Help Assessing Business Risk

No one dreams of the day they can pay insurance.  It is especially true when starting a business when your financial resources are at their tightest.  When your business ownership dreams come true you are dazed with all the bewilderment, excitement and anticipation that comes with any new adventure. The last thing business owners want to think about is the chance of failure or harm that could come to their business. The problem with all the optimism is that is can blind you from reality.  The reality of owning your own business is the risk involved.  The risks come with great rewards. Those rewards can be properly insured with the right commercial business insurance policy preventing the promise of success from being eliminated from a lawsuit or natural disaster.

When it comes to insurance coverage for your business don’t asses the risk on your own.  It is incredibly blinding at the start of any new adventure and the risks cannot properly be assessed without insight from a professional commercial business insurance agent.  When looking into insurance coverage for your business have at least two different insurance companies come in and address your insurance needs.  A risk analysis of your business by at least two outside parties will help to create awareness of what assets need coverage as well as what policies should be obtained.  

Insurance needs will vary greatly from one industry to another, one business to another and one entrepreneur to another. Here are a few different types of polices that can be offered to help cover all of your business needs and to prevent the financial demise of business.

One type of insurance coverage that is often seen in business is business owner coverage.  This policy is often referred to as a catch all policy.  The plan covers protection of damages caused from fires and other mishaps.  This policy offers a narrow degree of coverage in liability protection. 

Business owners can also purchase additional property insurance that offers protection above and beyond regular business owner protections.  Property insurance covers damage to the building that encompasses your business as well as the assets inside including the inventory, furniture and equipment needed to run the business.

In our society lawsuits come about for the most insignificant of reasons.  This is why it is so important that businesses cover additions liability insurance.  This policy will be the coverage that is needed to prevent financial ruin that comes from litigation over property, injuries that your product is held accountable for.  This is the policy that covers business owners from litigation against things such as a coffee that scorches a client or fan blade that cuts a babies finger.

Insurance against errors and omission is another part of business insurance coverage that is important.  This covers all service based industries against mistakes or harm caused from advice given.  Good examples of people that need this coverage are lawyers and doctors. 

When it comes to insurance for your business it is important to take the time to understand what is being offered and the reason the coverage is critical for your business.

For more information on business insurance throughout Livingston County, MI contact Cobb-Hall Insurance. We are experts in all types of insurance needs and look forward to helping you with all of your insurance needs. Check us out online at http://www.cobbhall.com/business.php.

Every Business Needs Commercial Insurance

Without a doubt the most important investment you can make for yourself and your business is to meet with a professional insurance agent to properly insurance your company.  Commercial business insurance helps to protect owners against financial loss that in turn could make the difference between bankruptcy and staying in business. One lawsuit can end your business and entrepreneurial dreams without the proper insurance coverage. 

No matter how small or large your business is, adequate commercial coverage is crucial.  A solid insurance policy and plan can prevent financial loss due to a myriad of issues that can arise within your business and industry.  Some of the most common losses that business experience are from theft, natural disasters, lawsuits and employee injuries.  All of which have specific policies that can be purchase to cover losses to your business.  Adequate insurance coverage allows business owners to regain their footing after a claim is made against the business.

When looking into business insurance coverage it is important to a have a basic knowledge of what there is available.  The three basic insurance policies that most businesses have are liability insurance, worker’s compensation insurance and property insurance.  Liability insurance helps to cover loss due to any damages that are inflicted on someone else from the actions of your employees, products or business in general.  This type of policy will cover expenses and cost related to personal injury, property damage, customer injury and the lawsuits arising from such.

Worker’s compensation is required to own and operate a business.  This type of coverage protects the business and the employee if an injury or illness occurs on the job or from the job you are pursuing. This can be anything from covering medical related to expenses from an injury to an employee’s lost wages during an extended leave of absence.  This policy requires proof that the injury or illness sustained comes from the work that was done on the job or from the job.

When it comes to considering an insurance agent for your commercial business insurance needs you it is important that you work with someone with extensive experience.  As a new business owner you will not necessarily be able to know or predict the risks involved with your specific industry.  Working with an insurance agent that specializes in commercial insurance will aim to help you have coverage that meets your every business need. 

Remain informed throughout the process of purchasing coverage and policies. Ask your agent any and all questions before the need arises for you to make a claim.  You will want to make sure that you understand your insurance coverage so that you can comprehend what you are covered for as well as exactly what you are paying for.  If a claim is made against the policy you will want to be able to contact your agent immediately so that it can be looked into and processed as soon as possible.  When it comes to commercial business claims you will find that it is more complex than making individual claims and can take a bit longer to process. 

For more information on business insurance throughout Livingston County, MI contact Cobb-Hall Insurance. We are experts in all types of insurance needs and look forward to helping you with all of your insurance needs. Check us out online at http://www.cobbhall.com/business.php.

Protect Your Business Risks With Commercial Insurance

When it comes to protecting yourself and your business against the uncertainties in life it is good to know you can rely on commercial business insurance.  As the owner of any business no matter how big or small you will face risks that you didn’t even know existed before becoming an entrepreneur.  Before cutting the ribbon on your new business it is imperative that you meet with an insurance agent that specializes in commercial insurance coverage.  They will be able to help you identify and define the risks within your industry as well as your specific needs.

Insurance for your business takes the risks involved and transfers them to a third party that you pay for.  It works just like insurance policies that you have on your home and automobiles. The insurance company chooses a set amount of money to charge for policies depending on the amount of coverage that is needed and the determined likelihood that it will be needed. Business insurance is risk management for owners.  If a loss occurs the business owner will establish a claim with the insurance company and their losses will be covered.  Without this coverage a business owner would be on their own to cover the loss occurred which could possibly bankrupt your business.

When it comes to insurance for your business there are several types of policies to consider.  An insurance agent will help you determine exactly which insurance policies are specific to your business.  From commercial property damage to professional liability this article will provide you with a brief description on what each does to support your business.

Worker’s Compensation

 A worker’s compensation policy covers lost income as well as medical expenses to an employee if they sustain an injury or work related illness.  This policy pays to sustain the employee while hiring someone to cover the work that is in need of being done while the employee is healing. 

General Liability

General business liability insurance provides coverage against negligence, product defects, and damage to property.  General liability is important in today’s lawsuit happy climate.  The protection provided to the business is to cover lawsuit expenses, medical payment and any other expense occurred in 

preventing loss to your business.

Commercial Property Damage

Property damage insurance provides coverage and compensation to business owners in case of loss due to natural causes including from weather created issues, fire damage as well as theft.  The coverage not only covers the physical business property and structure but also loss of equipment and materials that allow your business to function and exist.

Professional Liability

When it comes to certain professions professional liability is a must.  This type of insurance is provided for consultants, attorneys, tax advisors and other service industries. If you give advice or offer services of technical advice professional insurance protects you and your business against lawsuits stemming from that advice. 

These are the four most basic types of coverage offered to business owners.  More in depth coverage may be needed or wanted.  This can be determined by consulting a local commercial business insurance agent. 

For more information on business insurance throughout Livingston County, MI contact Cobb-Hall Insurance. We are experts in all types of insurance needs and look forward to helping you with all of your insurance needs. Check us out online at http://www.cobbhall.com/business.php.

General Liability Insurance: 3 Costly Mistakes to Avoid

General liability insurance is an important aspect of running a business. Having this policy protects you from many of the common risks associated with business ownership, such as personal injury and property damage. But if you don't take the time to carefully review and learn about your specific coverage terms, you may end up learning the hard way that it's called "general" liability for a reason.

Insurance experts discussed some costly mistakes that small business owners frequently make concerning their general liability insurance, and what you can do to make sure your business is fully protected.

Thinking you don't need insurance

One of the worst assumptions a business owner can make is that he or she doesn't need any insurance coverage. While you may not have a lot of room in your budget, the price you'll pay for a lawsuit if something goes wrong is far greater than any monthly premium for basic liability insurance.

 "By not properly assessing their risks, small business owners may conclude that they do not need insurance," said Stephen Leveroni, executive vice president and general business practice leader at insurance and financial services firm The ABD Team. "Those that start in their homes may have the false assumption that their homeowners' insurance policy provides coverage [for their business]."

Leveroni also pointed out that structuring your company as a corporation, LLP or LLC does not mean you don't need a general liability policy.

"While [the structures of] these entities do help, they are not substitutes for liability insurance," he told Business News Daily.

Assuming your policy covers everything

While general liability coverage does address the most common business risks, it's not necessarily a catch-all for every possible scenario. Small business owners often assume that their policy automatically covers them if any issues arise, but those who have read the fine print — which many fail to do — know that this isn't the case.

"Insurance contracts are agreed-upon transfers of risk for a fee," said John Buckley, a partner with Ungaretti and Harris law firm. "Insurers, however, are careful about what risks they accept and what risks they exclude. Unprofitable, unpredictable and unmanageable risks are excluded by the insurers over time to reduce their risk and manage their portfolio more profitably."

Buckley advised speaking with a professional broker to help assess your business's specific risks and shape your general liability policy to best fit your needs.

Forgetting about cybersecurity

In an age where nearly every business has a Web presence, cybersecurity is an issue that will most likely affect you, regardless of your industry. Tech startups are usually hyper-aware of this risk, but non-tech businesses tend to forget that they're not outside the reach of hackers.

"Small businesses are of greatest risk for a breach due to their often limited budget, lack of security and thin staff," said Matt Cullina, CEO of business risk and identity management solutions provider IDentity Theft 911. "They're a growing target for hackers and thieves who know small businesses are especially vulnerable to exposures. Anything from a denial-of-service attacks, data lost to viruses or other security issues, or even something as simple as a hacked email can contribute to a costly, reputation-damaging situation."

In most cases, general liability policies will only cover you for reputational damage due to libel or slander. They don't directly cover losses due to data breaches and other exposures by third-party IT service providers. For this reason, it's important to consider a separate cyberinsurance policy on top of your general liability.

As your business grows, your insurance needs are going to change. The best thing you can do to keep your assets protected is revisit your general liability policy and modify it as necessary to cover your risks, Buckley said.

Original Source: http://smallbusiness.foxbusiness.com/finance-accounting/2014/05/07/general-liability-insurance-3-costly-mistakes-to-avoid/

Choosing an insurance plan: 3 common mistakes

We focus too much on deductibles and not enough on overall costs.

FORTUNE -- Behavioral finance -- the study of why humans make irrational decisions about money -- has made its mark on the world of investing in a big way. Look at the way many companies now both enroll employees into their 401(k) plans and ratchet up their deferrals. Both are now frequently done automatically; if you don't want to participate or increase the amount you kick in, it's up to you to opt out. Similarly, there are many plans where target-date retirement funds have replaced money market funds, as the investment default.

Although some believe this is too "Big Brother," these tactics (the financial equivalent of hiding the broccoli in the mac and cheese) are a good thing. They point to success stats like the huge lift in participation rates when a plan automatically enrolls -- and how that alone can help employees stash away more for retirement.

But what about in the world of insurance? A few weeks ago, I wrote about my trip to the Wisconsin Business School at the University of Wisconsin in Madison. While there, I spent time with Justin Sydnor, an assistant professor in the Department of Actuarial Science, Risk Management, and Insurance who conducts much of his research in the field of behavioral finance. We talked about the none-too-rational mistakes humans make when shopping in this confounding field -- and how we can help ourselves through them.

Here are three biggies:

We focus on the wrong variables

Think about the last time you were asked to choose a health insurance plan. Whether you were shopping an exchange or your employer's menu, chances are there were many features to consider: co-payments, doctor availability, and deductibles. "It's very easy to focus on the features that turn out to not to be financially important while missing the ones that are," Sydnor says. Specifically, we have a tendency to focus too much on deductibles because of the large numbers associated with them. That can be a mistake.

Try this instead: If the first filter you apply when you're looking at policies is the deductible -- and you go for a low one -- you'll end up looking at a bunch of high-priced policies and miss the lower-priced ones altogether. Instead, Sydnor suggest narrowing the universe by first looking at factors that don't have a huge impact like the coinsurance rate and the health care providers you really want. By leaving the deductible comparison to the end, you'll get a policy that's better suited to your needs (and your wallet).

We don't do the math 

Premiums, whether you're talking about auto insurance or health insurance, are typically not presented as a yearly number -- but as a quarterly or monthly number. Deductibles, on the other hand, are presented as an annual number. And as Sydnor's research has shown, many people are so laser tuned to that factor they end up paying more in overall premiums than they save on deductibles. "If you pay $450 more in annual premiums and that gets you a $500 lower deductible, it's a $50 difference -- and you've paid the $450 up front," he explains. That's not a smart move. Even less smart: "We've seen cases where people will pay a $600 difference for a $500 lower deductible."

Try this instead. Look at the yearly premiums. If they're quoted in monthly increments multiply by 12. If they're quoted quarterly, multiply by four. (I know it sounds ridiculously easy, but far too many people don't go the extra step.) Then look at the spread between the difference in premiums and the deductible. "If the two numbers are close buy the high deductible policy," Sydnor says. "Otherwise, you're essentially paying up front for a reduction in deductible later."

We insure the wrong things

Have you ever bought insurance on your cell phone? Or taken out an extended warranty on a new electronic? Or opted for a low deductible on your car insurance because, you thought: "If I have a fender bender, I don't want to have to come up with $1,400 to fix my car." We do these things all the time -- Sydnor explains -- essentially spending money to protect ourselves against relatively small losses. At the same time we're ignoring much bigger financial risks. "We're not buying disability policies. Some homeowners aren't buying excess liability," he says. "If we took all the money we paid to cover ourselves for small risks and devoted it to unlikely but big ones, that would be a much better way to manage the risk in our overall lives."

Try this instead: If you can't afford to replace it, insure it. If you can afford to replace it, don't. "My general principal is that unless you have a really good reason to believe you are highly special and are, for example, going to destroy five iPhones, you're better off avoiding most coverage under $1,000 and focusing on the bigger risks," Sydnor says.

"Insure the things you can't replace by yourself like your house or your income and don't pay for extra insurance on the small things. That's what your emergency cushion is for."

Original Source: http://finance.fortune.cnn.com/2014/05/12/choosing-an-insurance-plan-3-big-mistakes/

Defining Business Insurance Policies

Insurance for General Liability:  All businesses should have at least basic general liability insurance.  This is true even if you run a home based business or consultant.  Liability insurance policies provide coverage for litigation and damages that are caused as a result of you, an employee, product or service.  This includes property damages as well injury to one’s person.

Insurance for Property: A property insurance policy should be purchased to cover your building as well as any business property including office equipment, tools and inventory. Separate coverage should be considered to protect against fire, theft, vandals and such. 

Interruption Insurance: This is a policy that can be purchased by business owners that covers the business in situations where there is an interruption that does not allow the business to operate.  This insurance protects the potential earning power of the business when service or products are unable to be provided. 

Auto Insurance For Commercial Vehicles:  As you insure a car for your personal benefit your work fleet also needs coverage.  Commercial auto insurance is used to insure vehicles that are used in the line of work from damage as well as collision.  When employees use their personal vehicles to complete business related tasks it is important the business owners have insurance that covers the business in case the employee does not have adequate coverage. 

Insurance for Workers Compensation:  Workman’s comp, as it is often referred to protect employees who suffer from work related injuries or who are hurt on the job. This insurance provides for a replacement of the employees’ wages as well as medical benefits.  Workers compensation protect the business owner and company from legal complications.  Providing workman’s’ comp benefits alleviate employers risks from future litigation arising from the incident.

Error and Omissions Insurance:  Also known as professional liability insurance the policy provides coverage for litigation and damage that is the result of services rendered improperly.  This coverage is different from general liability insurance.  Professional liability insurance is tailored to specific trades and professions.  Services professions such as lawyers, accountants, real estate professionals, insurance agents, hair salons, technology providers and more should all be sure to have adequate error and omissions insurance. 

Key Person Insurance:  Coverage under key person insurance provides compensation for any financial losses that come about from the death or incapacity of a key member in the business.  If one person is responsible for the majority of revenue brought in to the company this coverage is a necessity.  If one person’s work, knowledge, skill set or contribution is unique and consider irreplaceable without incurring loss or expense to the business; key person insurance can carry a business through a period of time and financial loss.

When it comes to insurance, policies, protection and coverage needs for your business it is wise to seek advice from a reputable business insurance agent.  An agent that is familiar with your industry is more likely to know the needs associate with your company providing the exact bundle of business insurance that is needed.  This also helps to ensure that you are not over insuring your company and in turn wasting valuable financial resources. 

For more information on business insurance throughout Livingston County, MI including Brighton and Howell, contact Cobb-Hall Insurance. We are experts in all types of insurance needs and look forward to helping you with all of your business and personal insurance needs. Check us out online at http://www.cobbhall.com

Take Risks In Business But Not With Your Insurance Coverage

As you open a business no matter how big or small there are a ton of questions that run through your head.  I bet business insurance is one of those things that comes to mind. When it comes to owning your own business you will take a lot of risks and you will make a ton of mistakes.  Don’t let insurance coverage for your business be one of them. When it comes to insurance for your business there are a million questions you need to ask to ensure that you are substantially covered.

The first question you need to answer is in regards to equipment and goods used while outside of the actual business premise.  Your business insurance coverage should cover business equipment whether on site or in transit to a tradeshow.  You will want to make sure your coverage is all inclusive when it comes to where the equipment is located.

Question your insurance provider to make sure that you are covered under circumstances from theft to a flood.  It is important that the insurance policy for your business covers expenses that are man-made as well as natural occurrences.

Do you need to contact your insurance agent when you make upgrades to your equipment or your premise?  It is important to understand your policy and the intricate details.  If additions to the premise or upgrades in equipment need to be reported the agent for the insurance to cover them that it is essential that you address that before you make the purchase so that it is covered. 

With the policy that you have purchase does it cover replacing the building if it is fully destroyed? Are you required to build in the same spot or are you allowed to build in an area that is more suitable than the last one?  

Does your policy cover a loss of income if your office, warehouse or production site is destroyed?  What about if it is partially damaged or if your business is severely affected by the damage be it man-made or a natural disaster. It is dire that you completely understand the coverage that you purchase.

When considering purchasing a policy make sure that it covers in case of a breach of data.  When you take client information and payment via credit or check you need to make sure that your client’s information is protected.   Data protection is a newer policy to consider but is so important in the age of technology that we are currently living in. 

Questions are important especially when it comes to your business and the insurance plan that you have on it.  Your business is your source of income.  Income creates the means that support your family and livelihood. It has never been more important that when buying business insurance to understand what you are getting in return for the money you are paying. If you have any questions regarding the insurance coverage to your business ask your agent questions.  Your insurance agent is there to help you understand and to clarify your business insurance policy.

For more information on business insurance throughout Livingston County, MI including Brighton and Howell, contact Cobb-Hall Insurance. We are experts in all types of insurance needs and look forward to helping you with all of your business and personal insurance needs. Check us out online at http://www.cobbhall.com

Limiting Risk In Business With Insurance Coverage

No matter what size business you own whether it is small, medium or large purchasing business insurance is crucial.  Risks are inevitable when it comes to owning a business.  Insuring your company helps limit your exposure to these risks.  Selecting the correct insurance policies is also important when it comes to insuring your business.  Avoid the following mistakes when it comes to obtaining a business insurance plan that covers all of your business needs. 

Protect Your Business’s Financial Situation With The Right Insurance Coverage

The size of your business does not dictate whether your business has risks that need to be insured.  All businesses regardless of size has the possibility of facing risk.  A good insurance agent will find the risks in your company and offer insurance to protect against them.  Risk comes in many forms and can be man-made or natural.  Risk involves the things outside of your control.  Risks that are natural include weather related risks such as flooding, hurricanes etc.  Man-made risks involve theft, vandalism, data loss and so on.  

When your insurance agent evaluates your business exposures they will take into account all of the man-made and natural risks that could occur in your industry with your company.  They will look at who your customers are, the product or service you offer and evaluate any and all potential risks that could factor into your business.  From here the insurance agent will present you with the policies that they believe are in your company’s best interest to purchase.  Having insurance for the risks involved in your business is sensible.

Don’t Underestimate How Important Insurance Is For Your Business

All businesses have risk.  Don’t underestimate or think even for a minute that your business is exempt.  Even if the risk is small you need to purchase coverage to meet the need. Even if you think your company can financially withstand risk insure your business needs.  The cost of the insurance outweighs the financial risk to the business all day every day.

Don’t Get Swayed By Low Priced Insurance Policies

Low priced policies are not always the most cost effective options in business insurance.  Low premiums may cover only the minimum risk in your business.  Consider that, do you want only the minimum of coverage?  Think about business insurance like you would health insurance.  When considering health insurance coverage for your family would you ever consider purchasing only the minimum?  The answer is a resounding NO! If you knew your son or daughter was at risk for cancer you would never choose the minimum coverage.  Think about your business the same way.  Everyday your business is at risk of something be it a man-made or natural disaster.  Insure accordingly.  

Only Purchase Insurance From An Agent With Industry Knowledge

As you know by now purchasing insurance for your business is a challenge. It requires diligence and research.  Find an agent and insurance agency with a solid track record of settling claims and servicing clients.  Credibility is important when it comes to finding an agent to insure your company. 

Insurance is an important part of life and business.  Avoid these pitfalls and mistakes when covering your business risks.  

For more information on business insurance throughout Livingston County, MI including Brighton and Howell, contact Cobb-Hall Insurance. We are experts in all types of insurance needs and look forward to helping you with all of your business and personal insurance needs. Check us out online at http://www.cobbhall.com

Great Article in the News

Great Article – Everyone that handles private information for clients and employees should have a Data Breach Insurance Policy!  Check with your Cobb Hall agent today for a quote on insurance for your business!

Arizona community college faces class action over data breach

A proposed class action lawsuit is targeting a community college district in Tempe, Ariz., that allegedly violated several state and federal data protection laws, including waiting too long to notify affected students, alumni and employees after a breach.

According to the lawsuit, filed last week, the Maricopa County Community College District not only failed to prevent a massive data breach in April 2013, it waited nearly seven months to notify the individuals affected.

Administrators of the community college district were notified by the Federal Bureau of Investigation in January 2011 that several of its databases had been breached and were being made available for sale on the Internet, according to a civil lawsuit filed April 15 in the Maricopa County Superior Court in Phoenix.

The lawsuit claims district administrators did nothing to address the breach at the time, and that their inaction resulted in a second breach in April 2013. The lawsuit also accuses the community college district of waiting until November 2013 to notify current and former students, employees and third-party vendors that their personally identifiable information — including names, addresses, Social Security Numbers, personal financial information and benefits information had been accessed and possibly sold on the Internet.

The plaintiff in the case, current MCCC student Jason Liebich, is seeking class action status on behalf of the estimated 2.5 million individuals affected by the April 2013 breach. Mr. Liebich has accused the college district of violating several state and federal data protection and notification laws, and has asked the court for compensatory damages including unlimited compensations for credit monitoring, restoration and identity protection costs.

A second, similar proposed class action lawsuit was previously filed against the district in Maricopa County Superior Court in March.

April 2, 2014

Different Types Of Business Insurance Policies and Risk Management Procedures

What type of insurance needs does your business have?  Below you will find a brief explanation of different types of insurance protection for your business.

Asset Protection: Asset protection provides insurance coverage for the premise of your business, equipment, vehicles and contents as well as business equipment.   As with all insurance policies there are different policies that are in effect for different assets.  Your liability insurance might cover certain assets such as the premise and equipment used to do business but will need a separate asset policy plan to protect your vehicles and their contents from theft or accidents such as fire or flood.

Key Person Insurance: When it comes to small businesses most often the loss of one key staff member could be devastating to the overall business activity. In most cases this refers to the owner of the small business.  If the business is wrapped around the owner’s skills and abilities without that key person the business will be drastically affected.  The revenue will decrease and the value of the business most likely collapses as well.  With insurance covering the businesses key person, partners and shareholders are covered from an overwhelming loss.

Product Liability: Product liability insurance is purchased to cover legal actions sought to collect from death, injury or damage that has been caused by the product that your business produces.  A special add on policy to your product liability insurance is recall liability which covers losses that happen when a product is recalled.

Professional Indemnity: If you are in the business of offering professional advice, indemnity insurance can be purchased to provide personal protection against claims arising from your advice. Professional Indemnity is usually purchase by providers of medical and legal advice as well as financial institutions as well as contractors.

Public Liability: If you or one of your employees is liable for injury, death, damage or negligence to a third party on the premise of the business public liability insurance will cover you from financial claims to your business.  If an employee causes an accident on site you will be covered from liability with this type of insurance.  It is also important if someone is hurt on your premises, public liability insurance will help with legal fees as well as settlement costs.

Revenue Protection: Revenue protection covers your if there is a disruption in business leaving you unable to protected against loss of revenue in situations such as floods, fires, earthquakes and other natural disasters.

Workers’ Compensation: This is the coverage that will protect your employees as well as you from hardship financially if injured while working or a work related injury that has developed over time.

Risk Management: Insuring your business is one part of planning for the adventures that can help when you own your own business.  The other part is preventing, managing and reducing the risks in your business.

• Asset Maintenance: Take care of your business assets, including machinery, vehicles and office equipment.
• Computer and Data Loss: This includes backing data up on a regular schedule, supplying surge protectors and preventing the installation of software or data until it is checked for viruses.
• Premise Maintenance: Regular inspections and maintenance of the building and areas throughout the building will create a safer environment.  This includes the interior and exterior of the building.
• Security Risks: Adding an alarm system and entry access systems are a few ways to detour the wrong people from accessing your business.
• Theft and Fraud: Security cameras, regular inventory and a system of checks and balances with all finances will help prevent theft internally as well as from external sources.

For more information on business insurance throughout Livingston County, MI contact Cobb-Hall Insurance. We are experts in all types of insurance needs and look forward to helping you with all of your insurance needs. Check us out online at http://www.cobbhall.com/business.php

Different Types Of Business Insurance Policies and Risk Management Procedures

What type of insurance needs does your business have?  Below you will find a brief explanation of different types of insurance protection for your business.

Asset Protection: Asset protection provides insurance coverage for the premise of your business, equipment, vehicles and contents as well as business equipment.   As with all insurance policies there are different policies that are in effect for different assets.  Your liability insurance might cover certain assets such as the premise and equipment used to do business but will need a separate asset policy plan to protect your vehicles and their contents from theft or accidents such as fire or flood.

Key Person Insurance: When it comes to small businesses most often the loss of one key staff member could be devastating to the overall business activity. In most cases this refers to the owner of the small business.  If the business is wrapped around the owner’s skills and abilities without that key person the business will be drastically affected.  The revenue will decrease and the value of the business most likely collapses as well.  With insurance covering the businesses key person, partners and shareholders are covered from an overwhelming loss.

Product Liability: Product liability insurance is purchased to cover legal actions sought to collect from death, injury or damage that has been caused by the product that your business produces.  A special add on policy to your product liability insurance is recall liability which covers losses that happen when a product is recalled. 

Professional Indemnity: If you are in the business of offering professional advice, indemnity insurance can be purchased to provide personal protection against claims arising from your advice. Professional Indemnity is usually purchase by providers of medical and legal advice as well as financial institutions as well as contractors.

Public Liability: If you or one of your employees is liable for injury, death, damage or negligence to a third party on the premise of the business public liability insurance will cover you from financial claims to your business.  If an employee causes an accident on site you will be covered from liability with this type of insurance.  It is also important if someone is hurt on your premises, public liability insurance will help with legal fees as well as settlement costs.

Revenue Protection: Revenue protection covers your if there is a disruption in business leaving you unable to protected against loss of revenue in situations such as floods, fires, earthquakes and other natural disasters.

Workers’ Compensation: This is the coverage that will protect your employees as well as you from hardship financially if injured while working or a work related injury that has developed over time.

Risk Management: Insuring your business is one part of planning for the adventures that can help when you own your own business.  The other part is preventing, managing and reducing the risks in your business.

• Asset Maintenance: Take care of your business assets, including machinery, vehicles and office equipment.
• Computer and Data Loss: This includes backing data up on a regular schedule, supplying surge protectors and preventing the installation of software or data until it is checked for viruses.
• Premise Maintenance: Regular inspections and maintenance of the building and areas throughout the building will create a safer environment.  This includes the interior and exterior of the building.
• Security Risks: Adding an alarm system and entry access systems are a few ways to detour the wrong people from accessing your business.
• Theft and Fraud: Security cameras, regular inventory and a system of checks and balances with all finances will help prevent theft internally as well as from external sources. 

For more information on business insurance throughout Livingston County, MI contact Cobb-Hall Insurance. We are experts in all types of insurance needs and look forward to helping you with all of your insurance needs. Check us out online at http://www.cobbhall.com/business.php

Choosing Your Level Of Risk To Protect Your Business

There are so many benefits to owning your own business.  On the other hand there are some major drawbacks as well.  One major disadvantage to owning your own business, especially a small business is the risks involved.  When it comes to the risks involved in owning your own business there are a few ways to deal with it.  The first and worst method is to just accept all the risk and face the consequences when something happens.  The second method is to approach risk and to eliminate and manage as much of it as you can.  The third approach in handling the risk involved in business is to purchase an extensive and all encompassing insurance policy. 

There are advantages and disadvantages with each approach.  For instance in the first method where a business owner chooses to do nothing but accept all the risk and consequences involved the advantage is the initial savings in overhead spending.  If you don’t do anything to manage or insure the risk it will cost you nothing, to begin with at least.  The problem with this approach, especially in business is that you are risking your livelihood, the way you bring income in that supports the rest of the things in your life.  Without the ability to make money you put yourself a t risk for bankruptcy and worse; a lifetime repaying a debt that could have been avoided.

The second method of dealing with the risks of owning your own business is with managing or eliminating the risks.  This approach in handling business risk involved decreasing the risk associated with your business practices.  Risk management in short involves a regular review of company procedures and making sure that policies are in place that reduce and eliminate the risk to your staff, customers and business in general.  This could be something as simple as replacing the batteries in your fire detectors to something more complicated such as credit management and debt collection policies and procedures.

Handling risk in business with proper insurance coverage seems like a no brainer for some but others do not see the importance of paying extra premiums for special business policies.  The fact is that most businesses operate with risk.  Insuring your risk alleviates the burden of litigation and repayment from falling all on your shoulders.  Insurance premiums for businesses vary from general liability to workers compensation to product liability.  There are a wide range of insurance policies for businesses.  Not every policy applies to every business and industry.  It is important when seeking insurance coverage for your business to meet with an insurance company that provides comprehensive business insurance coverage for a variety of industries.

When it comes to approaching risk within business the best approach is most likely a combination of both risk management and insurance.  When used in combination you can decrease the risks involved in your business and hopefully this will decrease the chances of needing expensive comprehensive insurance.  A prime example of this in action is adding an alarm system to your business decreasing insurance premium costs while decreasing the chance of loss due to theft.  Owning your own business is a balancing act and handling the risk involved in business is all about a well balanced approach of managing and insuring risk.

For more information on business insurance throughout Livingston County, MI contact Cobb-Hall Insurance. We are experts in all types of insurance needs and look forward to helping you with all of your insurance needs. Check us out online at http://www.cobbhall.com/business.php

Small Business Liability Insurance Buying Tips

Is it important that small business owners have general liability insurance?  Many smaller companies believe that they can operate without insurance.  Small companies are always looking for ways to cut costs and decrease their operating budget but cutting insurance costs is not the best way to accomplish this.  Business insurance protects small business owners from a variety of frivolous lawsuits that are brought against business owners on a daily basis.

When a lawsuit is brought against a small business owner defending the claim alone is often enough to leave a small company with a severe debt if not the need to file for bankruptcy protection.  A great way to avoid this happening to you is to purchase liability insurance for your small business. The small amount of money that is put out to cover the costs of the insurance policy annually could save your business one day.  The insurance premium that is charged will depend on the type of insurance and amount that is needed to properly insure your small business.

To find a great rate on small business insurance premiums you may need to shop around.  Be careful when shopping different insurance companies because many times a significantly lower premium also comes with a considerably inferior policy.  Not all insurance policies are created equal so be sure to know exactly what you are paying for and exactly what is covered. 

The rate should not be drastically different from company to company for the exact same coverage.  Do a side by side comparison of the policies you are considering and analyze the service provided by each company.  Sometimes you will find the extra cost is worth the more personal attention you receive.  This will be especially important if you are ever in need of using the policy.

Another consideration is instead of buying several different business insurance policies to cover the various needs you have with to insure consider a business owners policy.  A BOP is a package of insurance policies related to your business industry.  The one tip you will need when purchasing a BOP is to make sure that the coverage meets all of your business needs.  If it does not cover an essential item need in your business coverage you will be better suited to look into individual policy coverage.  Buying all of your business insurance policies from one insurance company often saves you a percentage of the premium as well; this is considered a multi policy discount.

Another tip that is important when choosing a company to handle your business insurance needs is industry settlements.  Unfortunately there is a chance, a considerable chance that the insurance policy will be needed at some point during the process of operating your business.  This will give you look at what your needs are when it comes to settlements and dollar amounts that have been awarded as well as the reasons for the lawsuit and settlement.  Consider your business insurance doesn’t only cover you for costly litigation it also provides a solid foundation on which to build the success of your business.   

For more information on business insurance throughout Livingston County, MI contact Cobb-Hall Insurance. We are experts in all types of insurance needs and look forward to helping you with all of your insurance needs. Check us out online at http://www.cobbhall.com/business.php

With Spring Comes Flood Season; Make Sure Your Business Remains Liquid with The Proper Insurance

March 4 -- The Insurance Information Institute issued the following news release:

The above average snowfall this year is likely to create optimal conditions for widespread flooding this spring that could wreak havoc on businesses. Without flood insurance, many businesses may soon find themselves under water, according to the Insurance Information Institute (I.I.I.). Cash flow is the lifeblood of all businesses. But in the wake of a flood, too many business owners are forced to divert substantial funds to repairing flood-damaged property, instead of growing their business. And just a few inches of water can cause tens of thousands of dollars in damage, the National Flood Insurance Program (NFIP) reports. Even worse, almost 25 percent of small businesses never reopen their doors following a disaster, according to the Insurance Institute for Business and Home Safety (IBHS).

"Ninety percent of all natural disasters involve flooding," said Loretta Worters, vice president with the I.I.I. "From 2008 to 2012, the average commercial flood claim was more than $87,000; a substantial amount of money for a business to have to come up with on their own."

Flood and sewer back-up is excluded under most standard commercial property insurance policies. Sewer back-up can be added to a policy as an endorsement. Coverage for flood-caused damage to a business is available from the federal government through the National Flood Insurance Program (NFIP) and a few private insurers. When used in tandem with private insurance, NFIP coverage can mitigate or "buy down" large deductibles associated with commercial flood policies or simply provide additional coverage. A standard commercial flood insurance policy covers direct physical losses caused by flood as well as losses resulting from flood-related erosion caused by heavy or prolonged rain, coastal storm surge, snow melt, blocked storm drainage systems and levee or dam failure. For small business owners, flood coverage is available as an endorsement to a Business Owners Policy (BOP), available through some private insurance companies, usually if the business is located outside a flood zone. But check with your insurer. Flood insurance for small businesses is also available from the NFIP.

The I.I.I. offers four key strategies for protecting your business during flood season:

1. Find out if your business is located in a flood zone. Your local government office or commercial bank should be able to provide this information. Knowing if a property is in a floodplain is critical in order to keep your employees and property safe during a storm, as well as to properly insure the business. Be aware that the NFIP is rolling out updated flood maps that will expand flood zones in many parts of the country. Do not assume that because you were not in a flood zone last year you will not be in one today!

2. Consider buying flood insurance. Flood insurance premiums are calculated based on a number of factors: flood risk to the structure; the year the building was constructed; building occupancy; number of floors; the location of the contents; the deductible chosen; and the amount of building and contents coverage, among other things. You may buy a policy that covers flood damage to both the structure and contents, or a policy that covers damage to only one. A business may need only one type of coverage if, for example, it does not own the building in which it is located, and the lease agreement does not require it to insure the premises. However, even if the property is leased, you may want to buy flood insurance to cover any improvements to the site. If your property is in a high-risk flood area and you have a mortgage from a federally regulated or insured lender, you will be required to purchase a flood insurance policy. The maximum allowable commercial property limit for a small business is $500,000.

3. Include comprehensive coverage for your commercial vehicles. Flood damage to commercial or fleet vehicles is covered under the optional comprehensive portion of a standard commercial auto insurance policy.

4. Don't wait until a flood is imminent to buy flood insurance. There is a 30-day waiting period for a new or modified flood insurance policy to become effective, unless the lender requires that flood insurance be purchased in connection with a mortgage loan, in which case there is no waiting period. "Business owners should talk with their insurance professional about their flood risk and how best to protect against it," said Worters, adding, "And act now--March 20 is the first day of spring."

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