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7 Types of Insurance That Help Protect Your Small Business

7 Types of Insurance Needed To Protect Small Businesses

From the day you start a business, you expose yourself to certain risks. Even before the first employee is hired, a business is at risk, making it imperative to have the right insurance solutions in place.

One lawsuit or catastrophic event could be enough to wipe out a small business, no-matter how innovative, before it even has a chance to get off the ground.

Fortunately, businesses have access to a wide range of insurance types to protect them against these types of dangers.

Here are some insurance types that a business should have in place as soon as possible.

1. Professional Liability.
Professional liability insurance, also known as errors and omissions (E&O) insurance, covers a business against negligence claims due to harm that results from mistakes or failure to perform. There is no one-size-fits-all policy for professional liability insurance. Each industry has its own set of concerns that will be addressed in a customized policy written for a business.

2. Property.
Whether a business owns or leases its space, property insurance is a must. This insurance covers equipment, signage, inventory and furniture in the event of a fire, storm or theft. However, mass-destruction events like floods and earthquakes are generally not covered under standard property insurance policies. If your area is prone to these issues, check with your insurer to price a separate policy.

3. Workers’ Compensation.
Once the first employee has been hired, workers’ compensation insurance should be added to a business’s insurance policy. This will cover medical treatment, disability and death benefits in the event an employee is injured or dies as a result of his work with that business. Even if employees are performing seemingly low-risk work, slip-and-fall injuries or medical conditions such as carpal tunnel syndrome could result in a pricey claim.

4. Home-Based Businesses.
Many professionals begin their small businesses in their own homes. Unfortunately, homeowner’s policies don’t cover home-based businesses in the way commercial property insurance does. If you’re operating your business out of your home, ask your insurer for additional insurance to cover your equipment and inventory in the event of a problem.

5. Product Liability.
If your business manufactures products for sale on the general market, product liability insurance is a must. Even a business that takes every measure possible to make sure its products are safe can find itself named in a lawsuit due to damages caused by one of its products. Product liability insurance works to protect a business in such a case, with coverage available to be tailored specifically to a specific type of product.

6. Vehicle.
If company vehicles will be used, those vehicles should be fully insured to protect businesses against liability if an accident should occur. At the very least, businesses should insure against third-party injury, but comprehensive insurance will cover that vehicle in an accident, as well. If employees are using their own cars for business, their own personal insurance will cover them in the event of an accident. One major exception to this is if they are delivering goods or services for a fee. This includes delivery personnel.

7. Business Interruption.
If a disaster or catastrophic event does occur, a business’s operations will likely be interrupted. During this time, your business will suffer from lost income due to your staff’s inability to work in the office, manufacture products or make sales calls. This type of insurance is especially applicable to companies that require a physical location to do business, such as retail stores. Business interruption insurance compensates a business for its lost income during these events.

By having the right insurance in place, a business can avoid a major financial loss due to a lawsuit or catastrophic event. Check with a CorpStrat adviser to find out what forms of insurance are advised for your type of business and put those plans in place as soon as possible. For more information on the insurance solutions we offer please visit our site or call us at 818-377-7260!

The Good, The Bad, and The Ugly of Paid Time Off

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The Good, The Bad, and The Ugly of PTO

“You see, in this world there’s two kinds of businesses, my friend: Those that offer PTO and those who don’t.”

The allocation of paid sick and vacation days for employees has long been a dilemma for employers and HR managers, especially when it comes to small businesses.

Many questions spring to mind when considering PTO such as, How many days do we give? Do they carry over from year to year? Should we replace sick and vacation time with a combined paid-time-off (PTO) bank? How much vacation time do we need to offer to attract new employees? And, how do we determine when employees abuse PTO?

The answers to these questions, of course, depends on a number of factors ranging from the size of your organization and the type of work being done, to the flexibility of a given department and the possibility of employees to work from home.

To begin breaking this down, let’s look at data provided by small business owners across the U.S., showing how they handle sick and vacation days.

30% offer less than five days.
16% offer exactly five days.
14% offer six-10 days.
32% offer no sick days, only paid time off.
9% offer unlimited sick days.

Many small business owners stated that having just one person out for more than a day can place a large strain on the entire company because they simply don’t have the numbers to accommodate an individual being out for an extended period of time. That would explain why 46% offer only five days or less of paid sick time.

Some workplaces however have acknowledged the many downsides of limiting paid sick time to their employees. Between an increased cost of living, large student loan debts, and longer-than-usual recovery periods thank to our increased tolerance to antibiotics, employees have found themselves unable to afford taking “all the time they need” to fully recover when PTO is not offered, choosing instead to “tough it out,” which leads to more employees getting sick, missing work, and a decrease in overall productivity. To avoid this, one in 10 small business owners are now telling their employees, “Take as many paid sick days as needed.”

Increasingly popular, is the elimination of sick days in favor of a paid-time-off bank. No explanation necessary—if you can’t make it in, you can’t make it in; just mark it down as PTO. Some employers feel this limits confusion and avoids unnecessary excuses or made-up illnesses not to mention that employees enjoy the privacy this allows them to handle certain personal matters so they can come back to work focused and energized.

When it comes to vacation days, small business owners report the following:

46% offer less than 10 paid vacation days.
30% offer exactly 10 days.
17% offer 15 days.
8% offer more than 15 days.

The trend among smaller employers is clearly towards the lower end of the spectrum as an astounding 76% offer only 10 days or less of paid vacation time, sighting the difficulty in maintaining productivity in a small business environment when people are not working. This however may be the reason so many small businesses report high-turnover rates, difficulty attracting top talent, and other hiring challenges.

Small businesses can try and counter these challenges by offering employees more flexibility including options to work from home or the option to leave early for personal and family obligations. Productivity may also pose an issue though as employees do still need an opportunity to get away, recharge and unwind.

So, to PTO or not to PTO, that is the question. ‘Tis nobler to give employees paid time off to recover and recharge? Or, to continue down the course of strict sick and vacation day policies, while trying desperately to over-compensate with other benefits.

Keep in mind that employers who are able to provide more generous paid leave benefits have found that doing so yields better talent, productivity, and dividends in the long run.

Why Small Businesses Need Strong Brokers

How to Tackle Health Benefits in The 4th Quarter

Behind in the game? Here’s how you can finish strong and tackle health benefits in the 4th quarter.

Despite ACA/Obamacare, your health insurance rates are likely slated to increase this 4th quarter, with 90% of small businesses in California due to renew their health insurance plans by December 1st.

Not to mention that deductibles and out of pocket expenses will likely rise for most plans, regardless of the carrier (all of whom by-the-way will be overwhelmed since just about every single health insurance plan will be renewing at the exact same time.) So what can you do to avoid some of the stress?

Prepare Don’t Procrastinate

“A task left undone remains undone in two places — at the actual location of the task, and inside your head. Incomplete tasks in your head consume the energy of your attention as they gnaw at your conscience.” – Brahma Kumari

We are all a bit guilty of procrastinating from time to time, especially when it comes to tasks we think may be unpleasant, but success was never found in procrastination, it was seized through action and in effort. In the long run, and this applies to almost every situation, procrastinating will only drain you of more energy, time, and money than if you had gone ahead and taken care of it, so it’s best to take steps now, however small, before the flood gates open in Q4.

Just imagine if someone dropped a years worth of work on your desk all at once and asked you to complete it ASAP. Do you think you could give every matter it’s full attention? Would you be able to sift through each detail?

That’s what Q4 will be like if you fail to prep, not to mention that some important money saving and even regulatory details may be overlooked, putting you and your business at risk. Those who are unprepared or uninformed can expect rocky times ahead. In other words, it won’t be pleasant for those who procrastinate.

Consult With A Broker To Develop A Game Plan

Not sure where to start? Well that’s where strong, skilled brokers like us come in to play, as seasoned brokers can help clients navigate and review the market, benchmark opportunities, as well as help to build vibrant benefit plans that are perfectly suited for your business.

If you’re looking to hire and retain great employees in 2017 then you need to ensure the plans you put in place are more than just cost effective and within regulation, they should also be designed to help your business attract and retain top talent in order to keep your business moving forward. Experienced brokers can provide you with valuable insight and put together plans that will ultimately lead to improved retention rates and happier employees.

Ask Questions

Don’t ever be afraid to ask questions, a lot of questions. Great brokers love their clients, but most importantly, they love educating them. If you consult with a broker who isn’t happy answering all your questions, then find one who is, because trust and open communication is vital in an industry such as this and you don’t want to get left in the dark.

Own Up and Speak Up

It’s not easy for some to reach out and admit they’ve made a poor decision or that they’ve procrastinated. For some managers and business owners, pride trumps all, but it shouldn’t. Great leaders know that trail, error, and failure are all a part of the game, so if you’re worried about appearances, don’t be. If the plans you have in place now are questionable at best, then say so. Honesty with your broker is an important step when it comes to the success of your business so don’t be afraid to say what works and what doesn’t either.

So in the end, if you’re a bit behind in the game, dreading the final quarter, and not sure where to turn then finding a strong broker to take charge is the best way to win.

* We here at Corporate Strategies are one of the leading employee benefit brokers in CA, ranking as Premier Partner status for most carriers, making us an excellent choice for small and medium sized businesses seeking change and assistance in tackling health benefit plans.

10 Quotes That Will Help You Stay Positive While Processing Payroll

Positive Payroll

Need a pick-me-up while processing payroll? If you work in HR you know full well what the term “Quit” means, but beyond the definition is the feeling, the thought, the stress, and the “I’m done” attitude where even if you don’t physically leave, you’ve mentally or emotionally checked out (especially when processing payroll) But before you have a manager level meltdown, take a deep breath and give these ten inspiring quotes a read to reconstruct your work attitude and stay positive.

Of course, for long term payroll solutions and stress-free paydays we recommend giving us a call, as we can help you set up or manage a new or existing payroll system where information is easily accessible (even from mobile devices) for you and your employees, not to mention secure, simple to use, and affordable. No 1 (800) numbers, No call centers, No ridiculous spreadsheets. Just concise, modern, dedicated, and frustration-free payroll.

1. “Have fun. The game is a lot more enjoyable when you’re trying to do more than just make money.” – Tony Hsieh, Founder of Zappos

2. “Your attitude, not your aptitude, will determine your altitude.” – Zig Ziglar

3. “A positive attitude causes a chain reaction of positive thoughts, events, and outcomes. It is a catalyst, and it sparks extraordinary results.” – Wade Boggs

4. “If you don’t think every day is a good day, just try missing one.” – Cavett Robert

5. “It takes but one positive thought when given a chance to survive and thrive to overpower an entire army of negative thoughts.” – Robert H. Schuller

6. “Sweat equity is the most valuable equity there is. Know your business and industry better than anyone else in the world. Love what you do or don’t do it.” – Mark Cuban

7. “Change your thoughts and you change your world”. – Norman Vincent Peale

8. “Keep your face to the sunshine and you cannot see a shadow.” – Helen Keller

9. “The only place where success comes before work is a dictionary.” – Vidal Sassoon

10. “It’s not the load that breaks you down, it’s the way you carry it.” – Lou Holtz