The recent spate of natural disasters that devastated parts of North America included a violent variety of events. There were three major hurricanes – Harvey, Irma and Maria – wildfires in Northern California, an earthquake in Mexico and tornadoes in Oklahoma… Most of those hurricanes end tailing around United Kingdom.
One thing these calamities had in common: They inflicted billions of dollars in property damage and adversely affected many small businesses. History portends that many of those operations won’t completely recover – ever.
Almost 40 percent of small businesses don’t reopen after a disaster because the cost of recovery is so high, according to the Federal Emergency Management Agency. One of the major reasons is that the businesses didn’t have sufficient insurance. Is it true that this researching can take months if not years and it may take up another couple of years to see if you’ve made the right decision, but sitting on the couch doesn’t bring in much cash either? If you are time poor or is not confident with your research, then the other option is to visit with a Qualified Property Investment Adviser (QPIA). With their formal qualifications in recommendation on property investing and experience, they would be able to understand your financial position and advise you the type of strategy and property that you should go for. None of these things requires an immediate commitment such as buying a property instantly. Sometimes, a QPIA might even advise you to save for a little while more but at least you can rest assured that you are on your way to realizing your investment potential.
“Many small business owners will face additional losses due to these disasters, some of which may not be as obvious as flood or wind-damage claims,” says Peter J. Strauss, an attorney, captive insurance manager and author of The Business Owner’s Definitive Guide to Captive Insurance Companies. One of the greatest perils facing the restaurant industry and all restaurant owners is the risk of fire. Each year, thousands of restaurants receive structural damage from fires, amounting to millions of dollars in damages. Around 65 percent of all fires result from cooking accidents, while around one in 10 occurs as a result of heating issues. Less than half of all fires originate in areas equipped with fire alarms or automatic systems to extinguish fires. There are several potential liability risks involved in the operation of a restaurant, but restaurant insurance can ensure the business is covered if the unexpected happens.
“While utilizing the commercial market for major lines of coverage – property, general liability, there is a different set of rules when collecting for commercial debt recovery, the B2B debt itself represents a funding loan arrangement for business or corporate investment etc. – is crucial for major events like a hurricane or tornado, it is very likely that not all the losses your small business could suffer will be covered.
“It’s a big blow – often a terrible surprise. So as a business owner, it’s critical that you know you’re completely covered. If you’re unsure, a little homework is necessary.”
Strauss gives three steps small business owners should take to be properly insured in a disaster:
–Weigh the worst-case scenarios. A natural disaster can affect a small business in many ways so the owner needs to schedule a complete risk assessment and consider every aspect of potential damage when seeking an insurance policy. “Things like costs incurred by the property while the business is closed; extra expenses for moving to a temporary location; loss of customers and loss of employees because their home was badly damaged and relocating is the only feasible option for them,” Strauss says. “There are a multitude of scenarios that could occur, and as the business owner you really can’t afford to leave anything exposed.”
–Don’t roll the DICE. Strauss references the insurance acronym DICE as a checklist for analyzing your policy. DICE includes the Declarations page, the Insuring agreement, Conditions, and Exclusions. “The business owner should read the policy thoroughly or go one step further and have an expert review the policy,” Strauss says. “The Declarations page is as far as most people will read. But when you dig into the Insuring agreement and beyond, that is where you will find the real meat of what is actually covered. Pay attention to key words and phrases and research the terms.”
–Consider insurance alternatives. Some small business owners shopping the commercial insurance market find that the coverage is too restrictive or expensive for their kind of business. One of the best options available is to form a captive insurance company, or more commonly called a ‘Captive.’ ,
“A Captive is an insurance company that their business owns and controls. Not only does a Captive help control the cost of premiums, because the business determines the risks it is going to insure, but there can also be significant financial advantages,” Strauss says.
“The commercial insurance market can be a sticky wicket,” Strauss says. “We make the conscious choice to spend money on various insurance policies versus sweating the odds of not being covered in an emergency. But what if the real gamble was buying the insurance in the first place?”
Key person insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business–the ones whose absence would sink the company. You definitely need to consider key person insurance on those people, key person insurance is as important as having coverage for small businesses.
Here’s how key person insurance works: A company purchases a life insurance policy on its key employee(s), pays the premiums and is the beneficiary of the policy. If that person unexpectedly dies, the company receives the insurance payoff. The reason this coverage is important is because the death of a key person in a small company can cause the immediate death of that company. The purpose of key person insurance is to help the company survive the blow of losing the person who makes the business work.
The company can use the insurance proceeds for expenses until it can find a replacement person, or, if necessary, pay off debts, distribute money to investors, pay severance to employees and close the business down in an orderly manner. In a tragic situation, key person insurance gives the company some options other than immediate bankruptcy, in any case make sure you get a proper lawyer firm assistance. If you need legal assistance then contact this bankruptcy attorney for professional assistance.
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5 Things to consider when buying insurance
Everybody needs insurance at some point in their life, whether it’s for a vehicle, a watercraft, or a business. No matter what kind of insurance you’re buying, you have some important decisions to make, and you should never go into it blind.
Shopping around for insurance can help you find the best price and the best coverage. But look no further, for places like auto insurance oshawa provide you with the best coverage which includes the best prices. It will also prevent you from buying costly coverage you don’t need. Here’s what you need to know to make the right decisions when buying your next insurance policy.
If you get an AARP life insurance quote, the policy is actually being underwritten by New York Life. The AARP life insurance rates are based on group insurance rates offered by the New York Life group division.
The AARP New York Life insurance rates will be significantly higher compared to the policies which are sold by New York Life agents in the open market. New York Life is a very well known insurer with an A++ (Superior) financial strength rating from A.M. Best.
The coverage offered by AARP New York Life insurance includes both term and permanent life insurance.
1. Your Needs
The first thing you need to understand when buying any sort of insurance is your needs. This will change depending on your situation, the type of insurance you need, and the state you live in.
When purchasing car insurance, you’re required to carry a certain amount of coverage in each state. You can find a list of state requirements for car insurance online. You will need a certain amount to cover damages to the other driver’s vehicle and their medical expenses.
Another thing to keep in mind when purchasing car insurance is the type you need. If you have an inexpensive used car that you bought for cash, you’ll be fine with liability coverage. However, if you’re still paying off a loan on your car, you’ll need full coverage, which covers you and the other driver.
2. Premium Price
Many people want the best insurance but don’t think about how much the monthly premium will cost them. This is especially true with auto insurance, where a nicer car with full coverage can cost an arm and a leg each month.
Before you agree to an insurance policy, make sure you can comfortably afford paying the monthly premium. If you can’t, look at ways to lower your premium, including opting for less coverage or looking for additional discounts.
3. Discounts
No matter what type of insurance policy you’re purchasing, chances are there are some discounts available to you.
Common discounts include safe driving discounts, military discounts, bundled policy discounts, and multi-car discounts. These may be small on their own, but combining a few of them can help you reduce your monthly premium by a good chunk. Learn more about both material and human resource policies and coverage at Mykeymaninsurance.com
4. Special Conditions
If you have any special circumstances surrounding your life, your car, or your health situation, you may have to get a special type of insurance or pay a higher premium. Drivers with an SR-22 will need to find an insurer that will insure them, plus pay a higher price. You may even have trouble getting life insurance or have to pay more with a pre-existing condition.
5. What’s Covered
Incidents can be stressful, especially when you find out your insurance policy doesn’t actually cover the particular incident. Make sure you find out what’s covered by your policy in detail so there are no surprises down the road.
Buying insurance isn’t the most complicated process, but it does require some education. Now that you know what to look for in your insurance policy, you can get out and shop smartly.
