3 Success Stories and What You Can Learn from Them

A property loss, according to the IRS, can result from the damage, destruction or loss of property from any unexpected event (versus normal wear and tear or progressive deterioration). That might include disasters such as floods, hurricanes, fires and earthquakes. It may also include theft.

IRS rules require small businesses to reduce the loss by salvage value and insurance reimbursement. But the rest of the loss, which is considered unreimbursed, may be included in your itemized deductions come tax-filing time. So if a storm destroyed your store roof, a fire damaged your equipment or a burglar stole your delivery truck and insurance didn’t fully reimburse you, you may be able to deduct some of the loss on your federal income tax return.

Of course, there are rules. Generally, losses must be substantial (exceeding 10% of your gross income), and the year the deductions apply can also vary. It is also critical to document your deduction with receipts, police reports, insurance claims and any other records involved.

Of course, the best way to avoid unreimbursed losses is to have solid insurance coverage. Give us a call today to see how we can support you in finding the best policy!

Feedback isn’t just on the back of a customer service form. If used meaningfully, it can be the key to helping your business run smoothly. Here are a few tricks for how to implement it.

Helps avoid mistakes. Sharing little points of feedback often can be the key to stopping a team from derailing. When a group is working on a project together, there can be a lot of misunderstanding and communication. Not only does it keep the team on track, but it also saves you the time of correcting a larger mistake.

Form better relationships. Communication is the key to a good relationship, and that’s the same in business. Being honest can be quite a hard pill to swallow, but the more comfortable your teams become with it, the better they will be both inside and outside the office.

Helps to motivate. Receiving feedback motivates people! Keep it friendly. The key to constructive feedback is to offer advice, not judgment. Your team members may be unsure how to ask for help or may feel a little lost. Plus, end with encouragement! Hope will always be better than fear.

Offer good feedback. It’s not all doom and gloom! You should be applauding your staff as well as pointing out any mistakes or places to improve. This in turn creates a better, more well-rounded team.

Over the long term, many small businesses that are moving to more sustainable practices save money (for example, by lowering their electricity and water bills). In the short term, however, setting up sustainable business practices can be costly.

For example, replacing outdated or damaged equipment with more environmentally friendly equipment is typically not fully covered under commercial insurance policies. Any reimbursement available is generally based on the value of the original equipment, and that value is usually less than the equipment’s greener counterpart.

If you are looking to go green when replacing equipment, there are some ways to save money. Insurers also want to be mindful of sustainable practices, and in keeping with that, many now offer green equipment and materials endorsements that small businesses can add to their commercial property insurance policies.

What is a green endorsement? It is an addition to an insurance policy. It specifies that when your property is damaged and needs replacing, there will be coverage for the higher cost of environmentally friendly materials and equipment. In other words, it covers the gap between the original cost of your old equipment and the cost of your new environmentally friendly equipment.

Green endorsements do not just apply to materials and equipment. If your building is damaged by a disaster (such as a flood, hurricane, tornado, fire or earthquake), the endorsement may also allow you to elevate your building to green certification status when it is repaired or rebuilt. The green endorsement will typically cover all costs involved in sustainable construction. These might include design, engineering, certification and recycling of old materials.

Green endorsements may also apply to vehicles. Do you have insurance coverage on a delivery truck and want to replace it with an electric or hybrid car if it is damaged or stolen? If so, you might be able to get a green endorsement on your auto policy.

What are the costs of a green endorsement? It varies from insurer to insurer and policy to policy. For example, some policies may require small businesses to increase their coverage. Because green construction typically takes longer than traditional construction, if you are rebuilding in a sustainable fashion, you may want to extend your business interruption coverage.

Additionally, once you have gone green, you may want to increase your coverage in general to cover the added cost of replacing your green materials, equipment or building’s cost.

In summary, increasing numbers of small businesses are trying to reduce their carbon footprint, and your business can go green by planning for replacement property to be more sustainable, but it comes with a cost.

We’d be happy to review your business insurance needs and determine if you are adequately covered for going green. Please call or email us today to get your insurance checkup going.