Archives: 2018

It’s important that you do the same for your commercial insurance coverage. A variety of policies are available, and yours should be customized to suit the needs of your business. These needs are different depending on whether your business is home-based, small, medium, or large. Your agent can walk you through the many options to determine what is best for your company. Use the following overview to get started.

Home-Based Businesses

These companies are based out of the owner’s home and typically have zero to one additional employees on the payroll. This scenario is extremely common, as many businesses start out this way. Often, the business enjoys success, grows, and relocates to a commercial setting.

In the meantime, it’s important to have appropriate insurance coverage while the business is in the home. Too often, owners assume their homeowner’s policy will cover their home-based business. This coverage may offer some protection, but it will not necessarily provide the full coverage you need. It’s important to discuss the operations of your business with your agent to determine whether you need additional limits or a commercial policy.

Small Businesses

A small business is loosely defined as one that employs fewer than 100 personnel and generates annual revenue of less than $5 million.

If this describes your business, you probably qualify for a BOP. This “business owner’s policy” combines several policies. It offers the basic coverages you need as a small business owner in one convenient policy. A BOP generally includes property insurance, general liability insurance, and business interruption insurance. Additional options are available to customize the policy further for your specific needs. This BOP provides adequate protection at an affordable rate.

Medium-Sized Businesses

If your business has outgrown baby-bear size but hasn’t reached papa-bear status, you are running a medium-sized business. This sized company typically employs more than 100 but less than 1,000 staff and earns annual revenues between $10 million and $1 billion.

Because your needs are different than those of small or large businesses, insurance providers generally offer specialized policies for medium-sized business. You may still be able to combine your property and liability coverage, but you may also need extended coverage for equipment or multiple locations. Your agent can review the specifics of your business to customize a policy that offers just the right coverage for your company’s needs.

Large Businesses

Most businesses that have more than 500 employees are considered large businesses. Their revenues vary based on the type of business. What they have in common is multimillion-dollar risks. Many have risk management professionals on staff to assess these risks and develop plans to minimize them. An insurance professional can also assist with this task.

Large businesses often require multiple policies, and coverage must be tailored to the industry. Industry leaders often have greater liability risk. Factory-based businesses may have greater personal injury risk. Your insurance agent can customize your coverage to ensure your business has the protection it needs.

We all know people who are charismatic, interesting, and fun to be around. These individuals have a knack for making others feel comfortable and relaxed, and always seem to know just what to say. They seem to have an innate gift that enables them to make friends easily and connect effortlessly with others.

If this doesn’t come naturally to you, you aren’t alone. The good news is that with preparation and practice, you too can be that interesting person. Here are some tips and conversational topics that will help you make the most of your next meeting, social encounter, or networking event.

Listen actively: Make eye contact and use positive body language to show that you are listening attentively and actually hearing what is being said to you. It’s amazing how being a good listener equates to being a good conversationalist in people’s minds.

Do some research: Facebook, Twitter, LinkedIn, and other social media platforms can provide a wealth of information about people’s interests and activities. Use shared passions and interests to strike up a conversation and connect. You may also discover that you have mutual friends or colleagues.

Ask, ask, ask: Most people love to talk about their jobs, their families, their pets, their hobbies, their vacations, and their favorite hangouts or restaurants. With a little prompting, people will often open up, and a rich conversation can flow from there.

Every successful business encounter starts with a conversation that grows into a connection – which may eventually become a solid relationship.

Your logo speaks volumes about your business – its identity and position in the market, and the personality of your firm. Before you get down to the nitty-gritty of selecting the design, think about your target market and the essential message you want to convey to them. Also, take time to research the logos of other companies, particularly those of your competitors.

Next, give careful thought to these important elements:

Colors: Colors elicit emotional responses, so you should try to align the color(s) of your logo with the image you want to convey. For example, blue conveys trust, dependability, and strength; red is a color of action, energy, and passion; yellow suggests warmth and optimism; green evokes nature and serenity; purple speaks of creativity and sophistication; pink suggests femininity and youthfulness. It’s best to stick to bold colors and use no more than three colors in your logo.

Typography: Typography is another important element. There are three main types of fonts.

Serif fonts are those with little lines at the end of each stroke; they convey a traditional or professional sense. By comparison, sans serif fonts look clean and modern. The third type, script, can look creative, elegant, or casual, but script typefaces can also be difficult to read.

Beyond these essentials, keep the following basics in mind as you develop a logo:

• Study all design components carefully – both singularly and together.
• Use clean lines and simple shapes.
• Make sure your logo is scalable, easy to reproduce, and multifunctional.
• Compare samples of your desired logo in color and in black and white.
• Avoid anything trendy. Remember, your goal is to use this logo for many years to come.

Control the flow: From parking to food lines to dance floors, use methods to manage the crowd and keep people moving efficiently. This will help avoid congestion, which can cause accidents. It will also create a more enjoyable event. Mark entrances and exits clearly. Control how many people flow through small areas simultaneously. If the event is of a significant size, provide staff or security to direct crowd flow.

Put a plan in place: Before any event, establish an emergency response plan. This should include evacuation procedures as well as responses to individual medical emergencies. Be prepared to respond to crime, too. Your plans should include what to do in case of theft or violent incidents.

Communicate clearly: It’s not enough to simply have ideas or create a plan. Communicate all information to staff and guests of the event. Be sure all staff who are helping run the event are well-versed in the emergency procedures. Let guests know what is expected of them concerning crowd control. This clear communication will help keep things running smoothly and reduce the risk of incidents.

For additional tips on how to reduce claims at events, contact your insurance provider.

Peer-to-peer car-sharing services have made it possible to “rent” a personal vehicle to other drivers who are seeking transportation. If you don’t drive your car every day, this can be a fairly simple way to earn a little extra cash.

However, there are a few important considerations to keep in mind regarding car sharing and auto insurance. Using your vehicle in this way can greatly affect your coverage.

First, your policy may not cover your vehicle while it is being driven by other people under a car-sharing agreement.

Your carrier doesn’t have any information about who is driving your car or their driving record, so the coverage cannot extend to them. If someone is in an accident or your car is stolen while he or she is using it, you may not have coverage.

Second, you are making money with this arrangement. This puts your vehicle use into a business category, rather than personal. Again, this might negate coverage from your personal policy.

Due to these circumstances, car-sharing services typically offer their own auto insurance.

If you’re considering offering your vehicle for peer-to-peer car sharing, first consult with your insurance provider.

Someone there can advise you about your coverage and help you determine if this is a viable option for the use of your vehicle.

Everyone loves a party – or do they? Sometimes, the stress of planning, preparing, and hosting a party can drain the life out of the person giving it – and the fun out of the event. But it doesn’t have to be that way. Whether it’s a backyard barbeque, a child’s birthday, or a special event celebration, if you’re the host, you can make it easy on yourself. Here are top ten suggestions from Cool Mom Picks, all of them certain to reduce the stress.

1. Consider a cohost – it halves the effort and doubles the pleasure.
2. Use apps and checklists to plan ahead.
3. Send digital invitations – acceptable for any occasion these days.
4. Put the kids to work.
5. Don’t play DJ. Make music easy by simply streaming to a Bluetooth speaker.
6. Make plans for your pets.
7. Have groceries delivered.
8. Keep the food simple with buffets and food bars.
9. Label the foods.
10. Serve easy-pickup desserts.

Don’t let fluctuating gas prices crash your road-trip plans. Use the following tips to spend less on gas and have more cash for that summer journey.

1. Drive at the right time. Cooler air can increase your car’s power.
2. Pack light. Heavier cars require more power, and that requires more gas.
3. Drive safely and carefully. Conserve energy by driving the speed limit and stopping gradually. Stop-and-go driving isn’t good for you or your fellow travelers.
4. Crank the air conditioner. Driving with the windows down causes more drag on the engine.
5. Consider renting an energy-efficient vehicle for long trips.
6. Incorporate cycling or public transit in your vacation plans. You’ll save money, get exercise, and see more of your destination.

If your car gets keyed or a stray rock cracks your windshield, you are pretty sure your auto insurance policy has you covered.

What about other, more unusual circumstances? Did you know the following situations are often covered by auto insurance?

When the sky is falling: It’s rare, but it happens. If a piece of satellite, airplane, or meteorite hits your vehicle, your comprehensive auto insurance probably covers the cost of repairs. Look for a “falling objects” clause.

When you need rodent repairs: When mice, squirrels, or rabbits decide to take up residence under your hood, they can be quite destructive. Keep this in mind if your vehicle will be parked for long periods of time. If mice munch your wires, check with your carrier to see if your policy includes an “other than collision” clause that will cover this damage.

When the seat’s not safe: Even if it looks OK, a child’s car seat might be damaged after an accident. It’s a good idea to go ahead and replace it. They aren’t cheap, but your insurance may cover this cost.

When potholes cause pitfalls: Many auto insurance policies categorize pothole accidents as collisions. If so, the damage caused by your run-in with one of these road pits will be covered.

When payday comes up short: Did you miss work due to a car accident injury? A portion of your lost income may be recoverable through your auto insurance policy.

If you experience any of these encounters, contact your agent to determine if your policy provides coverage.

The average cost for these claims is $50,000. If the claim involves a lawsuit, the price skyrockets. Costs to defend and settle the suit raise the average cost for these types of claims to more than $750,000. Typically, around one-third of all general liability claims result in a lawsuit. For small businesses without proper coverage, these suits can prove devastating.

Of course, the preferred solution is to avoid these claims altogether. To protect your business from reputational harm claims, take the following precautions.

Ask permission, not forgiveness. Would you like to post photos on your website or use them in your marketing materials? Do you plan to use a quote or other content for your next marketing campaign? Before you launch your initiative or post your social media blast, get permission to use these items. Copyright and privacy suits can prove costly. Obtain written permission to avoid reputational harm claims. Additionally, ensure all employees are aware of your permission policies.

If you can’t say something nice… Cutthroat competition can make criticizing competitors a tempting tactic. Don’t do it. When speaking publicly or with customers, avoid criticizing competitors. If you never say anything negative about them, they will not have any ammo to use for a slander suit.

What makes entrepreneurs successful? Is it how they’re wired? Is it a certain inherited ability, innate instinct, or genetic quirk?

The truth is, there are some inborn traits that characterize successful entrepreneurs. Entrepreneurs as a breed tend to be self-confident, action oriented, adaptable, and able to deal with uncertainty.

Attributes such as optimism, curiosity, risk tolerance, and moxie – not to mention the good luck of being in the right place at the right time to bring their ideas to market – all figure into the equation.

However, many of the qualities associated with entrepreneurial success are acquired through life experiences. These include patience, tenacity, self-discipline, a strong work ethic, and the ability to overcome failure and “keep on keeping on.”

Education matters too. You cannot achieve success as an entrepreneur unless you grasp the basic fundamentals of running a business and the dynamics of your particular industry.

And then there’s practice. Negotiating, problem solving, spotting trends, understanding markets and customers – these are skills that take time to master, and there is simply no substitute for practice.

Ultimately, the reason why some entrepreneurs are successful and others fail is not just good genes, brilliant insights, good luck, hard work, education, or practice. It is a combination of all of these things. Entrepreneurial success involves using innate skills as well as those learned or acquired along the way to build a successful business.

It has been said that “the harder you work, the luckier you get.” And while having entrepreneurial DNA may allow someone to hone the creative instincts and inborn attributes they possess, every successful entrepreneur must prove their DNA with hard work.

Knowledge and preparation are as constant in the life of an entrepreneur as the daily sunrise. Paramount to this ongoing focus is cash liquidity.

Upward trajectory in business requires incoming cash to exceed cash outflow. Keeping the bills paid when cash collections are low is an exercise in perseverance to achieve the ultimate objective of positive cash flow.

When cash flow is negative, you have to dip into a reserve that you’ve built as a safety net. The appropriate size of this cash reserve is related to the volatility of your sales. For a business with steady collection of revenue, reserving cash that covers a couple of months of overhead is probably sufficient.

If any uncommon cash crunch arises, you can still meet your obligations while making adjustments for a return to cash flow stability. To determine this figure, you merely need to know the amount of your recurring monthly costs.

Conversely, a business engaged in extended projects over many weeks may require enough cash reserve to pay for several months of expenses. The key measure is the average period that elapses between project start and customer payment. If there are delays in starting or getting paid, you can weather these times with an appropriate cash reserve.

Business owners with a lot of cash in their companies are frequently tempted to overspend. On the other hand, holding more cash than is needed as a reserve is inefficient.

Once you identify a sound amount of emergency cash to hold in reserve, any excess may be deployed to grow your business.

The good news is, you are not helpless against these crimes. There are effective steps you can take to keep your workplace protected against each type of crime. Putting these safeguards in place will prevent loss, injury, and increased costs. Help keep your business crime-free with the following tips:

Prevent Employee Crime

• Vet your people: It may involve a lot of legwork, but it’s worth checking into the people you hire. Contact references and perform background checks for any potential employees. Be sure you are hiring trustworthy people.
• Avoid violence: Do you have a written workplace violence-prevention policy? If not, develop a comprehensive plan that covers the consequences of committing acts of violence in the workplace and procedures to follow if such an event should occur.
• Require audits: Reduce the opportunity for internal theft by requiring audits for all employees who handle invoicing, receipts, or payroll. These regular audits require extra effort, but the accountability can help prevent major losses.
• Establish safety: Ensure every employee is properly trained on safety procedures and is aware of all company policies. Business owners who do not meet OSHA standards run the risk of breaking laws regarding safety regulations. Avoid penalty fees and lawsuits by remaining in compliance with all standards.

Prevent Nonemployee Crime

• Use surveillance: Keep all areas of your business in sight. Use security personnel, mirrors, or surveillance cameras. Encourage employees to engage customers. A vigilant eye is helpful to protect your assets and avoid theft claims.
• Install security: Apply physical security measures at your business. Install quality locks or a company-wide security system. Limit access to high-risk areas.
• Light the way: Dark areas invite dark deeds. Ensure all areas of the property are well-lit. Add exterior lighting if none is present. Change all burned-out bulbs right away. Keep things bright and welcoming for employees and customers, and uninviting for crime.

Prevent Cybercrime

• Back it up: Keep backup copies of all records either on additional storage devices or off-site. A loss of data could mean anything from a minor setback to a major cost. A large breach can spell disaster for a small company.
• Monitor access: Limit the number of employees who can access all company information. Be especially prudent about access to finances and personal client information.
• Be software smart: Use strong passwords and proper firewalls to protect your data. Remain current on software updates to keep defenses strong. Change passwords regularly. Negligence in these procedures can prove costly.

As you make these efforts, you will make your company safer, more inviting, and more cost-effective.

Keep trees trim. Overgrown oaks and extended evergreens can cause property damage, which results in claims. Branches that creep too close to your property can destroy roofs, harm siding, or break windows. Dead limbs are at risk of falling and causing further property damage or personal injury. To keep them safe and attractive, trim trees every one to two years.

Get a good grade. Healthy drainage is essential. To protect your property from expensive water damage, ensure the land is graded properly. If you add or remove landscaping, keep this important factor in mind. Consult with professionals who have experience in land grading to avoid disastrous results.

Thwart thieves. Reduce your risk of burglary with thief-deterrent landscaping. Prickly bushes in front of your windows can make your home less inviting to burglars. Keeping large bushes and trees neatly trimmed also eliminates potential hiding places for would-be thieves.

Mind the vines. Climbing vines can add aesthetic appeal to a property’s exterior; however, they can also cause serious damage. As ivy grows up the wall, it can harm the paint, destroy siding, or separate bricks. If it gets tall enough to reach the roofline, the vine can damage gutters and roof tiles. If you are considering planting vines, keep these risks in mind.

The Internet of Things (IoT) has made life quicker and easier than ever before. With the touch of a button, we can now bank, shop, and even look for love, all from the comfort of our couch.

The problem: with so much ease and accessibility, we have become vulnerable to online scammers looking to gain access to our personal information.

According to a 2017 report from Herjavec Group, a cybersecurity solutions company, cyber crime is on the rise and could cost “the world $6 trillion annually by 2021, up from $3 trillion in 2015.”

Similarly, a report by Wombat Security states that the number of scam emails sent in 2017 was up 155% over 2016. These “phishing” scams are sent to your email or social media, and mirror legit businesses or financial institutions.

Don’t despair. You don’t have to disconnect and go off the grid. There are ways to outsmart the scammers and keep yourself and your bank account safe.

Do your homework. If you receive notifications requesting that you need to update an account or provide any personal information, utilize the google search formula
“(company name) scam.” Don’t hesitate to call the phone number and google the address for these companies, too.

Be wary of downloading attachments. This is another trick used to infect your hard drive with malware and steal information. Always protect your device with antivirus and malware software.

Trust your gut! If some promise or promotion sounds too good to be true, chances are, it is.

Millennials are often viewed as financially careless, shelling out money for avocado toast instead of saving for homes or retirement.

Many came of age during a worldwide financial crisis, so their hesitancy to consider long-term financial plans is understandable. Now, millennials are aging. They are buying homes, starting families, and opening businesses. Recent studies suggest they’re more financially prudent than their parents and more likely to maintain budgets and avoid big-ticket items. That’s why many shop at estate sales.

It’s easy to see why these sales have millennial appeal. They offer one-stop shopping for kitchen items, household items, and toys – all discounted. Estate sales are also great community events. They can be fun group outings. There’s also a thrill in hunting for a great deal or finding a rare item. Plus, you can meet people with common interests at these sales.

If you’re not a millennial, consider this demographic when you’re planning sales. Be sensitive to millennial characteristics. They are typically busy and on tight budgets, and they want to avoid impulse buys. With these factors in mind, keep your sales organized and simple. Label items clearly, with prices easily displayed. Group similar objects together: kitchenware in one area, tools in another, toys separated in age-appropriate ways.

Don’t restrict this mind-set to just sales. Millennials also like garage sales. Like many from generations past, most millennials aren’t above a good bargain!

This massive event holds the potential for myriad mishaps. That’s why wedding insurance is now available.

This policy is a specialized type of event insurance that covers a wide range of disasters that could affect your big day.

You can customize the policy to insure major damages to your venue or other aspects of your wedding. Enjoy protection with:

Event cancellation protection. What if the weather doesn’t cooperate with your plans for a picturesque wedding at the park? What if the officiant becomes ill? This coverage insures deposits for rental cars, flowers, the cake, and more, in case circumstances beyond your control cause a cancellation or delay of the ceremony.

Special coverage. Are you concerned about your rings, gifts, photographs, or tuxedos? Wedding insurance can provide coverage for these costly items. If the best man loses the rings or the ring bearer spills grape juice on his lapel, wedding insurance can prove quite helpful.

Liability. Large events always carry the risk of property damage and personal injury. This coverage protects you from liability in the event your guests damage the venue or suffer injury. Public venues may have their own coverage for these situations, or they may require you to provide a policy.

Compared to the price of the event, wedding insurance is typically quite affordable. If you encounter a hitch in your plans, this policy can help you save significant costs.

If you’re planning a wedding, consult with your insurance agent to determine the best coverage for your event.

The right policy can provide peace of mind to help keep your feet steady as you walk down that aisle.

Here are some tasks to tackle this spring:

Review the roof: Overlooked issues can lead to leaks and expensive repairs, and seasonal storms and general wear and tear can take their toll. Give your roof a once-over each spring, and make repairs while they’re still manageable.

Explore the exterior: Examine the walls of your building. Is it time for new siding? Is your foundation cracked or crumbling? Make touch-ups as needed to keep your property in top shape. This will help you save money, keep your building looking sharp, and reflect well on your image.

Gut the gutters: If gutters get clogged, they can’t do their job, and your property may suffer water damage. Before the spring rains, make sure your gutters are ready. Clean them out, and replace any loose or broken pieces.

Test your terrain: Spring is a good time to plan landscaping projects for the year. Is your terrain properly graded to divert water away from the building? Do you need to trim trees away from your roofline? Take some time to evaluate your property and schedule any necessary projects.

Secure your safety: Evaluate your property for potential liability issues. Ensure walkways are smooth. Replace loose railings. Inspect electrical systems for safety concerns. These simple steps could prevent lawsuits.

Yes, business owners can retire. But they need to consider all options. The reason many small-business owners don’t adequately prepare for retirement is that they often view the businesses as their retirement safety net. When they retire, they expect to transfer the firm to a family member or sell it and turn it into cash. In the meantime, they plow earnings back into the business to keep it growing.

According to financial professionals, this all-the-eggs-in-one-basket approach is a very risky retirement planning strategy. There are many options available to sole proprietors as well as small-business owners who want to offer savings plans to employees and themselves. These include:

• A SEP-IRA – a tax-deductible retirement plan similar to a traditional IRA but targeted to solopreneurs.
• A SIMPLE IRA – designed for small-business owners with fewer than 100 employees. Pretax contributions are deducted directly from employees’ paychecks.
• A Solo 401(k) – self-employed individuals with no employees can contribute a maximum of $53,000. A spouse who works in the business can contribute the same amount.
• A SIMPLE 401(k) – another retirement vehicle for businesses with 100 or fewer employees. Account-holders can borrow against the money in a 401(k) and make withdrawals penalty-free in cases of financial hardship.

Funds invested in a diversified retirement plan trim the tax bill now and grow tax-deferred until withdrawals are made later. Usually, the cost of opening and administering a retirement savings plan is modest. Some 401(k) providers actively target small businesses and even offer access to retirement planning experts.

It’s human nature to make goals to lead us to success. But it’s also human nature to lose those goals in the face of everyday concerns.

As poet Robert Burns famously said: “The best laid schemes o’ mice an’ men / Gang aft a-gley.”

What we need is a guidance system similar to those in airplanes, suggests author and coach Terri Murphy in a recent article in RISMedia: “(An airplane has) a guidance system that continually adjusts the nose of the plane to make course corrections, which keeps the plane in the intended target.”

Most of us, however, don’t have a guidance system and, rudderless, let our plans go awry.

Murphy suggests a solution: Define three top goals that, if achieved, will “make you feel super successful.”

Home in on one daily key priority that represents a step toward your goals. A weekly checklist and an action plan will encourage you to complete the daily activities that support your top priority.

At the end of the week, assess your progress and tweak your plan accordingly.

And, most importantly, keep referring to your top goals and don’t slip back into those “comfortable” habits that keep you from achieving them.

While we may lack an airplane’s guidance system, we humans do have the ability to plan. To keep those plans in the air, we need a system.

Whether it’s Murphy’s or a hybrid of several similar goal-oriented systems, it must be sufficiently compelling (and user-friendly) to make you want to abandon your day-to-day crises and concentrate on your success.

Do I need commercial insurance? New business owners often assume their fledgling company doesn’t require insurance coverage right away. This can be a costly assumption. Even if your operations are small, you should be covered. Find out which policies you need as a start-up business.

What types of coverage do I need? Every business has unique needs. Most companies require, at minimum, property insurance, general liability, and workers compensation coverage. Discuss your specific operations with your agent to determine which policies are necessary for your business.

What do I need to know about property coverage? Find out how much insurance you will need to cover your commercial property. Don’t forget coverage for inventory, equipment, and intellectual property.

Is a Business Owner’s Policy (BOP) right for me? A BOP is a bundle of policies that provides basic coverage for businesses. Companies may be able to choose this package to save on insurance, but you may need additional coverage beyond this starter policy.

What about policy limits? While you’re determining how much insurance you need for your business, don’t forget to consider policy limits. Decide whether the limits of a policy you’re considering are realistic and will meet your needs. This includes workers compensation coverage, liability insurance, and property insurance.

Do I need an umbrella policy? If a basic policy doesn’t provide sufficient coverage in certain circumstances, commercial umbrella insurance extends your liability coverage when the basic policy falls short. For example, an umbrella policy will protect your assets in the event you are found liable in a costly lawsuit.

How do you calculate workers compensation premiums? Many business owners find the pricing confusing, so it’s important to have this discussion with your provider. Gaining a better understanding of how this works can help you properly classify your employees, avoid audits, and receive the best premium rate.

What is the claims process? You should be familiar with the proper steps to take if you need to file a claim. Know how this process works and whom to contact with questions. Knowing these details in advance will make filing a claim a much smoother experience.

What are my options for payment? To begin coverage, you must pay a premium for your insurance policies. This can be paid in monthly installments or as a lump sum. There are advantages to each method. Discuss these with your agent to determine which is the best payment plan for your business.

How can I save money on insurance? Your agent can provide tips for lowering premiums and reducing the number of claims. Employee training and security systems are two common solutions. Keep in mind that lowering your risk factors helps lower your premium.