Archive for July 2011
Business Insurance – Today’s Business Lifeboat
Do you run a small business? Is your business insured? If not you could be risking your and your business’ future.
Learn about business insurance, and see why its today’s business lifeboat.
Expensive if You Don’t Use It – Cheap if You Do
The cost of doing business today is rising all the time, its true. Salaries and worker’s benefits are taking a bigger chunk of your profits.
Taxes are always a key consideration, and material costs are rising as well. Add to this insurance, and you have a real significant number on your cost of doing business column (on your profit and loss statement).
When looking at insurance you will be amazed as the amount of risks you are obliged to cover.
There are the obvious accidents or acts of nature risks, worker’s compensation, health and retirement plans, but then there are a host of other risks that can, and many should be insured.
It’s a maximum that all insurance is expensive if you don’t use it, but very cheap if you do.
The “Got To Have” Business Insurance Risks
Here is a list of basic insurance risks that every business should cover;
o Fire, Theft, Water Damage, and Malicious Damage to your business location
o All required worker insurance obligations, and for good worker relations, some perk insurance for employees, like some group private health plan, and retirement fund.
o Product liability if you are producing a product
o Transportation insurance for all your vehicles (full Casco advised)
o Fidelity insurance if your employees handle money. This may be a really indispensable pre-paid asset to your business.
The “Nice to Have” Business Insurance Risks
o Business interruption insurance
o 3rd Party Liability if you are producing a product for wide distribution
o Litigation insurance
o Damage due to civil disobedience and terrorist activity
o Business specific items
Buying Insurance
The choice of buying insurance is becoming a tiresome activity with so many options and prices (and insurance terms), that finding and using a good broker may be your best bet
The insurance broker has some advantages over using one company exclusively.
The broker can shop around, negotiate directly with underwriters (which you cannot do), and tailor make some policies for you.
The cost of using a broker may be easily absorbed by the lower cost of the insurance he provides you and your business.
You must make very sure of the broker’s qualifications, and demand a list of companies and underwriters he deals with.
Ask for a client list, and his inclusion in professional insurance societies. A search on the internet is also helpful. When you are satisfied, start using the broker to plan your business insurance risk profile and coverage plan.
How to Start a Tax Service
Tax Service Businesses from home are the hot home business of today. As more and more companies downsize and outsource work, there’s a higher demand for business tax service, tax preparation service and small business tax advice than ever before. If you’re thinking about starting a tax service business from home, consider these things:
Do you have the background and education you need? If not, are you willing to, and do you know where to go to get it? Do you want to have an income tax preparation service or a business tax service, or would you prefer to offer small business tax advice? Is this a profession you want to pursue full-time or only part-time? Will your family be affected by your having a tax service business in your home? Do you like working with numbers? Can you deal with frustrated and angry people? Is there a space in your home for an office? What equipment or supplies do you need? Do you need to get any financial assistance in starting a tax service business? Are you willing to put the necessary effort starting a tax service business? Should you have a partner? Do you need to get any additional insurance? What accounting knowledge will you need for your tax service business? Where will you go to get the information about what your state’s requirements are on starting a tax business from home? Does your state require you to have a license? What are your neighborhood’s zoning regulations concerning home businesses?
Questions like these will start you thinking about all the details you need to attend to before opening the doors to your tax business from home. Do as much research as you possibly can before making a decision.
Once you’ve done your homework and have decided that, yes, you want to go ahead with starting your own tax service business from home, make or purchase a business plan. Outline what you need to get started with your own tax business and the steps you need to take.
Goals aren’t reached by magic. They’re reached by understanding what’s involved in undertaking starting a tax business and knowing what you need to do. Making a business plan and following it will keep you on track. This will enable you to actually open a tax service from home more quickly with less trial and error. Ultimately, a good business plan ensures you’ll be successful at your tax business.
Even with a good business plan, you need to be aware that there will be obstacles in having your own tax business from home. There will be days you think you must’ve been nuts to go into business for yourself. Especially if you’re used to being in a larger business environment where there many people to help carry the business.
Because in a small business, whether it’s a tax business from home or a home show business, you’re forced to wear many hats. You have to be the boss, the administrative assistant, the office manager, the accountant, the receptionist, as well as the employee doing the work-often all at once. And there’s also the stress and pressure of having all the work, as well as all the financial burdens on your shoulders alone. Having your own business isn’t for everybody.
And, if after you’ve given it some thought and done your research, you’ve decided that a tax business from home is just the right business opportunity for you, you have many things to look forward to. There are far more positives to being your own boss than there are negatives. Not facing that morning commute is usually enough to make most people never look back. Not having to face that evening commute either, is enough to make them rejoice-and never regret for a minute, starting a tax service business at home of their own.
Business Insurance – Key Facts Summary of Cover
Here in the UK, you have two options when looking for a business insurance quote. Firstly, you can speak to a broker or intermediary and secondly, you can go direct to the insurer.
The first option is one that everyone apart from the direct companies will always advocate as it gives you choice. You may get a quote via an insurance comparison site or through your bank, these are all types of intermediary because they are seeking information from you, in return for a quote.
When looking for a quote, you must, by law, receive certain information. You must receive this information either in hard copy or electronic format.
If you do not receive the following three things, then you have not received a legally binding quote and your broker or insurer has failed in their service to you.
Firstly, you need to receive a quotation document that identifies you, your address, what you do, the sums insured or limits of indemnity applicable and what type of cover is provided ie public liability, professional indemnity or a full commercial combined insurance package.
Secondly, you should receive a terms of business between the intermediary or insurer and you. This should contain details of what they will do, their charges and their Financial Services Authority regulation status. You must watch out for fees and charges. Some brokers will charge you up to £50 for a duplicate employers liability certificate, which only costs a pound or so to produce.
Lastly, a summary of cover. Any quote is based on a certain type of policy. If you accept the quote, then you will (within 30 days) receive a policy wording. At the quote stage, you will receive a simplified version of this policy in the form of a Key Facts document. This is intended to outline the cover provided and the major exclusions applicable. For example, a shop insurance key facts will outline that theft cover is included, but shoplifting is excluded. It is difficult at times when you are faced with an onslaught of paperwork, but you really do need to sit down and read through the documents.
It doesn’t matter whether you are looking for a small business insurance quote or you are a major multinational looking for a multi country commercial combined insurance, you will need to see these three things. They may not come as three separate documents but they should be easily identifiable.
Your insurance is more than important, it is vital. If you buy the wrong cover your business may suffer irreparable damage. Take the time to read through what you receive before agreeing to take out the policy. If you do not understand anything, speak to someone. This raises a final point that if you go to a comparison site, they only sell based on price. The cost to you, apart from the premium, is that in the event of needing clarification or just to discuss a quote, you are on your own. They do not usually have people available to talk to. This is one of the other benefits of speaking to a broker.