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Martin Millner's Blog

By Martin Millner | Agent in Yardley, PA
  • Yardley Insurance Expert Offers Ten Insurance Considerations For Every New Business Owner to Consider

    Posted Under: Tech Tips in Yardley, Agent2Agent in Yardley, How To... in Yardley  |  January 24, 2012 1:49 PM  |  645 views  |  No comments
    I am part of an extremely productive and active networking group that meets every Tuesday morning at 7:00 am. We meet at the Yardley Inn for breakfast.  Our single goal in our networking group is to generate business for each other.  We have about 40 great professionals in our group, which is called Le Tip of Yardley.  Check out the link to our Facebook page.

    This morning Gabe Schick, who is the business insurance professional that I refer to on a regular basis, gave us a great presentation that I thought would be worth sharing, since I often work with people who are moving because of business start ups in Bucks County. Gabe is with the Makefield Agency in Yardley.  This morning, he shared with us 10 insurance considerations for every new business owner to consider.  This list is not all inclusive, but it is definitely a great place to start for anyone considering starting a new business.

    1.  Consult a licensed insurance professional during the business planning phase.  The time to work on structuring insurance is in the planning stage, not the day your business will open.

    2.  Make sure that you consider the physical condition of the building that you are about to buy or lease.  Things like square footage, age, flood zone, construction type, condition, etc, can all directly affect your premium.

    3.  Workers Compensation.  Gabe suggested that you should assume that you will need it.  The information and classification rates can be found on the State website, but it is important that you speak with an insurance agent as well as an accountant and/or attorney in the state in which you’ll be doing business.

    4.  Have a general idea of what you anticipate your gross annual sales and payroll will be.  This will help your insurance professional determine your business interruption and workers comp coverages.

    5.  Call an insurance professional at least one (1) week prior to signing a mortgage or lease.  More lead time gives the agent a better chance to find the best possible rates.  Many real estate transactions have been delayed due to insurance requirements not being met.

    6.  Consider elements of your business that may be better left to vendors, sub-contractors or even competitors.  For instance, if you are opening a restaurant, you can save a huge amount by establishing a BYO as opposed to a full service, liquor-licensed establishment.

    7.  Will your business have a board of directors?  Special coverage may be necessary to protect the board from suits brought by employees, shareholders, etc.

    8.  Do you hold a professional license, designation or credential?  If so, you may need errors and omissions insurance.

    9.  Should your car be titled in the company name?  Again, this may be a question for your accountant or attorney, but commercial auto rates tend to be 18-30% higher than personal rates, according to Gabe.  Will employees be required to use your vehicles, or their own, on the job?  Those questions will effect rates.

    10.  Make a list of risks to your industry that you are aware of.  Share the list with your insurance professional so that you are sure you are being protected.

    As I mentioned, I have worked with personally and referred many clients to Gabe Schick at the Makefield Agency.  Gabe and his agency are absolutely wonderful to work with. Click on the hyperlink at Gabe’s name, to get to the agency website.  His direct number is 215-321-0281.

    If you are considering starting a business, or are buying a business, I hope that this information is helpful.

 
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