Small Business Insurance All business owners need to know this

Transcription

1 Small Business Insurance All business owners need to know this Speaker(s): Liam Dai, Insurance Broker Date: Wednesday, May 6, 2015 Time: 1:00 PM - 3:00 PM

2 Why are you here?

3 TIME HARDWORK MONEY

4 What happens? If this was your businesses?

5 Your Product Fails

6 Customer Trips & Falls

7 Over 70% of businesses involved in a major fire either do not reopen, or subsequently fail within 3 years of fire. Consider these odds: one out of two businesses never returns to the marketplace following a major disaster. Of those that do, half go bankrupt within three years. The ones that survive plan their response to a disaster before it strikes. as at Oct 3, 2008

8 80% of businesses affected by a major incident either never re-open or close within 18 months (Source, Axa)

9 Within two years after Hurricane Andrew struck in 1992, 80 percent of the affected companies that lacked a business continuity plan failed (FEMA).

10 Advertising Networking Customer relationships Sales/Prospecting Learning Problems Backend Admin Accounting Business insurance

11 Set it and forget it mentality

12 Insurance is one of the most important tools to protect your business.

13 What you will learn Why we need insurance? Who needs insurance? The different types of insurance What to do when you have a claim Tips on getting the best coverage for the best price How to find the right insurance professional

14 Who needs insurance? SBA lender requirements Contract requirements Landlord Vendor of merchandise Leasing of equipment Client/Employer requirement Consultants Professional Services Contractors Retail Stores Commercial Investors

15 Hair Salon A $ $ B

16 Hair Salon Exclusions: Water Damage to Others Exclusions: A $ $ B

17 Water Damage

18 A cheap policy doesn t mean it is a good policy A expensive policy doesn t mean it is a good policy

19 Insurance Hamburger

20 Types of Insurance meat Property Business Personal Property Business Interruption General Liability Professional Liability/E&O/Malpractice Commercial Auto Home base business insurance Worker s Comp & DBL Umbrella Key man insurance

21 Property/Building Insurance

22 Property/Building Insurance Things to watch out for Co-Insurance penalty Covered Perils (Basic, Broad or Special) Deductibles

23 Property/Building Insurance Co-Insurance Sample Calculation

24 Property/Building Insurance Insured Property Information Amount of Carried Insurance: $340,000 Amount of Required Insurance: $500,000 Coinsurance Required: 80% Deductible: $1,000 Amount of Loss: $50,000 Amount of Recovery = 50,000 x 340,000 - $ ,000 Amount of Recovery = 50,000 x 68% - $1000 Amount of Recovery = 34,000 - $1000

25 Property/Building Insurance Covered Perils (Basic, Broad, Special)

26 Property/Building Insurance Deductibles $500 $1000 $2500 $5000 Windstorm $5,000 Hurricane 5% of coverage A ($340,000) $17,000

27 Business Personal Property Insurance

28 Business Interruption

29 General Liability Most Commercial General Liability policies may appear something like this when you look at the coverage page: General Aggregate Limit $2,000,000 Product Completed Operations Limit $2,000,000 Personal and Advertising Limit $1,000,000 Each Occurrence Limit $1,000,000 Fire Damage $50,000 Medical Expense $5,000

30 Professional Liability Incorporating can't protect a professional against liability for his or her negligence or malpractice, but it can protect against liability for the negligence or malpractice of an associate. -

31 Commercial Auto

32 Home based business insurance

33 Worker s Comp & DBL

34 Worker s Comp & DBL

35 Worker s Comp & DBL Worker s Comp (covers on the job) Is rated by payroll Clerical work $0.27 per $100 Roofer $49 per $100 Disability Benefit Law (covers off the job) Per employee count $25.00 per male $55.00 per female

36 Umbrella Always recommended May not need early in the business But revisit as business grows Gives you additional liability protection

37 Key Man Insurance

38 Insurance Hamburger

39 What to do if you have a claim?

40 What to do if you have a claim? Now you have a policy and your business is running, but you have a claim Document everything by video or camera It shows up on your record even if there is no pay out It may count as a claim and against you Insurance is for major incidents and should not be used as a maintenance plan. Companies frown upon multiple claims big or small and may cancel your policy. Having a bad record will effect your cost when moving insurance companies.

41 Tips on getting the best coverage for the best price AM BEST Rating Higher Deductibles Worker Compensation Dividend plans/safety Groups Show resumes and prove experience Do you have a safety plan? Is your policy premium based on sqft or sales? Employee vs payroll/sales Annual sales audit (may get hit with a big bill at the end) Package your policy with the same company Use a independent agent instead of a captive agent

42 Things not to do Shopping around with many independents Don t be dishonest Withhold information to your agent

43 So how do you find a good insurance professional? Communication Asks you a lot of questions Someone who will tailor to your business and needs Someone who explains the coverage to you Invested in Technology Doesn t lead with price Specializes in a few markets Insurance education Most importantly someone that works with you

44 What you just learned Why you need insurance Who needs insurance The different types of insurances What to do when you have a claim Tips on getting the best coverage for the best price How to find the right insurance professional

45 So remember. Find a good insurance professional to work with. Tailor the policy to your business and protect it from disasters, because you worked so hard building it.

46 Thank you. If you have any questions, please contact me anytime! Liam Dai Text or Call: