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."

Original Post: http://insurancenewsnet.com/oarticle/2014/03/04/with-spring-comes-flood-season-make-sure-your-business-remains-liquid-with-the--a-468745.html#.UzGz4PldV8E

The Importance Of Insuring Your Business

Insurance is one of those tricky areas.  No one ever really wants to talk about the possibilities of an emergency.  Without insurance be it life, auto home, health or business, everything you own could be at stake for loss.   All insurance is important including insurance for your business.  Business insurance covers your livelihood and the way that you bring in income so this is an incredibly important policy that should be purchased and budgeted for the minute you decide to become the owner of your own business.  Without the ability to bring in income you instantly sink.  It is important to protect your dream. 

Business insurance is a combination of several different policies combined into one.  Most people are familiar with general business liability insurance.  This is the base policy that can be purchased to protect not only your business assets but also your personal assets in case you are sued and a judgment is placed against you.  It is important to note that even if you are a limited liability company or a corporation you are not always completely protected under the statutory business structure.  Limited liability is not an absolute and extra protection and coverage is needed to protect you and your business. 

Another policy that can be incorporated into your business insurance is extra coverage to include property and casualty insurance.  This protection covers the location of the business, the physical property as well as the equipment and interior of the space.  Your landlord, if the building is rented, will have insurance to cover his building but this will not include covering your business and expenses.  This will only cover his intentions to rebuild the commercial space.  Your assets are not covered by his insurance policy.

Umbrella policies are also something that can be attached to your general business liability insurance.  Umbrella insurance is purchased to fill in the gaps left by other policies.  If a suit goes over the amount of your general liability insurance, an umbrella policy can be used to fill in.  This is a necessary policy to carry along with liability insurance especially in high risk industries where the risk of something catastrophic is greater.  Obvious difference in industries such as web development over pharmaceuticals exist and should be covered as so. 

Workman’s compensation insurance is another area that businesses should not be without extra coverage.  A workers compensation policy will cover you if any of your employees is injured on the job. It will cover lost wages and medical expenses on the injured employee which allows you to be able to temporarily employee someone to fill in for the injured employee.  The amount of coverage you will need for workman’s compensation will again vary from industry to industry. 

Other policies to consider grouping into your business insurance policy are: unemployment insurance, automobile insurance, business interruption insurance, disability insurance and even life insurance.  When looking into different policies to purchase it is important to remember that coverage is necessary and budget accordingly.  Be realistic in the amount of coverage needed as well as the amount the business can afford to spend yearly on its business insurance policies.

Don’t Neglect The Purchase Of Insurance In Business

When it comes to owning a business you will improvise a thousand times.  One place you should never get by is when it comes to your business insurance, especially your general liability insurance.  If you are planning on starting a business, insurance is a must.  You need to determine what type of protection you need, how much insurance you can afford and exactly what is required for your industry. 

General liability insurance is commonly known as commercial general business liability.  It is meant to be purchased and carried by business owners to protect the company’s assets and obligations. This insurance covers costs related to property damages and injuries that are caused by you or your employees.  Liability policies for business often also cover legal needs including compensation both monetary and punitive. 

Another thing that general liability insurance for your business covers is any damages to property against you as a tenant.  If damage is caused to the property in which the business is located liability insurance makes sure you are covered.  This insurance coverage can also protect you and your business in claims of any fictitious or deceptive marketing and copyright issues.

The question isn’t if you need business liability coverage it is how much coverage is needed and what additional policies are needed to make sure your business is completely covered in all cases.  Although you can purchase general business liability insurance on your own, it is not always in your best interest to.  A business owner policy should bundle liability insurance, property insurance, automobile insurance, umbrella insurance, workman’s compensations policies and more to offer your business comprehensive coverage. 

How much coverage is needed will depend on a few different factors including the industry in which your business is in, the risks involved, the location and the number of employees on staff.  Take for instance the difference between a web developer and a roofer.  The risks involved with construction far outweigh those of website developers however this is not to say there is no risk in web design, they just vary in severity.  The likelihood a web developer has carpal tunnel far outweighs his risk of breaking his leg whereas a roofers likelihood to fall and seriously harm themselves is greater.  This being stated you can see how the coverage and amount of coverage will vary greatly between different businesses as will the premiums. 

Before rushing out and purchasing the first policy offered you must do research and meet with several different business insurance agents to ensure you are getting the right coverage at a reasonable price.  With any product or service what you will pay from one business to the other varies, even when purchasing the same exact product.  When you own your own business you know every penny counts thus ensuring you are getting the most coverage for your money. 

Insurance is never important until you need it but of course as we all know it is too late at that point.  It is always imperative to understand what you are purchasing and it could never be truer than when insuring your livelihood. 

Insuring The Risk Involved In Owning Your Own Business

As a business owner you take on risks that don’t always meet the eye when you are first diving into starting your business.  One that is often overlooked is the risk you take employing others.  General business liability insurance covers your assets. What type of business insurance protects you against claims when an employee gets hurt on the job?  What protects you and your business from being required to support a claim for wages, benefits and further claims?  The answer is workers’ compensation.

Every business and every job has risk involved. On the job accidents are common and can range from something like carpal tunnel injuries or massive injuries like a machine malfunction causing the loss of a limb.  If someone is hurt at your place of business you will be held accountable for their related medical expenses, income lost and other expenses deemed reasonable.

As a business owner you can insurance yourself from losing everything by adding a worker’s compensation plan on to your business insurance plan.  In fact, each state within the United States has laws in place governing the coverage you must carry to cover your employees.  Insurance coverage will vary from one industry to the next depending on the risks involved within the scope of your business.

Workers ‘Compensation otherwise known as workman’s comp and workers liability are all policies that are carried by business owners to provide protection to the business if an accident does occur and employees are affected.  Most often the policy is carried to provide coverage for medical bills and deductible as well as lost wages during and after the accident until a full recovery can be made.

Most policies also offer coverage that is provided to the owner to cover expenses that occur in legal interventions if a claim is filed.  This is referred to as employers’ liability insurance.  It covers the cost of attorney’s, court costs, docket fees and more. The most important part of any business insurance policy is the coverage it provides to you as a business owner.  Your business is your livelihood and needs to continue to thrive.  Your business not only provides for you but for all of the other you employ as well.  You want to be covered to prevent a simple accident from eliminating your livelihood. 

Typically several different coverage options can be added on to a basic workmen’s compensation plan.  One option is to cover employees that work in other areas, even states, beyond the normal day to day operations of the business.  There is coverage that may not be mandated but that can be purchased to cover certain illnesses and coverage that covers dependants if a fatality is suffered by a dependant on the job. 

The point is that workmen’s’ compensation is not optional when it comes to buying business insurance.  The amount and types of coverage above and beyond what the state has in place as a requirement should be considered if the scope of your industry calls for it.  The better your coverage plan is the better you will be covered is something happens to one of your employees.  Being covered keeps your livelihood safe and allows you to continue to do business.

Small Business Insurance: What Agents Want You to Know

Every business should be insured, but as a first-time business owner, you may find it hard to navigate through the maze of plans and providers. Speaking with fellow entrepreneurs is a good start, but commercial insurance agents are familiar with a wide range of business needs, and can provide insight into what's best for your company. Here are four tips from insurance agents for small business owners:

Start with a business owner's policy

For affordable, broad-spectrum coverage for your new business, it's best to start with a business owner's policy (BOP), said Judy Coblentz, chief underwriting officer at Travelers Insurance. This type of policy combines both property and general liability insurance, and typically covers events that cause suspended operations, property damage or lawsuits. Depending on the type of business you own and the number of employees you have, you may need additional specific types of insurance, but a BOP will at least provide basic protection from common business losses.

"It's important that small business owners have a conversation with an insurance agent about what a BOP policy does and does not cover, and determine whether the business's needs call for additional coverage [types]," Coblentz told Business News Daily. [5 Websites for Comparing Small Business Insurance Quotes]

Cheaper isn't always better

When you're trying to get a business off the ground, keeping a low budget is often a top priority. For certain expenses, it's smart to go with the least-expensive option. In the case of business insurance, cost shouldn't be the only consideration. Shop around for a provider that's in your price range but that also offers comprehensive coverage and business support services.

"Select the best carrier for your business needs," said Hale Johnston, senior vice president of small business insurance carrier Employers. "There may be more than one. Look beyond [the price], and make sure an agency is providing a good quote proposal and experience in your state and industry."

"You should choose your insurance adviser as you would any other professional," added Michael Zeldes, senior vice president of insurance brokerage HUB International Northeast. "Make sure [the agency] has buying power, negotiating strength and expertise in your industry, and provides services such as a risk-management department that can help avoid potential claims."

Be prepared for an audit during your first policy period

In general, the cost of an insurance policy is based on a business's annual gross sales. As a startup with no sales history, your policy premium will be based on your estimated annual sales for the first year.

"You will either be audited during the course of the policy or at the end of the policy period, and your premium may be adjusted based on your true sales," said Ken Gaylord, commercial insurance specialist at Montgomery and Associates Insurance Agency. "Always be as accurate as possible [in your sales records] to avoid any hidden surprises."

Consider all possibilities for your business's future

Although an accident, disability or illness that could threaten the viability of your business may seem unlikely, it's important to consider what it would mean for your company if these situations were to occur.

"Small business owners should consider the ramifications of the loss of revenue and the succession of the business they've work so hard to achieve," said Mitchell Smith, managing partner of Universal Insurance Services.

Smith recommended looking into disability, long-term care and life-insurance policies to ensure the continuity of your company in the event something were to happen to you or a key player in your business.

Original Source: http://www.businessnewsdaily.com/5913-business-insurance-agent-tips.html

Purchasing Insurance For Your Business

As a business owner it is your responsibility so make sure that you have business insurance to protect you, your business and your employees. Insurance for your business exists to protect the time, money and effort that you have invested in creating a successful company. General liability insurance exists to protect your venture. As a business owner it is up to you to ask the right questions come time to find an insurance provider and insurance policy. 

It is important to first know about the product you are purchasing to protect your business. A general business liability insurance plan is in place to cover business owners from any the risk of loss due to unforeseen events such as weather, theft or lawsuits. When you open a business you put yourself at risk therefore purchasing the correct business insurance is a necessity. There are a few basics that you will want to cover with the insurance agents you interview when addressing your needs for business insurance. 

First things first you will want to find out about the companies experience in selling liability insurance to companies with similar products or services to what you will be offering. Your personal insurance agent is not necessarily the best option when seeking out insurance for your business. You will want an experienced agent in commercial insurance. Personal insurance agents often don't have the knowledge or background to successfully navigate your business insurance needs. The last thing you want after purchasing business insurance is to still be exposed to risk. Find a company that offers a background and experience with a variety of insurance liability needs for business owners.

You will want to look into a comprehensive insurance package that fits your wants and needs when it comes to insurance coverage. There is not a one size fits all policy when it comes to covering your business. When searching for insurance you will need to find a company that is willing to focus on insurance specifically for the products and services you offer. They should also be familiar with the community in which your business will be open as well as the ability to point out risks that are unforeseen to you. A qualified insurance agent will guide you in a direction that encompasses all areas of your business including those you have not previously considered. 

Another thing to consider is an agent that is in this relationship with you for the long haul. It is important to work with someone that knows as your business expands your needs will change as well. Find a company that is reputable and known for their longevity, providing coverage for businesses that have seen progress and growth and have ensured their policies have grown with them. Referrals and references are something that should never be taken lightly when looking into companies offering business insurance. One place to start may be finding other locally owned businesses, similar in nature to yours and asking to talk to them about their insurance provider. This could lead you into a direction you may have not thought about when it comes to providers of insurance for your business. 

There are many providers that will provide your business insurance. The key element you are looking for is a provider that is providing the correct coverage to fir your needs today and tomorrow. A trust worthy efficient, knowledgeable agent is necessary in providing you coverage to effectively cover all of your business needs, seen and unforeseen.

Understanding Differences In Business Insurance Coverage

Deciding to start a business is the easiest step in being an entrepreneur.  The rest however is an upward battle.  Making a business successful and protecting it against any and all unforeseen possibilities is the real challenges in owning your own business.  With everything in business that could go right there is something equal that could go wrong.  Sort of like Newton’s third law for every action there is an equal and opposite reaction.  The goal is to prevent and protect yourself and your budding business from an array of unknown, unforeseen disasters.  You can do this with by purchasing adequate business insurance.  

With so many different insurance agents offering such a wide variety of business insurance plans how is any one supposed to know what to purchase.  It can be an overwhelming process but one that is indeed important to the success of your business.  The first step is to locate a local insurance agent specializing in business insurance.  You should also have a clear understanding of the different types of business insurance you will be shopping for.

One type of insurance is property insurance.  This is a policy that is purchased to cover a business similar to the way homeowners insurance covers your homes interest.  Property insurance will cover any loss or damage to the business property or lost assets.  This is a must have for all business owners even if the dwelling that your business is located is being rented.  This type of insurance covers the machines and tools necessary to run your business.

Casualty insurance provides coverage for the company against lawsuits and legal liability should injury be sustained on your companies property.  This also includes coverage to property not owned by the business.

When you purchase general liability insurance for your company provides coverage for any damage your business is responsible for in regards to health, property and reputation.  This insurance is a policy intended to cover everything from legal issues to accidents from negligence.  This is the most important coverage you can purchase for your business and for yourself to protect business assets as well as personal assets in some cases. 

Business interruption coverage is used to cover and make up for deficits in unforeseen situations such as natural disasters and catastrophic events. Business interruption coverage is there to bridge the gap in lost sales, rent, payroll and more until the business is back up and running following a major disaster.

Umbrella insurance for businesses is necessary coverage to have in case you have reached the limit of what other insurance policies will cover.  This insurance covers and costs above and beyond the original insurance policy coverage.  Basically you can consider umbrella insurance coverage for your business insurance policies. 

When it comes to choosing the right coverage for your business it is important to start with an agent that is familiar with businesses similar to yours and their coverage needs.  The agent should be able to help find pitfalls in your business and offer coverage to protect you from them.  Local insurance companies are often the best as they are familiar with the community and location in which you will be doing business and can provide coverage specific to your needs.