Search Results for: small business

Insuring Your Assets: Small Businesses Need Insurance That Suits Their Situation

Many people spend months or years planning their new businesses, and then invest almost literally everything they have into getting them off the ground. Therefore, it makes sense to protect your new business in every way possible.

There are a number of different choices out there, in terms of providers and coverage amount. A good insurance broker, like Next Insurance, can help you sort through these different options and make the right choice.

Errors and Omissions

Professional liability insurance guards against negligence and failure-to-perform claims. If your business is in the service industry, you definitely need significant E&O coverage. To determine your need, take an honest look at your risk and the amount of money you can afford to lose on a claim. E&O insurance is also a must for many investors. They want to know their investment is protected. If you need to raise capital in this way, you’ll need this type of insurance.

Property Insurance

Somewhat similarly, many landlords will not rent to businesses without property insurance. These policies cover fire, theft, and other kinds of unintentional losses. Keep in mind, however, that these policies are usually limited. Many do not cover things like floods and hurricanes, especially in areas prone to these events.

Business Interruption Insurance

Property insurance covers physical losses due to natural and unnatural disasters. However, these policies do not cover the resulting business interruption. For that, you need business interruption insurance. BII policies are essential. Many times, the interruption as a result of a disaster is much worse than the physical damage.

Workers’ Compensation

Most states require insurance against workplace accidents. Most states also have very intricate rules regarding the number of employees, coverage amounts, and other such matters. As in other areas, just one claim can be devastating. For example, slip-and-fall injuries cost about $70 billion every year.

Home-Based Business

Typically, this insurance is a rider as opposed to a separate policy. Many homeowners’ policies do not cover commercial losses. For example, if you run a small catering business out of your kitchen and a fire occurs,the homeowners’ policy may not cover the loss.

Business Vehicle Insurance

The same thing applies to auto insurance. Most policies do not cover commercial losses. Anyone who uses a vehicle for any commercial purpose needs business vehicle insurance. That could be a food delivery service, an Uber driver, or someone who travels to offsite meetings.

Cyber Liability Insurance

Hackers and cyber-criminals become more sophisticated every day. The potential losses get bigger every day as well. There are both direct costs, such as fines and lawsuit settlement costs, and indirect costs, such as loss of customer goodwill. Cyber liability insurance covers most of these losses and also provides peace of mind.

You have worked too hard and too long to see your dreams go up in smoke. But that’s probably what will happen if you must deal with an uninsured liability claim. So, make the right choice and reach out to an insurance provider today.

Small Business Insurance: 3 Policies You May Not Realize You Need.

Small Businesses have a lot of expenses. So many expenses, many small businesses have to make decisions about what is essential and what they can do without. Far too many small businesses decide to skimp by with less insurance than they actually need. For many small business owners, this is a fatal mistake when the business experiences an accident they were not prepared for. Purchasing the proper insurance is one area that businesses should not skimp on and here are three policies most entrepreneurs do not realize they need to secure.

General liability and workers’ compensation insurance are required by law in nearly every state, but they are just the bare minimum coverage any business should secure. Most businesses need several additional coverages to properly protect their entire investment. If you own the property you operate, you need commercial property coverage. If your employees operate vehicles as a part of daily operations, you need to secure business auto insurance. These are fairly obvious policies; most entrepreneurs can understand why they might need to cover their business.  But what about protecting against a data breach or an employee suing you for harassment? When purchasing insurance for your business it is important to partner with an independent insurance agent with whom you trust to cover all the risks you may not predict. Here are three additional insurance policies all small business owners should consider the next time they are getting a small business workers compensation insurance quote.

Employment Practices Liability Insurance (EPLI)

Every small business owner thinks they can trust their employees. They more than likely think their employees would never sue them or their business. Right? That may be the case, until someone does sue your business. According to Trusted Choice, an organization dedicated to highlight the strengths of independent insurance agents, employment lawsuits have risen 400 percent over the past 20 years. According to this same data, wrongful termination lawsuits have risen 260 percent during that same time span. This means your business is more likely to face an employment practices lawsuit than it is to experience a fire. Because of this elevated risk, it is important for all small business owners to discuss with their insurance agent whether they need an EPLI Policy.

Cyber Insurance

Data Breaches are a normal part of our daily life. A new major data breach is announced on the news a couple of times a month. The most complete information on data breaches dates back to the year 2016. A recent joint study by the Identity Theft Resource Center and Cyber Scout reported the number of tracked data breaches in 2016 reached 1093, an all-time high for any year. Data on 2017 is not complete at this time, but early estimates are that 2017 will pass 2016 for the record year with the most data breaches in history. Because of the sheer volume of breaches and the amount of information lost, it is extremely important. Many big businesses are catching on to the fact that they need to protect their business from this threat and because of this many hackers are focusing on small businesses as a place vulnerable to attack. This elevates the need for small businesses to implement cyber security procedures and purchase adequate cyber insurance.

Inland Marine Insurance

Many small businesses own and operate specialized equipment that is unique to their business and the industry they operate in. An example of this specialized equipment may be a photographer with expensive accessories, a land surveyor with electronic optical instruments, or even an insurance adjustor who uses a drone to surveyor a disaster area. These pieces of equipment are not common and are typically not covered under a basic general liability policy. If you use some type of specialized equipment, it is important to mention this to your insurance agent. They can help you get it covered under an inland marine insurance policy. It is crucial to keep an accurate inventory of your equipment on file with your agent and carrier. It is also a good idea to keep photos of this equipment up to date.

Getting Effective and Efficient Funding for Your Small Business

stock market chart

Spearheading a small business can be very rewarding, but also very demanding when it comes to both effort and resources. You have to be prepared to spend a good deal of capital when it comes to taking care of a small business, especially one that happens to be flourishing. This is actually one reason why some smaller businesses, even those who are seeing a good amount of success, still end up taking a loan. To put it into perspective, imagine a situation where a small business sees enough success that they need to relocate to a bigger space to take full advantage of all the opportunities.

Unfortunately, not many businesses have the capital to make such a move, even when they’re successful. This leads to the question of being able to effectively and efficiently gain funding for your business – and the short answer is through QuickBooks capital. While many in the industry would likely tell you that a loan should only be used as a last resort, it tends to have a negative stigma overall. The truth of the matter is, when used correctly, a loan is an efficient means to an end.

Why even apply for a loan to begin with?

For some small businesses, it might not be necessary to get a loan, even if it feels like the business is on shaky ground. As a matter of fact, it isn’t recommended for these businesses to go for a loan just yet. If you aren’t sure about what you can do with the loan, then you shouldn’t be applying for it. For those who aren’t quite sure about when loans become efficient and cost-effective, it’s normally when there’s an opportunity to take advantage of. For example, if your business wishes to take advantage of a certain seasonal product that has predictably seen success time and time again. The aforementioned expansion of your business is another very good reason for debt financing.

Similarly, you can use it for upgrades to your business that you know will pay dividends. For those who have a plan of attack, taking on loans is just another possible and effective option to use. However, you shouldn’t be applying for just any loan. This is why any small business looking to take advantage of certain opportunities with debt financing needs to look into QuickBooks capital.

What makes QuickBooks capital different from the rest?

To put it simply, one of the best reasons to use QuickBooks capital is because of its ability to help finance your soft business without affecting your personal credit score. By using a soft pull on your credit history while at the same time properly supplementing it with the data QuickBooks has on hand, it’s able to provide a variety of different credit offerings you wouldn’t normally see anywhere else.

Its main goal is to provide alternative ways to financing without making it too difficult for the small businesses applying for it. Unfortunately, too many other similar businesses tend to fall prey to the allure of loans, only to realise that they’re unable to keep up with costs, something that the QuickBooks platform does its best to help you avoid.

Are there any prerequisites?

For all of the advantages that this platform has to offer when it comes to debt financing, what it asks for in return is completely reasonable. Remember that applying for a loan is most effective when a small business is starting to see success, which reflects the prerequisites that QuickBooks capital asks for.

  • Has your business been up and running for a certain amount of time? Two years minimum is the prerequisite to apply.
  • Has your business been earning a certain amount of revenue? If your business earned at least forty five thousand dollars in the past year, then it’s eligible.
  • Approval for a loan in QuickBooks depends on your debt history as well. If you happen to have any late payments or other similar issues, this could adversely affect your chances.
  • There are certain industries prohibited for lending, and QuickBooks is no exception. If you’re interested, consider checking the prohibited industries list of QuickBooks capital to check if your particular industry is eligible.
  • Personal credit history matters. If yours happens to have a number of blemishes and problems, then it’s unlikely that you’ll be eligible.

From the amount of prerequisites that QuickBooks requires, it’s clear that they’re looking to finance small businesses that have suffered a kind of stagnation thanks to a lack of funding. More often than not they’re looking to help businesses which seem unable to help themselves without the right kind of financing. Provided that you run a legitimate business that has seen a small to moderate amount of success, you’ll be eligible to apply for QuickBooks capital.

Applying for a loan doesn’t mean you’ve failed

As a matter of fact, it’s completely understandable. Some companies, especially the ones that see a certain amount of success, often find themselves stagnating due to an inability to move forward. These companies are popular in their own right but they don’t have enough financing to upgrade, which leads to their revenue slowing down and suffering. A loan is sometimes all that company needs to get back on their feet, but it still matters what kind of loan you’re getting.

When it comes to applying for debt financing, it’s all about being allowed to explore your options. After all, it can be easy to make mistakes which could lead to more problems down the line if they have to do with loans. QuickBooks capital can ensure that your business is able to stay afloat, but you still have to put in the hard work necessary to get the job done. For a small business to succeed, it requires capital and hard work in equal measure. You can use QuickBooks capital to help you in the former while you work on the latter.