When unexpected catastrophes happened, plan ahead and document every DRP procedures to save time, space and money.

Techopedia elaborates this,

“This is one reason why off-site hosting of all IT services can be a good choice for the protection they provide; in disaster situations, personnel can access data easily from a new location, whereas relocating a terminally damaged data center and getting it operational again is not an easy job.”

What do you think about this? Do you agree that Disaster Recovery Plan can protect your business?

The Right Insurances To Safeguard Your Business

The Right Insurances To Safeguard Your Business

Why do businesses need insurance? Engaging in business is like building a house, you allot time, money and hard work to improve it, to make it grander. You build fences around it and invest in security to protect it from any possible dangers outside. You make sure that whatever happens, amidst the impending risks of having a grand house, your investments are covered. This intangible shield that protects your assets is your insurance.

Comparatively, the role of insurance in business is the same – to protect your assets and the future of your company, albeit, that business comes in many forms and structures and encompasses a broader range of investments.

It is essential to learn, be ready for any unforeseen risks and leverage on the right insurance policies to ensure that the business is always on track. Here are the various insurances you need to consider fundamental to your business operation.

What is Liability Insurance For?

Whether it is product or service that you offer in the market, and regardless if your operation is home-based or if you’re a Fortune 500 corporation, you need to protect your business from any danger of claims or lawsuits arising from damages, injuries, negligence and accidents.

Product liability insurance is essential to companies selling and distributing tangible goods to market. This protects the products that the company sells from any detrimental factors that may occur in the process of getting the products to the market.

Error and Omissions Insurance or Professional Indemnity Insurance is a must for the individuals or companies providing professional service. The protection covers costs from legal actions against malpractice, errors or negligence in the service provided.

Do I Need Insurance For My Assets?

Insurance for your commercial properties and automobiles is a must!

Property insurance entails protection to your business from any impending costs due to damages in the building where your company is situated, equipment, documents and lost income due to business interruptions.

In some cases that business operates home-based, homeowner’s policy is recommended, however, the protection is not extensive as property insurance can offer. It would be wise to ask further advice from your financial advisor or add riders to your existing policy to cover other losses.

Automobile insurance covers the costs that your company may incur should accidents or damages in the vehicles occur.

What is Umbrella Policy?

For all other costs that are beyond the limits of your existing business insurance policies, get the umbrella insurance that can extend extra protection to your business. This is to ensure you have the catch-all coverage for any costs that slip through your policies.

Don’t Forget!

In all your financial preparation and protection, it is vital that you get insurance for yourself. All your life’s work will be futile, should you leave your loved ones financially burdened and without financial support to anchor them. Life insurance will protect not only our family but also our legacy.

Insurance may be an additional cost to your company’s finances but doesn’t worth more than your safety and peace of mind.

Smart investment requires researching and purchasing the right insurance for you and your business!