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...
Commercial Umbrella Insurance

Commercial Umbrella Insurance

When you’re going to buy business insurance, not all policies are created equal. Depending on the type of business you own and what you’re going to need covered, a typical business owner’s policy (B.O.P.) may or may not suffice – particularly when it comes to liability insurance. When a business is the target of a lawsuit, the legal fees can be very expensive, and so can the payouts if a judgment happens to go against the business. With this in mind, it might be a good idea to look into umbrella insurance. Commercial Umbrella insurance is a type of business insurance that works like your liability coverage to protect your business in the event of catastrophic losses. As previously mentioned, claims can cost a LOT, sometimes leaving the business without the funds to continue operating. When the cost of a claim on your business liability insurance exceeds the cost of your policy’s protection, an umbrella policy will provide you with an additional layer of insurance. Without it, a business owner would likely have to pay out-of-pocket for any legal fees, medical costs, and damage expenses that exceed their policy’s coverage limit. General liability policies have limits, and if a claim that exceeds that limit is filed, you’re stuck with the cost. Instances like these aren’t uncommon, and can include injuries like slip and fall accidents on commercial property, as well as other types of lawsuits such as false advertising. Policies like these are great for small business owners who aren’t looking to spend a lot. Commercial umbrella insurance doesn’t have to be expensive, with policies available that will fit most any...
Business Insurance Can Cover Losses Incurred Due to Employee Theft

Business Insurance Can Cover Losses Incurred Due to Employee Theft

Employee theft is something no employer likes to think about, and often assume it will never happen to them – until it does! Employee theft occurs across the country to the tune of an estimated $20 to $40 billion dollars annually. Fortunately, those who buy business insurance can be covered in the event that one or more of their employees decides to steal from them. The standard Business Owners Policy provides protection in a variety of situations, but not all of them. Employee theft is an area where most Business Owners Policies tend to fall short, often times leaving victims of employee theft or embezzlement without a leg to stand on. Fortunately, there are separate riders that can be purchased which will expand your insurance coverage into the realm of employee theft. These à la carte policies are sometimes referred to as Employee Fidelity Insurance and they apply to loss or damage to money, securities or other property as a result of employee theft. The coverage can apply even if the business insurance policy owner doesn’t know who is/was committing the theft, and whether they did it alone or with others. Theft is defined under Employee Fidelity Insurance as both the taking of property and includes forgery. The term “other property” refers to items other than money or securities, such as computers, office supplies, furniture, etc. but it does not apply to electronic data or computer programs. While Employee Fidelity Insurance can keep you covered in many situations, a few incidents exist that are excluded from the policies including: Theft committed by you, your partners, directors or representatives (other than an...
Business Liability Insurance – No Business is Too Small

Business Liability Insurance – No Business is Too Small

Just because you run a small business doesn’t mean the workload is small too; particularly when you’re the only employee. When you run your own business, your time and your funds may be limited, and it’s important to know what your liability insurance needs are. Much like the old adage: “a stitch in time saves nine,” a small investment up front can save you a great deal of money, time and headache down the road when it comes to insuring your business. Here are a few basic tips regarding business liability insurance intended to help you along your way. Business Liability Insurance isn’t Mandatory in California, but … The state of California doesn’t require business owners to buy business insurance in order to run their business. This can seem like a pretty good deal on the surface, as most folks think they can get their business up and running and then buy business insurance later (or not at all). However, while the state doesn’t require that one purchase business liability insurance, they also don’t set a cap on business liability lawsuit rewards. That means that if you don’t have liability insurance and someone is awarded money in a lawsuit they filed against your business, you’ll be on the hook to pay it out-of-pocket. The Type of Business You Run May Influence the Policy Cost There are several different categories insurance companies use to put businesses in that influence the cost of premiums associated with insuring those businesses. Insurance is all about risk, so if you own a low-risk mail order clothing company, your rates will probably be significantly lower...