Two Business Insurance Tips to Keep You Ahead of the Game in Your First Year

Two Business Insurance Tips to Keep You Ahead of the Game in Your First Year

Every business, from large to small, should be insured – even when you’re just starting out. It doesn’t matter if you’re running a small service-based business out of your home or if you’ve got a brick and mortar location. Unforeseen circumstances can occur to anyone at any time, and if you ever find yourself in one of those situations, you’ll be glad you had business insurance to protect you – even if you didn’t think you’d need it. For those who are new to business insurance, here are two tips to keep you ahead of the game in your first year. Prepare for an Audit The premium you pay on your business insurance coverage will be determined by several factors, not the least of which being your business’ annual gross sales. For those who are just starting out, your premium will be based on your estimated annual sale for the first year. Since the cost of the premium will be based on an estimation, your insurance company will want to verify the numbers and your premium will be adjusted. Don’t let the word “audit” scare you, insurance companies aren’t the IRS. They’ll just want to get a look at your books and see if the numbers are on par with what your estimation was. Depending on what they find, they may raise or lower your premium. Be Prepared for the Unexpected It sounds cliche, but it’s true. You have to consider the effects that accidents, illnesses and other potential risks could cause to your business in the future. For example, a service-based business run by the sole-proprietor would suffer...
Surprising Questions Asked by Auto Insurance Companies

Surprising Questions Asked by Auto Insurance Companies

There’s a lot to take into consideration when it comes to providing accurate auto insurance quotes, and some of the questions that companies ask tend to catch people off-guard. Some of the questions may seem like they have nothing to do with auto insurance, but that’s not entirely correct. Below are some surprising, yet important, questions auto insurance companies like to ask to provide you with the most accurate quote. Question #1: Are you married? Determining insurance premiums is all about risk, and data indicates that married drivers tend to file fewer claims than unmarried ones do. Question #2: What is your zip code? This is usually one of the first questions asked by auto insurers, and it’s used as the primary basis for determining what your auto insurance premium is going to be. The reason for this is because the area in which you live has a significant impact on whether or not you’re likely to file a claim, and auto insurance companies are aware of that. Those who live in larger cities tend to file more claims, and pay higher premiums as a result, than those who live in the suburbs or in rural areas. Question #3: What do you do for a living? What a person does for a living can say a lot about them, and some occupations are correlated with filing fewer insurance claims than others. As a result, if you happen to be working in one of the fields associated with fewer claims, your insurance premium is likely to be lower. When answering questions designed to generate a quote, it’s always best to...
Two Tips to Save on Homeowners Insurance

Two Tips to Save on Homeowners Insurance

A good time to start thinking about homeowners insurance is while you’re in the process of the buying a new home. A great time to start thinking about it is before you even start looking. An important factor in determining the cost of your homeowners insurance premium is going to be the home itself. Some homeowners insurance policies are based around something known as indemnification. Indemnification isn’t quite compensation, nor is it a reparation. Indemnification means that your homeowners insurance policy is designed to “make you whole” again by rebuilding your home to the same size and standard before it was damaged. Here are two things to consider before you start looking for a home. Size Because your homeowners insurance is based on the cost to rebuild your home, larger homes tend to come with higher premiums for one very simple reason: they require more materials to be rebuilt. Of course, some people have a certain size requirement, such as needing a certain amount of bedrooms, but to save on your insurance, try not to buy more than what you need. Quality The quality of the building materials your home is made of will also influence the price of your homeowners insurance premium. It’s going to cost a lot more to replace exotic materials. For example, your typical hardwood flooring costs anywhere from $3 to $9 per square foot. Or, you can opt for Macassar Ebony which runs for about $150 per square foot. Of course this is a pretty wild example, and most people who can afford Macassar Ebony flooring aren’t usually worried about the cost of replacing it....