The Beginner’s Guide to a Business Owner’s Policy

Seeking for advice for your new business? EZ.Insure provides not only ease with insurance, but also these simple guides. Reading them should arm you with the knowledge you’ll need to navigate the business world, like what our policies cover. Curious about more than just a Business Owner’s Policy? See our  Business Insurance Masterlist and our  Beginner’s Guide to Worker’s Compensation. Here, we’ll take a look at what our Business Owner’s Policy (BOP) covers, application times, and costs.

business owner looking into insurance coverage
Want to start your workday with a smile? Think of the ways you set yourself up for success like coverage.

What is a Business Owner’s Policy?

So, what defines a BOP? One of the most important types of coverage, or at least the most useful for the business owner, is this policy combining both liability and major property insurance. With the combination, both policyholder and insurance company can benefit. The choice of what you actually want to combine is up to you. Here are your options:

  • General liability
  • Property liability
  • Business Income/Interruption
  • Cyber insurance

The above coverage types extend protection should any property damage, bodily harm, or income loss happen to your company. No one ever wants these types of things to happen, but it is always better to be prepared just in case.

Without a Business Owner’s Policy, you take the financial brunt of any misfortune happening on your company property, including cyber theft. Take for instance if while at your businesses someone slips on a cracked floor and breaks an ankle, if you do not have a business owners policy, and a lawsuit ensues, you will be responsible for any reparations, plus the loss of when you have to shut down for repairs.

 When Can You Apply?

The short answer is now! There is no open enrollment for a Business Owner’s Policy. However, you may ask your agent about special offers, especially if they are time-dependant With EZ.Insure, your agent will make sure to get you the best policy for exactly what you need. The best time to apply is when you feel you need coverage.

business laptop with a new product for a business owner
New products? If you’re moving up in business, you might consider new coverage.

If you feel you are ready for a Business Owners Policy the next step is to reach out to an agent to have any questions answered and get a quote for different types of coverage. You can reach an EZ.Insure agent at PHONE NUMBER. Before you call, write down what you think will be right for your business.  If you hold most of your information online, we would suggest adding cyber liability insurance, or, if your business is mostly physical property and equipment, property liability would be best. Taking a small amount of time to take note of your assets will make your application process smoother.

What Is Not Covered?

A Business Owner’s Policy does cover quite a bit, but there are exceptions. Worker’s Compensation and Professional Liability are not covered in a BOP  but are solid policies to hold. Remember, Worker’s Comp is mandatory in most cases, but Professional Liability is not. While these are not included in the BOP, be sure to do your research if your company has a high risk for malpractice suits.  People make mistakes, but certain professions like doctors need extra protection with insurance.

What Are the Costs of a Business Owner’s Policy?

The average cost ranges between $30 to $200 per month. Of course, this will vary based on your needs. Ask your agent to help keep costs down. Also, keep in mind that while this may seem like an extra bill per month, the median cost of just one business lawsuit is $54,000. That’s the price of a good car. Can you afford a surprise purchase like that? To make matters worse, millions of cases pass through U.S. courts annually. Do you like those odds?

two business owners talking about insurance
Talk to your friends in the business. What advice could they give you about their own coverage?

The process can be easy enough, especially with an agent on your side. They will have the most up to date information about what level of coverage your company really needs to keep you safe, but not overspending.

EZ.Insure is here to help. 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 [email protected], or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

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 [email protected] or calling 888-998-2027. EZ.Insure makes the entire process easy, and quick.

 

8 Costly Mistakes New Business Owners Make

Learn from Those that Came Before

With all the small business ideas out there, we live in a wonderful time of innovation, but that comes with its own risks. Whether you’re wanting to sell produce and flowers in a farmer’s market or opening up your own electronic repair store, it’s good to be aware of the pitfalls with running your own business. Don’t make these business owner mistakes.

1. Failing to Organize & Budget

Like anything, organization will set you free. When starting a business on the ground floor, having a clear plan with SMART goals can not only keep you going in the right direction but also help keep stress down.

These time-honored plans will help keep you on the path to success.

This also involves keeping clear notes on your goals and setting intentions, especially with a budget. With all of the clarity, you should have little to no mistakes during the start-up period by sticking with your business plan.

2. Skipping Research on the Market (Knowing Your Customer)

It’s not the most fun aspect of business running, but it is a necessary one. The market is your influx of customers and money, so you can’t ignore its heartbeat or where it flows. Researching what’s happening in the market will give you first-hand knowledge, making you one step ahead of those who do not.

A secondary aspect of this is knowing your customer base, a part of the market. Knowing exactly what they want and how it pertains to your goods/services can keep your edge. For example, if you sell sandwiches and your market research shows a new type of cheese coming out, buying the cheese and utilizing it in your store can give you an edge over your competitors.

And you would never have known if you hadn’t looked into it.

3. Not Taking Advantage Of Technology

While the solidity of hard copies can’t be forgotten, technology has come far in contemporary times, assisting us in many trivial tasks. Also, in our screen-drenched world, your business could be disregarded for not having a website or having a mobile presence. Yes, this means social media too.

Software for businesses is a relatively cheap expense. If you want to do your own accounting (which you can, but don’t skip this either), there are programs available to secure all the numbers in their places. Other software can be useful from tax preparation to advertisements. Would your business type benefit from an e-commerce store; if so, think about which host websites are available. This is the most costly of business owner mistakes.

business desk full of technology
With all the tech available to you, it’d be silly not to at least take a look.

4. Forgetting Paperwork

Simply put, cover yourself. The amount of paperwork can be staggering, but it is a necessary part of the business world. Don’t forget to sign all your agreements and keep receipts in case something comes up later.

5. Undervaluing Yourself

Along with market research, you’ll see the average cost of your goods/services. When new businesses start, they can assume they’ll start in a novice category. While true for some, it may not be the same for all.

Make a fair market price for what you provide so that you can maintain a solid profit margin. Adjustments may come, so be ready for those as well.

6. Spending Too Much Too Soon (Or Too Little)

Debt becomes a big problem over time, but business loans are known to be a popular first choice. Your starting capital needs to stretch to cover everything you need starting up. Again, referencing the goals from earlier, you should be able to attain them and keep within budget. Just make sure not to stretch yourself or make large personal purchases using your company account.

The same can be said about spending too little. If you don’t maximize your starting capital, you risk lessening your impact on the market and thus falling behind from the get-go. There is always a risk, but make sure these risks are calculated.

7. Not Planning for Hardship

Hard times fall on us all, and businesses are no exception. Whether it’s an unforeseen accident, theft, or illness on the team, you’ll want to be prepared for it. Insurance can definitely help with this, but also keep a savings account with enough money set aside for the interim. For more information on types of insurance, look at our easy guide here.

This way, when hardship falls on you, you can rest secure with the knowledge that you can see it through, and your business will continue to thrive.

8. Going it Alone

We’re a communal species, and this goes into the intricate dealings of a business. You’re not alone in the market so you shouldn’t be alone in your company. If you work alone and are comfortable with that, of course, it’s okay, but when it comes to managing more complex matters, don’t make the mistake of not asking for help or advice.

money graph to show success
Use your knowledge and organization to take secure steps in your risks. It’s about balance.

Hiring others when needed and delegating is the start of a strong team. Don’t forget that by working together, we can achieve loftier goals than apart.

This can be done with small hires like a personal or virtual assistant, hiring agents for insurance, or even seeking financial advice from experts.

Successful business owners learn all these things, from organizing to teamwork. As long as you take it one step at a time, you should have little problems navigating the business world, and you won’t fall for these business owner mistakes.

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 [email protected], or calling  888-615-4893. 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.

    shaking hands in business meeting
    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 [email protected], or calling 888-998-2027. EZ.Insure makes the entire process easy, simple, and quick.

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