7 Crucial Times to Re-evaluate Your Business Insurance Needs

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Did you check “get business insurance” off your to-do list and never look back? Protecting your assets with the right coverage is an important part of opening or launching your business, but it shouldn’t be a set-it-and-forget-it action item.

As your business expands, changes, and progresses you will want to take a fresh look at the risks your company faces and re-evaluate your insurance needs.

You May Need to Re-evaluate Your Business Insurance Needs If…

Here are seven times you’ll benefit from taking a fresh look at your coverage.

1. Your Business is Growing

The best time to take a look at your insurance coverage is when things are trending upwards for your business.

Smiling Business Owner

The more value your business has, the more you have to lose. Unfortunately, we live in a litigious society and many people wouldn’t hesitate to take you to court if they feel they are injured in some capacity because of your business operations. Whether that’s a physical injury or even an advertising injury, one small incident could cost you.

If you have been seeing the payoff from long hours, hard work, and creative risk-taking in the form of increased profits and an increased cash flow, you may want to rethink the amount of coverage you have on hand. Is it enough to protect what you’ve worked for?

2. Your Business is Slowing

Not every business is booming at all times. You may find that you experience slower seasons or periods where profits are lower than expected. If you need to free up some extra cash flow in order to keep the lights on and inventory on the shelves, it’s definitely time to rethink your business policies.

That doesn’t mean cutting out coverage entirely, however.

Letting policies lapse or canceling coverage during a slow season could actually cost you more in the long run.

There are changes you could make to your insurance policies that may free up some much needed cash without leaving you vulnerable to unexpected incidents. You may want to increase your deductible amounts to lower your monthly premiums, for example. Or you and your insurance agent may find a creative way to combine policies to get a discounted rate.

3. You’re Adding New Services or Products

Thinking of adding a repair service to your retail shop or private labeling a product to sell on your ecommerce store? New services or products could bring in new streams of revenue for your business… but they can also bring additional risks.

Hipsters Evaluating Coffee Beans

Adding a private label product to your online store brings new risks such as product liability exposure, intellectual property rights considerations, and a responsibility for product recalls.

Adding a repair service to your retail shop means you’re handling customer property, which could lead to third-party property damage concerns or safety concerns for employees who will be working with potentially dangerous tools and equipment in your store.

Expanding your business with new revenue streams is a great idea, but make sure your insurance covers you against the unique risks those new products or services will bring.

4. You’re Hiring

When you first started your business, you may have been a one-woman show. Web designer, graphic designer, marketer, copywriter, accountant, warehouse manager, filing clerk, customer service department… you’ve played all the roles. But when it’s time to hire help, you’ll want to consider more than just what wage to pay.

Depending on whether you hire an independent contractor or an actual employee, you may need to carry workers’ comp insurance. In most states, workers’ comp is required, even if you only have one employee.

And if you decide independent contractors are a better fit, you may need to take another look at your general liability policy. Because you may still be liable for the actions that a contractor takes when they’re doing work for your business.

If you’re bringing in helping hands, it’s always a good idea to talk to your business insurance professional to ensure you have the right coverage in place.

5. Your Coverage is Cookie Cutter

We’re not trying to butter you up: your business is unique. So why would you carry insurance coverage that’s not custom-made to address your specific industry needs?

Afterall, a small local bakery won’t face the same risks as a food truck owner.

Your insurance should be tailored to match the exact risks you face every day as you do business.

Happy Business Owner

6. You’re Spending Too Much

Are you cringing every time you make a premium payment for your insurance coverage? Maybe you’re spending too much! If you are, we’ve got good news.

There are ways to save money on your insurance policies.

We’ve already mentioned increasing your deductible amounts to save on your monthly premiums. But if you like your deductible amounts right where they are, here are some other options:

  • Avoid small claims. Pay out of pocket for the little incidents you can afford.
  • Keep your policies up to date.
  • Combine multiple policies to get lower rates.

Ask your insurance professional how to get lower rates on your small business policies, and you’ll be happy you took the time to reevaluate your options.

7. You Can’t Remember the Last Time You Updated Your Coverage

Here’s the biggest red flag that it’s time to pick up the phone and call your insurance agent to discuss your business coverage:

You can’t remember the last time you did it.

Things change.

Your business may be experiencing growth or a slower season. You may have hired, fired, or changed an employee’s status. You may have bought, sold, or leased a vehicle. You may have moved locations, added services, or changed your product offerings.

Consider a checkup of your business insurance coverage a necessary appointment for the health and wellbeing of the business you’ve worked so hard on. The best case scenario is you fine-tune your coverage and look for options to save money on your premiums.

Best of all, there’s no worst-case scenario to making sure you have the right insurance in place to protect the business you love.

Small Business Insurance Checklist

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If you’re a small business owner, managing time and money becomes more important than ever. While you balance the needs of your company and home life, it can be tough to feel like there’s enough of either at the end of a hard day. That’s why it’s important to make sure you have a small business insurance checklist in place to help protect your business and your family’s financial stability. By ensuring that you have the appropriate coverage, you can minimize the risk of unexpected financial loss due to unforeseen events. This can help to give you peace of mind and allow you to focus on running your business.

Now imagine throwing a costly and time-consuming court battle into the mix.

Don’t think it’ll happen to you?

Think again…

It’s the things you’d least expect that can take you down, like a customer who slips coming into your store during a rainstorm, or a seemingly innocent Facebook post that accidentally offends one of your followers to the point of legal action.

As your most valuable tools for success, you need to protect your time and money.

What’s the answer? Small business insurance, of course!

…but you already knew that.

The real question is, “How do I know what kind of business insurance I need?”

We’ve created this simple checklist containing the most common small business insurance products to help you review your company’s risk factors, and identify any gaping holes in your insurance coverage that could end up taking you down.

General Liability

We’ll go ahead and check this one off for you, because every business needs general liability (GL).

GL is the bare minimum protection you’d ever want if you’re running you own business. It covers a lot of the “core” risks you might face in the course of your day-to-day operations, such as personal injury, property damage.

How does GL protect your business?

Claims covered by your general liability policy would be covered by the insurance company, not your business. Costs covered might include:

  • Damages
  • Legal costs
  • Settlements
  • Judgements
  • Court Fees

 

When we say everyone needs general liability, we aren’t being dramatic. We’re living in a litigious society, and even the most behind-the-scenes business owners, like writers and graphic designers need some kind of insurance as a safety net.

Property Insurance

As the name indicates, this insurance protects any property your business owns. Buildings, fences, signs, and sheds, and any other structures are covered, as well as items you use to run your business, like office furniture, equipment, and machinery.

In some cases, coverage even extends to damage caused by fire and natural disasters, and can cover the cost of debris removal and cleanup.

Business Interruption Insurance

Are you covered in the event you can’t operate your business according to your regularly scheduled program?

If events beyond your control, such as a major grid malfunction, flood, earthquake, or other emergency prevent the running of your business, how will you earn money?

Business interruption insurance replaces your income if circumstances beyond your control shut your business down temporarily. It covers you while you manage the damage, and make the necessary repairs.

Business Owners Policy

If reading the prior 3 policy types and you find yourself thinking you need a combination of those, consider looking into a Business Owners Policy.

A BOP combines liability, property, business interruption, and potentially a few other coverages, into a singular policy for ease of use and premium discounts.

Workers’ Compensation

Got employees? You need workers’ compensation insurance.

In every state in the US (except Texas) your business needs to carry workers’ comp insurance to cover your employees, even if you only have one single, part-time employee working for you.

Here’s why:

Workers’ comp is there to protect you, and your employees, in case someone is injured or gets sick while doing their job. Slips, falls, and any other accident could mean lost wages, medical bills, and other related expenses for your employee.

Workers’ comp helps cover those costs.

Your business benefits from carrying workers’ comp too, since you won’t have to worry about going broke over a costly injury lawsuit if an employee is injured on the job.

If you think you’re off the hook because you only use independent contractors and freelancers to help you get the job done, think again. The rules that determine whether a person is an employee or contractor can be confusing, and it’s common for small business owners to accidentally misclassify contractors and employees, which can result in extremely expensive consequences.

Just because you write up a contract calling someone an independent contractor doesn’t necessarily make them one. Understand the difference between an employee and a contractor so you can avoid trouble legal and financial pain.

Commercial Auto

Do you use your personal vehicle for work?

Many small business owners do, and make the mistake of thinking their personal auto insurance will cover them while they’re running errands for business purposes.

Your personal auto coverage only goes so far.

If you or an employee encounter an accident while driving during the course of doing business, your personal coverage won’t do much to protect you. It could be as simple as dropping off a forgotten tray of food to a catering customer in your own car. Or letting your employee use your vehicle to make a coffee run.

All it takes is one distracted driver, texting teen, or hazardous object in the road to derail all your hard work if your business isn’t covered by commercial auto.

Other Business Insurance

All the insurance types listed here are the primary lines small businesses typically carry to cover their assets. But others exits to compliment and fill in specialty gaps in the broad spectrum business insurance types outlined above.

For example:

  • Errors & Omissions (E&O)—for individuals in sensitive professional service industries, such as finance, law, and medicine. Protects against claims of inadequate work and negligence.
  • Cyber Liability—protection against damages resulting from data breaches and other digital, cyber security, and privacy issues. Becoming increasingly more necessary as more companies transact business online and store customer information in their database.
  • Umbrella Insurance—extra coverage above and beyond the maximum limit for traditional lines. An extra padding of coverage for your business.

While these insurance types aren’t thought of as the core products needed to protect against risk, they can be the costliest to overlook if you do need them for your business. If there’s any question in your mind, it’d be smart to chat with a broker who can help you sort out how much risk you face, and if your particular business merits extra coverage.

How many of the above business insurance policies do you currently carry?

If you’re looking back on this list and wondering if you might have some holes in your coverage, don’t wait. Ignoring the risks could cost you everything: Shore up your business defenses and make sure you have adequate insurance coverage for your business.

Contractors: 5 Tips to Help Grow Your Construction Business

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Construction business owners have a lot to gain from positive growth in the construction industry right now. The projects are out there, and there are profits to be made. Even the smallest, one-man operations can take their construction business to the next level with these five tips.

1. Treat your business like a business

Construction is your business, so be sure you are treating it like one. That means keeping up on necessary licenses, certifications, and bonds. If you aren’t licensed yet, the time is now.

Find out what the license requirements are in your state, and take the necessary steps to obtain one. If you are already licensed, be sure to pay attention to your license expiration date, and renew it on time.

Don’t stop with your license, either. Stay up to date on any trade-specific certification programs, and look into LEED certifications. Green building is a trend that is not going away anytime soon, and LEED certification will help you stand above the competition when you are bidding on the next project.

Contractor license bonds are required in most states, but you should also consider contractor bid, payment, and performance bonds. Being fully bonded will open up the door for bigger and better projects, and give potential clients the peace of mind that you are the best choice for their project.

2. Carry enough credit

A line of credit is an essential tool to help grow your construction business. You have checks to write and payments to make while you are working on your project. Materials need to be purchased; equipment needs to be rented; vendors, employees, and subcontractors need to be paid on time.

Missing or skipping payments to the people and suppliers who help you run your business is not only bad for your reputation, it can also damage your credit. A business line of credit is the solution to this all-too-common contractor problem. If you don’t have a business line of credit, you need to get one. If you have a small line, consider having it expanded. A credit line is good business, and can keep you up and running when you need it.

3. Cover your assets

The quickest way to lose your profits, and your business, is to ignore the risks that face contractors. Understand construction risk management and how it protects your business, and implement contractor insurance to fully protect yourself. The right insurance policies can protect your business assets such as tools, equipment, vehicles, employees, and even the project itself. And if you are a sole proprietor or independent contractor, the right contractor insurance policies can protect your personal assets, as well. Your general liability can even provide identity theft protection at no extra charge! The best part? Being covered doesn’t mean paying huge premiums for your contractor insurance. There are lots of ways to save on your insurance rates to get the coverage you need at a cost your business can afford.

4. Embrace construction technology

Construction technology is revolutionizing the industry, and if you are not taking advantage of mobile devices, project management software, and construction apps, then you are missing out. Technology is making collaboration better, communication easier, and saving you time on the project site. It’s time to go paperless, get mobile, and discover what construction apps you need to get a leg up on the competition.

5. Stop advertising and start marketing

No one picks up the phone book and looks for a contractor anymore. If you want to grow your business, potential new clients need to be able to find you online. You don’t need an advertising budget for your construction business anymore, you need an online marketing strategy. You need a website that works to bring you leads, positive reviews on Google+ or Yelp, and an active social media presence if you want to attract new clients.

Running a business can be tough, but today’s favorable construction industry climate is opening up new opportunities for savvy contractors determined to make it work. A little bit of forward-thinking can sometimes be the secret ingredient that will help your construction business grow to new heights.

The 10 Biggest Problems in Construction Solved

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Are you tired of facing the same problems on your construction projects? If you’re a painting contractor, small remodel business, or a general contractor with years of experience, you know that these issues can be frustrating. But what if there was a way to solve some of the biggest problems in construction? By identifying and addressing common challenges, you can improve the efficiency and profitability of your projects. So, what are some of the biggest problems in construction and how can they be solved?

Here are the answers you’ve been looking for on the ten biggest problems facing construction professionals today.

1. Lack of Skilled Workers

There is a big problem facing the construction industry: not enough skilled workers to fill a growing demand. The younger generation is being pushed toward college, and not vocational trades. The benefits of a career in construction are not being sold to millennials, and much of today’s existing workforce is closing in on retirement.

While industry experts try to tackle this problem on a national level, there are things you can do as a contractor and/or a small business owner to help.

  • Be a Mentor: During summer months, high school students and recent college grads are looking for work. Be willing to introduce your industry to someone who may not have considered construction as a career. Mentorship also works for existing skilled labor; if one of your best workers has showed an interest in the business side of construction, you can mentor an already skilled worker on the ins and outs of construction project management or construction business ownership.
  • Use a Staffing Agency: Construction staffing agencies can have skilled workers ready to work for you when you need them. The agencies take care of pre-screening applicants, which saves you time and gets you qualified workers quickly. Usually a staffing agency will also cover any HR costs with employment, including any workers compensation coverage for those employees.

2. Lack of Communication

When things go wrong on a project, it is almost always due to a communication breakdown along the way. Technology is the answer to your communication problems. Two-thirds of Americans own smartphones, so there is a good chance that almost everyone on your project has one. Using email, text messages, and construction technology apps on a project can get information instantaneously to all people on the project in real time and reduce the slowdowns and speed bumps of a communication breakdown.

3. Unreliable Subcontractors

Many contractors have problems finding reliable subs for their jobs. If you are in a pinch and need to find a sub, check with the materials suppliers and vendors that you work with regularly. They will have the inside scoop, and may have a great recommendation for a sub. You can also ask other subcontractors that you have worked with for a recommendation, too. Always check a sub’s licenses, make sure they carry general liability insurance, and list your company as additional insured on their insurance before you hire them.

4. Scheduling

Scheduling can be tricky for even the most seasoned construction professional. Once again, construction technology is providing a solution for this common problem. Project management apps that you can access from a desktop or your smartphone or tablet allow you to visually map out a project timeline. Many apps allow for a “sticky-note” style virtual board that allows you to easily see what needs to be completed, and gives real-time project status updates.

5. High Insurance Costs

Contractor insurance is part of the cost of doing business, but that doesn’t mean you have to overpay for it. You can get lower rates on your contractor insurance by combining coverage, not letting your coverage lapse, and reviewing your policies each year for changes that may save you money.

6. Changing Minds of Homeowners

Homeowners who want changes in the middle of a project may “forget” about the requests they’ve made when it comes time to pay the bill. In order to protect yourself, your reputation, and your bottom line; be sure that you get a signed change order every single time.

7. Available Cash

You have payments due to subs, employees, vendors, materials suppliers, and equipment renters… but you don’t get paid until the project is complete. And unless you have enough available cash flow, this can be a major problem. Have an open business line of credit to see you through the tough spots between bills due and project’s end, and you won’t have to see your credit (or reputation) suffer.

8. Document Management

Contracts, change orders, materials orders, receipts, invoices, employment applications, certificates of insurance… you probably have enough paper to fill an entire trailer of filing cabinets. It’s time to go paperless. A digital solution can help you stay on track of documents, organized on your projects, and on-time with your payments. At the very least, scan all documents into your computer and digitally file/ organize them. Be sure to backup your computer to a cloud service or hard drive regularly in case you have a hardware issue.

9. The Blame Game

Nothing ever goes smoothly in construction 100% of the time. When there is a bump in the road, fingers start pointing. The general contractor blames the sub, the homeowner blames the general contractor, the project manager blames the owner. When a worst-case scenario actually occurs, skip the blame game and finger pointing and get back on track with a builders risk policy. This type of specialized property insurance covers the project, and all of the principles working on it. Extreme weather, natural disasters, even theft and vandalism can all be situations where a course of construction policy can get you back to work without finger pointing and burnt bridges.

Did the owner change their mind on materials after they were installed? Or decided they didn’t like the work after it was done and are claiming you didn’t fulfill your contract? Carrying a liability policy with Faulty Workmanship Coverage can protect you from coming out of pocket for those new materials. The right coverage eliminates the Blame Game, keeping your clients happy and your bottom-line covered.

10. Ever-changing Regulations

Federal, state, county, and even city regulations are constantly being changed and updated. How are you supposed to stay on top of everything? Follow blogs and industry publications to get the latest updates on changing regulations that affect your business. Sign up for newsletters, and have new blog posts automatically emailed to you. Prevent inbox clutter by having these industry-specific emails sent to a specific folder in your inbox. Then, set aside 10-15 minutes each day when you can catch-up on everything you need to know to stay compliant.

How To Reduce Workplace Injuries On The Construction Site

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The construction industry is high risk; ask the men and women who ply their trades and skills every day in environments filled with hazards. Moving equipment, hazardous chemicals, electrical equipment, working from extreme heights — it all can lead to accidents or injuries.

Construction Safety Week shines a spotlight on the importance of reducing and avoiding accidents and injuries for the men and women who work in this high-risk industry. In honor of Construction Safety Week, we’ve assembled some expert advice and tips on how you can reduce injuries in the workplace.

Have a Safety Program

If you’re an employer in California, you must have an Injury and Illness Prevention Program (IIPP) in place. A Cochrane study found that regulation alone isn’t necessarily effective in reducing non-fatal and fatal injuries in construction workers, but additional strategies such as safety campaigns and drug-free workplace programs do have an effect in reducing injuries in the long-term.

Increase the impact of your IIPP by incorporating regular safety campaigns/ events and a drug-free workplace policy.

Implement Drug Testing Programs

The US Department of Labor has reported that 65% of on-the-job-accidents and 38%- 50% of all workers’ compensation claims are the result of alcohol and drug abuse in the workplace. Drug testing programs provide a powerful deterrent to drug use on the job.

A survey of human resource professionals stated that companies with high workers’ compensation incidence rates reported a 57% improvement in workers’ compensation claims after implementing drug testing programs.

Incorporate a drug free workplace program with your workplace safety plan to reduce unnecessary risks and reduce injuries on the work site.

Wear Personal Protective Equipment

Personal Protective Equipment (PPE) is essential for many jobs on a construction site. Hard hats protect heads from falling or flying objects, safety boots protect toes and feet from being run over or from falling objects, protective eyewear protects eyes from chemicals and flying objects, and so on.

Stay up to date on OSHA requirements for PPE and ensure your employees are trained and encouraged to wear the proper equipment for the jobs they do.

Inspect (and Respect) Tools

Hand tools and power tools can be hazardous on a work site. Be sure to inspect and maintain these tools before use. According to CA State Fund, here are some things to check for when using these tools:

  • Hand Tools
  • Proper fitting handles without splits, cracks, or tape holding the handle together.
  • Metal parts with wear and tear, which can prevent the tool from working properly.
  • Power Tools
  • Frayed or damaged plugs can be an electrical hazard
  • Wet or slick areas when using power tools can cause electrocution Use Ground Fault Circuit Interrupters (GFCI)

Keep a Clean House

Housekeeping can go a long way in keeping the worksite safer for everyone. According to CCOHS (Canadian Centre for Occupational Health and Safety), poor housekeeping can be a cause of accidents, such as:

  • tripping over loose objects on floors, stairs and platforms
  • being hit by falling objects
  • slipping on greasy, wet or dirty surfaces
  • striking against projecting, poorly stacked items or misplaced material
  • cutting, puncturing, or tearing the skin of hands or other parts of the body on projecting nails, wire or steel strapping

To avoid these accidents, implement a clean as you go policy for the workplace. Take responsibility for keeping your work area clean and hazards removed or covered whenever possible.

Have a Plan

No matter how much you train your employees and create a culture of safety, accidents can and will happen. That’s why it’s so important to have an emergency plan in place in the event of an accident or injury on the construction site.

  • Train all workers and employees on basic first aid and CPR
  • Have contact information available for emergency services and management
  • Place first aid kits in readily available locations

Every worker should know how to act and what to do in the event of an accident.

Construction Safety Week may be held each year, but safety on the construction site should be emphasized every day. One in five work related fatalities every year occur in the construction industry. By making construction safety a priority, you can keep yourself and your workers safe on the work site and reduce the risk of accidents and injuries.

What Does Handyman Insurance Cover?

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What Does Handyman Insurance Cover?

Handyman insurance Quotes

What your handyman insurance covers depends on the which policies are best suited to protect your business and ensure your financial security. While all handyman businesses have unique needs, a few key policies provide the building blocks that will allow you and your insurance broker to determine the coverage that’s best for you.

General liability insurance is generally the foundation of your insurance package, it’s your must-have handyman policy. The policies you choose to add to your general liability insurance will help you protect whichever assets are the most important to you, from your tools to your truck.

What Does Handyman Insurance Cover?

General Liability Insurance

Your general liability insurance is the most important policy you’ll invest in. This policy protects your business assets in case someone claims damages against you, preventing small accidents from becoming the type of legal battle that can damage your company.

General liability insurance covers you from incidents such as:

A third party sues you over injuries incurred on a job site

You cause damages to a third party’s property

Advertising injuries such as slander or libel

This policy is an essential part of your handyman insurance coverage because it stands between you and costly liability lawsuits.

Commercial Auto

Your work truck is one of your most valuable assets. Some days it’s a second office; the center of operations. Commercial auto insurance protects you in case of repair bills, injuries, or other damages incurred if an accident happens on the job. Don’t make the mistake of relying on your personal auto insurance policy for your work vehicle- it may not cover your truck if an accident happens while the vehicle is being used for work purposes.

Inland Marine

An inland marine policy protects your tools in case they’re vandalized, stolen, or otherwise destroyed while you’re transporting them. Inland Marine insurance complements your Commercial Auto policy. Commercial Auto takes care of your truck, and Inland Marine protects the valuable materials, supplies and tools you use it to haul to and from a job site.

Workers Compensation

While many handyman businesses are one-man operations, if you have employees you’ll need to have workers comp insurance. This policy protects your employees from any injuries incurred on the job, and protects you from legal fees in case your employee sues you. In most states, workers’ comp is required by law.

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, protects you from lawsuits from customers that are based on your work. A professional liability lawsuit may arise from a variety of situations.. This policy protects you from complaints such as:

  • Mistakes that cost clients time or money
  • Incidents where they claim you’ve given them poor advice
  • Missed deadlines

Professional liability insurance protects you when the quality of your work is called into question.

Builders Risk Insurance

Builders risk insurance, also called course of construction insurance, protects you against accidents that occur while you’re working on a specific project.. Builders risk insurance differs from your general liability policy in that it protects you from external events beyond your control, such as fires, wind, theft, lightning, explosions, vandalism, earthquakes, and flooding.

Umbrella Insurance

Lastly, umbrella insurance is a catchall, otherwise known as excess liability insurance. Umbrella insurance covers you in the event of an incident that exceeds your existing coverage limits on your other policies.

Finding the right insurance for your business is an important part of safeguarding the assets that matter most to you. Whether you’re a part-time handyman working a one-man operation or starting a larger company with dozens of employees working under you, make sure your insurance policy has you covered. For more advice on which policies will serve you best, contact us.

 

Do You Need Handyman Insurance for Your Business?

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Do You Need Handyman Insurance for Your Business?

Handyman insurance in CaliforniaGetting Handyman Insurance is an important proactive step to take when building your business. Accidents happen, and the right insurance policy can keep your assets safe. If you are the sole proprietor of your business, your personal assets may even be at risk if you’re involved in an accident or lawsuit.

At the minimum, you should strongly consider General Liability Insurance for your handyman business, and potentially additional policies depending on the specific work you do and assets you want to protect.

Are You Required to Carry Handyman Insurance?

The definition of a handyman and whether or not you’ll need insurance varies wildly from state to state. For example, certain states set regulations that distinguish a handyman from a contractor and that impacts how you handle your insurance.

In California a handyman can’t charge more than $500 for a job. This cap includes fees for labor and materials. To charge more than that, a handyman needs to be licensed as a general contractor. California handymen and contractors aren’t required by law to carry insurance, although the state license board does strongly recommend it. However, if you have any employees you legally have to have workers compensation insurance. Furthermore, a licensed general contractor in California legally has to tell customers whether or not they carry insurance, and how to contact their insurance company.

When you’re looking for insurance, check with your state license board to make sure you understand how it defines a handyman in contrast with licensed contractors, and make sure you know whether or not you’re required to carry insurance.

Being a Handyman Is Risky Business

While insurance is a good idea for all businesses, being a handyman involves certain risks and requirements that make a specialized handyman insurance policy essential financial protection.

You work with power tools, fix basic electrical problems, and fix small plumbing issues. In the event of an accident, these jobs could lead to accidents such as fire or water damage. Because of this risk, it’s important to have thorough insurance coverage. A specialized insurance broker will consider the specific risks you face based on the types of jobs you take when advising you on which policies you need.

Insurance May Land You More Customers

Savvy customers will ask you for your proof of insurance before hiring you. If you’re not insured, you’re putting your customers at risk. If something goes wrong and an accident occurs while you’re on the job, they could be the ones on the line. They would either have to pay for the damages themselves, file a lawsuit, or check to see if their homeowners policy will cover the incident.

What’s more, a good insurance policy can open doors. Retail businesses and apartment complexes may require you to have insurance in order to hire you. The fact is, an insured handyman is a much more appealing hire than an uninsured one.

Even if you’re not required by law to have handyman insurance because of how much you charge or the state you operate in, it’s still a good idea to get insured. It will allow you to proactively prepare for the risks you face on the job and help you land more customers. While handyman insurance is an intangible asset and may not seem as as important as your truck or your tools, it’s a vital part of keeping both you and your finances safe.

Get your handyman insurance quote today.

How to Save Money on Your Business Insurance Policies

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How to Save Money on Your Business Insurance Policies

Save Money On your Business Insurance
Great Business Insurance doesn’t have to be expensive. Whether you’re a one-woman operation working out of your garage, hiring your first employees, or already have a firmly established and growing company, make sure you’re getting the best rates possible for your insurance.

#1: Bundle Your Business Insurance Policies

Most business owners will need more than one policy to properly protect themselves against the risks associated with your particular industry. Because of this, insurance companies will offer discounts if you choose to bundle your policies together. For example, if you choose to combine general liability and workers’ comp you may get cheaper premiums for both policies.

#2: Choose a Higher Deductible

Your deductible is the money you pay out of pocket whenever you file a claim. When you choose to pay a higher deductible, you can often lower your premiums. It’s important to make sure you choose realistic deductibles- you don’t want to opt for a higher deductible if you couldn’t afford to pay that much in the event of an accident. However, if you’re financially able to raise your deductible, doing so will save you money in the long run.

#3: Prevent Claims

The more claims you file, the higher your premiums are. Practicing risk management by preparing for accidents is one of the best ways to save money on your insurance, because it keeps your rates down. There are easy ways to prevent a claim. Implementing thorough safety procedures is one of the most important things you can do to prevent claims from occurring. You can do this by making sure you’re up to date on health and safety standards for your industry, having adequate lighting, and maintaining a clean work environment. You’ll also want to make sure your employees are properly trained so they conduct themselves professionally and safely.

#4: Review Your Coverage Annually

It’s important to make sure your business insurance evolves with your business. Checking in with your insurance broker regularly will help you make sure you always have the coverage you need. If you’ve recently acquired a new vehicle for your business, for instance, you’ll want to make sure it’s covered under your commercial auto policy. Making sure you don’t have any assets left uncovered will save you money on potential lawsuits. However, if you’ve recently downsized or sold off assets you no longer needed, you’ll want to make sure you aren’t paying for unnecessary coverage.

#5: Don’t Let Your Coverage Lapse

Your coverage lapses when you forget to pay your premium, or choose to terminate your insurance policy. A lapse can be costly for a number of reasons. For one, you’re generally only covered for the duration of the policy period. If an accident happens after your insurance has lapsed, then any damages incurred during that time will come out of your pocket. Second, it may be challenging to find an insurance broker willing to cover you for the same rate you had before. A business that’s prone to lapsing is a risk for the agency, and that can make your rates more expensive.

#6: Prioritize

Finally, if your budget is pressed, prioritize. Which policies do you need the most? Which are the most important to you? Your insurance broker can help you determine which policies you absolutely need, and which you may be able to afford to do without. If you run a small mom and pop shop, you’ll probably need General Liability Insurance, but you may not need professional liability coverage, for example.

Keeping these tips in mind will help you keep your insurance premiums low, so you can focus your money on what counts- running your business. Citizens General is committed to making sure you get great coverage at an affordable rate. The best way to determine what type of business insurance coverage you need, and how much money you can save on it, is to talk to one of our experienced business insurance agents today.

 

5 Ways to Save Money on Handyman Insurance

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5 Ways to Save Money on Handyman Insurance

One of the biggest obstacles standing between a handyman and the right insurance coverage is often concern over the price. Citizens General is committed to making sure that the handyman insurance you need to protect your business from financial hardships at rates you can afford..

If you want to lower the costs of insurance for your handyman business, here are a few tips that can lower your rates without sacrificing coverage.

5 Ways to Save Money on Handyman Insurance

#1: Have a Risk Management Plan

The more claims you have, the more expensive your insurance premiums will be. The best way to save money is to be proactive and avoid an incident in the first place. Filing too many claims can lead to an unnecessary jump in rates, which makes having a good risk management plan vital.

Evaluate the risks associated with the work you’re doing. Are there any fire hazards on your job site that you haven’t accounted for? Is there any loose material or unsecured flooring a customer or employee could slip and fall on? Evaluating your risks, determining how much they could cost you, and then implementing safety procedures and policies to manage those risks will help you avoid a claim and save money on your premiums.

#2: Keep Your Driving Record Clean

Save money on your commercial auto policy by making sure that you and your employees have great driving records. Your insurance company will use your driving record to determine how likely you are to have an accident and thus what your premiums will be. Make sure you hire employees with good driving records both to decrease the likelihood of an accident and to save money on your premium. You’ll also want to make sure you practice safe driving techniques yourself- this will save you money on your commercial auto policy just like it saves you money on your personal auto policy.

#3: Take Good Care of Your Tools

Do you keep your tools locked up in your truck, or do you leave them out to have easy access to them? Make sure your costly equipment isn’t a sitting duck for thieves and vandals. Lock your tools up in your truck or in a toolbox when they’re not in use. When you’re hiring employees, make sure you conduct background checks and look for a history of theft. Taking a few minor precautions can help you avoid a claim and save money on your Inland marine insurance.

#4: Have an Excellent Safety Program

Even if you are a small operation, your safety program is important- it can directly affect how much you pay for workers compensation. A good safety program ties into your risk management program. It will help you eliminate workplace hazards to prevent the accidents that will raise your premiums. If you have an employee, make sure he/she knows which steps to take to keep themselves and their work environment safe.

#5: Combine Your Policies

Take advantage of any discounts you’ll get for bundling your policies together. Most insurance providers offer you discounts for combining multiple policies. For example, if you’re interested in general liability, commercial auto, and inland marine insurance, speak with your broker about combining your coverage. This can be highly cost effective.

Following these tips can help you make sure you get excellent coverage at an affordable rate. For more information on how to get the best coverage for your handyman business without breaking the bank, get a free quote today.

Home-Based Business Insurance Facts and FAQs

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Home-Based Business Insurance Facts and FAQs

If you run a business from home, you’re in excellent company. Amazon, Apple, and Disney all got started as home-based businesses. More than half of all US businesses are home-based, so you’re not alone if your dining table often doubles as your work desk.

You’re passionate about your business. You know it has potential, so you want to keep it safe. However, your homeowners insurance and other personal policies might not offer enough coverage to protect the business you’re working so hard to build. For example, many homeowners policies cannot cover business-related claims, or they may only cover them up to a limited amount.

Discover what coverage you need with these home-based business insurance facts and FAQs.

Don’t see the answer to your question below? Drop us a line.

Home-Based Business Insurance Vocabulary

If you’re just getting your company off of the ground, you may be new to the realm of business insurance. Here are a few key terms to get you started:

  • Sole Proprietor: A sole proprietor is the exclusive owner of the business. They are entitled to all profits, but are also liable for all losses.
  • Limit: The total amount of losses your policy will pay. This limit may be expressed per-occurrence (ie: a separate limit for each individual claim) or as an aggregate limit (ie: a total limit for the entire policy).
  • Liability: A legally enforceable obligation. For example, if someone is injured on your property while there on business due to negligence on your part, you could be held liable.
  • Claim: A demand made by an individual for compensation, under an insurance policy, for loss or damage suffered.

Why Do I Need Business Insurance If I Have Homeowners Insurance?

Because your home is also your office, you face different risks and liabilities than an ordinary homeowner might. For example, if you’re the sole proprietor of your business, you’re responsible for all of the debts your business incurs. This makes business insurance important for a few reasons:

  • Most homeowners policies don’t cover business-related claims.
  • If a lawsuit gets to be too expensive and you don’t have business insurance, your personal assets could be at risk.
  • If you sell a product, your homeowners insurance typically won’t cover you if someone has a problem with a service or item you provided them.

Business insurance policies protect you from things your personal policies can’t.

What Types of Businesses Should Be Insured?

All home-based businesses can benefit from some amount of insurance. If you run a business, you face risk. What risks you face will depend on factors such as the size of your business, or whether or not you have employees.

Whether you’re a realtor, a freelance writer, a graphic designer, or a piano teacher, you’ll need to determine which policies fit your needs best.

What Type Of Insurance Does My Home Business Need?

The type of insurance you need will depend on the business you run. Factors such as the size of your business, or whether you have a work vehicle will impact the type of insurance you’ll need.

  • General Liability: General liability insurance is a vital form of coverage. All businesses can typically benefit from general liability insurance.
  • This coverage protects you against damages from accidents involving a third-party. For example, say a client visits you in your home office and slips and falls. Your general liability policy has you covered.
  • Professional Liability: Professional liability is also known as errors and omissions insurance. This policy goes hand in hand with your general liability policy. It covers you for financial damages stemming from incidents where you’re at fault. Say one of your products causes injury to a customer, or you give someone bad advice. If you have professional liability insurance, you’re covered.
  • Workers’ Compensation: A workers’ compensation policy covers you and your employees from financial loss because of an employee injury. Say you hire seasonal help for your cupcake business during the holidays. If your employee is injured on the job, workers’ comp can help pay medical expenses.
    Many states have laws in place stating that any businesses with employees need to have workers comp insurance. Make sure you know what the law is where you operate.
  • Commercial Auto: If you have a vehicle you use for work purposes, consider a commercial auto policy. This covers your work vehicle, or your personal vehicle if you use it for your business. If you get into an accident while your vehicle is being used for work, your personal policy may not cover the damages.
  • Umbrella Coverage: Umbrella insurance functions exactly as the name implies. It’s an umbrella, a catchall. It covers your losses should they exceed the limits of your other policies.

If your business faces a major lawsuit and you don’t have half a million lying around, for example, umbrella insurance can make up for what your other coverage can’t provide.

How Much Does Home-Based Business Insurance Cost?

The great news is, running your business from your home can save you money on your insurance. Because you don’t have the added expenses that come from insuring an asset such as an office or a warehouse, you may pay lower premiums.

For an exact idea of how much your home-based business insurance will cost, get a free quote from one of Citizens General’s business insurance specialists.

When you’re striving to get your business off the ground, accidents can happen. The right home-based business insurance provides you with the security of knowing that a mishap won’t lead to catastrophic financial losses.

It gives you a safety net so that you can continue pushing your business forward.