The 10 Things You Really Need to Know Now

When you hear the words “business insurance,” you might think this only applies to large, established businesses. But in fact, this is an important topic for any sized business – from the largest corporations to the smallest, one-person operation and everything in between.

Whether you’re simply in the beginning stages of getting a business idea up and running, or already own an established business, it’s important to know a few basic things about how business insurance works, and what kinds you might need. Here are a few tips to get you started – or to provide you with a quick review.

1. Property Insurance – understand what it covers

Property insurance covers not only the physical structure which houses your business, but also the contents inside the structure. This could include equipment, office furniture and even inventory.

2. Liability Insurance is a must

No one likes to think about it, but getting sued is always a possibility for a business, regardless of its size. Having the proper amount of liability insurance is of the utmost importance. Liability insurance can help with expenses if your business is sued, but it can also help pay for expenses if anyone is injured due to a faulty product or service.

3. Worker’s Comp – check your state’s requirements

If your business has employees, it’s very possible that you’ll need worker’s compensation insurance. If anyone is injured on the job while working for you, worker’s compensation insurance will help pay for medical expenses. Most states require worker’s comp for all sized businesses, but be sure to check your state’s requirements to be sure that you get the proper type – and amount – of coverage.

4. Errors & Omissions

E&O Insurance is similar to Liability Insurance, but it is specifically for professional services businesses. This type of insurance can cover expenses that may be incurred due to accusations of negligence, or the failure to perform your professional services. Even if you haven’t.

5. Got employees? Consider EPLI

Employment Practices Liability Insurance applies to situations where businesses are sued for things such as discrimination, sexual harassment, or wrongful termination. At one time, these topics were only of concern to larger companies, but in today’s environment, businesses of all sizes can be subject to these types of suits. If your business has employees, it’s wise to consider adding EPLI coverage to your Business Owner’s Policy (BOP, described below).

6. Is Key Employee Insurance worth your while?

Many times, the success of a business relies on the involvement of specific employees. If one of those employees were to pass away unexpectedly, their absence could affect the profitability of the business. The beneficiary of a key employee policy is the business itself. Key Employee policies can often be requested by lenders, to meet certain credit requirements.

7. Cyber Liability Insurance is gaining in popularity

More and more business is being transacted online. And more and more data are being stored in “the cloud,” allowing for ease of access and reducing the need for companies to invest in storage or storage facilities. However, as more business is transacted electronically, the more that information is opened up to theft and hacking. Cyber Liability Insurance will help protect businesses if they experience a data breach; it will help cover costs ranging from legal expenses to public relations expenses.

8. Directors & Officers Liability Insurance is NOT the same as E&O

As the name implies, D&O insurance specifically protects the directors and officers of a company. D&O insurance protects the business, and sometimes the directors and officers themselves, in the event of legal action brought for alleged wrongful acts. While lawsuits such as these are less common in the United States, if your business operates outside the U.S. this type of coverage is definitely worth investigating further.

9. Don’t forget about the car!

If you have vehicles that are owned by your business, and are used exclusively for running your business, they won’t be covered by personal car insurance; a separate business auto insurance policy is needed. There are many types of coverage available, and auto insurance can sometimes be bundled into your Business Owner’s Policy. However, individual plans can be more easily customized.

10. Consider a BOP

A Business Owner’s Policy can be a great way to bundle common types of business insurance into one handy policy. BOPs are customizable, and can save you money since there are multiple types of coverage combined into one policy. Purchasing a BOP can also simplify the insurance process, since you’ll have just one policy, one renewal date, and one premium payment to deal with. While combining policies can be extremely convenient, it should only be done if you can truly have all of your insurance needs met by one product. If your business is of an unusual nature, or you have specific insurance needs, it might be best to still consider individual policies. Working with a trusted insurance agent or broker will help you ensure you’re getting all of your business insurance needs taken care of.

Useful For Yous Company – How To Limit Liability In Your Early Education Company

There is always risk and opportunity for liability in an early education company, but there are a number of ways you can limit your liability and manage risk in your business. Here are 11 things you may want to consider. (** Always talk with the proper professionals before taking action.)

1. The Heart Stopper: Make sure you never lose track of a child. This terrifying event is most likely to happen when moving back and forth to the playground or when children are transported via busses or vans. Sometimes it is not enough to count the number of children. Make sure you perform a sweep after “all” of the children have left an area. This is especially important for busses and vans as children are easily overlooked when they are in the back of a bus or van.

2. Observe Good Business Practices: This act is incredibly important. While it doesn’t guarantee that you will be safe in your business environment, it certainly reduces the risk of getting sued.

3. Business Component Incorporation: Incorporate your business to limit your personal liability.

4. Real Estate: If you own real estate for your early education company, own it in a corporation or LLC that is different than the corporation that owns your business component. By holding your real estate in a different entity, it can be protected from litigation against the childcare business. Remember, you don’t have to be wrong to be sued. Over the years, we have seen childcare company owners sued frivolously for little more than a parent that just needed a source of income.

5. Transportation: While some companies don’t go this far, owning your company vehicles in a separate transportation company helps to limit liability in the event of a traffic accident. Some people and their attorneys view litigation like a lottery. Fighting a lawsuit with someone who is trying to make a “corporation” pay is time consuming at best. It’s also likely to increase your insurance rates.

6. Insurance: Make sure you have the proper insurance coverage, including but not limited to, liability, property, flood and business interruption coverages.

7. Teachers: Train your teachers so they instinctively guard against any threat to the children, themselves or your center(s).

8. Playgrounds: Sectionalize playgrounds to make sure older children don’t accidentally collide with the little ones when playing outside.

9. Security: Install proper security doors and surveillance cameras so unwanted visitors don’t gain access to your center or the people in it.

10. Licensing Compliance: While licensing is always part of the daily childcare business, keep in mind that the regulations are there with good purpose. Sometimes it is the smallest act of prevention that stops a catastrophe.

11. Professionals: Make sure you have at least one good attorney and one good CPA on your team. Having the right professional to show you the correct path is much easier than learning things the hard way.

By following a few practical and common sense rules, you can limit both your risk and your liability in your business.

Learn From This – Way to Promote Your Company

Having staff name badges is a form of free advertising for your business especially if you are the new kid in the business block. Whenever people come into contact with your staff, they are able to instantly recognize from their staff badges your company logo; this instantly registers in their minds information about your business.

The second reason for having staff name badges is for the purpose of identification. A staff badge is able to show a limited amount of information about a person like their name, their position or job role in a company and maybe even their business or company identification number. This helps staff within an organization to know each other well especially in the case of a new staff member who has to be introduced to many people all at once. A staff badge can help a lot the staff member in getting well acquainted with his or her new work colleagues without the awkward phrase of “Could you please remind me your name again?” Staff badges can also help customers to identify whom to talk to or seek help from in a business premises. Like for instance in a hospital, a staff badge can help a patient know who is a nurse, who is a doctor, or who is just a hospital administrator like for example an accountant.

The third reason why name badges are important is because they help promote a sense of belonging amongst the company staff. Many people take pride in bragging to their friends and family about working for such and such company. For these people, working for their dream organizations and been able to show a staff badge with their names and job title on them is something they take pride in. Staff name badges basically make staff feel appreciated and recognized by the company or business owner. And as we all know, somebody who feels appreciated is often happier and a better worker.

The last reason why staff name badges are important is for safety and security measures. By workers having a staff badge that can help security personnel easily identify them, outsiders who pose a security risk to the business can be controlled from entering a premises. Those who enter the business from outside can in turn be given a visitor’s badge which can help staff identify that they are visitors indeed and not fellow workers. Staff name badges are very important and because of that every business or institution should have them.