Skip to main content

INSURANCE

When you start a small business you will need to have insurance. You would be wise to shop around. Triple A rated carriers like Farmers Insurance, State Farm and All State are definitely places to get quotes from, but also be sure to check out your local independent insurance agents as well. When shopping for a quote there is some things you will need to know. For instance you SIC code and business category. If you are involved in more than one, it pays to look at both SIC codes to see which category is preferred by the agents underwriters. Some SIC codes many insurance companies will not even touch. For instance Car Washes, Amusement Parks, Aviation Businesses and security companies. But there are insurance companies who specialize in these areas. Perhaps you might wish to thumb through a recent trade journal to see which insurance companies are actively seeking clients in those categories. You will be glad you did; also do not forget to check online as well.

You will also need other data when shopping for quotes; you will be asked such things as: Address of Business Office; are you running your business out of a home or commercial location. If it is a commercial office; what is the square feet of business location, customer area. What is the age of the building; is it made of masonry or frame construction? How many floors? What types of business tenants occupy or share the building? The main concern of the underwriter's in some businesses is; where the supplies are stored? Especially if chemicals are used in your business. If you are a mobile service; are the chemicals stored on a vehicle? Where is the vehicle parked.
Insurance agents will also ask you how many years have you been in business? How much experience do you have; what are your projected and current gross annual receipts? How many full time and part time employees do you have? If you have mobile service vehicles you will need the full name, social security number and drivers license number for all employees who will be driving the vehicles. The more current our files, the happier the underwriters and the more information you bring with you when shopping for quotes the happier the agent. Happiness equates to a better deal, more shopping on the agents part and better relationships will all the parties concerned. Think on this when shopping for Business Insurance.
Insurance is an important part of any comprehensive financial plan. Insurance answers the question, "what if the unthinkable happens?" But too many people avoid it because they see the expense but not the benefit or they simply don't want to think about their own death or the death of a loved one. But insurance is a vital part of any financial plan and should be considered for everyone.
For most people, the best course of action when adding insurance to their portfolio is to ask these two questions:
What is a permanent expense in my life?
What is a temporary expense in my life?
The answer to these questions will help you determine what kind of insurance you need.
For example, funeral expenses are a permanent expense because they are always there. So you'll want to buy a small "Whole Life insurance policy" to cover funeral expenses. (It's called "whole life" because the policy is going to cover you for your whole life... a permanent insurance policy to solve a permanent expense). If you want to leave a legacy for a charitable organization, you may want to take out a whole life policy for that as well.

Your children's college education is a temporary expense, since (hopefully) they will stop going to college at some point, so if you decide to take out a policy to cover their education if you die, the term should end when the youngest child attends college. Another temporary expense is your mortgage. Match the term of your term policy to the time it will take you to pay off your mortgage.
Some other expenses to consider include
The care of an elderly parent is a temporary expense so it is best covered by temporary insurance.
The cost of a car is arguably a permanent expense since you will always have a car and car insurance and perhaps the necessity of buying a new one periodically.
The cost of a young widow to stay at home with the children to raise them is a temporary expense since the children will grow up and be able to support themselves at some point.
Many people avoid thinking about insurance. When they finally do decide to give it some thought, it is such a wide-open industry requiring specially licensed agents to help you that it is difficult to know where to begin. Before contacting an agent, sit down with your loved ones (the ones who will be directly affected by your unfortunate passing) and decide what permanent and what temporary expenses exist in your life.


Comments

Post a Comment

Popular posts from this blog

Convenient Time to Start Your own Business

NOW IS THE BEST TIME TO START YOUR OWN BUSINESS! Let's say that is true. Does that mean this is the best time to start your own business? Well, given this is such a monumentous decision the real answer is: It depends on your state of mind at this point in time. But what have you got to lose, right? You don't have to quit your job. You don't have to take a second mortgage to finance the venture and you don't have to sell your soul. Why not go for it? Couple this risk free environment with the Internet and there is almost no reason why you shouldn't take the plunge. As you may already know, the Internet has so much free information on starting a business that it would seem like the antithesis to not start your own business. Put almost any type of entry into a search engine, and you will find some site dealing with the search request. In fact, if you had no other tool, search engines could dish up enough information to meet the research requirements for a ...
Post a Comment
Read more

Good Diet Food For Healthy Day of Life

Good diet food is the same victuals you would consume to maintain your health. Therefore, achieving weight loss is on a parallel path with supplying the vitamins and minerals your body needs to stay healthy. Healthy diet foods will accomplish both goals. A good healthy diet that maintains your health will also keep your fat reserves low. In other words, a healthy body is a slim body.  Yes, you can slim your waistline by eating the right foods and avoiding the bad. Diet Choices For Improved Health Eating healthy foods can answer the question of how to raise your metabolism. Raising your metabolism by consuming healthy foods is one of the best weight loss programs to adopt. When combined with moderate exercise you will begin to lose weight naturally. Good diet foods are almost always part of a heart smart diet. The mixture of eating healthy foods, exercise, and you beginning to lose weight will benefit your heart, other internal organs, and various bodily sys...
Post a Comment
Read more

TYRES TO CARES

As a responsible driver and the owner of a vehicle you should regularly check your tyres. This is your legal responsibility and the implications if you do not do so are massive! The least of your problems could be being pulled over be the police. This means that you could receive a fine of up to £2,500 and three points on your licence per tyre! Whilst this not good for your bank balance initially, the penalty points would also increase your insurance premium and potentially result in you losing your licence. A penalty is the least of your worries as driving on bald or defective tyres could lead to something far worse such as an accident, or as they are often referred to now, an incident. As an accident suggests that it was not someone or something's fault. Incidents however are always someone's fault, and it is the police's job to work out who or what was to blame. If your car tyres are illegal and that was the cause of the accident there is also the risk that your insu...
Post a Comment
Read more