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General liability insurance is smart for a small business to have

May 31, 2010

Why should your small business get general liability insurance? Why should you even spend the time necessary to learn the difference between general liability insurance and professional liability insurance? What would small business liability insurance coverage even do for your business?

In today’s economic struggles, worldwide fears and crises, you need to know what you can count on when the fur starts to fly. When things get bad, do you want to feel like you are all alone in a foxhole, or do you want to feel like you are protected, in a tank, moving about as you wish in full security? The latter can be effected by putting the right general liability insurance policies in place. The first can be effected by digging a hole and climbing in, and will be just about as effective in protecting you and your business.

General liability insurance and professional liability insurance policies give you both protection and flexibility in running your business. You see, a lawsuit robs you not only of income and profit, but time. Time, in my opinion, is the most valuable commodity, and thus the most expensive aspect of the lawsuit. You simply must guard against the damage of a lawsuit if you are a small business owner.

The value, then, of general liability insurance is not so much about what it costs you per month, or even what it pays out, but in actual security; the ability to sleep at night.

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Why should I get a surety bond?

May 25, 2010

Many business owners do not see the very real need to get a surety bond. They do not see the danger it poses to not have one, and they do not see the wonderful benefits of having a surety bond. Surety bonds are very old security instruments that make sure clients are taken care of in the event that a contractor screws up on their project. In this case, the surety bond company comes in and saves the day for the client, either paying them a lump sum, or hiring another contractor to come in and clean up the mess made by the first contractor. That first contractor then pays back that amount to the surety bond company. That is the way a surety bond company works.

The reasons you want to have a surety bond on file are many. First, it is required in a lot of areas. Many larger companies require a surety bond to be on file to even submit a bid. This will put you in a bad position if you do not already have one, because now you are going to have to wait for that process. You don’t want to lose a bid just because you did not do the necessary homework to know that you needed to have a surety bond to bid on that work. There are companies that make it easier and faster, but do the hard part early and it will pay off.

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How to know if you need a surety bond

May 25, 2010

Surety bonds are called different things, sometimes dependent upon region. Performance bonds, contractor bonds and surety bonds are all basically the same thing. They are all built to be an instrument of security for the client in case you screw something up. Many contractors see surety bonds as superfluous, thinking that they already have insurance so why do they need a surety bond?

The differences between surety bonds, performance bonds or whatever you want to call them and insurance is important enough that one, you need to do your research so that you can educate your customers, and two, that you yourself should know so that you are well informed on surety bonds. The primary function of a surety bond is to have an amount of money set aside pre-agreement that shows that you are a responsible person and have made arrangements to make the client whole in case something goes wrong. Surety bond companies put out the surety bond amount for a fee, of course, and then come in behind you to fix things if needed. You, as the contractor, then have to pay that amount back, which is the primary difference between surety bonds and insurance.

Know your surety bonds, know your business. You don’t want to be caught short, either in business or in information if someone asks you about a surety bond. Surety bonds can help you, but only if you know your information.

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Get Small Business Insurance Because of Your Family

May 20, 2010

When the business owner of today looks out at the landscape of threats facing his or her business and decides that the need for small business insurance is real, the temptation is to only think of the benefits of such liability insurance coverage in terms of business protection. The truth is far different.

Everything you have worked for in your business is not only attached to your business. You don’t get your paycheck and go share it with your business, do you? You don’t take your business out for burgers on the weekend, do you? One of the main reasons people start businesses in America is for the future and security of their families. People want to know that they are contributing to and securing the future of their children, handing down a secure business that will provide for their children and children’s children after them. General liability and professional liability insurance does that, by offering a protective shield against the kinds of lawsuits that cripple and kill small businesses every day in this country. Don’t let lawsuits or exposure to liability kill your chance to offer something positive to your children. Don’t let the lack of professional liability insurance or general liability insurance keep your children or grandchildren from having a better life than you had. Get the proper liability insurance coverage for your business today, take care of your family.

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