General Business and Finance Blog

Running a small business can be tough at times and most businesses run a fine line between being profitable and making a loss. These narrow margins leave small businesses very vulnerable to the risk of losses resulting from accidents, theft or lawsuits. Minimizing risk is essential for small business owners and adequate insurance is an essential solution for this. Business insurance offers protection for when your product or service fails, when someone is injured on your property, when a thief walks off with your office computers or when your driver crashes the company vehicle.

Getting the right type and amount of cover is a daunting task for most people. As a result many small businesses are either under insured, over insured or worst of all not insured at all for vital risks. The type of business you are running and the types of products and services you offer will largely determine the type of insurance you require. In general, small businesses need a combination of the following types of policies:

Public Liability Insurance

This type of insurance policy protects your business from lawsuits associated with damages caused by your business or injuries sustained by people on your business premises.

Professional Indemnity Insurance

If you are a professional like an accountant, investment advisor, tax consultant or even an insurance broker then you should definitely consider taking out this type of insurance policy. It protects you from losses that could occur should a client sue you for advice or services that may have led to the client losing money. Professional indemnity insurance covers legal costs, court fees and pays the settlement should you be found liable.

Workman’s Compensation

Many countries have regulations that make workmans compensation insurance compulsory, but even if it is not, this type of insurance can cover injuries sustained by your employees while on the job.

Business Interruption

If something happens like a fire on your premises and you need to stay closed for a significant number of days, weeks or months, this type of insurance will cover your fixed expenses like rent, utilities and taxes. Having to cover these expenses while the business is not generating an income would be disastrous without adequate insurance.

Building Insurance

Just like with home building insurance this type of policy covers the expenses of rebuilding or fixing damaged business premises following a fire, water damage or similar event.

Business Motor Insurance

This is similar to regular car insurance, but usually differs in terms of the drivers stipulated in the policy. Since several different people typically use a business vehicle a policy with multiple drivers is usually needed. Should the business operate many vehicles then fleet insurance will be required.

If you are unsure about your small business insurance needs, then it is vital that you consult an insurance broker who expert in small business insurance. An insurance broker will be able to analyze your businesss services, products and activities in order to determine where your high risk areas are and provide you with policies to cover this risk. A broker will also be able to source several insurance quotes for you in order to find a good deal.

The world can become too complicated, overwhelming us with choices. When there are so many, how do you decide between them? It all gets rather arbitrary when the differences between the different products and services are so small. But, every now and again, a change does come. Not in reducing the choices, you understand, but in adding a novel idea that might just force change in the particular market. So look at the very conservative world of insurance. Nothing has changed for centuries. You pay your premiums and then have to fight to make a successful claim. But now there’s a new player in town. Spreading to twenty-seven states on a trial basis comes pay-as-you-drive insurance. Unlike the conventional policy which estimates how many miles a year you are likely to drive, this is real usage insurance. Put simply: the less you drive, the less you pay!

We could all applaud the insurance industry. It’s finally gone green, caring for the environment by giving price incentives to drive less. That’s thousands of tons of carbon that stay in your tail pipes. The world will not warm as fast. More importantly, it begins the process of weaning us off oil. We are less beholden to the Middle East states. If we drive less, there will be fewer accidents. That means lower premiums as medical expenses fall and the cost of repairs is less. It all looks good for insurers. We should all be doing this anyway. Using our vehicles less, switching to public transport if we cannot walk or ride a bicycle where we need to go. The manufacturers are pointing the right way too with more miles to the gallon. The price of gas is going up again. Let’s all drive less and save money.

If you drive less miles at off-peak times and avoid accidents, your premiums will fall. Most companies are offering a small transmitter fitted into your vehicle which transmits information on the time, speed and length of your journeys. In other words, it ties in with your GPS system. It also helps track your vehicle should it be stolen. The others physically inspect your odometer readings. On average, the savings are about 30% off the standard premium. In some cases of ultra low use, State Farm in California is promising a reduction of 45%. So is PAYD the best invention ever? Well, it depends on what you think of allowing the insurers to collect all this information about you. You may save money, but there are privacy issues. The insurers could also decide to increase your rate if they discover you break the speed limits.

When you get your next batch of free auto insurance quotes, look to see whether you are lucky enough to live in one of the twenty-seven states, look for the option. You may find the savings make some sacrifice in your privacy acceptable. The biggest push is going to be in California where State Farm and the Auto Club of Southern California are rolling out major policies in February 2011. There hasn’t been all this excitement in the quiet pool of auto insurance since Henry Ford promised to sell colored Model Ts.

Insurance is a slightly unusual business because it depends on your honesty to tell the insurance company everything it needs to know about the risk you want it to underwrite. The insurer cannot know everything. So there’s this rule. If anything significant happens to change or affect the risk in some way, you have to tell your insurer about it. Should you forget and later claim, the insurer is entitled to refuse payment on the claim if the forgetfulness is discovered. Is there a rule on what justifies you opening your mouth and speaking? No. This means you have to assume it’s better to speak rather than keep quiet.

What is this about changing address? Well, this is one of those hot-button insurance issues. In most states, insurers operate a ZIP code approach to setting premiums. If you live in an area where there’s high crime or there are a lot of accidents because of bad road design, your premium rate will automatically be higher. Only those of you lucky enough to live in California avoid this unfairness. Really all insurance should be based on your skills as a driver but that’s too much like hard work for insurance companies. It’s just so much easier to lump everyone together based on where they happen to live. Now, let’s say you know the ZIP code next to you has lower premiums so store the vehicle there whenever it’s off the road. This is always worth a try because this directly affects the risk of your vehicle being stolen or damaged overnight. Now let’s change the scale a little. Come the fall, all our young drivers have this urge to leave home in favor of college or university. Higher education is good for premium rates. To get in, you need a good GPA which entitles you to a discount. Many colleges and universities are also in good ZIP code areas so, if your vehicle is going to be garaged there, this is definitely going to affect the insurance rate.

In the year of 2008 a change of 1% was noticed in the car insurance premiums. Almost all the states have average premiums much higher than Arizona. Arizona has some rules that are very typical for the state. They should be performed on the road all the time. For example, the state allows the average speed limit of 55km per hour plus the average speed on a highway can be 60 km per hour. The blood alcohol percentage limit in Arizona is 0.08. There is a law in the state that is called Open Container law. What is this law about? By the rules of the law neither the driver not the passengers are allowed to consume alcohol while driving. If opened bottles of alcoholic drinks are found in the car the punishment will follow. You can use a hand held phone but you can forget you have a cell phone while on the road. If found on the road with a cell phone you may get your license suspended for as long as 90 days.

Getting a little more specific, if this your own vehicle or is it still in the name of one parent? It’s always better in the long term to be establishing your own track record as a driver. The longer you hide on your parent’s policy, the more expensive it’s going to be when you finally do get a policy on your own. Let’s say this is in a parent’s name, he or she will have to notify the insurer of the change of address during term time. If you are going out of state, there may also be implications if the new state has a higher mandatory liability coverage. Never assume you know. Always ask for new car insurance quotes if there are going to be major changes. If the vehicle is in your own name, this should light a fire under you. Check out whether the college or university has any special rates or offers driving courses that will earn you a discount. There is still cheap auto insurance out there for you as a young driver. You just have to know where to look.

The real question is to decide exactly what government is for. One side may say there is no real need for centralized services of any kind except for defense and broader economic management. The other side will say government is there to offer some degree of protection to all the people who live in the country. This can be supporting minimum standards of education and healthcare, offering a safety net if there is unemployment, and so on. Thus, the little government side would always avoid regulation, saying it was for the markets to regulate themselves. While the big government side would be there with regulation every time it felt the markets were not working properly to protect people’s interests. There is no right answer. Capitalism as a system works well so long as the economy is sound. It gets confused about what should happen when a recession hits.

As an example of the knots politicians can tie themselves into, let us go down to Texas where the Democrats are challenging for the governorship. One of the top issues is proving to be the premium rates for homeowners insurance. The Democratic candidate asserts the rates are an average of $625 higher in Texas than in other states and this justifies detailed regulation to protect consumers. The Republican incumbent accepts the Texan rates are the second highest in the US, but denies the need to intervene in the market. As it stands, insurers do not have to seek prior approval for any rate increases. The Department of Insurance can intervene after the event if there is evidence the rates are excessive.

The campaign is coming down to a choice between keeping the current system or requiring all insurance companies to justify increases before being allowed to apply them. The insurance industry says any more regulation would kill whatever was left of competition on price. As it is, an insurer will lose market share if prices are raised too high. As the internet allows people to compare and contrast prices, it is quickly obvious when one company is out of line. If the state regulated prices, there would be no incentive to continue competition. The Democrats reject this saying the insurers collude to increase their prices together so that no company is ever really out of line. Since they are never asked to justify their increases, they think of a number and announce it. The largest homeowners insurance company, State Farm, has been locked in litigation with the Department of Insurance for the last eight years, alleging it wrongfully instructed it to reduce it premiums. Pending the outcome, no further premium rate increases have been challenged. Overall, rates have risen by 50% during this period.

Business insurance – what is it?

Business insurance is insurance that is intended to protect a business rather than the needs of an individual. There are many different types of business insurance available today but which one is right for you and your business? And what does it all mean? Here are some explanations to some of the legal terms used:

Negligence – means failing in your ‘duty of care’ to your client, this can include giving incorrect advice or making a mistake.

Intellectual property – infringing copyrights, trademarks or broadcasting rights this includes passing your product off as someone else’s or imitation.

Professional indemnity business insurance – this insurance protects you for sums you have to pay as compensation to your clients because of problems with your work.

What can you insure your business premises against?

Your buildings and / or contents can be insured against:

• Fire • Earthquake • Aircraft • Riot and malicious damage • Storm • Flood • Escape of water • Impact • Subsidence • Theft involving forcible and violent entry or exit • Other damage of an accidental nature

Business Interruption Insurance – what is it?

Business Interruption Insurance covers Loss of Trading Profit due to interruption caused by an insured event for a selected indemnity period, usually minimum 12 months.

What information do I need to obtain quote for business insurance?

You will be required to give some or all of the following information in order to obtain a quotation:

• your profession or industry• the level of cover you’d like • your annual turnover, annual gross income, annual fee income – if the business is just starting up your estimated first year’s revenue • your business name, a contact name and a valid email address   • your business trading address • answer a few questions about your business activities and previous claims history • the date you want cover to begin • your bank details

 

Small businesses need insurance to protect them from the risks that are involved with running a business. Each business will have risks specific to what that business does and the industry it is in.

Obviously some businesses work in higher risk areas than others and some businesses may work in a seemingly less risky industries than others but take on more risks. A lot depends on what a business does.

If you are a small business you may think that you are not at risk from unforeseen events and that it might not be worth having comprehensive business insurance because it’s a risk worth taking.

This could prove to be a big mistake because unforeseen events do happen. For example if you owned a restaurant just a small event such as a road closure could stop your business trading for a period of time. In this period of time your restaurant could see a huge reduction in visitors if not a complete loss of trade.

Business insurance would cover your business for the amount of time your restaurant might have to cease trading for. Without this insurance your business could find itself in significant financial trouble and may even have to cease trading.

As part of your business insurance you could also buy Business Buildings Insurance. This would cover your businesses buildings for damage due to fire, flood or anything that has a devastating effect. Business buildings insurance can also cover you for fixtures and fittings within your businesses premises as well as stock and other contents.

Copyright (c) 2009 Jeffrey Matsen

Recently, upheavals in the lending industry and bank failures have led many depositors to be concerned over the safety of their bank accounts. As most people are aware, a large number of banks and credit unions are covered by the Federal Deposit Insurance Corporation (FDIC), which insures accounts up to $100,000.00 (Credit unions are insured by the National Credit Union Administration [NCUA]). For many individuals, a $100,000.00 insured amount is more than sufficient coverage for their personal accounts, although all of your single accounts at the same insured bank are added together and the total is insured up to $100,000. For example, if you have a checking account and a CD at the same insured bank, and both accounts are in your name only, the two accounts are added together and the total is insured up to $100,000. For greater protection, you can always split amounts greater than $100,000.00 among multiple banks.

However, corporate accounts often hold amounts greater than $100,000.00. Under the FDIC Rules and Regulations, corporate accounts are also insured up to $100,000.00 combined, even when a corporation has separate accounts for divisions or units which are not separately incorporated.

One of the largest and most important account held by a corporation is the payroll account. Protection of a payroll account which exceeds $100,000.00 in deposits takes special planning which our office can assist you with.

Some banks may offer a service where they reciprocate accounts amongst other banks. When the account goes over the FDIC limit, they automatically open an account at another bank for the overflow, as many times as needed. You may wish to speak to your banking institution to see if they offer this service. Your payroll company may be able to draw from separate accounts and therefore allow you to open separate accounts at separate banks. You could then, for example, have multiple payroll accounts at separate banks, all insured separately, and all under the $100,000 limit.

Secondly, under the FDIC Rules & Regulations §330.11(a), if a corporation maintains deposit accounts in a representative or fiduciary capacity, such accounts shall not be treated as the deposit accounts of the corporation but shall be treated as fiduciary accounts and insured in accordance with separate provisions regarding accounts held by an agent or fiduciary and/or the provisions regarding joint ownership accounts.

FDIC Rules provide that the interests of each co-owner of a joint account are separately insured even if the account is in excess of $100,000. The amount of the co-owners interest is added to any other funds the co-owner may have on deposit at that banking institution, and the total is covered up to $100,000.

The FDIC will look at certain evidence to determine how the account should be treated. One of the factors is how the account is titled. For the strongest protection, we would recommend that you title your account “XYZ, Inc., as fiduciary for the XYZ, Inc. Employee’s Payroll Account.” Further, payroll accounts should be kept in a separate account from any other corporate funds, and preferably at a separate bank, if possible. All accounting records kept by the corporation should show that such account is only used for payroll purposes and list the names of the employees who are paid from that account, as if they were the owners.

One method not to use would be to hold separate accounts, all under the $100,000 limit, in your personal name or the names of family members. Co-mingling of assets is a hallmark of the doctrine of ‘piercing the corporate veil,’ and doing so could open you up to possible personal liability to answer for debts of the corporation.

Our research indicates that the above is the strongest protection your company can have with regards to FDIC insurance. We urge you to properly maintain your corporate records to ensure maximum protection. While the above advice may not be absolute, we believe it will provide your corporation with the strongest protection available to safeguarding your deposits.

Nowadays, in this modern life, many people care about insurance. It seems that insurance is one important thing that they need. People like to ensure what they feel significant for them. Usually, what is insured by people is car. In fact, the word insurance is identical with high price. Thus, not many people afford to have it. That is the problem.

We know well that you need affordable auto insurance. Here we are. We know all you need. Just click carinsurancerates.com, then you will get so many information there. This website will help you to know more about insurance. There are some policies that are free to be chosen by you. You can study them and decide. If you need information about other insurances, this website is the proper one for you. Home insurance, health insurance, life insurance, and renters insurance are there for you. You will see some companies and brokers within our network too. Whatever you want to know or anything you want to ask, you are free to do that in the website.

Once you decide to have car insurance or other insurances, do not hesitate to contact phone number in the website. We will be always ready to help you.

Some of us might consider of having some insurance service for out assets. If we check the assets, there are so many things that we must protect with the insurance service. We must protect the car, the house, the bike, our health, our life, or the kids’ education with the insurance services. Surely, those insurance services would cost us some money, but considering the benefits that those insurance services have already promised to us, the costs would be the acceptable costs.

The question is; how should we choose the insurance service? There are hundreds, maybe thousands of insurance companies with their insurance service offers. We surely have to choose one of them that we consider as the best insurance service for our assets. To choose one of them would be a little bit difficult if we don’t have any tricks. Here are the tricks to choose the insurance services for us.

Try to choose the insurance service from the well known and the most reputable insurance company. At least, the reputable company wouldn’t do such stupid things such as fraud or others. We choose the reputable company based on safety consideration. You may learn more about this in the Insurancerate.com. Click the site to get more information about it.