by David and Tracy Bell | Feb 27, 2024
With the new year just behind us and as we prepare the year end financials, our fellow business owners will be reviewing how their business did this past year and reflecting on new goals for 2024. It always starts with what you want to achieve in life and in business.
Here are three inspiring examples of those who managed to make it from humble beginnings and what we can all learn from them.
Jan Koum Koum was born into poverty in a tiny village in Ukraine. After migrating to America with his family as a teenager, Koum became fascinated with computers and eventually began working for Yahoo! In 2009, he had the foresight to predict the future success of the embryonic mobile app industry, so he founded WhatsApp. By 2014, he’d sold it to Facebook for $19 billion. Koum’s story shows that intelligent forward planning can be the key to reaching your goals.
John Paul DeJoria DeJoria began his working life moving from low-paid job to low-paid job, from shifts as a janitor to delivering newspapers. Befriending Paul Mitchell while working in hair care, the pair took out a small loan of $700 and founded John Paul Mitchell Systems, today a global conglomerate. Since then, he has helped to found Patron Sports and is worth over $3.1 billion, proving that strong drive and good friendships can take you farther than you think.
Kevin Plank Plank was on the edge of going broke when he decided to put his life savings together with a $40,000 advance on a credit card to fund a company selling clothing under his brand, Under Armor. After making a $17,000 sale to Georgia Tech University, sales to 24 NFL teams followed, and in a few short years, it turned into a multimillion dollar company. Today the company is worth billions. Plank’s journey shows the power of investing in yourself!
by David and Tracy Bell | Sep 7, 2023
Every small business owner needs to manage risk, and obtaining commercial insurance is one of the best ways to do that. But finding the right coverage can be overwhelming, especially for those who have never purchased coverage before. Here are three things to consider.
Consider what is legally required. Buying business insurance may be a necessity, depending on your location, industry, state, clients and lenders. For example, businesses with employees must generally carry workers’ compensation insurance. Clients may require that you carry professional liability coverage or errors and omissions insurance. And if you’re renting office space, your landlord may require you to buy a general liability policy, which covers third-party lawsuits over bodily injury or property damage.
Understand your industry’s risks. Because every industry is different, the risks to a business often depend on its industry. For example, an accountant should worry about liability if a mistake is made completing a client’s taxes; a restaurateur should worry about a diner contracting food poisoning.
Learn what might affect your costs. Your location, the type and size of your business, and the assets you are insuring may all affect the premium you pay for coverage. While you can’t control many of these things, you can take some steps to help keep your premiums down, such as creating a safe work environment, vetting employees carefully, and not allowing your coverage to lapse.
Call or email us today to schedule some time to review your insurance needs.
by David and Tracy Bell | Aug 23, 2022
Every small business owner needs to manage risk, and obtaining commercial insurance is one of the best ways to do that. But finding the right coverage can be overwhelming, especially for those who have never purchased coverage before. Here are three things to consider.
Consider what is legally required. Buying business insurance may be a necessity, depending on your location, industry, state, clients and lenders. For example, businesses with employees must generally carry workers’ compensation insurance. Clients may require that you carry professional liability coverage or errors and omissions insurance. And if you’re renting office space, your landlord may require you to buy a general liability policy, which covers third-party lawsuits over bodily injury or property damage.
Understand your industry’s risks. Because every industry is different, the risks to a business often depend on its industry. For example, an accountant should worry about liability if a mistake is made completing a client’s taxes; a restaurateur should worry about a diner contracting food poisoning.
Learn what might affect your costs. Your location, the type and size of your business, and the assets you are insuring may all affect the premium you pay for coverage. While you can’t control many of these things, you can take some steps to help keep your premiums down, such as creating a safe work environment, vetting employees carefully, and not allowing your coverage to lapse.
Call or email us today to schedule some time to review your insurance needs.
by David and Tracy Bell | Jul 20, 2022
As the owner of a small business, one of your many responsibilities is likely managing business insurance costs. With everything else going on in the world today, you may feel like you don’t have time to keep on top of this responsibility.
But it’s still a good idea to periodically review your business insurance coverage to ensure that you have the policies you need and are getting the most for your money.
Here are five things to consider.
Are you reviewing coverages annually? Business needs can change rapidly, so it’s a good idea to review your policy with us on a regular basis. You may find, for example, that you need to purchase additional protection (perhaps you’ve purchased new computer equipment, or perhaps you’ve increased or decreased employees). Or you may find that you can save money by adjusting some coverages. We can help you ensure that you have the appropriate coverage for your business.
Can you reduce expenses by combining coverage? It wouldn’t be surprising for you to have multiple policies with different insurance companies. For example, you might have general liability coverage from one insurer and cybersecurity coverage from another. By bundling all of your coverage, you may be able to reduce your premiums. And having only one policy can make managing your renewals a little less time-consuming.
Can you change your deductibles? A general guideline for insurance costs is as follows: higher deductibles, lower premiums; lower deductibles, higher premiums. So increasing the deductible on your business insurance policy may reduce the cost of your premium. You might then invest the money you save back into your business. Before opting for a higher deductible, however, it’s a good idea to consider how much money you have available to pay out of pocket for a covered claim, such as a theft or a fire. You don’t want to risk your business’s future to save a bit of money each month.
Consider stronger risk management in your daily operations. It’s important to think about your coverage needs in advance. Can you pinpoint potential business risks? For example, if your company could possibly experience a data breach, you will want to have cybersecurity coverage. Otherwise, you’d be responsible for costs related to your business’s recovery from a breach, such as credit monitoring services, legal fees and fines from your state if your business is required to have this kind of coverage. This could cost thousands of dollars, so having the right insurance coverage in place can be critical if the unexpected happens.
Plan for uncertainties. You might also consider taking measures to help reduce business risks. One measure is planning for a disaster, such as a destructive storm or fire or data breach, as mentioned above. But business succession planning is also critical. As a business owner, you’ll want to ensure that you leave everything in order should you need to leave the business unexpectedly.
We can help you review your current insurance coverage and make adjustments based on your company’s changing needs. Call or email us. We’re always here for you.
by David and Tracy Bell | May 16, 2022
A business owner’s policy (BOP) combines two types of insurance (property and general liability) into one policy, helping you efficiently manage claims resulting from disasters, theft, fires, bodily injury and more.
Who needs a BOP?
A BOP can help your business if you have a physical location, regardless of the type (a home, a rented or owned office, a storefront or even a garage), because those locations are subject to damage.
A BOP can also help your business if you have assets that could get stolen or damaged. These can include physical assets, such as equipment, furniture and inventory. But they can also include digital assets. If someone steals or loses customer data, for example, a BOP can help pay expenses involved in notifying clients.
You could also benefit from a BOP if there is any chance that you could be sued. Say a customer slips and falls in your retail storefront or office. Without the proper coverage, you could face significant medical expenses.
Why consider a BOP?
A BOP is more affordable than buying separate business property and liability policies. You can also tailor a BOP to help meet your business’s specialized needs by adding optional coverages, such as data breaches and business income loss. A BOP policy can also be customized to certain industries.
How can you get a BOP?
Proper insurance coverage is an important part of being prepared. Call or email us today to review your policies and determine if a BOP is a good fit for you.
by David and Tracy Bell | Feb 21, 2022
Insurance is the backbone of every established business’s operation plan, offering reassurance of financial stability should the worst-case scenario come to fruition. But understanding the elements of an insurance contract can seem daunting when it applies to a business versus a person. Below is a brief guide to the components of an insurance contract that make it legally binding for both parties.
Offer and Acceptance. When you seek an insurance policy, you fill out an application that is legally known as an offer. Acceptance occurs when the insurance company formally issues the policy.
Legal Consideration. This refers to the dollar value of the premiums you agree to pay and the dollar limit of the coverage the insurance company provides in return.
Competent Parties. Insurance contracts are only valid if both parties are of sound mind and body, both parties are at least the legal age of majority and the insurance company is licensed in your state.
Free Consent. Both parties in any insurance contract must enter into the contract of their own volition, with no fraud, misrepresentation, intimidation or coercion involved.
Legal Purpose. The insurance contract must adhere to all state-specific laws that apply to the contract and cover only legal activities.
Insurable Interest. You have an insurable interest when you benefit financially from whatever is being insured (and you cannot get coverage for something in which you have no insurable interest).
Utmost Good Faith. This means that both parties have acted without any type of deception, omission or misrepresentation.
Material Facts. Material facts are those things the insurance company needs to know in order to insure your business.
Full and True Disclosure. Both parties are required to completely disclose all material facts pertinent to the insurance policy.
Principle of Indemnity. The insurance company will compensate you with a cash settlement if a covered loss occurs.
Doctrine of Subrogation. This says that the insurance company can pursue reimbursement from a third party that caused the covered insurance loss.
Warranties. Warranties are the promises specified in an insurance contract, such as conditions that can trigger a claim and the actions that will be taken by the insurance company as a result of the claim.
Conditions. Conditions determine whether a claim will be paid. They include you paying the policy premiums, notifying the insurance company in a timely manner and such.
Limitations. Limitations are the parameters of the insurance coverage, such as maximum amounts that will be paid for a specific type of loss.
As you might have gathered, insurance contracts are complex legal documents, and it’s best to have assistance when entering into one. Please call or email us today to get help with your commercial insurance coverage.
