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Nine Out of Ten Small Business Owners Have No Clue About Small Business Insurance! |
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Over 90% don't know what kinds of small business insurance they want and how much they want. Are you one of the 10% that don't have a clue? You want to read this article to find out! |
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| Author: Ed Brancheau |
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Things to ponder:
Should you die prematurely, do you have enough life insurance to protect your family? If you have a small service business, your small business is worth Zero when you die. For example, the spouse of a deceased doctor or lawyer can only sell the tools of the trade, not the clients (the true bread and butter of any small service business). You can sell your small service business prior to your death, if you can predict when that may occur. Otherwise, all small service business owners should protect their families with a minimum coverage of 7X gross income.
If your goal is to have a member of your family take over your small business at your demise, are they capable (and licensed) to do so?
What happens if you get ill or suffer an injury and can no longer run your small business? Do you have disability insurance? For a stipulated period of time, you will be paid approximately 60% of your income when you have disability insurance. On top of that, your disability benefits could be non-taxable or taxable depending on whether you claimed the premium as a business expense.
Even more important is your answer to this question: Do you have "business overhead insurance"? Who will cover the costs of running your small business (utilities, insurance, salaries) while you're out of commission? Your small business overhead expenses will not be covered by your disability insurance unless you include it as an add-on.
If you have partners, do you have a Buy-Sell Agreement? Well, if you or your partner should suddenly die, your interest in the business will be protected. Here's a great example of this: your partner dies and his wife wants to claim her share of the business. What if your partner's relatives have no idea how to operate the business? Would they be asset or a liability? This type of coverage would allow you to buy out your deceased partner's share of the business, avoiding any conflicts or interference by outside parties.
What about "disability buy-out coverage"? Do you have it? What would you do if a partner becomes severely disabled? Do you want to keep paying him (or her) for work he cannot do, possibly for years? Well, when you have "disability buy-out coverage", you would never have to wory about this situation because after a period of time, your disabled partner would be forced to sell his share of the business to you.
Of course, it's entirely possible that none of these problems may ever come up but it's your small business after all. Now, all you have to do is speak to a professional to determine what sorts of insurance coverage you want to protect your small business.
About Author
Edward M. Brancheau created The Bank of Green to advise small businesses about subjects like small business liability insurance and to help individuals build wealth through real estate investments.
Article Source:
http://www.1888articles.com
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