The same applies to a business if it becomes injured in a way that interrupts its operations which will ultimately affect cash flow i.e. stream of income. To be clear, business income insurance is designed to replace income that would otherwise have been earned by the business had no loss occurred. Unfortunately, it has been found that businesses are not typically insured properly in this regard. Some businesses may be under insured, over-insured, have detrimental exclusionary language contained in the policy or they might not have the necessary endorsements in their policy that actually expand coverage to address specific exposures. A shortfall in coverage can have a disastrous effect on the future viability of the business.

Business Income is generally defined as net profit or loss before taxes, plus continuing normal operating expenses, including payroll. Coverage is usually limited to the loss of income sustained until the property is restored, or for twelve months following the physical loss or damage. Some questions to ask here would be what would happen if it takes longer than twelve months to repair the premises? What is meant by the term “restored”? Does that mean my business is fully operational just as it was prior to the loss? Coverage however must be triggered by a covered peril described in the business income coverage section. If the event was not as a result of a covered peril then there is no coverage. What is a covered peril? Are my exposures covered under my current policy?

Whether your business is a manufacturing, distribution, construction, ecommerce, public entity, not-for-profit or whatever your operation you have this exposure and it should be addressed with attention to detail. Outlined below are some areas to investigate to help you better protect your business with regard to a potential loss of income:

- Conduct a thorough review of your operations and exposure to risk. This is the staring point to get you to ultimately understand how to better protect your business. If you do not know what your exposures are how can you expect to protect against loss? Draw maps and diagrams of your supply lines and income streams. Recognize and understand where a potential interruption could affect your business.

- Once you discover what your exposures are then seek to equate them with financial loss. For example if your building were to burn to the ground tomorrow how would that affect your business what would that do to cash flow? How long would it take to rebuild and get operations (cash flow) to where they were prior to the loss? What if your main supplier suffered a loss that now cut off your supplies to complete your process? Would you still be able to operate? For how long? Are there other suppliers that you could tap into for the short term? It is at this point where you complete a business income worksheet. The worksheet contains questions addressing your company’s income, continuing expenses and projections of how long you may you might be out of business should a loss occur. Some of these you will find to be thought provoking when completing the worksheet. Some of the answers may be guesses but they should be educated guesses. Do some research. Now is the time to investigate, prior to a loss.

- After you have assessed your exposures and completed the business income worksheet it is now time to determine what the appropriate coverage design will be to properly cover your business. This is where it can become extremely complicated. There are a variety of coverage forms, business income with extra expense; business income without extra expense; extra expense coverage form; and leasehold interest coverage form. Which form is right for you? There are the causes of loss forms to consider, basic, broad and special. Again which one is right for you? However there should be no real good reason why you would not have the special form (this is the broadest). Then there are the endorsements to consider. There are endorsements that exclude coverage and there are endorsements that expand coverage. For example, does the policy you purchased contain exclusionary language with regard to “idle periods”, “loss of contracts”, “consequential losses”, “utility interruption” and “finished stock” just to name a few. All of which could affect your recovery. Some of the endorsements that expand coverage are “expanded limits on loss payment”, “business income from dependent properties – broad form”, “utility services”, “increased period of restoration” and there are many more. Which ones do you need and which one don’t you want to have contained in your policy? Again, this takes analysis and foresight.

- At the same time you are considering the issues above you should be thinking about back up and contingency plans in the event of a loss and how to mitigate loss? How do you get your business back in operation? Who do you call first, second and so on? Do you have a process to get your business back up and running should you experience a disaster? Are there other firms you can partner with to assist you in the process and keep your business productive? The answers to these questions are vital to a successful outcome should you experience a business income loss.

As you may have gathered this can be a very detailed and complex topic. There are many points to ponder and a variety of scenarios to consider. One could spend days on addressing one portion of coverage for a larger organization. The bottom line is to recognize that there are many questions that should be asked in order to come up with the appropriate solution to your business income insurance needs. Take the time to address it – someday it may serve to save your business!

About R. Scott Wolff:
R. Scott Wolff, CIC, CRIS, is a Premier Risk Management, LLC partner. He has over 25 years of experience in the insurance industry and possesses an extremely wide range of insurance and risk management knowledge. He is well versed in property and casualty coverage along with directors and officers, errors and omissions, intellectual property, new media and Internet related coverage. He has been recognized by the Professional Insurance Agents Association and received an award for Outstanding Achievement. He attended Vale Technical School, for claim and loss technical training; the IRM School for Fire Safety and Protection; the Royal Insurance Underwriting School, Sitkins Producer Training, Miller-Heiman Strategic/Conceptual Selling and the National Council for Insurance Marketing. He also holds a Certified Insurance Counselor (CIC) designation along with the Construction Risk and Insurance Specialist

Every day, business people receive sales prospecting calls from a variety of industries. I have fielded many calls myself from copier sales people, office supplies distributors, magazine vendors, market researchers, computer technology vendors, and actually a few insurance agents. Prospecting calls are usually intrusive and ill-timed, but every good sales person knows it’s a numbers game. You keep calling people until you find someone who is ready to talk to you.

When it comes to handling insurance agents, though, most people make some wrong assumptions. For example, you assume that your agent has access to all the same markets (wholesale brokerages and insurance carriers) the person calling you does. Your agent may have access to more markets. Or the other guy may have access to more markets. You should not assume they are equals, because in many cases they are not.

Another assumption people make is that the agent can control the price. When you buy commercial liability insurance, at least, the price is controlled by the carrier. I’ve had more than one person say to me, “You should give me your best quote and compete on the basis of that, adjusting your commission.” I wish I could do that. In Texas, at least, it’s illegal for agents to give back part of their commission. “But I’m not asking for a kickback.” Not precisely, no. But an agent or retail broker is only a middle man. His job is to find the market that will underwrite your risk. The wholesale broker or carrier is the source of the pricing.

Retail brokers don’t compete on price. They compete on service and access to markets. In some cases, a retail broker can ask the market to adjust a quote and someone somewhere will sacrifice commission. The retail brokerage may, in some cases, be asked by the carrier to give up commission. But a wholesale broker (a middle man between your retail broker and the carriers) is more likely to give up some commission. The retail broker is usually restricted to selling the products at prices set by their originators.

Agents can, and should, negotiate with the carriers for the best prices possible on quotes. But carriers demand a lot of information, often-time information that companies are reluctant to give out to new agents with whom they don’t have prior experience. That reluctance, while understandable, is self-defeating and here is why.

Let’s say you have a broker who has served you well for five years. Your broker has even shopped your policies for you every 2-3 years, just to make sure you are getting the best price available. When you’ve had claims, the broker has stepped right up and made sure they were settled. That is the kind of service every broker strives to give to clients. Occasionally, things don’t work out that way. But let’s assume that you’re happy with your broker.

So then I call you. And you think, “I’ve got a great relationship. Why should I change?”

At this point, you have no reason to change. But you may find one if you dig further. I can give you two reasons that occur every day. First, there are few if any brokers who have really good relationships with all the markets. By “really good”, I mean a relationship where a broker can approach a market and say, “XYZ Company is a better risk than they may appear on paper. For example, their ‘consulting’ work really entails no liability since their clients sign waivers.”

One market might accept that from your broker, but another market won’t. That other market, however, may trust me enough to give you a little leeway. Keep in mind that an agent has to substantiate everything he tells BOTH the prospective client and market. We cannot misrepresent the facts or get by on what-if scenarios. But insurance markets understand that prospective clients may convey some information to agents which is unintentionally incorrect or intentionally incomplete. The agents may be able to accurately assess a risk situation better than the paperwork makes it out to be, and if the markets have worked with those agents enough to trust them, they may be more flexible in the quoting process.

When a new broker calls you asking for an opportunity to quote, keep in mind that any two brokers may be able to hit all the markets underwriting your business risk. But those two brokers may have better relationships with different markets. Here is how to find out if they do, and how to make that work to your advantage. Ask the new broker which are his best 2-3 markets, the carriers he has really good relationship with. Then go back to your broker and say, “Okay, Joe, this year we’re asking you to get competitive, just to keep your edge. What are your best 2-3 markets?” DO NOT TELL YOUR BROKER what markets his competition has named. Not yet. Let him give you his best markets.

If your broker names the same three markets as the new broker, tell the new broker, “Thank you, but we asked our broker to name his best three markets without divulging yours, and he named the same three. So, we feel comfortable with our current situation.”

If, on the other hand, your broker names different markets from the new broker, then ask them to compete on a fair basis by giving them market assignments. A market assignment divides the competition evenly and fairly TO YOUR ADVANTAGE because you are restricting the brokers to working only with the best markets they have access to. If there are conflicts between favored markets and you have 3 or more brokers competing (usually, you don’t need to work with more than 3 brokers at a time), then arbitrarily assign one hot market to each broker, if it comes to that.

Without the market assignment, you probably will not get the best quotes possible from the insurance wholesalers and carriers. Be up front with the competing brokers. They should have no fear going into the process, because they all know they have to keep turning up new business. They should be at their competitive best for you, not just for everyone else in your industry. Hopefully, your regular broker will come through for you. If not, there is always next year. You can either decide to stay with the broker on the basis of good service, or you can say, “We’ve had a great relationship, and I hope we can do business again in the future.” It stings when an agent loses an account, especially a good one. But you have a right to get the best available insurance coverage.

Some companies ask new brokers to leap in after their regular brokers have begun shopping a policy. That is a mistake which hurts you, the insured, because your broker may block every other broker in all the available markets. Wholesalers and carriers will only deal with one agent per prospective client. If you send one broker out to all the available markets, odds are pretty good that broker will get sub-standard quotes from some of those markets. So, yes, you can pick the best quote that broker provides you, but you could be passing up a better quote that saves you substantial premium. There is only one way to find out.

You need to plan ahead. If you just changed insurance carriers in the last year or two (not brokers, but the actual carriers who underwrite your insurance), you may be fine as long as you are getting automatic renewals without substantial premium increases. An increase in premium should be based either on your claims history or changes in the carrier’s risk pool. The risk pool consists of all the other companies like yours whose insurance that carrier underwrites. It is to your advantage to participate in larger risk pools, if you can get into them.

If your premium has been changed, if you have been non-renewed, if you have had a lot of claims, or if you haven’t changed carriers in three or more years, make the decision to get competitive quotes through market assignments this year. Start the process at least 3 months in advance (but no more than 4) if you need to look for brokers. An insurance quote is good for 30 days. Most brokers will try to give you quotes within the last week before your renewal. That is because, too often, prospective clients will take really competitive quotes back to their regular brokers and ask them to get those markets (this can be done with a letter).

It is in your best interests to let the broker who brought you the quote get your business. They did the work, they have the access to the market. By giving your regular broker the business another agent found, you may be doing your friend a favor, but you are hurting yourself. The bottom line is, if you want the best service and value from your insurance, then you need to let the marketplace show you how to get both through fair competition.

If you don’t mind keeping your friend on the payroll, well, why did you read this far into the article? Good shopping.

Michael Martinez is a licensed Property and Casualty insurance agent in the state of Texas. Insurance programs and procedures may be subject to both Federal and state regulations in your area. This article does not offer legal, tax, or financial advice.

http://www.michael-martinez.com/

Studies of the insurance industry indicate that at any given time only about 3% of companies are unhappy with their insurance agents. That means that all the insurance agents who want to expand their book of business have to constantly look for those 3% of companies who are ready to make a change.

The sad fact is that most of the remaining 97% of companies could probably decrease their business insurance premiums by up to 10%. That 10% savings is an average. A small percentage of companies are already getting the best deal possible. I have only rarely seen insurance carriers decline to compete with existing policies.

While you may be happy with your current broker, rest assured your current broker is ecstatic with you. You represent money in the bank to him. He may even be charging you additional “placement fees” on top of earning a standard 5-10% commission. If you agreed to the fees in the first place, cool. But some agents become so complacent they just start increasing costs for their long-time customers.

The worst possible way of reducing your insurance costs is to ask 2 or more agents to compete for your business. Unlike manufacturers or distributors who can reduce costs and offer discounts, insurance agents don’t have much wiggle room on price. All they can do is cut their commissions. While that may seem okay to you, what you really want is for the agents to reduce the total premiums.

Do the math. If you’re paying $250,000 a year on business insurance, would you rather save $25,000 (10% of the premium) or just part of $25,000 (the agent’s commission less whatever he is willing to give up)? If you take the 10% premium reduction, the agent automatically gives up 10% of his premium, which is equivalent to only 1% of your overall cost. By working with the agent, you save more money but he doesn’t lose nearly as much commission.

That’s a win-win scenario.

When you send 2 or more agents out to get quotes, they immediately lose their ability to negotiate on your behalf with the entire insurance market. They cannot leverage the various underwriters against each other. Like it or not, you are in no position to negotiate for the best deal. You may think you are, but you’re not. Agents are at their most effective when they can work with all the markets available to them.

Now, the second worst possible way of reducing your insurance costs is to assume that the broker you’ve been using for 10, 20, or 30 years is getting you the best possible deals. Long-time brokerage relationships usually occur between friends and relatives. The only way to check their work is to give 1 other agent or broker free rein every 2-3 years. And then you should take the better deal, because your friend or relative will get the wake up call and come back with a great deal the next year.

Companies often hold back information when they ask new agents to quote for them. They wrongly believe the agents can compete simply by trimming their commissions. In fact, when you refuse to disclose information, the underwriters that the agents work with pad their premium estimates. You automatically increase your premium by keeping your secrets.

Even your current agent cannot get you a reduction in premium if you expect him to use the same information year after year. Sure, you provide financials at audit time and your agent knows your current premium. But there is a lot more information that goes into getting the best possible premium for General Liability, Professional Liability, and Products Liability. When underwriters see incomplete submissions, they do one of two things: they either close the book and work on something else or they just assume the worst possible scenario and figure a higher premium.

So when your trusted agent comes back with 3 quotes and 4 declines, remind yourself that you could have gotten 6-7 quotes if you had just provided full information on a timely basis. And the odds are pretty good that your quotes would be 3-15% lower than what you see if you gave the underwriters what they asked for.

The flexibility is really with the underwriters, who have to estimate how much risk of loss your company is incurring. When the underwriters are kept in the dark, they either assume the worst possible risks on your behalf, or they just refuse to quote for you. Many agents send submissions to 6-10 markets and consider themselves lucky to get 2-3 actual quotes.

Can every agent leverage the market for you? Probably not. Many agents lack the experience or the incentive to do that. Successful agents with happy clients, if they do their own market submissions, often don’t engage in full market research. They don’t leverage their relationships with underwriters to get them to compete for your business. In fact, many agents just let your carrier renew you automatically, investing a minimum of effort in finding better deals for you.

It’s important that you talk to a new agent every 1-2 years. Pick one who demonstrates a reach into the markets for each of your coverages. Ask them, “If I were to let you exclusively quote on my coverages, how many markets would you negotiate with? If I give you all the information you need, how much information will you ask for?”

Ignore any agent who names fewer than 5 markets for General Liability or Products or Professional Liability, unless all the agents you talk to name the same handful of markets.

Ignore any agent who says, “I won’t ask you for much information”.

If an agent says, “We work with 1,000 markets”, ask him to give you a list of 10. Give him 24-72 hours to give you a list. Many agents, when they are cold-calling, are not able to give you a reasonable list of markets on the spot. They should be able to, but each industry has its own set of carriers. Some industries have many carriers, other industries have more.

Ask that cold-calling agent to send you a fax listing the carriers he can quote with for each type of coverage you carry. Ask him to provide A.M. Best ratings for those carriers. A- or higher rated companies are the most financially stable. You commit yourself to nothing by getting a 1-2 page fax listing carriers. The agent should ideally keep that information handy anyway.

When you make the decision to test a new agent’s ability to work for you, give that agent letters of authorization to request loss runs (claims history) for the past five years directly from your insurance carriers. If you go ask your current agent or broker for the information, they will delay sending you the information long enough for them to go get quotes from their best markets. While you may feel this is in your best interest, it’s not.

Your current agent has the opportunity every year at your renewal time to seek out the best deals possible for you. If he isn’t negotiating with the underwriters to the best of his ability for you, he’s had his chance. Let him compete on the competence of the other agent you’re talking to. This is your bottom line. Find out how much that long-term relationship is really costing you.

Let the new agent get the loss runs. It commits you to nothing, but it gives him the flexibility to seriously negotiate with any underwriters who may be interested in acquiring new customers.

And let that new agent look at your policies. Show them the premium. Underwriters usually increase premium estimates when they don’t know how much you’re paying for current insurance. No one increases their premium just because they know you’re paying X. You’ve already charged them to reduce your premium by up to 10%. They won’t get your business if they cannot save you 10%.

That’s the only real flexibility you have when dealing with insurance agents. Tell them, “I pay $500,000 for insurance. If you can save me $50,000 and keep or improve my coverages, I’ll give you my business.”

Maybe they can save you more than $50,000. Maybe they can save $100,000. You won’t know for sure, but you’ll either get your 10% savings or you’ll know that — for now — your current agent is doing as good a job as anyone else. And that is worth a lot of money in my book.

Michael Martinez is a licensed Property and Casualty insurance agent in the state of Texas. Insurance programs and procedures may be subject to both Federal and state regulations in your area. This article does not offer legal, tax, or financial advice.

http://www.michael-martinez.com/

REAL NEEDS, REAL SOLUTIONS

Today, millions of EMPLOYED Americans depend on government aid, charitable organizations, and their own incomes to pay medical expenses. Until an extended illness or hospitalization occurs, these resources usually suffice.

When faced with catastrophic health expenses, people often turn to their employers. If your company provides insufficient insurance, will you pay someone who cannot work? To add insult to injury, this year Congress passed bankruptcy legislation that burdens millions of Americans in medically-induced financial crises.

Employers feel the pinch too. With every health insurance quote, numbers add up quickly: $150-250 per employee, $300-500 per family. Many businesses shift these costs to employees through higher deductibles and co-pays, partial premium payments, and other means.

And despite some television advertising, supplemental benefits are not well known in the workplace. Most providers rarely advertise or not at all. Supplemental health plans are separate from major medical and dental plans. A supplemental benefits broker brings you proven cost-reducing advantages.

The best supplemental benefits providers don’t require employers to pay premiums. The employees pay for most benefits. However, competitively priced plans are inexpensive and pre-tax options can make them extremely attractive and affordable. Be sure you find a competitive provider with truly low-cost products to maximize savings and benefits.

Most insurance brokers do NOT handle supplemental benefits. When a supplemental benefits broker contacts you, assume your regular broker knows very little about such products. Ask questions. Make an informed decision. Most importantly, find ways to give your employees options and flexibility to care for their families. You cannot do it all, but they have to.

Good brokers schedule employee meetings to explain plans in detail. You should insist on a group meeting.

Plans fall into two categories: insurance and spending accounts. I’ll describe them briefly, but you need to sit down with a knowledgeable broker to fully understand these programs.

SUPPLEMENTAL INSURANCE

Employers are usually asked to payroll deduct insurance premiums. Therefore, most voluntary plans may be offered as pre-tax deductions. Pre-taxing often reduces employee Federal and F.I.C.A. withholding. If employee F.I.C.A. contributions are reduced, employers who match contributions may save money, too.

Section 125 of the I.R.S. code defines the rules for pre-taxing voluntary benefit deductions. These plans are often called Section 125 or Cafeteria 125 plans. Pre-taxed plans restrict employees’ changes.

Although some providers ask employers to guarantee premiums, competitive providers will NOT ask for employer contributions. Seek inexpensive insurance plans that incur no direct costs to employers. Accident care plans should cost no more than $15-25 per month: a dollar a day per employee. Family coverages and riders incur additional costs, so be informed.

Riders extend policy benefits. For example, an accident plan with a disability rider, a wellness rider, and a hospitalization rider provides considerable protection. If plans offer any reimbursement for preventive testing, employees may recoup some of their premiums.

The most popular insurance products are disability and accident plans. On average, about 50% of employees participate in them. Averages are not guarantees, but many employers are surprised by how popular these plans prove to be.

Cancer and critical illness plans are also popular. Employees may not want to pre-tax disability, cancer, or critical illness since benefits would be taxable. Some supplemental benefits providers have plans to help employees cover high deductibles and co-pays in major medical plans at reduced costs.

SPENDING ACCOUNTS

The several types of spending accounts are usually handled through third-party administrators. Because employees don’t pay premiums, spending accounts are even more popular with some employers than insurance products. The neat thing about spending accounts is that they are pre-taxed, so both employer and employee may save money.

A Flexible Spending Account (FSA, or unreimbursed medical account) is used for co-pays, deductibles, over-the-counter expenses, and many items not covered by typical (or low-cost) major medical plans: crutches, hearing aids, etc.

Unfortunately, employers must pay small administrative fees for Flexible Spending Accounts. While they may recoup their expenses from reduced matching F.I.C.A contributions, some organizations don’t make such contributions. Evaluate each FSA plan carefully to find the best match. With FSA plans, employees must budget carefully because they lose unspent funds at the end of the year.

Dependent Child Care Accounts are also popular. Some providers take a portion of reduced F.I.C.A. contributions as their fee. I.R.S. rules limit dependent child care expenses as tax deductions. Employees should understand two things: they will NOT claim these expenses on their tax returns AND their deductions become post-tax deductions after they have matched the current limit.

A new type of spending account is an HSA, or Health Savings Account. Unlike Flexible Spending Accounts, HSAs allow you to roll the unspent funds in the account over to the next plan year. So, what’s the catch?

HSAs must be used in conjunction with High Deductible Health Plans. An HDHP costs less than typical major medical, but your deductible must meet a minimum requirement ($1000 individual, $2000 family). And you have to exhaust the funds in your HSA before you can use your insurance. So, HSAs are not for everyone. The U.S. Department of the Treasury has published a Web site with information on HSAs:

http://www.treas.gov/offices/public-affairs/hsa/

Work with a supplemental benefits broker to learn more about and understand how these programs help employers reduce costs, increase benefits, and assist employees in reducing their own medical expenses through effective, proven programs.

Michael Martinez is a licensed Life and Health insurance agent in the state of Texas. Insurance and benefits programs may be subject to both Federal and state regulations in your state. This article does not offer legal, tax, or financial advice. Consult a licensed supplemental benefits broker in your area to understand what choices you have available to you.

http://www.michael-martinez.com/

Most people don’t want Insurance. Most people don’t like insurance.

What you probably do want is protection for your family, your loved ones, your business and the things that are most important to you. The mere mention of Insurance may very well make a vast number of people think of words like:

Rip-off, too expensive, waste of money, doesn’t pay claims, annoying, boring and some much worse!

The truth is though for most people and businesses Insurance is required as it provides them with protection and peace of mind.

With literally thousands of insurance companies, brokers and providers you are faced with a massive choice. So faced with decisions at every turn finding the right cover for you, your Nursery, Pre-School or Kindergarten is sometimes difficult.

This article will therefore give you some free advice that insurance providers rarely share with their customers. These few steps should help you in your quest to find the cover that is best for you at the right premium and with the best service.

Secret Number 1

The first secret to making sure you get the right cover at the right premium is perhaps the one that most people will find hardest to believe but it really works.

Are you sitting comfortably??? Here it is:

When you find yourself ringing around for quotes (and for anyone looking for Nursery Insurance I would recommend buying face to face or on the phone rather than online) the chances are you will be asked “What’s your current premium?” or “What’s the best price you’ve had?”

The single biggest mistake people make when asked this question is to not tell the person asking the question. That’s right, when you are asked the best price you’ve had TELL THEM.

Most people assume that by telling an insurance provider your premium you are at a disadvantage. The truth is the opposite is true. Let me explain:

If you tell a good insurance provider your premium they should pretty much know straight away whether the premium is too high, too low or about right. Armed with this information they could give you an immediate indication if they can get a lower premium. If they know they can’t they can tell you and save you time.

Another reason you should tell the person if they ask your premium is because the vast majority of insurance companies won’t give you the best price unless they have something to beat. Let me say that again, if you don’t give your broker or company a price to beat, the chances are you won’t get the best premium. However, if you do tell them, they can use this information when dealing with the insurance company which ultimately can save you money.

One final tip on this matter is, don’t be tempted to make up a price. For example, Mrs Blogs is looking for Nursery Insurance and she has a best price of £2500.00. She thinks it’s too much money so when asked the magic question of “What’s the best price you’ve had so far?” she decides to go in low at £1800.00. By doing this most companies will know the price seems low and many won’t even provide a quote. Whereas had Mrs Blogs been up front and said £2500.00 there’s every chance she could have saved some money.

Therefore Secret Number 1 is be totally honest when looking for insurance as it’s the best way to make sure you get the best premium. Give it a go…it really works.

Secret Number 2

Secret number 2 is common sense but so many Nurseries fail to make sure it happens because they are focusing on the price. The second way to ensure you get the right cover is therefore to use an insurance provider who has an understanding of your requirements.

You can establish this by listening to what questions they ask, how they ask them and how they react to what you are saying. If they enter into a conversation about your Nursery it’s likely to be because the more information they have about your circumstances, the better cover, the better premium and the better service they can provide you.

If the conversation is very scripted and they either don’t understand what you’re looking for or don’t ask the type of questions you would expect there is every chance it’s because they don’t have a real understanding of your business. If this is the case you risk not getting the right cover and ultimately not being correctly insured.

Secret Number 3

Secret number 3 is ask questions. So many people ring around looking for Nursery insurance, Pre-School Insurance or Kindergarten Insurance and spend the entire conversation answering questions. Secret 3 is therefore ask questions to find out if they provide not only the right cover and premiums but also the right level of customer service. Types of question you might want to ask are:

In the event of a claim what will they do to help you and to ensure your claim is settled as quickly and as favourably as possible? Do they just give you a telephone number and leave you to it or do they offer help when you most need it? Are they experienced? How long have they been trading? If it’s a Broker, which Insurance companies do they use? Again, if they are Brokers are they independent? That is, do they have access to numerous policies and insurance companies or are they tied into just one?

By getting answers to these questions you can then a make a decision on whether you would like to deal with them (and whether you trust them to act on your behalf.)

Secret Number 4

The fourth and final secret to making sure you get the best from your insurance provider is another which may not seem right as Insurance is one of the most price sensitive purchases a Nursery, Pre-School or Kindergarten will make.

With this in mind many Nurseries, Pre-Schools and Kindergartens make the decision on where to place their insurance on price alone. I would advise anyone looking for Nursery insurance, Pre-School Insurance, Kindergarten Insurance or indeed any kind of Business Insurance is NOT TO ASSUME THAT CHEAPEST IS BEST.

Whilst getting a low premium is one of the most important things to look for, a really cheap premium without a combination of other factors is probably cheap for a reason. Things you may want as well as a low premium are:

Are they local? Are they friendly and approachable? (we all prefer doing business with people we like) Who are the insurance company? Have you heard of them? What is the excess? Make sure the excess is one you agree on and not one given just to give you a low premium Do they have a good reputation? Do they listen to you and explain things in a way that you understand?

If you follow these 4 simple secrets there is every chance your experience when dealing with Insurance for your Nursery, Pre-School or Kindergarten will improve. And whilst I cannot guarantee that Insurance will become your number 1 hobby (in fact I’d be a little concerned if it did!) there is every chance the cover you get will be what you want, the premiums you pay will be less than you’ve paid before and the service you receive will be one you would be happy in giving and one you would be happy to recommend.

The secrets to getting the right protection for your Nursery, Pre School or Kindergarten was compiled by Mark Burdett, Marketing Manager of Northern Counties Insurance Brokers.

The majority of people, who buy their own health insurance, rely heavily on the insurance agent selling the policy to explain the plan’s coverage and benefits. This being the case, many individuals who purchase their own health insurance plan can tell you very little about their plan, other than, what they pay in premiums and how much they have to pay to satisfy their deductible.

For many consumers, purchasing a health insurance policy on their own can be an enormous undertaking. Purchasing a health insurance policy is not like buying a car, in that, the buyer knows that the engine and transmission are standard, and that power windows are optional. A health insurance plan is much more ambiguous, and it is often very difficult for the consumer to determine what type of coverage is standard and what other benefits are optional. In my opinion, this is the primary reason that most policy holders don’t realize that they do not have coverage for a specific medical treatment until they receive a large bill from the hospital stating that “benefits were denied.”

Sure, we all complain about insurance companies, but we do know that they serve a “necessary evil.” And, even though purchasing health insurance may be a frustrating, daunting and time consuming task, there are certain things that you can do as a consumer to ensure that you are purchasing the type of health insurance coverage you really need at a fair price.

Dealing with small business owners and the self-employed market, I have come to the realization that it is extremely difficult for people to distinguish between the type of health insurance coverage that they “want” and the benefits they really “need.” Recently, I have read various comments on different Blogs advocating health plans that offer 100% coverage (no deductible and no-coinsurance) and, although I agree that those types of plans have a great “curb appeal,” I can tell you from personal experience that these plans are not for everyone. Do 100% health plans offer the policy holder greater peace of mind? Probably. But is a 100% health insurance plan something that most consumers really need? Probably not! In my professional opinion, when you purchase a health insurance plan, you must achieve a balance between four important variables; wants, needs, risk and price. Just like you would do if you were purchasing options for a new car, you have to weigh all these variables before you spend your money. If you are healthy, take no medications and rarely go to the doctor, do you really need a 100% plan with a $5 co-payment for prescription drugs if it costs you $300 dollars more a month?

Is it worth $200 more a month to have a $250 deductible and a $20 brand name/$10 generic Rx co-pay versus an 80/20 plan with a $2,500 deductible that also offers a $20 brand name/$10generic co-pay after you pay a once a year $100 Rx deductible? Wouldn’t the 80/20 plan still offer you adequate coverage? Don’t you think it would be better to put that extra $200 ($2,400 per year) in your bank account, just in case you may have to pay your $2,500 deductible or buy a $12 Amoxicillin prescription? Isn’t it wiser to keep your hard-earned money rather than pay higher premiums to an insurance company?

Yes, there are many ways you can keep more of the money that you would normally give to an insurance company in the form of higher monthly premiums. For example, the federal government encourages consumers to purchase H.S.A. (Health Savings Account) qualified H.D.H.P.’s (High Deductible Health Plans) so they have more control over how their health care dollars are spent. Consumers who purchase an HSA Qualified H.D.H.P. can put extra money aside each year in an interest bearing account so they can use that money to pay for out-of-pocket medical expenses. Even procedures that are not normally covered by insurance companies, like Lasik eye surgery, orthodontics, and alternative medicines become 100% tax deductible. If there are no claims that year the money that was deposited into the tax deferred H.S.A can be rolled over to the next year earning an even higher rate of interest. If there are no significant claims for several years (as is often the case) the insured ends up building a sizeable account that enjoys similar tax benefits as a traditional I.R.A. Most H.S.A. administrators now offer thousands of no load mutual funds to transfer your H.S.A. funds into so you can potentially earn an even higher rate of interest.

In my experience, I believe that individuals who purchase their health plan based on wants rather than needs feel the most defrauded or “ripped-off” by their insurance company and/or insurance agent. In fact, I hear almost identical comments from almost every business owner that I speak to. Comments, such as, “I have to run my business, I don’t have time to be sick! “I think I have gone to the doctor 2 times in the last 5 years” and “My insurance company keeps raising my rates and I don’t even use my insurance!” As a business owner myself, I can understand their frustration. So, is there a simple formula that everyone can follow to make health insurance buying easier? Yes! Become an INFORMED consumer.

Every time I contact a prospective client or call one of my client referrals, I ask a handful of specific questions that directly relate to the policy that particular individual currently has in their filing cabinet or dresser drawer. You know the policy that they bought to protect them from having to file bankruptcy due to medical debt. That policy they purchased to cover that $500,000 life-saving organ transplant or those 40 chemotherapy treatments that they may have to undergo if they are diagnosed with cancer.

So what do you think happens almost 100% of the time when I ask these individuals “BASIC” questions about their health insurance policy? They do not know the answers! The following is a list of 10 questions that I frequently ask a prospective health insurance client. Let’s see how many YOU can answer without looking at your policy.

1. What Insurance Company are you insured with and what is the name of your health insurance plan? (e.g. Blue Cross Blue Shield-“Basic Blue”)

2. What is your calendar year deductible and would you have to pay a separate deductible for each family member if everyone in your family became ill at the same time? (e.g. The majority of health plans have a per person yearly deductible, for example, $250, $500, $1,000, or $2,500. However, some plans will only require you to pay a 2 person maximum deductible each year, even if everyone in your family needed extensive medical care.)

3. What is your coinsurance percentage and what dollar amount (stop loss) it is based on? (e.g. A good plan with 80/20 coverage means you pay 20% of some dollar amount. This dollar amount is also known as a stop loss and can vary based on the type of policy you purchase. Stop losses can be as little as $5,000 or $10,000 or as much as $20,000 or there are some policies on the market that have NO stop loss dollar amount.)

4. What is your maximum out of pocket expense per year? (e.g. All deductibles plus all coinsurance percentages plus all applicable access fees or other fees)

5. What is the Lifetime maximum benefit the insurance company will pay if you become seriously ill and does your plan have any “per illness” maximums or caps? (e.g. Some plans may have a $5 million lifetime maximum, but may have a maximum benefit cap of $100,000 per illness. This means that you would have to develop many separate and unrelated life-threatening illnesses costing $100,000 or less to qualify for $5 million of lifetime coverage.)

6. Is your plan a schedule plan, in that it only pays a certain amount for a specific list of procedures? (e.g., Mega Life & Health & Midwest National Life, endorsed by the National Association of the Self-Employed, N.A.S.E. is known for endorsing schedule plans) 7. Does your plan have doctor co-pays and are you limited to a certain number of doctor co-pay visits per year? (e.g. Many plans have a limit of how many times you go to the doctor per year for a co-pay and, quite often the limit is 2-4 visits.)

8. Does your plan offer prescription drug coverage and if it does, do you pay a co-pay for your prescriptions or do you have to meet a separate drug deductible before you receive any benefits and/or do you just have a discount prescription card only? (e.g. Some plans offer you prescription benefits right away, other plans require that you pay a separate drug deductible before you can receive prescription medication for a co-pay. Today, many plans offer no co-pay options and only provide you with a discount prescription card that gives you a 10-20% discount on all prescription medications).

9. Does your plan have any reduction in benefits for organ transplants and if so, what is the maximum your plan will pay if you need an organ transplant? (e.g. Some plans only pay a $100,000 maximum benefit for organ transplants for a procedure that actually costs $350-$500K and this $100,000 maximum may also include reimbursement for expensive anti-rejection medications that must be taken after a transplant. If this is the case, you will often have to pay for all anti-rejection medications out of pocket).

10. Do you have to pay a separate deductible or “access fee” for each hospital admission or for each emergency room visit? (e.g. Some plans, like the Assurant Health’s “CoreMed” plan have a separate $750 hospital admission fee that you pay for the first 3 days you are in the hospital. This fee is in addition to your plan deductible. Also, many plans have benefit “caps” or “access fees” for out-patient services, such as, physical therapy, speech therapy, chemotherapy, radiation therapy, etc. Benefit “caps” could be as little as $500 for each out-patient treatment, leaving you a bill for the remaining balance. Access fees are additional fees that you pay per treatment. For example, for each outpatient chemotherapy treatment, you may be required to pay a $250 “access fee” per treatment. So for 40 chemotherapy treatments, you would have to pay 40 x $250 = $10,000. Again, these fees would be charged in addition to your plan deductible).

Now that you’ve read through the list of questions that I ask a prospective health insurance client, ask yourself how many questions you were able to answer. If you couldn’t answer all ten questions don’t be discouraged. That doesn’t mean that you are not a smart consumer. It may just mean that you dealt with a “bad” insurance agent. So how could you tell if you dealt with a “bad” insurance agent? Because a “great” insurance agent would have taken the time to help you really understand your insurance benefits. A “great” agent spends time asking YOU questions so s/he can understand your insurance needs. A “great” agent recommends health plans based on all four variables; wants, needs, risk and price. A “great” agent gives you enough information to weigh all of your options so you can make an informed purchasing decision. And lastly, a “great” agent looks out for YOUR best interest and NOT the best interest of the insurance company.

So how do you know if you have a “great” agent? Easy, if you were able to answer all 10 questions without looking at your health insurance policy, you have a “great” agent. If you were able to answer the majority of questions, you may have a “good” agent. However, if you were only able to answer a few questions, chances are you have a “bad” agent. Insurance agents are no different than any other professional. There are some insurance agents that really care about the clients they work with, and there are other agents that avoid answering questions and duck client phone calls when a message is left about unpaid claims or skyrocketing health insurance rates.

Remember, your health insurance purchase is just as important as purchasing a house or a car, if not more important. So don’t be afraid to ask your insurance agent a lot of questions to make sure that you understand what your health plan does and does not cover. If you don’t feel comfortable with the type of coverage that your agent suggests or if you think the price is too high, ask your agent if s/he can select a comparable plan so you can make a side by side comparison before you purchase. And, most importantly, read all of the “fine print” in your health plan brochure and when you receive your policy, take the time to read through your policy during your 10-day free look period.

If you can’t understand something, or aren’t quite sure what the asterisk (*) next to the benefit description really means in terms of your coverage, call your agent or contact the insurance company to ask for further clarification.

Furthermore, take the time to perform your own due diligence. For example, if you research MEGA Life and Health or the Midwest National Life insurance company, endorsed by the National Association for the Self Employed (NASE), you will find that there have been 14 class action lawsuits brought against these companies since 1995. So ask yourself, “Is this a company that I would trust to pay my health insurance claims?

Additionally, find out if your agent is a “captive” agent or an insurance “broker.” “Captive” agents can only offer ONE insurance company’s products.” Independent” agents or insurance “brokers” can offer you a variety of different insurance plans from many different insurance companies. A “captive” agent may recommend a health plan that doesn’t exactly meet your needs because that is the only plan s/he can sell. An “independent” agent or insurance “broker” can usually offer you a variety of different insurance products from many quality carriers and can often customize a plan to meet your specific insurance needs and budget.

Over the years, I have developed strong, trusting relationships with my clients because of my insurance expertise and the level of personal service that I provide. This is one of the primary reasons that I do not recommend buying health insurance on the Internet. In my opinion, there are too many variables that Internet insurance buyers do not often take into consideration. I am a firm believer that a health insurance purchase requires the level of expertise and personal attention that only an insurance professional can provide. And, since it does not cost a penny more to purchase your health insurance through an agent or broker, my advice would be to use Ebay and Amazon for your less important purchases and to use a knowledgeable, ethical and reputable independent agent or broker for one of the most important purchases you will ever make….your health insurance policy.

Lastly, if you have any concerns about an insurance company, contact your state’s Department of Insurance BEFORE you buy your policy. Your state’s Department of Insurance can tell you if the insurance company is registered in your state and can also tell you if there have been any complaints against that company that have been filed by policy holders. If you suspect that your agent is trying to sell you a fraudulent insurance policy, (e.g. you have to become a member of a union to qualify for coverage) or isn’t being honest with you, your state’s Department of Insurance can also check to see if your agent is licensed and whether or not there has ever been any disciplinary action previously taken against that agent.

In closing, I hope I have given you enough information so you can become an INFORMED insurance consumer. However, I remain convinced that the following words of wisdom still go along way: “If it sounds too good to be true, it probably is!” and “If you only buy on price, you get what you pay for!”

©2007 Small Business Insurance Services, Inc. www.smallbusinessinsuranceservices.com

C. Steven Tucker, is the President of Small Business Insurance Services, Inc. and has been a Licensed Mult-State Insurance Broker serving the small business and self-employed market for over a decade. Mr. Tucker believes an informed insurance consumer makes the best health insurance purchasing decisions. Mr. Tucker has written several articles that focus on small business health insurance, which can be read on a number of web sites.

Mr. Tucker’s blog can be read at http://www.smallbusinessinsuranceservices.vox.com

If you have general questions regarding health insurance, or you are in the market to purchase a health insurance plan, you can contact Mr. Tucker through his web site at http://www.smallbusinessinsuranceservices.com,

via Email at smallbusinssvcs@aol.com or by plone, toll-free at 1-866-SBIS123 (724-7123)

1) The wreck will have been moved from the car repairers to a salvage yard. This is done to lessen storage costs imposed by vehicle repair shops for cars in their yards.

2) They will ask you for the vehicle documents. That is the MOT certificate if your car requires one, purchase receipts,V5 registration document, service records, keys and details of any outstanding finance. They will ask for your Certificate of Insurance to be returned. They will need the original paperwork before they settle your claim. Photocopies will be ok to start with but will slow down the process.

If you ask the insurers why they require these documents, they will probably tell you they want to check they have the right model of the car, that it possessed a valid MOT and proof of service record to make sure that is has been maintained. These are all appropriate reasons. However the insurers also need to check out your claim for fraud. Government documents have a number of anti-fraud measures designed by the issuing Government agency. A careful check on the originals will enable the claims official to establish quickly that these are indeed genuine documents and not fake. If there is doubt, they will use forensic science equipment to prove that the documents are fake or genuine. You would have to be a very clever crook to successfully forge this whole collection of documents. My advice is – let the company have the original paperwork as soon as they request them. Just sending copies delays your claim.

3) Whilst you are waiting for your settlement details, your insurers will be doing other things as well. They will enter the claim on the ‘motor insurance anti fraud and theft register’. (MIAFTR) This is a UK data base that has recorded all insurance total loss cars and stolen cars since the start of the 1980′s. It checks your vehicle against all the information in the database to see if it has ever been the subject of an insurance total loss before, or whether it has ever been stolen and not recovered. It checks against your name and address; post code; your car’s registration number and VIN (vehicle identification number). If there is a match further questions will be directed towards you, and your insurance company might enter ‘fraud investigation’ mode.

MIAFTR also as a matter of course checks your car against the Hire Purchase Information (HPI) database. If you borrowed money to purchase the vehicle and you still owe money, it will be on this database. Have no doubt your insurance company will discover it. So be honest and tell them about your outstanding balance. The loan company is the rightful owner of your car. Any settlement will be made to them whilst there is an outstanding balance. Anything left over is paid to you. Similarly, your claim will be recorded on CUE (Claims and Underwriting Exchange). This happens as a matter of course on all motor and household claims. Not all insurers subscribe but the vast majority do.

Problems can arise where the outstanding loan is greater than the worth of the vehicle. In this situation the insurance policy does not completely pay off the loan. I remember a purchase plan for motor bikes. Teenagers went into a shop, bought a new motor cycle plus all the helmets, leathers etc with finance against the value of the vehicle. The interest on the loan was outrageously high. Some time later there would be an accident and they would total loss it (or it was stolen). The value of the motor cycle was much less than the combined purchase price plus the interest. It caused a furor which was blamed on the insurance company rather than the stupidity of the youngster for getting involved in such a bad deal with the shop.

4) Your insurance company will be obtaining bids for the wreckage. The higher the salvage value the less the final cost of your claim. There has been a lot of publicity about cars which have been written off reappearing on the road, or being purchased by criminal gangs to aid their disguise of a stolen vehicle. The Association of British Insurers (ABI) have come up with a code relating to the disposal of vehicle salvage. All member companies comply with these rules. The result is that most salvage is sold by the companies to established salvage merchants. If the vehicle is damaged to an extent that meets listed criteria, it will be issued with a code that requires the vehicle to be scrapped or broken up. Vehicles with less damage can still be fixed and put back on the highway.

5) Once all of the above processes have taken place your insurers will make a settlement proposal to you.

Their engineer will have consulted the trade publications to value the vehicle, adjusting these figures to take into account the age, condition and mileage of your car, and his knowledge of the current car market. The final total that he arrives at forms the starting point of the settlement value given to you. Any policy excess will have to be deducted along with any finance still outstanding on the vehicle.

Your insurance company will make it very clear precisely how much you will get and explain any adjustments to you. If you pay your car insurance by Direct Debit, the chances are that any remaining premium will also be deducted from the settlement amount.

6) When you have accepted the offer (some insurers might need your signature to a document called a ‘form of discharge’) you will receive a cheque.

7) Your insurers then own the remains of your car and, subject to legislation and those ABI codes, can do whatever they want with it. This will undoubtedly mean that they will sell the salvage.

This article was authored by Trevor Dace. He has many years of experience working as a claims adjuster with UK motor insurance companies. His website http://www.instant-online-insurance.co.uk offers Tesco motor, home and pet insurance online with instant quotes and secure online payment.

Whatever your final insurance program looks like, you should review it at least every six months. Your business can change rapidly, especially in the first few years and insurance needs change with it. Keep your program up to date by calling in your agent and reviewing your coverage. Make changes where necessary.

LIABILITY INSURANCE

This is probably the most important element of your insurance program. Liability insurance provides protection from potential losses resulting from injury or damage to others or their property. Just recall some of the big cash awards you have read about that have resulted from lawsuits concerning liability of one kind or another and you will understand the importance of this insurance. Your insurance agent can describe the various types of liability insurance coverage that are available. If you will end up with a comprehensive general policy, make certain that the general policy does not include items you don’t need. Pay for only the insurance you need. For example, your business may not need product liability insurance.

Do not confuse business liability coverage with your personal liability coverage, both of which you need. Your personal coverage will not cover a business-generated liability. Check to be certain.

Compare the costs of different levels of coverage. In some cases a $2 million policy costs only slightly more than a $1 million policy. This economy of scale is true with most forms of insurance coverage. That is, after a certain value, additional insurance becomes very economical.

KEY PERSON INSURANCE

This type of insurance is particularly important for the sole proprietorship or partnership where the loss of one person through illness, accident, or death may render the business inoperative or severely limit its operations. This insurance, although not inexpensive, can provide protection for this situation. Key person insurance might also be necessary for others involved in your business.

SGC was a small firm run by three partners, a software programmer, marketer, and a general manager. Their product was a complex computer program used by aerospace firms. Al, the programmer, was involved in a severe automobile accident, became totally disabled, and SGC lost their programming capability. The problem was that the computer program written by Al was essentially the company’s sole product. Modifications to accommodate the customer became impossible and the time to bring another programmer up to speed was excessive. SGC lost considerable business as a result of this situation. These losses could have been offset by key person insurance.

DISABILITY INSURANCE

You, as a business owner, should be covered by disability insurance whether or not you decide on key person insurance. This insurance, along with business-interruption insurance, described below, will help ensure your business will continue to operate in the unfortunate situation where you are unable to work. Your disability insurance policy needs to provide satisfactory coverage. Particular attention should be paid to the definition of “disability,” delay time until payments start, when coverage terminates, and adjustments for inflation.

FIRE INSURANCE

Fire insurance, like all insurance is complicated and you should understand what IS and IS NOT covered. For example, a typical fire insurance policy covers the loss of contents but does not cover your losses from the fact that you may be out of business for 2-months while your facility is rebuilt. Fire insurance is mandatory whether you’re working out of a home office or you have a separate facility. You should discuss a comprehensive policy with your agent. Take the time to understand the details. For example, will the contents be insured for their replacement value or for actual value at the time of loss?

Consider a co-insurance clause that will reduce the policy cost considerably. This means that the insurance carrier will require you to carry insurance equal to some percentage of the value of your property. (Usually around 85%.) With this type of clause it is very important that you review coverage frequently so you always meet the minimum percentage required. If this minimum is not met, a loss will not be paid no matter what its value.

If you are working out of your home, your existing homeowner’s policy may not cover business property. If this is the case, have your insurance agent to add a home-office rider to your policy.

AUTOMOBILE INSURANCE

You probably already have automobile insurance but it might not include business use of your vehicle. Make sure that it does.

WORKER’S COMPENSATION INSURANCE

If you make the decision to hire employees, you will be required, in most states, to cover them under worker’s compensation. The cost of this insurance varies widely and depends on the kind of work being performed and your accident history. It is important that you properly classify your employees to secure the lowest insurance rates. Work closely with your insurance agent.

BUSINESS INTERRUPTION INSURANCE

This protects against loss of revenue as the result of property damage. This insurance would be used, for instance, if you could not operate your business during the time repairs were being made as a result of a fire or in the event of the loss of a key supplier. The coverage can pay for salaries, taxes, and lost profits.

CREDIT INSURANCE

This will pay for unusual losses as the result of nonpayment of accounts receivables above a certain threshold. As with all policies, you must thoroughly understand the details so discuss it with your insurance agent. One of the largest providers of this coverage is American Credit Indemnity, Baltimore, MD. (800) 879 1224.

BURGLARY/ROBBERY/THEFT INSURANCE

Comprehensive policies are available that protect against loss from these perils, including by your own employees. Make certain you understand what is excluded from coverage.

RENT INSURANCE

This policy covers the cost of rent for other facilities in the event your property becomes damaged to the extent that operations cannot continue in your normal location.

DISABILITY INSURANCE

This insurance will pay you an amount each month slightly less than your current salary in the event you become disabled and are unable to work. Cost for this coverage varies considerably depending on your profession, salary level, how quickly benefits start, and when they end. Benefits paid are tax-free only if you, not your company, pay the premiums.

This list could be continued since it is possible to purchase insurance for just about any peril you can imagine … if you can pay the premium! When considering your insurance coverage, use the following checklist:

INSURANCE COVERAGE CHECKLIST:

• Can you afford the loss?

• What coverage is required by Federal, state, or local law?

• What SPECIFIC items are covered by the policy?

• Are items to be insured for their replacement cost or original value?

• What SPECIFIC items are EXCLUDED by the policy?

• If there is a co-insurance clause, do you have adequate coverage?

• Have you chosen deductibles wisely in order to minimize costs?

• Do any of the policies you are considering duplicate or overlap one another?

• Do you need any insurance based on location, e.g., flood, earthquake?

Use the following checklist to review your insurance plans:

INSURANCE PLAN CHECKLIST:

• Employ an independent insurance agent rather than going to individual insurance companies. Ensure the agent shops for your insurance.

• Talk to and get quotations from at least THREE agents and pick the best one for you.

• Use money saving comprehensive policies, if possible.

• Perform periodic (every 6-months) reviews of your insurance program.

• Have business assets professionally appraised to determine coverage needs.

• Ensure existing personal insurance coverage includes business-related activities and add riders as necessary or obtain additional coverage.

http://www.TotalBusiness.com is a Website that provides business owners with the information they need in order to successfully start, manage, grow, and sell their businesses.

The site features over 3,000 articles and 60 guides on business topics such as starting a business, financing a business, sales and marketing, building a website, setting up an office, hiring employees, and selling a business. The site also contains articles on legal and accounting issues affecting businesses and allows business owners and entrepreneurs to get free expert advice from local lawyers or accountants. The site contains over 1,000 business forms and agreements that are helpful to business owners and provides a business directory with over 1,700 merchants who provide services specifically for small businesses.

Eran Salu, JD,MBA,CPA is the Founder and CEO of TotalBusiness.com

One unsettling thought is how we are at the whim of natures’ wrath. Sure you can install a lighting rod on your home to protect it from lightning strikes but what do you do to protect you from the big ole tree next to our house that just got slammed by lightning and is now not only on fire but also falling onto your house. Cut the tree down, make a home out of asbestos and open up a whole other can of worms or do you just try to be prepared as best you can for disaster? Being prepared for disaster sounds like the best option to me.

How do I prepare for eminent doom? You would start by taking care of obvious holes in your homes safety net. For example if you don’t have a grounded lightning rod installed on your house do that especially if you live in a high risk area i.e. an area where there are frequent lightning storms. Make sure that when you do tackle a hole in that net that you fix it correctly the first time, otherwise you’ll learn the lesson my grandma ingrained in me “the lazy person winds up working twice as hard”. After patching up the apparent holes its time to shore up the not so palpable ones; what I mean is doing the little things that will pay back big dividends for your foresight. Or example making an inventory of all your possessions is a great place to start. If the unthinkable happens, with your home inventory you’ll have a record of everything you had and what’s more your inventory is just the tool you’ll reach for during the claims process.

The first thing your insurance company will ask you for is to compile a list of all the lost or damaged items. No problem for you because you have your home inventory! But what is this wondrous, magical tool? A home inventory is simply a list of all of your possessions, with photos and details such as make, model, serial number, all compiled in a neat and organized fashion for quick dissemination. Imagine the claims process without it; having to compile that list after the home was burned down. Could you remember everything? Would you be even in the right state of mind to be able to do this? Don’t wait if you haven’t done this act now, later will be too late.

Another smart move would be to check out what disasters are actually covered by your insurance policy. Listed below is a list of most of the disasters covered by most insurance policies (from the Insurance Information Institute’s website). http:// www.iii.org/individuals/homei/hbasics/whattype/

What type of disasters are covered?
Perils
1. Fire or lightning
2. Windstorm or hail
3. Explosion
4. Riot or civil commotion
5. Damage caused by aircraft
6. Damage caused by vehicles
7. Smoke
8. Vandalism or malicious mischief
9. Theft
10. Volcanic eruption

The following might not be covered by your policy!
11. Falling objec
t 12. Weight of ice, snow or sleet
13. Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance.
14. Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system.
15. Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance.
16. Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component)

Most policies cover only the first ten items on this list the rest are extra’s. The next list covers item that are not covered by most home policies.

Disasters not covered
1. Floods?
You can purchase flood coverage directly from your homeowners insurance agent. However, the policy is provided by the Federal Flood Insurance Program ( 800-427-4661, http://www.fema.gov/nfip ). You can get replacement cost coverage for the structure of your home, but only actual cash value coverage is available for your possessions. There may also be limits on coverage for furniture and other possessions stored in your basement. Flood insurance is available for renters as well as homeowners. You will need flood insurance if you live in a designated flood zone. But also consider buying it if your house could be flooded by melting snow, an overflowing creek or water running down a steep hill. Don’t wait until the evening news announces a flood season warning to buy a policy. There is a 30-day waiting period before coverage takes effect.?

2. Earthquakes?
Earthquake coverage can be a separate policy or an endorsement to your homeowners or renters policy. It available from most insurance companies. In California, it is also available from the California Earthquake Authority ( http://www.cea.gov ). In earthquake prone states like California, the policy comes with a high deductible.?

3. Maintenance damage?
It is your responsibility to take reasonable precautions to protect your home from damage. Your insurance policy will not cover damage due to lack of maintenance, mold, termite infestation and infestation from other pests.

In light of recent disaster’s it might be a good idea in looking into flood insurance coverage. You can find out if you live in a flood plain by contacting your local government office, for that info if you’re not sure. You can find their phone numbers listed in the blue pages of your local phone book. Finally use your imagination as to how you can protect and make your home disaster proof. There are countless other things you can do inspite of the factors that you cannot control. Just use your head and find the holes. Remember you are your homes first and last line of defense; if you don’t take care of your home, who will? Be proactive, that way you can be prepared for the worst of situations. Good luck and be safe!

http://www.myhiss.com H.I.S.S. Home Inventory Service Specialists is headed up by CEO: Richard Berroa; a producer whose background is in live T.V. production and documentaries. At HBO, NBC and PBS; Rich was responsible for gathering all the information for the shoot (the who, what, when, where) and putting them to insure a successful production (the How). That skill set is now put to work for your own H.I.S.S. catalog; which is a mini production itself. The same commitment, attention to details and meticulous organization will now work for you. We are a company set up to serve an under served need; the fact is that all insurance companies tell their clients to make an inventory but they do not provide this service to their customers. WHY? Maybe it is because it’s simply is not in their (the insurance company’s) best interest. Empowering you the customer is our priority. We are insured; currently we service the entire east coast but we are willing to travel beyond on a per case basis.

That’s why engaging in a process of obtaining business insurance right for you and your company is so important. Do you know what general commercial liability insurance is? Well, if you don’t, then it’s just another reason why doing it right is so important. Not doing it right might cost you when you need help the most — during crisis. It’s why people get insurance. It’s why smart business people get smart business insurance.

Doing it right essentially means avoiding some common mistakes made when trying to get the best insurance policy for your business. Knowing what some of these mistakes are, and avoiding them in the future, will help you in your quest to simply make the right business decision when it comes to insurance.

Top 5 Mistakes When Getting Business Insurance:

1. Discounting the importance of business insurance

Business people of all types, whether it be CEO’s of large business conglomerates, or even someone just working out of their home office, have their own set of reasons for getting insurance specifically for their business. But not all business people necessarily think this way. Some think it might be too costly. Some think it might not be necessary . Some may even think that they’re covered by other insurance policies that they have for their property or for themselves.

Not having the insurance specifically tailored for your business often comes as a result of simply not thinking that it’s necessary. But it is. Take general commercial liability insurance, for example. This kind of insurance protects businesses from the costs of lawsuits resulting from basic damages done to people or property that have even the slightest contact with what you do. Not having this coverage when someone decides to throw a lawsuit at you, even if frivolous, could cost you in terms of money and reputation.

2. Not knowing the basic issues

It’s nice to think that insurance is just insurance, but it isn’t. Would you get car insurance for you house? Would you get life insurance for your healthcare? Of course you wouldn’t.

Yes, some of the issues involved in business insurance are similar to other forms of insurance. A good policy will, for example, protect your assets in case they get stolen. It will also protect you if bad weather destroys your business property. These are straightforward insurance issues for your business. But don’t be fooled into believing that they’re the only insurance issues for your business.

For example, take general commercial liability insurance. Some business owners might not even know what liability insurance actually is. It’s the insurance that protects you from the financial costs resulting from a lawsuit from somebody who claims they or their property has been hurt or injured as a result of the way your business conducted itself. General commercial liability insurance is the kind of insurance those companies engaging in commercial activities get to protect themselves because people hurt themselves on their premises or one of their products did damage to someone’s property. Being knowledgeable about these kinds of things will most certainly help you get the right insurance.

3. Not getting insurance early enough

There are two things that can happen to you if you don’t get insurance for your business early enough. The obvious one is that you’ll need it before you get it, and you’ll be stuck with paying for the damages from a storm or a lawsuit yourself. The other thing that can happen is that you will not have a budget for your start-up for the proper insurance, so you’ll get stuck with inadequate coverage. That’s the last thing you want to happen. Therefore, to avoid it, thinking about insurance as early as possible, even at the business plan stage, will help you create the budget you need to get you adequately covered for all future circumstances.

4. Getting the wrong kind of insurance provider

Perhaps the most tempting option for someone seeking business insurance is to get it through insurance companies they’re already doing business with. So, for example, you like how your house is covered, and who’s covering it, so you’ll seek to extend that coverage to your business, too.

The reason this is inadvisable, or should at least be looked at very carefully, is that your property insurance provider might simply not have the kind of experience with the kind of insurance you need for your business.

For example, if general commercial liability is what your particular business is in need of, even if a provider carries that kind of insurance, they may simply not have enough developed expertise to know what’s right for your particular needs. Ideally, only those companies and agents who have dealt with your kind of business before can help your kind of business get you adequately covered for your particular situation.

5. Getting the wrong kind of coverage

Following from the risk of getting the wrong insurance provider, a mistake to avoid is getting the wrong kind of coverage. Ultimately, you’re the person in charge of making the right business decisions for your company. You’re the best person suited to look out for your own interests. No one else is. That’s why it’s incumbent upon you to make sure you’ve got the right coverage for you and your situation.

As much of the above already suggests, delegating these decisions is important. Yet, in the end, it’s you who has to decide if you have the right kind of coverage for your business. After going through the entire process, collecting all the information, and talking to the right people, it’s you who makes the decision. Make sure it’s the right one for your business and where you want to take it.

James Cochran is the founder of Business Insurance Now, a web-based business insurance agent. With over 12,000 business clients, Business Insurance Now and Techinsurance have grown to become America’s leading online provider of general commercial liability insurance for a wide range of small businesses.