Part of being a small business owner is not only working to grow your business, but also being able to protect it. In order to do this, there are various kinds of business insurance policies to protect your business from potential risks. One risk that can endanger your business relates to members of the public or customers coming onto your business property. If one of these individuals should become injured or sustain damage to their property, they may file a claim against you. Public liability insurance protects you as a small business owner from such claims.
Public liability insurance can cover a variety of damages that a small business would need to pay out to the third party. This can include any monetary damages awarded to the injured party. Without public liability insurance, a small business would be forced to pay this expense out of its own pocket. This could lead to the end of the business, as these damage amounts are typically staggering. Public liability insurance will also cover any legal fees incurred by the small business for defending themselves against the claim. The legal expenses may also be incurred as the legal representation for both parties to try to negotiate an agreement.
As part of taking out a public liability insurance policy, this coverage can be extended. For instance, in some businesses, employees must go onto the property of clients. Should there be an injury to the client or their property on their own premises, then the small business is still legally responsible. For instance, if your small business is a plumbing business, the staff will be going into other homes and businesses. Should they damage property in the home, the public liability insurance would cover it. Also, if they leave a tool out and the customer trips, a claim may be made. Public liability insurance would also apply in these situations.
Public Liability Insurance & the Small Business
Personal Finance for Young Professionals
Investing to improve your personal finance can be a particularly tricky situation and there are different roads to achieve this common goal. It is entirely dependent on you to decide how you want to save your money, but we will surely lead you to get the best routes!
Investment market is the best way to save some money as well as discover some returns. Many young professionals think of the present only and fritter away money in chase of happiness now. However, what they forget that the infinite future lays ahead when they would also need to meet other commitments in life. Therefore, it is always wise to plan for your future now and here.
Story of Dave Ramsay
You must plan for your financial stability unusually early in life. In fact, you must think about it as soon as you are out of the hallowed portal of college! You can darned well see the example of Dave Ramsay who became the youngest brokers to enter the Graduate Realtors institute in Tennessee.
Nevertheless, with the Tax reform Act initiated in 1986, Dave’s financial support began to falter. Dealing in notes led him to bankruptcy. He was not left with any finance in hand, but he was not running low in spirits. He analysed his awkward plight and put his book out called Financial Peace to assist young Americans towards financial security. Dave Ramsay has been instrumental in preaching the tit-bits of financial investing via television and radio.
In a dilemma- mutual fund or 401k plan
Most young professionals are in a dilemma as to where and how to achieve financial security. Most people will encourage them for stock and mutual funds, but before that, he must line up his salary and budget. He must organize the budget such that it is not particularly tough but is still not extremely flexible. Employers will also provide you with 401k plan, which cpuld be a compelling choice because your employer will give you the idea that will fit your availability of funds, but yet again, you must know where your money is being invested. Do not use 401K plan in the emergencies, as it would cost you penalty taxes.
Mutual funds are exceptionally strong options for people who want to invest further on. For example, a young professional can invest in small rise with calculated risks or high growth with many risks. There is the multi-sector, short-term corporate and so on investment category.
Use the credit card judiciously
Many young professionals overused the credit cards and quickly caught up themselves in the dire financial situations. Use credit card with a responsible approach and do not be trapped in the marketing gimmicks of shopkeepers.
Attain information about investing
Try to understand the distinctive schemes yourself and keep your eyes and ears open to different financial schemes to save the hefty fees of the financial adviser or broker.
How To Lower Your Life Insurance Premiums
Life insurance is a valuable tool that can provide financial protection for your loved ones if you die. Getting life insurance if you’re over 50, though, can be a costly proposition. Because life insurance companies use age when determining coverage rates, you will likely pay more than a 20 year old would pay for the same amount of coverage. Fortunately, there are simple ways you can help keep your life insurance costs under control.
Opt for Term Life Insurance
Your agent may suggest that you purchase whole life insurance, which covers you for the rest of your life or until you reach the age of 100. Although whole life insurance might make sense if you are looking for a way to provide your children or spouse with an inheritance, it is typically quite expensive if you are over the age of 50.
You can opt instead for term life insurance, which covers you for a specified number of years. If you outlive the policy, it will not pay out. Because insurance companies have a lower risk of a claim payout with term life than on a whole life policy, the rates for term life are significantly lower. You can purchase the same amount of coverage for a fraction of the cost.
Typically, the shorter the term, the less you will pay for coverage. A 10-year term policy will cost less than a 30-year term policy.
Shop Around Before Buying a Policy
Not all insurance companies charge the same rates for life insurance coverage. The cost per thousand dollars of coverage can vary substantially among life insurance companies. By obtaining several quotes before choosing a life insurance policy, you can ensure that you are getting the coverage you need at the best price.
Internet-based quoting sites make shopping for life insurance rates a simple process. You can enter your personal and health information and obtain a quote within just a few minutes. Some quoting sites will provide you with rates from several insurance companies at once, making the process even faster and easier.
In some cases, you can even buy a life insurance policy online after you have found a policy that fits your coverage needs and budget. Some life insurance companies offer special rates for online buyers, which can help you save even more money.
Quit Smoking
Finding cheap life insurance if you’re over 50 can be challenging enough, but if you smoke, it can be even more difficult. Life insurance companies typically have separate rating tables for smokers and non-smokers. Smokers pay substantially more for the same coverage than non-smokers. You may have to remain smoke-free for a certain amount of time, usually one year, before you can qualify for non-smoker life insurance rates.
Pay Your Premiums Yearly
Coming up with a year’s worth of life insurance premiums can be challenging for some people, but if you can do it, you will likely reduce your life insurance costs. Although monthly installments are more convenient, most life insurance companies tack an installment fee onto each monthly payment. These fees can cost you a substantial amount of money over the life of the policy.
Although you might want to spend as little time as possible thinking about life insurance, the time and effort you put into these strategies can pay off in the form of more budget-friendly premiums.
Find the Right Life Insurance Policy
Life insurance is the same for all people throughout the world, it offers protection for your loved ones should you happen to die and leave behind debt that would financially hurt them. It can also replace you financially. Although you may not be there physically to be able to give advice or help in bringing up your family, you can ensure that enough money will be available to make certain your children will reach adulthood without suffering financially. The alternative is often destitution for many.
How Much to Put in Your Emergency Fund
MetLife, in a recently released study, concluded that nearly one in two Americans has less than $5,000 to tap into in the event of a major illness. What’s worse is that the same American will lose an average of $12,000 during the first year of a medical crisis. This includes having the necessary medical coverage.
“The MetLife studies found that many people are unprepared to cope with the toll of lost income as well the out-of-pocket medical expenses and other illness-related costs,” said Clea Barth, vice president, Critical illness Insurance Products, MetLife. “A critical illness can have a long-term impact – even three to five years after being diagnosed, 60% of people experiencing these serious medical situations are still incurring out-of-pocket expenses.”
I know a couple who lost two babies during child birth. Their health insurance didn’t cover the births/deaths 100%. So they were stuck with sizable bills—twice—for years afterwards. I can’t even begin to imagine the anger and sadness as a result.
According the rest of the article, we’re supposed to have Critical Illness Insurance (CII).
CII can complement existing medical coverage and other financial protection products by providing a lump sum payment to help offset the spike in out-of-pocket expenses resulting from certain critical illnesses, such as cancer, stroke, heart attack, major organ transplant, or kidney failure.
So, according to this study, we should have $12,000 at a minimum in savings. In my personal finance venture, I’m aiming to save at least 6 months of living expenses— thankfully quite a bit more than suggested here. And that’s 6 months of zero income.
I’m not sure the difference between CII and short/long term disability so I won’t comment here. But this may definitely be something worth looking at to supplement current savings. And yes, I realize the study was released by an insurance company.
Reference: Met Life Press Room