Are you looking forward to start your own business in the near future? If yes, keep in mind that you will have different costs to cover each month and insurance is n important element of theses costs. Insuring your business is very important especially if you are a small business just starting out. Fact is that even big companies with large risk funds use insurance as a risk management tool. And paying for insurance can cost you quite a lot sometimes. But it doesn't mean that insuring your business should always be expensive. There are ways you can lower your insurance costs and still keep the coverage your enterprise needs.
However, before you actually start reviewing your policy you should learn the main elements of insurance for business. And by adjusting the coverage for these elements you will be able to cut insurance costs effectively.
Basic forms of insurance for business:
1. Business Owner's Policy (BOP) -The most advantageous form of insurance for a small enterprise that has less than 100 employees. This insurance delivers both property and liability insurance and only one premium has to be paid.
2. General liability - Most liability exposures are covered under this form of insurance. Situations that are covered range from accidents to legal action.
3. Property insurance - As the name suggests, this form of insurance covers the property of the business against different risks. Most policies cover fire, flood, theft and natural calamities, however you should analyze the policy for an exact list of covered situations.
4. Workers' compensation - This type of business insurance assures the responsibility of the employer towards his workers by providing medical care, compensation and lost income in case of accidents or other work-related situations.
5. Professional liability/Error and omissions - Covers your enterprise if it gets exposed to liability from clients or partners due to operational errors or malpractice.
6. Directors and officers - Protects senior staff from work related risks.
7. Business automobile - Specific auto insurance for vehicles that are used in commercial purposes by your company.
8. Umbrella - Insuring different assets with a single coverage in case the costs reach a certain level rather than buying separate policies for numerous assets such as property, vehicles. Etc.
9. Travel - Pays for the accidents that take place when an employer is in a business travel.
10. Key person life - This form of business insurance protects the enterprise from the losses that are caused by disability or death of a key employee.
11. Business interruption - Covers the losses that the business has to face due to temporary suspension of operations due to unpredictable events such as fire. It will cover the net profits that are lost during this period.
Once you learn the coverage amounts for these forms of business insurance and analyze your insurance needs it will be much easier for you to adjust the policy to your exact requirements. Remember that the key to cheap business insurance is having the right coverage for the risk your business needs protection against, not what your insurance provider thinks is best for you.
If you ask a person who is single and doesn't have children about their thoughts on insuring their lives the answer will definitely confusion. Fact is that young people who are healthy and are only in the beginning of their careers and lives rarely think about mortality and respective insurance in particular. However there are some tendencies that require serious attention:
The leading causes of mortality in the age group between 20 to 34 years old in the US in 2009, were accidents, suicide, murder, cancer, heart diseases and HIV. These factors cannot be predicted and the financial burden of such situations can be very serious. Although, it's quite understandable that young people start thinking about life insurance when they get married and develop more financial responsibilities towards others.
Buying insurance at an earlier age has its benefits though. The older a person gets the least likely their health to be in good condition and this will affect the rates. Moreover, different age groups have different life expectancy and with age the person will always pay more for insuring own life even if they still have perfect health. That's why many insurance experts advise starting earlier with insurance in order to make sure that the rates will be lower when the actual age of need comes.
The best way to start is to get a term life insurance that guarantees renewal upon the end of term. Term policies are usually much cheaper and you can choose any term you want. Most experts recommend starting with a ten year plan than will assure you with coverage up to the point when you already have a family and start feeling the necessity of life insurance.
The older a person gets the more responsibilities they develop towards others. One of the most common financial responsibilities a person has is mortgage loan. People use mortgage to finance the purchase of their house and the payout period can last for decades. What if the person dies during this term? All the financial responsibilities will be automatically transferred over the spouse or dependents and that can be quite hard to cope with financial. Life insurance is often linked to mortgage accounts and can be used for securing mortgage payouts.
Another role of insurance is long term investment planning. Whole life policies and universal policies have money accumulation features that can be used as financial tools. These features give plenty of possibilities in long term financial planning for your family. You can invest in stocks or bonds, or can assure your kids with college education well in advance.
And it all starts off when a person is still single. Keep in mind that getting life insurance will get costlier as you age. You will find it hard to get cheap insurance when you already have a family, kids and numerous responsibilities. So it's always better to plan ahead and get insurance while you're still young and healthy, either way it will cost you much less during this period of your life. Take your time to learn the market, compare different offers and get yourself an insurance policy. You'll be glad you did when you get older.