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Business Insurance Costs That’ll Keep You Up at Night

Insurance costs can surprise you, and purchasing policies for your company can run into stormy waters. With a good understanding of the costs and ways to save money, you can sail your company’s ship straight to profitable seas. Insurance costs, or those “life happens” moments, crop up when you least expect them. Proper planning will alleviate the strain these cause. The average company spends about $1300 on policies, but plan prices are increasing steadily for years. Don’t let unknown factors cost you capital.

stack of insurance folders for a business — *The information n insurance costs can really stack up. We’ve got these easy outlines for you to follow.*

When it comes to insurance for your business, certain forms of coverages are mandatory like Worker’s Compensation, but you should be aware of what will raise your costs, and where are the places you can save money.

Cost-Raising Factors

Different things influence your final price. Learn them now:

History of claims – Your company’s past will be brought up at some point from the insurance perspective. If you have past claims, make sure you are up to date on them and still have their information.
Profit Margin – Your final sales numbers will be taken into account. These directly affect how much coverage you need plus your ability to afford it. If you have a high-profit margin, you’ll want to protect your interests.
Physical Property – If you have a physical site with assets, this will directly affect your Business Owner’s Policy. Remember, a larger building will require more coverage.
Physical Location – Different states have different insurance laws, and some have scarier premiums. Your physical location will be a big determining factor across the board.
Employee Number – Whether you’re self-employed or have a staff, this number dictates when and why you need coverages like Group Health insurance.

financial analysis of business — *Technology can help out too. There’s an app pretty much everything out there.*

Of course, take your business’s specific needs into account, but those vary widely based on industry. Your insurance liaison (known as an actuary) will calculate your risks before offering you different options and their price. Now, how can you reduce these costs?

Places to Save Money

Here is the good news. There are many ways for you as a business owner to cut your expenses. Take these three factors into account:

1. Deductibles – When tax season comes about, this is the best time to minimize the payment you are expected to make. Write everything down during the year, including claim payments, so that they count toward a lower final number. Remember, business expenses count towards a tax refund.
2. Bundling – Grouping things like policies together can save time and money. Often, an insurance company will offer a better deal if you’re willing to only purchase your policies with them. Consider your options when doing this, because it’s a lot less stressful to only look in one place for your information.
3. Refreshing your info – New updates happen in the insurance industry all the time, and your business should also be constantly evolving. If you set one price down for yourself, you may lose out on a better option later. If nothing else, calling your provider and updating your company’s information may give them a better perspective on how they can help you in the future. New coverage may arise that they didn’t know they could offer you.

Coverage comes with responsibility. As a business owner, it’s your job to make the best choices to grow. Your employees and customers are counting on you. With these factors in mind, you can look into where to best allocate your assets. However, everyone can use a helping hand, especially when the industry is as complicated as insurance.

tax incentive form and other business insurance paperwork plus a blue mouse, pen, and cup — *Keeping track of everything can be exhausting. Make sure to keep accurate documentation and get help when you need it.*

EZ.Insure is ready to be that helping hand. Your agent will answer any questions you have, compare the plans for you, and even sign you up, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure or calling 888-998-2027. EZ.Insure makes the entire process easy, and quick.

Tax Deductible Insurance: The Facts

Imagine looking over your expenses from the year, and you calculate not only no refund, but you owe a hefty sum. Your small business is doing well, but not well enough that it can take a heavy tax hit or any other easy mistake. What can you do? Did you take tax-deductible insurance into account?

The savvy business owner works to get the most out of their return. Whether you use a tax app or are a pen-and-paper warrior, each person must hunt for every last tax deduction available to them. This helps puts money back in your business, and money in your business is an investment in its success.

adults brainstorming with post-its on a board — *Brainstorm when you can about deductions for your business. A penny saved is one more in your pocket.*

So, how can you get ahead of the curve? For the self-employed, the small business owners, and even larger companies, certain tax information can be murky. Uncovering the mysteries of insurance premiums and how they fit with taxes can help lower your payments come tax season.

Insurance is a Cost of Business

The IRS’s 2018 Publication on Business expenses states, “You generally can deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business, or profession. However, you may have to capitalize certain insurance costs under the uniform capitalization rules.” This means money spent that was necessary to keep the business running necessary business running can be deducted. It also allows for a process called “capitalization” for certain expenditures, which means transforming your insurance premiums from a business “expense” to a business “cost.” The difference between these two is that an expense refers to the usage of an item, whereas a cost is purely money spent.

So, now the IRS has given you the go-ahead. You can take stock of your premiums and capitalize them if needed. When filling out your tax forms, make sure you place the correct amount spent for the year. For example, on a 1040 form, lines 46, 61, and 69 will be used to report your insurance expenditures.

These examples can be used by the self-employed as well. It comes down to locating which coverages you have, how much you spent on them, and if the premiums are deductible. Let’s look at what premiums make the biggest impact on your tax statement.

Only Some Insurance Is Tax-Deductible

You can start crossing off expenses and reducing your tax payment, putting more capital back into your company’s financial reservoir. Here are the premiums that are deductible:

business notes on insurance and other expenses — *Take good notes for these deductions. Tax forms will need accurate information. Celebrate your savings!*

Fire, theft, accidents, storm, or losses similar to these categories
Business interruption
Group Health/medical
Long-term care
Credit insurance coverage against bad debt
Liability
Worker’s Compensation
Malpractice

Other items of note are life insurance, vehicle insurance, unemployment funds, or overhead insurance. Life insurance can be useful here only if it covers you under contract. For your vehicles, they can be deducted (even if one is for personal use) only when used for the business. The payments to the unemployment fund are only counted in this list if they are approved by your state of residence. Also, the overhead insurance comes into play if you have used it for a long period due to a disability.

Non-Deductible Premiums

Payments made for a self-insurance reserve
Loan security
Earnings Loss
Life insurance/annuities not covered above

Another good rule to note is that if you paid for a premium in advance, this is not considered suitable for the current tax year. Remember, if you take out a premium for five years, each year only one-fifth of the payment can be used to offset your expenses. So you can not deduct the entire premium in one year since you are using it over the course of five.

person calculating numbers and stats for their company — *You’d be surprised the intricacies of this process. Don’t worry! Follow our lead, and you’ll be ahead in no time.*

If you are a sole-proprietor or self-employed, there is more good news for you. Your payments for coverages like medical, dental, and long-term care can be included as an expense. However, this is not the case if you “could” have been covered by your spouse for a certain time in the year. If they see you had the option, they will not take the deduction on your taxes.

In most cases, your business’ essential premiums are considered tax-deductible insurance, so they will be useful come next season. Using the list provided, you can cut down on business costs and fill out that revenue line. What could be better than being covered and saving money?

EZ.Insure is help both you and your business. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

Grow Your Business From Home With Social Media Marketing

Experts know that marketing is an online world now, also known as SMM (Social Media Marketing.) No tool has a tighter grasp on the minds of our people than social media. These sites are Facebook, Twitter, Instagram, Pinterest, Youtube, Reddit, Linkedin, and Snapchat, plus many others that focus on even smaller niches.

phone screen with social media marketing apps — *You can run all these great platforms right in the palm of your hand!*

These platforms will give you a marketing edge, but only if you master them. There is a lot of noise on the internet nowadays, so it’s important to be bold and clear with your online marketing. Need some starting tips? Here are four:

1. Pick the Right Platform

Whether you’re writing blog posts as your medium or social networks, picking the right platform is the first step. Each one has a different feel and will benefit your company in a different way. Are you a community-based business? Facebook, along with Facebook ads, may be the right way to go. This platform is solid when it comes to building a group with shared interests.

Instagram is less about community and more about visual interaction. For this type of content, your business will need to focus on snappy advertisements that deliver a ton of info in a square picture or video.

Twitter is another popular choice. Like Instagram, the focus in on quick content. Unlike Instagram, Twitter engages a step further with discussion. The plan here is to capitalize on the snappy conversation by keeping up with replies. This is a great place to hear your customers needs, struggles, and praise. Your user base will interact at a quicker level. Think hard about what your brand wants to say on each platform before you decide.

2.Create Time for Your Social Media Marketing Plan

How much time do you have to devote to your social media platforms? Are you going to be delivering video content through Instagram, or just getting Facebook advertising? No matter what you choose, you need to have a plan ironed out.

woman looking at social media on her phone — *Have a spare moment on the bus ride? Take a minute to check in on how your plan is meeting your goals.*

Social media campaigns are all over the place. There are apps like Sprout or Hootsuite than assist in community building with schedules. Do you have time to do this yourself, or do you need to hire a content team? Your managing style is important because it will show you not only how your content will be released, but also where your time and effort are needed.

One tip is to use social media analytics to show what your company is already being engaged with. Write down what works and what doesn’t, then adjust your plan to maximize your successes.

3.Engage and Build Your Community

Your target audience needs to feel included. People like to be in a group with others that think like them. This means you should create a group. Your brand is like a banner, paint it in stark colors and know what you’re providing inside and out. People will respond to this, especially if you’re paying attention to your managing plan.

Reach out with social media posts. Not only should you be the business owner, but also the community head. Talk to people that comment and engage with you. Be polite and mind what you say; you’re the voice of your company.

Doing this will not just improve brand awareness, it’ll also get you a dedicated following. Businesses thrive on trust, and you can build it quickly through this organic reach.

4.Measure Your Success

This is where most business owners fail. You’ve got your community. You’ve got your content marketing in full swing. But then that’s it. You don’t measure anything, and you let your business spin around willy-nilly.

social media on a laptop showing business success — *You can measure all your business success from your laptop. Check your posts, engagement, and then reuse what works.*

Don’t be like others. Stick to your social media marketing strategy from earlier, and don’t be afraid to experiment. When you fail in small ways, it’ll improve your business when you continue on through what works. Success is measured not in the strides you take, but in the way you pick yourself up when you fall.

For small businesses, your brand on social media could make or break you. Most people research, decide, and buy online now, from their phones on the couch. Putting your company in that market place provides excellent exposure and can lead to huge growth. Just follow your plan, and you can find success.

The Beginners Guide To Worker’s Compensation

Do you know everything you need to know about Worker’s Compensation? It’s not a subject many people discuss at the dinner table, but it’s incredibly important to have when running a business in case someone is injured. A small thing like a loose nail or an unstable walkway could spell trouble.

smiling worker in an office with a be happy sign — *It’s easy to be happy when you know you’re covered!*

Before an accident happens, it’s imperative for a business owner to understand the terms of Worker’s Compensation coverage, how to qualify as an employee, what it covers, and what it will cost you.

What Is “Worker’s Comp?”

This agreement states that as long as an employee receives wage replacement and medical benefits, the employee will not sue the company for negligence. Meaning, if you’re injured on site due to something workplace related, you’ll be covered for the amount of work you miss plus hospital bills. But, you cannot sue the company specifically for failing to take proper care. This protects employers and employees.

It’s state-mandated, and the particulars change based on your location. EZ.Insure’s agents are familiar with this information, local or not, so by calling us, you’re saving some time.

Good news is, safety regulations are solid nowadays.

employees with talk bubbles asking about insurance — *Your employee may have questions for you during this time. EZ.Insure will give you the knowledge to answer securely.*

How Can Your Employee Qualify?

For an injured employee, there are only four checkboxes to qualify:

You must be employed by the company.
Your illness/ injury must be work-related.
Your case must fall in state guidelines.
The employer must have Worker’s Compensation insurance.

What Is / Is Not Covered by Worker’s Compensation?

Workers Compensation insurance covers most workplace injuries, but you may be refused assistance if your injuries are self-inflicted, occurred during a crime, or if your actions during your sustained injury violated company policy. For example, if your employee happened to sustain an injury while robbing you, rest assured their injury most likely won’t be covered.

The injured employee doesn’t need to be injured “on-site” to be covered. Worker’s compensation can also come into place when your injury is sustained, and it’s job-related. This could be if your company plans a trip overseas for a meeting, and your employee happens to break a limb during the outing.

When it comes to your medical expenses, you’ll find support with diagnosis and treatment. Depending on your state, it can also provide disability payments, rehabilitation, or retraining.

This should provide ample cushion for your employees to recover and return to work.

What Are the Costs?

The average cost of a worker’s compensation claim is $38,000 (from 2005). This is a combined total of both the medical side and loss in productivity. That’s a down payment for a house or a mid-size car.

For a company, the average cost per $100 in employee wage ranges from $0.75 to $2.74. It doesn’t seem that bad, but this does depend on the state. If you’re looking into getting this for your company, contact your local office to get specific information.

Do Worker’s Compensation Costs Change Per Business Type?

cranes with people working on construction — Depending on what your company does is how much you’ll be quoted for worker’s compensation.

Depending on your company, the money outflow is going to fluctuate. For example, in the office building, your cost per $100 goes down to about $0.12. It doesn’t sound that bad, but it’s because injuries happen less often in this environment.

If you’re a painter or a landscaper, this average jumps up to $7-9/$100. You’ll have to take a look into the work you’re doing, and how it may affect an employee. Your business needs a strong hand with inside knowledge to provide you with the best quality insurance.

EZ.Insure has the experience to help you excel. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

3 Insurance Headaches EZ.Insure Will Save You From

Insurance Can Be Tiresome. Let Us Help You.

You’re sitting at your desk, scratching the back of your head with at least ten different insurance pages open. Sound familiar? It’d be nice if someone brought you an extra cup of coffee, closed your laptop, and gave you a shoulder rub instead. We can all dream, right? Unfortunately, insurance headaches can happen to anyone.

While shoulder rubs may not be our thing, helping you out with insurance still is. There are some major stress factors on the road of life, and we have three mapped out for you already here. EZ.Insure has solutions for them.

1. Searching: The Exhausting One

business owner stressed over computer with water glass — *Stress can affect your ability to make good decisions. Take care where you focus your attention.*

Searching for policies yourself can leave you stressed and drained. When you’re in that state, it becomes harder to make good decisions. This goes double for business owners; you’ve got a lot riding on you. Why shoulder this entire burden yourself?

Looking at policy lists, companies, and plans will take chunks of time from you. Besides that, you’re handing out information to various companies. Our agents here are capable and willing to do the heavy lifting for you. We take the hassle and anxiety out of this process.

Don’t put yourself in a situation where you could be overwhelmed when a simple email will save you time. One agent can free you up to spend more time on the things you love: your company, your family, your life.

2. Scams: The Crazy One

It’s sad, but there are many insurance scams out there today, one of the worst insurance headaches that could happen. Without the proper information, you could fall for one of these con artists. It wouldn’t even be your fault. How would you have known?

Regardless of knowledge, people are taken advantage of daily. Business scams are prevalent because they prey upon a valid need for increasing revenue. Picture yourself in a bind with a slow month in profits, and you need help. With anxiety clouding your judgment (which is perfectly understandable), you could reach for the first attractive advertisement offer without considering where it comes from, or what kind of “fees” they charge you to start their services. That’s how they get you.

Our agents are reliable, keeping up daily with insurance trends and scams. They’ll make sure to keep you in safe zones so that you don’t have to worry about falling for a con. Losing money is bad, but feeling victimized is worse.

3. Unexpected Disasters: The Big One

business destroyed inside after a disaster — *Walking into your destroyed office building could be a nightmare. Hope for the best, but be prepared for the worst.*

Your entire life can change in a day; you need to prepare for this.

Natural disasters strike, more often than before. Hurricane Harvey hit my area of Texas in 2017, causing $125 billion in damage. Homes were lost, businesses closed, and people were displaced. No one could have accounted for such a massive storm. Who could have predicted it?

Our agents will take the time to address your concerns and find policies that will protect you during hardship. Our business owner’s policy provides you with liability insurance and protection when your property is damaged. Worried about the downtime while you’re making repairs? EZ.Insure offers Business Income/Interruption insurance to help with less profitable months due to disruptions.

Our custom service focuses on saving you time and money. Let us be your support so that you can make an informed decision. We’ll take the insurance headaches away from you.

EZ.Insure is there to make sure you’re not alone. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

Group Health Insurance: The Plans, the Importance, and the Agent

What Types of Insurance are Available and Why They Are Important

You’re ready to take the next step into improving your business through group health insurance plans. You’ve got your employee’s benefits in mind, but also your company’s bottom line. Both are important. So, here are the different types of insurance plans available to your company, and how exactly they’ll help you out.

Fully-Insured Employer/ Large Employer Group

Why You Should Choose This: You’re wanting a solid plan that provides the most coverage. This is if you’re wanting major medical or health maintenance organization (HMO) coverage.
Business planning is all about finding what works for you, insurance or otherwise.

What It Offers: A traditional policy that is common, so more support or offers from agencies. You also party directly to the agency.

Requirements: Just the basic group insurance requirements: be a business of two or more people and enroll during the specified period.

Small Employer Group

Why You Should Choose This: You’re a smaller company or a group in a larger company seeking a cheaper option. Insurance agencies can more accurately predict risks in a smaller group.

What It Offers: Cheaper options with higher coverage and the same policy for each employer.

Requirements: Basic group insurance needs met.

Health Maintenance Organization (HMO)

Why You Should Choose This: You want to pay for specific health services via monthly premiums.

What It Offers: More control when it comes to enrolling for general services.

Requirements: A good knowledge of doctors and care facilities as you will have to stay within a network.

signing life insurance form — *Life, health, and any policy will require some old-fashioned form signing.*

Self-Funded

Why You Should Choose This: You wish your company to be in complete control of the payment for coverage.

What It Offers: More control as your company is the one taking the costs.

Requirements: Basic group requirements

Association Group

Why You Should Choose This: You are not an employer, but you still wish to offer group health insurance to a set of people.
What It Offers: The ability to get group health insurance for a non-business type.

Requirements: Basic group insurance needs met.

Level Funded Plans

Why You Should Choose This: You wish to pay a monthly premium instead of an annual one.

What It Offers: A graduated payment plan instead of a lump sum at one time.

Requirements: Census information will be taken of the group you wish to be insured in order to determine your monthly rate for coverage.

Preferred Provider Organization

Why You Should Choose This: You’re wanting something similar to the HMO plan earlier but with more flexibility.

What It Offers: More choices when it comes to doctors and facilities with the risk of being more expensive due to administrative costs and negotiated services.

Requirements: Basic requirements met.

High-Deductible Health Plan with Savings Option (HDHP/SO)

Why You Should Choose This: You don’t think your employees will use medical services, so you trade higher deductibles for lower monthly costs.

What It Offers: Cheaper options at the expense of your employees. However, this may be paired with a health savings account to counteract the higher out of pocket costs.

Requirements: Basic group insurance needs met.

hands pressed together after business meeting — *Let an insurance specialist help you succeed.*

Your Agent

With all of these to take into account, it can get overwhelming quickly. An insurance agent is specially prepared to navigate these waters and make sure you’re getting the exact plan to fit your needs.

Sometimes, not all employees will want or need this coverage. After you take stock of your company’s team and needs, look to a specialist for a guiding hand.

EZ.Insure offers you another helping hand. Your agent will answer any questions you have, compare the plans for you, and even sign you up, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-998-2027. EZ.Insure makes the entire process easy, simple, and quick.

Tag: business advice