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Choosing the right business insurance
Selecting the right business insurance can be overwhelming
as there are many types of insurances. It’s also a very crucial step in
providing your business with the right protection from unexpected events and setbacks.
To help you make informed decisions, here are some tips on
choosing the right business insurance. Understanding all the options will keep your
business safe and secure and your mind stress free.
Every business is unique and services that are unique to
your business. Therefore, the coverage from insurance may need to be tailored
to according to the business needs. First, start by evaluating these business
needs. Do you have valuable equipment at your business? What are some specific
liabilities related to your business industry? Understanding and identifying
your business’s risks associated in its industry is the first step in choosing
the right insurance.
Next, understanding the different types of business
insurances that are offered and may be needed for your business. General
Liability insurance covers claims that arise from bodily injury or property
damage.
Professional liability insurance covers claims that arise
from negligence or mistakes in professional services.
Property insurance covers damage to your business property
such as business and equipment.
Workers’ compensation insurance provides coverage to
employees injured at work.
Business Interruption Insurance provides lost income if your
business operations are affected due to a covered event.
Understanding each type of insurance will help you decide
which insurance is essential for your business.
Then, compare insurance providers and service quality. Don’t
settle for the first quote you receive, instead, compare multiple insurance
providers. Check who offers the best coverage and service at a reasonable
price. Review customer feedback and ask for recommendations from other businesses
or vendors in your industry.
After that, check coverage and deductibles. Make sure you
understand what the coverage limits are and the deductibles that apply to each
policy. The coverage limit is the maximum amount of coverage the policy will
pay. The deductible is the amount that you will have to pay out of pocket
before the insurance can start covering. Choose a deductible that you can fit
in your budget in case an emergent situation arises.
Consider bundling policies to help you save money. For
example, Business Owners Policy (BOP) combines business property and liability
in one and can lower the rate instead of buying them separately.
Finally, review exclusions carefully. The fine print is
always important and should be carefully read to see what isn’t covered.
Exclusions are specific situations or circumstances where coverage will not apply,
and coverage will not be provided. Understanding these can prevent surprises at
the time of a dire need when filing for claims or coverage.
Don’t feel that you are alone in making all the decisions,
seeking professional advice when you are not sure about what type of coverage
you need is the best solution. An insurance broker or financial advisor can
provide insights to tailored business specific needs and can guide you in
navigating the complexities of insurance.
Insurance needs change as your business grows, consider
evaluating policy and coverage annually to upgrade coverage as business grows.
This method always ensures everything is up to date when disaster strikes.
Keep in mind to focus on value and not just price. We are
tempted to go for the cheapest option, but the lowest price may not be the best
option for some businesses. Make a note of the coverage provided; a slightly
higher premium may offer better protection and peace of mind.
In conclusion, the right business insurance isn’t just a
purchase of the policy, it’s a investment of your company’s stability and
success. It will help you have the protection you and your business need no
matter what challenges come your way.
If you need a financial advisor or broker, Karstens
Financial can guide you every step of the way. Call Jake at 855-657-8400 to
learn more.
How business interruption insurance works
Running a business has its benefits as well as a fair share
of risks. When there is natural disasters or accidents, it can bring any
business operation to a sudden stop. This is where Business Interruption
Insurance can help a business.
This coverage is essential to businesses and can make the
difference between the business running its operation back or shutting down.
Here is how Business Interruption Insurance works and why it is vital for any
business.
Business Interruption Insurance is also known as or named
with some insurance as Business Income insurance. This insurance compensates
your business for the lost revenue when there is a disaster and while the
business cannot operate due to a covered event. While property insurance covers
physical damage to your business, Business Interruption Insurance focuses on
lost revenue if the business was operations.
For Business Interruption Insurance to be activated, an
event that is covered by the insurance such as fire, theft, or natural disaster
that causes physical damage or loss to your business property. Each policy may
include which events are covered events for Business Interruption Insurance to
be activated.
Each policy is different and therefore, review your policy
to see what the waiting period time frame. The waiting period may be 48 to 72
hours before the coverage can usually kick in. During the waiting period the
business usually has to absorb the initial losses.
The insurance will compensate based on the income generated
if the business was operating. This includes any lost profits based on your
financial records.
Besides lost revenue, business Interruption Insurance also
covers operating expenses such as any ongoing expenses for your business, such
as rent, salaries, even when the business is temporarily closed due to the
disaster.
The duration of
coverage is dependent on each policy; however, the maximum period of coverage
is often up to 12 months. During this timeframe, the business interruption
insurance will cover lost income and expenses. This timeframe is known as the
restoration period.
As with any circumstance, once your business is back on to
pre-disruption levels, the coverage terminates. However, Business Interruption
Insurance ensures that your business can survive through this difficult
disaster financially, while protecting you from significant income loss.
You are able to maintain and retain your employees as
Business Interruption Insurance can cover payroll expenses when the business
was not operational.
By having financial stability, your business was able to
maintain your customers as with the insurance coverage you were able to
continue providing your services. Therefore, Business Interruption Insurance
was able to help you retain your customer base.
Understanding and knowing the financial safety the Business
Interruption Insurance provides can give you the piece of mind and help you to
focus on bringing the business back on track without adding the financial
stress or the stress of financial ruin.
The common disasters that are covered by Business
Interruption Insurance are earthquakes, hurricanes, and other natural events
that can cause physical damage to your property. Fire is another disaster that
can cause businesses to halt their operations and insurance covers the income
loss.
Learn more about Business Interruption Insurance by calling
Jake at Karstens Financial at 855-657-8400
What is underinsured and uninsured motorist coverage?
Underinsured motorist coverage (UIM) and uninsured motorist coverage (UM) are both created to provide the policy owner with protection in care they were in an accident with a driver who doesn’t have enough insurance coverage or any insurance at all.
Uninsured motorists coverage typically covers the policy owner if they were in an accident caused by a driver who doesn’t have insurance. While underinsured motorist coverage covers when you are in an accident with a driver who does not have enough insurance to cover all of your expenses.
Both UIM and UM cover to pay for medical bills for any injury sustained, lost income and any expenses resulting from the accident.
The Uninsured motorist is especially useful if there is a hit and run accident scenarios.
These two coverages are optional in some states but in Illinois, you are required to purchase uninsured motorist coverage of at least $25,000 per person and $50,000 per accident.
Underinsured motorist coverage is included when you purchase higher limits of uninsured motorist coverage.
Its worth noting that both UIM and UM are both valuable additions to your auto insurance policy for added peace of mind.
Cyber insurance
Cyber insurance is a type of insurance that protects
individuals and businesses from cyber attacks and data breaches that are
usually attacks that cause financial losses.
Cyber-attacks are digital attacks or data breaches that
overtake an individual’s secure information such as financial information,
demographic information or any secure information.
As a simple example, consider you are a owner of a medical
clinic. The patients provide secure information of financial data for
copayments and banking information for medical services. There are over 5500
patients at this busy clinic. If there is a breach of data, this would include
all the patient’s demographic and financial information. The business will have
to shut operations down to ensure this data can be securely halted.
This will result in business operation interruption. The
cyber insurance policies may offer coverage for business interruption losses to
help business recover revenue while they had to interrupt daily patient care
for their business.
On the other hand, the individuals whose information was
affected can also face financial loss from fraudulent transactions made from
compromised payment information.
Sometimes cyber extortion from hackers threatening to
release sensitive information or disrupt operations unless a ransom is paid.
Cyber insurance can help in all these scenarios and can help cover the ransom
payment and expenses while negotiating to the extortionists.
Cyber insurance can also be included to cover for legal
expenses that are related to cyber incidents. It can also cover expenses to
hire forensics to investigate and mitigate reputational damage and restore
trust with customers.
Cyber insurance provides critical financial protection
against the growing threat in todays digital world. This insurance is an
essential risk management tool for businesses and individuals to safeguard
their finances and reputation.
For more information to see how you can obtain information
or add cyber insurance to your policy, contact Karstens Financial today and
talk to Jake at 855-657-8400.
Government regulations on Insurance bodies
All insurance companies are regulated by
government regulations and regulatory bodies to make sure that insurance
companies play by the rules and treat all their customers fairly.
These rules are set by government regulators,
who create laws and guidelines to ensure that insurance companies, insurance
agents and other entities involved in the insurance industry are following the
state laws and regulations.
One of the main jobs of government regulators
is to protect consumers. Therefore, they make sure that insurance companies are
honest and transparent about what coverage they are providing and the cost of
each policy.
These government regulators’ primary function
includes licensing insurance companies and agents, reviewing the insurance
policies and the rates. Once insurance companies get licenses, insurance
companies are regularly monitored to make sure they continue to meet the
standards set by the regulators. These are reviewed to ensure that the
insurance companies are fair and comply with state laws.
They also investigate consumer complaints and
enforce consumer protection laws and promote insurance education. They also
keep an eye on insurance companies’ finances to make sure they have enough
money to pay out claims when needed. Insurance companies will be required to
keep a certain amount of money to reserve to cover any losses.
These authorities also promote consumer outreach to assist
people and companies in making well-informed decisions regarding insurance
goods and services.
Maintaining a competitive insurance market, protecting policyholder interests,
and encouraging ethical business practices within the insurance sector are all
crucial roles played by these government authorities.
All consumers should feel confident in
purchasing and utilizing insurance companies.
Health insurance – wellness visit benefits
The Preventive visit, also known as Wellness visit, are
benefits that are included in a health insurance plan. These benefits offer a
significant value by promoting health and reducing risk of disease.
Preventive services focus on prevention. The early detection
of health conditions can reduce healthcare costs over time.
Preventive visits offer wide range of screenings such as
mammograms, pap smears, colonoscopies that screen for cancer. They also include
screenings for diabetes, high blood pressure, depression, cholesterol, and sexually
transmitted infections.
These screenings help providers identify early-stage disease
management when they are treatable. This prevents serious complications and
increases prognosis.
Preventive visits also are critical to ensure that
vaccinations protect individuals. Many vaccinations are set on a routine basis
to prevent infectious diseases such as influenza, COVID 19, Tetanus, measles,
mumps, rubella (MMR), Human Papillomavirus (HPV), Meningitis, and so on.
These vaccinations are covered by the health insurance and
are recommended for both children and adults. The primary role of vaccinations
is to prevent the spread of contagious diseases and reduce outbreaks.
Preventive visits are covered by the health insurance on an
annual basis. These covered visits allow the providers to discuss their overall
health, complete preventive screenings, and vaccinations. They also help reduce
concerns and risk factors that can lead to chronic diseases.
Routine Preventive visits help detect early detection of
health issues and allows the healthcare provider to intervene proactively to
prevent or reduce complications.
Some insurance companies also offer lifestyle programs and
wellness incentives to help promote healthy behaviors. These plans help in
reducing risk factors for chronic diseases. Some examples include nutritional
management, smoking cessations, weight management, workout activity promotion
by giving access to fitness applications. Some also provide memberships to
fitness centers.
These are all methods utilized in investing in preventive
care which leads to a healthier individual. This ultimately leads to reduced
healthcare costs and a sustainable healthcare system.
What factors should be considered when making a decision on accepting a loan offer
Taking a loan is a significant financial decision. It
requires careful consideration and some important factors to keep in mind.
Clearly understanding why you need the loan and what the
intended use of the funds will be. For example, whether its for buying a home,
care, covering an unexpected expense, consolidating a debt. Knowing the purpose
will help you choose the right type of loan.
When looking into loans, its also important to assess your
current financial situation, your income, expenses, savings and other debt
obligation. Calculating and making sure you can afford the monthly loan
payments without putting a burden or strain on your finances is important.
Review your credit score and history as this will be
utilized by lenders to evaluate your creditworthiness. A higher credit score of
700 and above will typically result in better loan terms and lower interest
rates. Whereas a lower credit score will result in higher interest rates or a
denial of the loan.
Review your credit report and look to ensure its accurate
and without errors. If you see errors, take steps to contact the credit bureau
to dispute charges. If the report is accurate and score is low, take steps to
improve your credit score if necessary.
Different lenders offer different interest rates, compare
them to see the most competitive offers. Understand the type of interest they
are offering, fixed-rate versus variable-rate loan. Review to see if any
additional fees are associated with the loan.
Consider the term of the loan and how it will affect the
monthly payments as well as the interest cost. Less months or shorter loan
terms will usually result in higher monthly payments but lower interest expense
due to less months. Longer loan term or more months to pay the loan will give
you the opportunity to have a lower payment amount per month but you will end
up paying higher interest amount.
A secured loan is a loan that requires collateral such as a
home or car. If you do not pay the loan, the lender can seize the property
(home or car). Unsecured loan means that collateral is not needed or not
required. This could result in higher interest rates, but this can be avoided
if you have a higher credit score.
Understand the repayment plan and its frequency. Is it
monthly or biweekly? How many total number of payment will need to be made.
Will the timeline of payments align with your financial goals.
Some loans have prepayment penalties if you want to pay the
loan off early. Remember to check what the additional fees or payment will be.
Selecting a loan option that will allow you to pay early without incurring any
fees.
Review the terms and conditions of the loan agreement before
signing it. Review any clauses that are related to late payments, default and
loan modification and other provisions.
Taking a new loan not only affects financially but also
affects your credit score, especially if you apply for multiple loans within a
short period of time. Understand the loan application and if it will affect
your credit score.
Keeping these factors in mind and researching your options
and the lender can help you make informed decisions. A thorough review will
help you in making the best financial decision.
Karstens Financial offers a variety of loans depending on
where you are in your life, for more information, feel free to reach out to our
financial experts to provide you with the best options to access funds.
Impact of disasters and insurance providing recovery
Disasters can happen at any given moment and time. For
example, an earthquake or hurricane can tear down buildings, destroy the
existence of any standing property and leave a trail of destruction behind.
Even a heavy rainfall can flood the streets, overflow basements or wildfire,
spread the entire house neighborhood on fire in its pathway.
When these types of natural disasters cause damage, people
not only lose their homes but also their belongings. Their lives are turned
upside down in an instant. This is where the insurance comes in.
Insurance is like a safety net for people and businesses
during difficult times like these. When disasters occur, insurance companies
step in to help recover the costs of repairs, rebuilding and replacing lost or
damaged property.
For homeowners, this means getting financial assistance to
repair their home and replace their belongings. For businesses, insurance will
help them recover their lost revenue and replace business property as well as
rebuild their operations.
Insurance provides more than money, it provides disaster
recovery by playing crucial role in helping communities with the needed
resources. Insurance companies also work closely with government agencies,
relief organizations and local communities to provide immediate response,
assist with emergent needs.
With natural disaster, insurance companies also have a big
impact on insurance industry as well. Many claims fill up the work load and jam
the phone lines which can strain the resources and its affect.
Since disasters can also impact insurance companies
financial stability, this is why insurance companies carefully assess risks and
set premiums based on factors such as location, property and areas that are
vulnerable to disasters.
Insurance companies are not just about protecting individual
policies or policy holders, they are more than that, they provide support to
communities, provide financial assistance and bring resources to rebuild after
the disaster has passed.