What's the Best Way to Invest In Your Business?

If your business has made a profit in recent years, you may be thinking of ways to reinvest that capital back into your company. Thankfully, there are many ways you can do this; you can pour the profit into research and development to come up with new products and services, you can use the profit to renovate your retail or office space to allow for more product and client traffic, and/or you can invest in new equipment and new employees, both of which can increase your output and your revenues. Or maybe you think that the best investment you can make in your business is to use your profits to pay off business debts that can cost your company thousands in interest fees.

Really, the sky's the limit when imagining the ways you can invest your earnings in order to make your business even more profitable in future years. But if you invest your profits in growing and expanding your business or paying off debt when you aren't covered by enough commercial insurance, you are making a huge and potentially costly mistake.

Who Needs Commercial Insurance Coverage?

There is no business that can't benefit from the protection offered by various types of commercial insurance. Certainly, all businesses don't need the same type of commercial business coverage. For example, a farmer might need crop insurance and equipment maintenance insurance whereas an online marketer might need cyber liability and professional liability coverage.

The point is not that every business needs every type of commercial insurance policy out there; the point is that every business has a need for some sort of insurance coverage to protect its assets and future.

Why Investing In Insurance Is More Important Than Expanding

You might think it's a better idea to invest in measures that promise to expand your business than it is to invest your profits in insurance, but nothing could be further from the truth. Let's say that you invest your profits in new equipment and one of your employees is injured while using that equipment-but you neglected to purchase workers' compensation insurance. Now, not only will your business savings be tied up in making good on your workers' compensation responsibilities, which include pay, medical expenses and more, but future profits will also be tied to that purpose. And if your business is shut down due to fire, theft or vandalism? Once again, without the proper commercial insurance coverage, you're not only out your savings but you're also out of business.

Why Buy Insurance Rather Than Pay Off Business Debt?

Business debt and the interest that it costs your company is often a reasonable investment in your business's operation. The debt is usually created when you purchase a piece of equipment or invest in other assets that help stimulate profit for your business, which means that said debt is also paying its own interest.

When your debt is an investment that generates a profit, thereby paying its own interest, it becomes much less imperative to pay it off. More important is to protect the investment of debt against losses from fire, cyber theft, liability claims and so on, which is what insurance does.

What Kind of Policies Do I Need?

Commercial insurance policies have been designed and tailored toward specific industries and their inherent risks. It is impossible to prescribe a standard set of policies that all businesses need because every business and every industry is so very individualized.

In general, a business needs to consider insurance that will protect it from liabilities, will preserve the value of any assets it owns (including equipment and merchandise), that protects employees from financial damages caused by workplace injuries, and that creates a replacement for lost profits when the business is forced to temporarily shut down after an insurable incident.

In order to determine the specific types of policies that can help your business, give us a call. We can help you understand all of the individual risks created by your line of business and design an insurance portfolio for your company that ensures your future profits can go toward business expansion rather than liability and loss.

The Significance Of Getting The Right Kind Of Commercial Insurance   How to Compare Commercial Roadside Assistance Plans   

3 Reasons Why Your Small Home Business Needs Home Based Business Insurance

It's estimated that more than half of all small businesses in the U.S. are home based businesses. The Census Bureau estimates that there are over 27 million home based businesses as of 2007. This has certainly risen since the down turn in the economy when many people lost their jobs. This shift has given way to the small, home based business of today and tomorrow.

As an Independent Insurance Agent I run my business out of my home. The benefits are tremendous and technology allows more efficiency and productivity. I'm able to spend more quality time with my family instead of dead time on a commute to an office. I'm able to react to customer requests more quickly. And, I found out that I'm not alone. I meet so many people who manage their small businesses from their home, it's fantastic.

But, there is a problem. Most of these at-home small businesses don't have home based business insurance. I find there are three common reasons these entrepreneurs don't have business insurance. These are also the three reason's you need a home based business insurance policy.

My Home Insurance Policy will cover me. It's logical to think, since they own a home, somehow their home insurance company is going to cover any loss they may have. Unfortunately this is not the case. Most home insurance policies have a minimal amount of coverage for Business Property. So, if you have product, equipment, or supplies related to your business, at your home, there will be little or no coverage and, if the product, equipment, or supplies is away from your home then you'll have even less coverage. Generally, you can increase this coverage through a special endorsement but most insurance companies won't go higher than $10,000. Besides limited Business Property coverage, there is minimal coverage for Business Liability under your home hazard insurance policy. Imagine a product you produce injures someone after purchase. Your home policy will not cover this type of liability claim. Or, say the UPS driver is delivering supplies and material and gets injured on your property due to a hazard. Will you have coverage for this loss? No. Are you a Realtor? You may have limited coverage if you're out showing homes and your buyer is injured or you cause property damage. We live in a risk filled world, with people who are more inclined to sue than not. It's in your best interest to protect yourself by having the right home based business insurance. I've had my business at home for a long time and nothing has happened so I don't think I need it. This is a common excuse I hear from many home based business owners. They don't believe they face any risk. I once went to the home business of a seamstress. She had a room where she did alterations for her clients and she had cats. One of the cats was wearing a diaper because it was marking its territory in the house. What if the cats damaged a wedding dress or a stack of high end jeans waiting to be altered? Just because nothing has happened before doesn't mean something won't happen in the future. Give your clients assurance and confidence that you are a legitimate business by have the proper insurance. Business insurance is expensive and I don't think I can afford it. This couldn't be further from the truth. Many home based businesses just need a basic home based business insurance policy. These can run as little as $159 annually depending on the type of business and the amount of coverage you may need. Also, you might be losing business because you don't have any business insurance. To bid on contracts you usually need to show a Certificate of Insurance proving a minimum level of coverage. Having the right business policy can put significant dollars in your pocket, many times more than the cost of the policy.

There you have it. 3 reasons why you need business insurance for your home based business. If you're in Arizona feel free to call my office to ask any questions. If you're in any other state, call an Independent Agent in your area for the right advice for your particular situation.

The Significance Of Getting The Right Kind Of Commercial Insurance   How to Compare Commercial Roadside Assistance Plans   

Understanding The Benefits of PI Insurance

The importance of contractor insurance for modern UK contractors within the current business climate is vast. Insurance is vital in any walks of life, and this is no different to that of the business sphere and professional field. Business insurance differs from large umbrella policies to smaller contractor insurances, and each policy is vital in its own sector.

For contractors, PI Insurance is a very beneficial cover policy, and is by far the most popular and arguably most necessary form of protection for self-employed individuals. Contractors are professionals who work via their own limited companies, offering their services to be hired by larger firms. Because of this, contractors are not eligible to many of the advantages that proper employees gain from being in employment, and one of the most vital of these is professional insurance.

As contractors do not benefit from any protective insurance provided by an employer, they are 100% liable for their own actions and as a result are potentially vulnerable to serious financial loss. This lack of protective cover ups the risks that already exist in the contracting profession, further reiterates the need for proper contractor insurance, and particularly PI Insurance.

The PI Insurance covers the policy holder against error, omission or negligence made whilst carrying out professional duties. If a contractor was to cause an error that resulted in financial loss to a client, and then they could be liable to significant claims of negligence that may result in sever financial loss. Because of these scenarios that contractors are often faced with, this type of insurance acts as a safety net, protecting their professional indemnity and covering them from possible financial loss.

A common occurrence for contractors is that within their contracts there will be a number of contractual obligations that they must take on board and meet before continuing with a contract and ultimately getting work. Contractor insurance is often one of these and PI Insurance is the most common contractually specified policy. The fact that this insurance is actually a necessary purchase when seeking contracts is an example of the sheer importance of the policy and how vital it is for a contractor to buy.

As well as providing relevant, protective cover, the PI insurance policy acts as a tool in which a contractor can bolster their IR35 perspective in the eyes of HMRC. Contractors are every frequently under scrutiny from the tax office because of a tax legislation called IR35. This legislation is designed to assess whether or not contractors are self-employed, and not disguised employees doing so in order to pay less tax. PI Insurance can be used as a tool to show HMRC that the contractor is a business in its own account, having necessary contractor insurance and thus taking necessary risks.

PI Insurance is a popular, beneficial and recommended cover policy to any UK contractor, and any professional entering the contracting market is strongly advised to purchase the policy or seek advice and information regarding indemnity.

The Significance Of Getting The Right Kind Of Commercial Insurance   How to Compare Commercial Roadside Assistance Plans   

The Value of a Landlords Insurance Comparison

Are you protected for the properties you let out for domestic use or for commercial purposes? The one thing definitely needed is for them to be properly insured. The old saying of what you see is what you get, is particularly applicable to insurance policies, so it is essential to read and digest the contents very carefully before putting your signature to one.

Do not settle for the first policy that you find. Undertaking a landlords insurance comparison offers you many alternatives. Take time and go online to see what there is on the web. Insurance companies are competitive and they all want your business, so tailor-make a policy that suits you in particular. An insurer might offer you a substantial discount after a year's premiums has been paid, or else include some other worthwhile benefit for you. The choice of an insurance policy is up to you, so choose wisely.

Furthermore, there are various regulations legally required for you to have as a landlord in the UK. For example, through the Housing Act of 2004 and the Regulatory Reform (Fire Safety) 2005, it is a basic requirement for households that you let out, to have fire extinguishers and fire alarm systems installed in them.

Having comprehensive insurance for a property that you let out, covers you for all eventualities. It includes insurance for public liability, a cover when an incident occurs with a tenant who decides that you are responsible for an occurrence and decides to sue you. Without public liability insurance, this could prove a very expensive exercise.

For commercial properties that you own, remember to have insurance appertaining to business regulations; they do differ from residential insurance in content.

When letting out residential property it is important to have landlord insurance, to cover you should any damage happen to your property through your tenant, or you have an unexpected loss of rental. There are tenants the world over who seem to think it is their right to do a 'midnight flit' without paying their rent. On occasion, this could even be for a couple of months rent owing to you!

This is where doing a landlords insurance comparison comes to the fore. If you have not read in-depth what you policy covers, you could be in for big losses. So be alert and read thoroughly any insurance policy you intend to take out, it is only to your advantage.

The Significance Of Getting The Right Kind Of Commercial Insurance   How to Compare Commercial Roadside Assistance Plans   

Know What to Consider While Buying Personal Accident Insurance Policy

Accidents are uncertain, and can cause irreparable damage to the individual. Hence, it is important to buy the correct sort of insurance to protect oneself against any such possible unfortunate incidents. Buying accident insurance is thus, an important financial decision.

Personal accident insurance policy covers the risks confronted by the buyer due to a fatal accident. It provides coverage for both death and disability caused as a result of the accident. Purchasing this insurance can give certain significant benefits, such as:

• If the person dies in an accident, the beneficiaries of the person would get some amount as death cover. This will provide much needed financial support to the family after the person's death.

• If the person sustains an injury because of an accident, a lump sum is paid for medical treatment. Even if the person does not face complete disability, for instance loses an eye, the personal will get a portion of the sum assured for covering medical expenses. A disabled person is also entitled to get a certain periodic sum, say a monthly remuneration, if the person is employed in an organization.

Things to look for in insurance policy:

While buying a personal accident insurance, the key factors to be considered are the number of years, amount of cover, and the benefits to the beneficiaries.

What all are covered under the policy: You should look for events leading to accidents. Know whether the type of accidents you are likely to face are covered by the policy. For example, see if the accidents apart from road or rail are included, such as fire accidents at home, accidents due to slipping on the steps of the apartment, etc.

Compensation amount: The payable compensation amount is also important. This, in turn depends on the size of the family, the risk involved, whether your spouse is working, etc. How much is payable on death, disability and minor disability should be examined. For example, know about the amount compensated for your family in case of your death, monthly remuneration for medical expenses, etc.

Percentage of benefit under permanent/temporary disability: Find the portion of the sum offered as the risk compensation. This depends on the accident resulting in death or disability (partial/temporary). For different conditions, varying amount is payable.

Exclusions and limitations: You should have a look at exclusions and limitations. These are significant as overlooking any of these could make your claim void under certain circumstances. Some of the common exclusions include:

• Persons aged above 75 years are not eligible to take this insurance • Driving under the influence alcohol or drugs would make your policy void • Injury caused by an existing infirmity or defect in the body • Accidents caused due to sports like polo, sky diving, professional diving, etc. • Accident because of war related events or riotous conditions • Full-time active service in the armed forces • Suicide or deliberate self-inflicted injuries • Criminal acts • HIV/AIDS

All these events make you forfeit the benefits. Hence, you should look out for any provision in this regard.

Things to look for in the insurance company:

Once you are sure of the details of policy, you should choose an insurance company having proven repute and experience in selling accident insurance policies, settling claims, facing financial legal challenges, if any. You should consider the following:

• Reputation and existence: Consider the reputation of the company in the market - how long it has been there in the market. As a thumb rule, a company is supposed to be there for not less than five years, in any case. Reputation is built over a period of time in terms of timely help to the customer.

• Claim settlement ratio (should be at least 75%): Insurance is for the long-term and the company should be strong enough to meet the demands of claims furnished by its customers. A benchmark is that the company should be able to meet a minimum of 75% in claims cases.

• Premium charged by the company: The premium charged should be reasonable and comparable with other insurance companies. Premiums may vary across the companies because of the benefits offered, duration of the benefits, etc.

Opt for a reliable brokerage firm to get best deals:

Once you decide to buy the insurance, you can purchase contacting the insurance company directly in person or through online. You can quote for their premium giving out the necessary details/specifications.

Another way of purchasing insurance is to go for a brokerage firm. This is indeed, the best option. This is so because, brokerage firms are experienced and knowledgeable enough to advise you the best deal in terms of amount of cover, duration of the cover, premium payment, claim settlement, document verification - that are involved in the whole process.

Consider these points, while buying personal accident insurance. These will help you buy an optimum insurance cover.

The Significance Of Getting The Right Kind Of Commercial Insurance   How to Compare Commercial Roadside Assistance Plans   

Choosing The Best Business Insurance Quotes

All companies face great challenges everyday whether they are small or big. There are a lot of competitors in the industry as well as economic problems that affect their status and financial stability. With all these threats, owners are advised to check on business insurance quotes and decide on what type of coverage they need for their company.

These insurance policies protect the company from future loss and bankruptcy. It also prevents a firm from liabilities in case of damages and misfortunes. These damages may be caused by different factors such as accidents, natural disasters, or man-made. For instance, your firm can be sued by your clients if they have been harmed or injured by your products or services. These policies will cover the expenses that your clients need.

Owners can choose the type of coverage that will best suit the needs of the employees and safeguard their assets. Since there are numerous insurance companies nowadays, it is important to check their quotations before availing their assistance. The types of assistance include health, medical, life, home, property, and vehicle coverage.

Standard coverage may not be ideal for big companies. For instance, a firm can include health, medical and life coverage for their employees. This means that their workers can avail discounted or free hospitalization in case they meet occupational accidents. Likewise, employers can avail property or vehicle coverage if their firm has numerous automobiles and assets that are vulnerable to damage or misfortune.

This is also ideal for sole entrepreneurs and small businesses. Remember that a small business has stronger competitors thus making them more vulnerable to economic loss. With that, they should have financial support in case something wrong happens during their operation. Entrepreneurs can also have their own life and medical coverage since they are the ones liable for their own well-being.

The price of these insurances depends on the company offering them. Likewise, the inclusions influence the pricing stated on the quotations. That is why it is important to do some research when comparing quotations. Some companies may be including policies that are not important for your firm thus increasing the rate you have to pay.

Reputed brokers usually give advice to business owners on what type of coverage they need. You can also visit your company lawyer to give you evaluate the business insurance quotes you received from insurance companies. Your legal adviser will help you understand the natures of individual policy and help you determine whether you need it or not.

The Significance Of Getting The Right Kind Of Commercial Insurance   How to Compare Commercial Roadside Assistance Plans