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.Â Our single goal in our networking group is to generate
business for each other.Â We have about 40 great professionals in our
group, which is called Le Tip of Yardley
.Â 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.Â This morning, he shared with us 10
insurance considerations for every new business owner to consider.Â This
list is not all inclusive, but it is definitely a great place to start
for anyone considering starting a new business.
1.Â Consult a licensed insurance professional during the business planning phase.Â The time to work on structuring insurance is in the planning stage, not the day your business will open.
2.Â Make sure that you consider the physical condition of the building that you are about to buy or lease.Â Things like square footage, age, flood zone, construction type, condition, etc, can all directly affect your premium.
3.Â Workers Compensation.Â Gabe suggested that you
should assume that you will need it.Â 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 youâ€™ll be doing business.
4.Â Have a general idea of what you anticipate your gross annual sales and payroll will be.Â This will help your insurance professional determine your business interruption and workers comp coverages.
5.Â Call an insurance professional at least one (1) week prior to signing a mortgage or lease.Â
More lead time gives the agent a better chance to find the best
possible rates.Â Many real estate transactions have been delayed due to
insurance requirements not being met.
6.Â Consider elements of your business that may be better left to vendors, sub-contractors or even competitors.Â
For instance, if you are opening a restaurant, you can save a huge
amount by establishing a BYO as opposed to a full service,
7.Â Will your business have a board of directors?Â Special coverage may be necessary to protect the board from suits brought by employees, shareholders, etc.
8.Â Do you hold a professional license, designation or credential?Â If so, you may need errors and omissions insurance.
9.Â Should your car be titled in the company name?Â
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.Â Will employees be required to use your vehicles, or
their own, on the job?Â Those questions will effect rates.
10.Â Make a list of risks to your industry that you are aware of.Â 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.Â Gabe and his agency are absolutely wonderful
to work with. Click on the hyperlink at Gabeâ€™s name, to get to the
agency website.Â 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.