Insurance

6 Expert Tips for New Entrepreneurs for Buying Business Insurance

6 Expert Tips for New Entrepreneurs for Buying Business Insurance

business insurance

Most new business owners make the mistake of getting the least expensive business insurance they can find online. While a high premium cost doesn’t make sense for budding businesses, getting insurance that provides little to no protection is also not a smart move. To avoid overpaying for insurance you don’t need, the following are 6 expert tips for new business owners when it comes to buying business insurance.

Identify the Risks in Your Industry

Before you call in an insurance agent or start looking for business insurance plans online, you need to know the risks. Insurance companies will check your business independently to evaluate the relevant risk factors. This risk evaluation by insurance companies is referred to as underwriting and it determines whether a business gets approved for business insurance or not. Apart from the underwriting process, which is mandatory, we suggest doing an independent risk assessment to pinpoint assets that need extra protection.

It’s Better to Overestimate Than to Underestimate the Coverage Need

Opting for the minimum insurance coverage can leave you in a false sense of security and can catch you off guard during eventualities. Litigations against businesses can be brutal and can end up costing thousands of dollars in legal fees. Without proper liability coverage, this can take a bite out of the profit. Long story short, it’s better to pay more premium and get adequate coverage than to underestimate the coverage needs and risking your business.

Compare Insurance Prices Online

One of the things you should do before discussing anything with the insurance agents is to compare business insurance quotes online. This will help you zero in on value-for-money deals and smell a bad insurance offer from a mile away.

Consider Getting a Business Owner’s Policy for a Blanket Protection

BOP or Business Owner’s Policy is an insurance plan that includes several different types of coverages. These are perfect if you don’t know the types of risks you need coverage for. The BOP is cost effective as it’s cheaper than getting the coverages individually. Your business also gets coverage from all sorts of eventualities from fire and natural disasters to liability coverage. For most small businesses getting a BOP is enough, others may need to supplement these policies with specific insurance plans based on the nature of their businesses.

Minimize Risks to Reduce Insurance Premiums

Safety initiatives go a long way in reducing insurance premiums. During the underwriting process, the insurance evaluator takes note of all the safety measures employed by the company. A safety measure or lack thereof heavily influence the insurance cost. For example, a high-tech security system may earn you a lower premium rate for plans that cover theft.

Judge a Policy by What it Does Not Cover

While insurance agents often dwell on the benefits of a particular insurance plan they almost never spend enough time explaining the exclusions. All insurance plans have exclusions, these are specific scenarios, that the plan does not cover. The more exclusions a plan has, the more loopholes the insurance companies get to not pay a claim.


6 Things to Consider When Choosing Car Insurance

Buying car insurance is one of those tasks in life which is absolutely necessary, yet so incredibly dull that many of us wish we could simply not bother. The following guide will help to take some of the stings out of it by preparing you for the kind of considerations that go into determining the terms you can secure.

Car Insurance

Royalty Free Photo

What Sort of Car Do You Have?

Potential insurers will want to know what sort of car you are driving. Is it a small family car, a car for a single person, or even an off-road vehicle that will be going over some difficult terrain? Your chances of getting a competitive premium rise significantly if your car is a family car or small car of a common make and model.

What Colour is it?

You might laugh but the colour of your vehicle can affect the amount that you have to pay for your insurance. This is because some paintjobs are significantly more expensive to fix than others, making you a riskier bet for the insurer. For example, black vehicles regularly cost more to insure than their white counterparts. Research also suggests that white cars are safer on the road.

Do You Plan on Modifying it?

The urge to modify your car and take its performance to new heights is an understandable one. However, you shouldn’t undertake any modifications without first checking how they will affect your insurance premiums. Modifying your car, especially in a way that significantly alters its performance, is much more likely to increase your insurance premium. It will also make your vehicle a much more attractive prospect for potential thieves.

Who Will be the Primary Driver?

The age of the car’s primary driver is another significant factor in determining the terms that insurers will offer you. Younger drivers are more expensive to insure, simply because they are so much more likely to get into car accidents. You will find that this is the case even with the best car insurance offers.

Do You Need Roadside Assistance?

Some insurance packages will also entitle you to free roadside assistance. If this is a deal breaker for you, save yourself some time by eliminating any insurance providers who do not offer this service. If you are purchasing car insurance on behalf of a young adult, or if your children will also be driving the vehicle, opting for roadside assistance can put your mind at ease when they are driving.

How Much do You Drive?

The amount that you plan to drive the vehicle, as well as the expected pattern of usage, will both play a significant part in determining the offer you receive from the insurance company. A vehicle which isn’t going to be out on the road much is obviously much less likely to be involved in an accident. If the vehicle is on the road every day, it is unlikely you will be able to receive any discounts.


Weighing Up The Cost Of Supplying Company Cars

Having the best employees is the key to business success. Without a good team to handle the day to day running of the company, you’re never going to get anywhere. That’s why it’s important to attract the best talent and keep them at the company by treating them right and offering them good benefits and incentives. Good health insurance and a healthy salary are the two main things that people look for but a company car can be a big draw as well. A lot of employers are unsure about supplying a company car to their employees because they’re worried about the cost. But the thing is, the price of supplying the car is often outweighed by the benefits it brings. To help you decide, we’ve added up some of the cost and the relative benefits.

vehicles you buy

Pexels

The Car Itself

Obviously, buying the car itself is going to be the biggest outlay. You can’t really get away with giving your employees a second-hand rust bucket so you’ll have to spend money on brand new cars. That can get pretty expensive depending on how many people you’re supplying cars for. You could just choose a few select employees and offer them company cars but there’s always the chance that will create resentment amongst the other employees, causing a drop in productivity and some may even leave the company.

Insurance

It’s up to you to take care of all of the costs of running and maintaining the company cars that you’re supplying your employees with. That means you’ll have to get car insurance on all of the vehicles you buy. That can get pretty expensive but if you use a good comparison site, you should be able to find some cheap deals. If any of your employees are in an accident, you’ll have to pay the excess and the increased insurance costs afterwards so it’s worth keeping in mind that there’s always the chance that insurance will go up in the future.

Tax

You’re also going to have to pay tax on all of those cars which can add up to quite a bit of money. Cars that get bad mileage and put out more CO2 emissions are going to cost you a lot more in tax as well so when you’re choosing cars, you can save money in the long run if you invest a bit of money in a better car.

Cash Instead Of A Car

A lot of companies are trying to strike a balance and avoid some of those costs by offering cash instead of providing the car itself. That way, the employee buys their own car and handles the tax themselves. You can supply enough for basic insurance coverage but if they have to make a claim, they’ll cover the excess and increased costs afterwards. Your employees still have a reliable vehicle to get to and from work but you’ll save quite a bit of cash.


The Top 4 Reasons Why People Don’t Make Compensation Claims… But Should

There’s a lot said about compensation culture. The term was first popularized in the early ‘90s when an elderly patron was awarded $2.9 million in damages after pouring hot McDonald’s coffee on her lap and scalding her legs. High profile cases like this have perpetuated an extremely unhelpful stereotype. That of the grasping, self serving litigation junkie, out to get whatever they can from whoever they can at a bare minimum of effort. But however much statistics may reveal this culture to be a myth, it still pervades in the minds of some. This is unfortunate, as any kind of stereotype is unfortunate. But when it prevents people from claiming that which they’re owed, it becomes all the more unfortunate. As the old saying goes, there is no nobility in poverty, and there is no chivalry in thumbing one’s nose at money to which they are legally entitled. Here are some of the most common reasons why people fail to make compensation claims, even though they most definitely should…

Image by Flickr

They feel like the deck is stacked against them

We live in a world and an economy where the house always wins. Thus, when someone is injured on the road they feel that the deck is stacked in favor of the insurance company and that they will go through a lot of time and effort only for their claim to be dismissed by a system designed to deprive them of what’s theirs. Car accident lawyers spend their whole day, every day making sure that this does not happen. They work hard to ensure that their clients get what they deserve; no more, no less.

They’re intimidated by the claims process

The claims process itself can be arduous and intimidating and usually involves hours spent recounting particularly unpleasant or painful memories. As such, many people with grounds for a claim shy away from doing so because of the minefield of paperwork. Here’s another reason why it’s important to have sufficient legal representation. Not only will they ensure that you get all that’s coming to you, (you wouldn’t believe how easy it is to make a mistake in the claims process and lose out on your compensation) they take a lot of the paperwork and administration out of your hands. The majority also work on a “no win, no fee” basis meaning there are no payments made up front.

They’re worried about negative stereotypes



All that stuff we mentioned at the start of its article is very much in the minds of those with grounds for a claim. They don’t want to be perceived as greedy or money grubbing. But they are not. If they choose to make a claim, they are legally entitled and morally justified in doing so. Nobody in their family or circle of friends will think any less of them for claiming what they’re rightfully owed.

They worry about reprisals from their employers

While it’s true that your boss can legally sack you for no reason at all, they cannot sack you if you can prove that to do so would be unfair discrimination. If they threaten to sack you as a direct result of you taking legal action against them, they are doing so illegally.

 


Premium changes to health insurance in 2018 – What are the driving factors?

Image via https://pixabay.com/en/family-bless-you-hands-security-2073604/

The filing process of the 2018 health insurance premium rate is underway. This is an issue which will outline the factors which underlie the setting of premium rates and highlights the main driving factors behind the reasons that the 2018 health insurance premiums are going to be different from that of the previous year, 2017. It concentrates mainly on the individual market but there are many factors which are also relevant to the smaller group markets too. Read on the concerns of this post to know more on this.

Health insurance premiums reflect different factors

The health insurance policy makers decide the premiums which are based on the projected medical claims and the administrative expenses for the individual pools or groups along with insurance. Which are the factors that have an impact on the proposed premiums?

  • Who is covered under the policy? What constitutes the risk pool?

Pooling risks let the costs of the less healthy to be reduced by the healthy. Generally, the riskier the pool is the more predictable and stable the premiums will be. However, the composition of the risk pool is vital. Though the ACA or the Affordable Care Act prevents insurers from charging disparate premiums from the clients based on the status of their health, yet the levels of premium will reflect the status of the health pool. When a risk pool disproportionately averts those which have got better expected claims, premiums will definitely be lower.

  • Predicted medical expenses

Majority of the premium dollars are utilized for paying medical supplies and services and this reflects unit costs, the intensity and mixture of services and plan design. Utilization and unit costs may vary due to the geographic location due to the usual practices of the region as per a health plan which depends on the ability of the insurance company to negotiate fees.

  • Other components of premiums

Premiums should cover all sorts of administrative costs which include those which are related to product development of insurance, enrollment and sales, claim processing, regulatory compliance and customer care service. They should also cover assessments, taxes and fees and also risk profit and other charges.

  • Legal rules and regulations

There are several laws and regulations which include the presence of programs which share risk and which can affect the composition of risk pools, predicted medical spending and the total amount of taxes, fees and assessments which require being included in the premiums.

  • Health insurer fee



The health insurance provider fee was something that was enacted after the Affordable Care Act. The Consolidated Appropriations Act of 2016 includes a moratorium on the fee collection in 2017. Insurance companies eliminated the fee from the premiums of 2017 which resulted in the reduction of premiums by around 1-3%, regarding the size of the insurance company and their profit/non-profit status.

Hence, as we see, the changes in premiums faced by the individual consumers will reflect increase in age, especially for children due to new and child age factors. Whatever it is, you will be notified by the insurers or by the states so that you can take required actions.


4 Life insurance moves for important career milestones

https://pixabay.com/en/life-belt-rescue-beach-coast-498453/

Career advice often centres on financial topics like negotiating a raise, investing your salary and saving for retirement. These are all important steps to building your professional future, but they often overlook the importance of life insurance.

Life insurance can play an important role in helping to protect your financial future. Several career milestones go hand-in-hand with the decision to purchase or review an insurance policy. As your professional career evolves, you may want to consider how life insurance might enhance your financial plans.

Getting your first “real” job

Landing a full-time, salaried position is an exciting milestone for many. Beginning a professional path creates the potential for career advancement and financial wealth. Now may be the time to secure this promising future.

A life insurance policy can help you protect your finances, should the worst happen to you. Some policies offer optional extras that pay a benefit if you are permanently disabledor become seriously injured in an accident. The life insurance payout could help cover the bills, allow you to take extended leave whilst you recover, or help pay for ongoing medical assistance.

Receiving a promotion

After years of hard work and dedication, you may be up for a much deserved promotion. A hefty raise may also be on the table, and you might decide to upgrade your home life as a reward. You may consider updating your life insurance to reflect this new lifestyle.

Acquiring assets—a house, cars, investment properties—as you advance in your career is common. An insurance policy purchased when you started working may no longer meet your needs after several promotions. You may consider increasing the total benefit amount to help your family cover mortgage payments, pay off a car loan, or maintain their current lifestyle if you were to pass away suddenly.

Pausing your career

There are many reasons why people might put their career on hold.Two common reasons are welcoming a new baby or becoming the primary caregiver for a family member. Keeping your life insurance during this period may make sense, even if you’re no longer the primary breadwinner.

People often underestimate the value of work done by stay-at-home parents and unpaid carers. It may sound logical to not cover someone who isn’t earning an income, but this could leave your loved ones financially vulnerable. If you or your partner were to pass away, it would be expensive to pay others to care for your children or family members, cook meals and do general housekeeping. A life insurance benefit could help cover these costs, or allow you to work fewer hours whilst your family adjusts.

Retirement

Nearing the end of your career is a milestone we all hope to reach one day. Getting the chance to relax, travel and spend time with the ones you love is the best reward. As you get your retirement finances in order, it may be time for one more life insurance check.

By the time you’ve reached retirement age, you most likely have paid down or eliminated most of your debt. If you no longer need to worry about mortgage and car payments, it might make sense to lower the benefit on your life insurance policy. However, you might opt to leave it unchanged in order to leave your family the money upon your death. The benefit may be appreciated as an inheritance, put towards a grandchild’s education, or used to cover the cost of a funeral or any final expenses you may leave behind.

Life insurance can be an important tool on your way to financial security. Flexible policies, optional extras and affordable premiums can help you protect the future you’re building, at any stage of your career.

Author bio: Let’s Insure is an Australian based life insurance specialist, dedicated to distributing high quality life insurance products all over Australia.


Cutting down Your Relative Cost of Living

Everybody has a different cost of living, but that doesn’t mean that somebody with a lower cost of living than another will find life any easier than their richer counterpart. No, the cost of living is always relative to the life that an individual lives, so somebody with a lower cost of living could face the same problems that those with a higher cost of living do — they very well may even face problems that are far worse, far more frequently.

So, don’t think for one second that, just because your cost of living is not as high as somebody you know, that you don’t have a right to struggle with and worry over your own cost of living like they do. And, don’t think for one second that your relative and specific cost of living cannot be cut down, either, because it can. For advice on how to do just that, make sure to read on.

Image and video hosting by TinyPic

Image source

Always stay on the ball with your taxes

Being on the ball when it comes to your taxes, no matter your pay grade or net worth, is something that you seriously have to be doing if you are serious about cutting down your relative cost of living. And, what this means first and foremost is that you should stop bemoaning the tax system — it is here, it isn’t going anywhere, and moaning about it isn’t going to change your financial situation!

Once you’ve accepted that your taxes are a part of your life, only then is it time to start staying on the ball in regards to them. To do this specifically, you should first get a professional in the field of tax, such as those found at https://www.traviswatkins.com/offices/dallas-tax-attorney.cfm, on your side. Doing so will give you the best chance possible of understanding what is being asked of you in regards to your tax payments as the professional you have in your corner will de-jargon everything for you. And, when this is the case, you will have a far better chance of staying on the ball with your tax payments, both in regards to how much you pay and when it needs to be paid. And, you never know, your professional may even help you to find areas in which your taxes can be cut down themselves, which would of course bring your cost of living down itself.

And something else that you should be doing in order to stay on the ball with your taxes is keeping a record of EVERYTHING that you do in regards to them. This means keeping invoices from both the taxes that you pay and the repayments that you receive, first and foremost, as this will provide you with the evidence you need to prove of your tax paying.

Finally, whatever you do, just avoid these common tax mistakes.

Ensure your insurances are up to scratch

Some insurances are good, some are bad, and if you want to cut your cost of living down then you simply have to always opt for the former. And what this means is that you have to do significant research into any insurance that you take out prior to taking it out. If you don’t then you can and probably will end up with an unwanted bill to pay at some point in the future, whether it be within a few weeks of taking the insurance out or a week before the insurance is due to expire.

When doing this research, then, what you should do is read the small print. As much as it may sicken you to do it, reading the small print will provide you with the exact knowledge down to the T in regards to what you can expect from your insurer and what they do expect from you. And, when armed with this knowledge, you will make it far harder for them to demand more money from you, subsequently cutting your cost of living right down.

The cost of living for some people is high, for others it is low, but all these costs are the same in the long run. They are the same because they, like most other things in life, are relative. And, because they are relative, they all need to be treated the same and with the same respect. So, whether your cost of living is low or whether it is high, treat it the same — and when you do treat it, make sure you do all you can, all the time, in your attempt to cut it down.


Avoid These Costly Mistakes On Your Next Vacation

Vacation can be pretty pricey! In fact, they can sometimes seem inordinately expensive considering what you are getting and how long it takes to pay them off. However, they are an important part of taking care of ourselves and lowering our stress levels and should not be skipped. Instead, it best to be as frugal with your vacation as possible, something you can do by avoiding the costly yet common mistakes below.

Image source

Not comparing hotel prices

A massive and costly mistake that you can make when it comes to vacations is not comparing the prices for hotel rooms, or indeed whole packages from different providers before you book. The reason behind this being that you could be missing out on huge savings.

To help you do this, it can be useful to use a price comparison site, one that makes it easy for you to see exactly what is included in your vacation price and whether there is a better deal out there. This can be particularly helpful when choosing a hotel room, as different providers can offer the same room for almost half the cost. A saving you definitely don’t want to miss out on.

Not getting insurance

Not getting vacation insurance is always a bad idea. After all, it means you won’t have anything to fall back on if your flight is delayed, your money gets stolen, or you get injured while on holiday.

Vacation injuries are quite common too, as people often do things that aren’t part of their normal routine, such as water sports and swimming in the ocean.

Of course, if you do get injured in this way on vacation then there is another option open to you. That is consulting with a beach injury attorney that specializes in this area and can tell you whether you have a viable case. The proceeds of which can help pay any medical bills that you incurred during your time on vacation.

Not going all inclusive

A massive mistake that a lot of people make regarding vacation costs is that they discount the option of going all inclusive. This is where your meals, snacks and drinks are all included in the price, and you can have as much as you want.

Yes, these options can seem more expensive at the time of booking the break, and it can be hard to find the additional money for the larger deposit. However, once you have added up the cost of snacks, meals, and drinks they can actually be a much more frugal option.

Not shopping the sales for vacation clothes

One area that many people mask costly mistakes in term of vacationing is the clothes they buy to take with them. Yes, you will often need new items to wear in hotter or colder climates, but buying them just before you go can be very expensive.

Instead, if you know, you will be going abroad in the next year, you can get some seriously knocked down bargains in the sales. Then just put them away until your vacation, and you have that new climate appropriate wardrobe at half the price.


How Accidents Can Damage Your Business

Many new entrepreneurs believe that spending money on safety and insurance is a waste, and they should focus on growth instead of security. Most accidents that happen at the workplace have serious consequences for the entrepreneur, and can cause a damage to the reputation of the brand that can end a successful career. In case you are still sitting on the fence about taking out a liability insurance or creating a health and safety policy at the workplace, you will need to complete a thorough risk assessment to weigh your options and calculate the true cost of injuries and accidents at the workplace.

Financial Loss and Late Payments

If there is an accident at the workplace, or a customer is injured on your premises, you will need to face accident and injury claims. If you don’t have a liability insurance, or health and safety checks in place, you will be likely to have to pay a compensation to the person injured. If one of your employees drives a company vehicle and causes an accident, your company will be responsible for the damage and injury. Ask a car accident attorney about how you can prevent being liable for employees’ behavior on the road, and how you can protect your business.

Public Records

If there is an accident on your premises, or caused by your company, you will be prosecuted, and the court case might become public. This means all your potential and current customers will be able to find out about your issues, and they might look elsewhere. A public accident court case can completely destroy your business reputation, and eventually cause financial ruin. You will have to make sure that you are protecting your business interest by making sure that risk assessments are carried out regularly, and your employees are trained on preventing injuries. You need to go beyond being compliant, and actively seek ways of preventing personal, environmental, or property damage that can potentially cost you thousands.

Social Media

Once an accident happens, it is almost impossible to keep it a secret from social media. Your employees might share images, or the person injured will tweet about your company and blame you for the negligence. Unfortunately, there is not much you can do against the reputational damage caused by social media posts, and even if you take legal action, by the time the results are delivered, your reputation is ruined. Make sure that you talk to your employees about the responsible use of social media, and train them on the best practices.

Fines

Accidents can attract the attention of regulators, and officials might start a thorough investigation. If you are found guilty of negligence, you will be asked to pay a fine, as well as facing other penalties and sanctions. If the authority can prove that you didn’t follow the industry and government guidelines, you will be prosecuted. This will increase your expenses, and -on top of the fines – can cause long term financial difficulties. Prevention is always cheaper than dealing with the consequences, therefore, compliance issues should be taken seriously in your business.

Low Work Morale

An angry employee can turn your entire workforce against you, and cause damage to your reputation. Your workers will only hear one side of the story, and automatically assume that your company doesn’t care about employees. This will damage your relationship and leadership effectiveness, and cause low work morale. Unhappy employees are more likely to be distracted, and their performance will drop. You will have to work hard to regain the trust of your workers after an accident at the workplace.

Losing Your License

Image by PxHere

Damage Your Business

If the accident or injury is serious, your state or industry authority might decide to revoke your license, and make you go out of business. You might even get banned from working in the same industry for a set number of years, or forever. This will be the end of your business and livelihood that you worked so far for all your life.

You can cause damage to your business, as well as your employees and the public, if you don’t pay attention to the guidelines and ignore industry recommendations. Your reputation is your most important asset, and losing it is much easier than rebuilding it. Before you make a decision on your health and safety policy, make sure you consider the risks of injuries and accidents and the consequences they bring.

 


Everything You Ever Wanted To Ask About Health Insurance

Shopping is easy, right? You just need to hit the shops to browse the various shops to find one that has whatever it is you are looking for at the most reasonable price. And now that online shopping is a big thing, it’s even easier – you can do all of your browsings from the comfort of your own home.

Unfortunately, though, it’s not always easy to buy everything. Browsing in a few different shops is perfectly fine when you need a new pair of jeans, for example, but when you need to buy something a lot more important like health insurance, you need to put in a bit more effort.

Are you trying to buy a new health insurance policy at the minute but confused by all your different options? Here’s everything that you have always wanted to know about buying health insurance.

About Health Insurance

https://pixabay.com/en/business-calculator-calculation-861325/

Consider Exactly What You Need

First of all, you need to think about what you need to get covered. Not every health insurance policy will have the same coverage. For example, if you are planning on getting pregnant in the near future, you will need to find a policy that covers pregnancy. As you can see from these Medicare supplement companies, you have a big choice when it comes to choosing a new health insurance policy. Just make sure that everything you need to be covered will be before you sign on the dotted line and hand over your money!

Know Your Budget

As well as knowing exactly what it is you need to be covered, you also need a clear idea of how much you can afford to spend on your new health insurance policy. They can come at varying prices, not all of which are suitable for smaller budgets. Of course, if you only have a very limited budget, you might find that you can only afford a policy that covers very limited illnesses and treatments. But still, it’s better to get a limited policy than none at all!

Make Sure Your Doctor Is Covered

Doctors will work with specific health insurers so before you do decide which insurance policy you are going to go with, you should speak to your doctor to make sure that he or she can work with it. If not, you might still be able to use the insurance for any hospital visits, but you might be left to pay for your doctor’s appointments out of your own pocket.

It’s Worth Looking At Non-Traditional Providers

There are still the big insurance companies offering health insurance, but these days you will notice that there are also quite a few non-traditional providers coming into the insurance market as well. It’s worth looking into these new providers as they often offer some very good coverage for very reasonable prices.


%d bloggers like this: