Do You Need Key Person Insurance?
There’s an old saying, “No-one is indispensable”. In theory, it does not matter who you are or what work you do, you can always be edged out or replaced. This even applies to the hardworking owner. As and when retirement beckons and the business is put up for sale, a buyer can come in and continue as if nothing had changed. It’s all a matter of specific skills and personality. If people are comfortable around you and you drive the business forward, you are the key person for now. Ask anyone and their immediate reaction may well be that “you” are the business. They will shake their heads and worry what would happen if you should leave. But businesses cannot be run on this basis. There should always be a plan to ensure the business can keep going if a key person suddenly disappears. Insurance is the first step, providing a buffer against any loss in revenue and covering the cost of finding a replacement. The second issue is passing on the key person’s knowledge and experience. Business continuity depends on the organization being adaptable enough to survive. This requires the training of people to take over key functions. At first, it may be sufficient simply to cover during the key person’s holidays and days of leave. But the long-term aim should be for the organization to learn all the necessary skills for continuity.
The cost of insuring a key person varies significantly from hundreds to thousands a year. It depends on a number of variables including age, state of health and the responsibilities within the organization. Young and healthy people cost less to insure when the business is starting up. Mature businesses depending on older members of staff will find the premiums significantly higher. The insurance itself is a variation of term life insurance. So, for whatever period of time is set, the insurance company will pay out if the key person is no longer available through accident, injury, disease or death. One of the most common reasons for this type of insurance is during a funding exercise. Banks, venture capitalists and other lenders often make a loan conditional on adequate insurance being put in place. This is routine in start-ups where the funding is for the people rather than the business. If one of the company promoters does die, the death benefits usually go to the lenders, repaying some or all of the capital invested. This allows the survivors to continue the business with their own investment protected.
When it comes to business insurance, it’s not the time to be sentimental or optimistic. People do get into accidents, fall ill or die. That’s life and you have to plan how the business is going to survive and recover from the loss of a key person. Blindly hoping no-one gets sick is not a good strategy. Business insurance and training must go hand-in-hand to prepare against all the worst-case scenarios you can foresee. That way, you can keep the premiums ticking over and capture as much of the key person’s expertise before the worst happens.
How Much Car Insurance Coverage Do You Need in Alaska State?
More and more people are dropping their insurance in order to reduce their expenses. Though car insurance is expensive, it is necessary because it prevent you from having to pay for all the expenses in a car accident. According to a study conducted by the Insurance Research Council (IRC), there is approximately 17% of people that are uninsured. Everyday, there are a lot of cars traveling on the highway so it is not safe to be uninsured.
Most people only want to meet the minimum car insurance requirement. If you only want to meet the minimum requirement, you will not get the full protection. If you want to make sure that you will be covered fully, you should buy more than the minimum coverage. The liability insurance is necessary in the state of Alaska. You will have to buy bodily liability insurance for one person, bodily liability insurance for multiple persons and property damage liability for one accident.
The minimum amount of car insurance coverage is determined by the state department. You should buy at least $50,000 of bodily injury insurance coverage for per person. For coverage per accident, the insurance must worth at least $100,000. You must buy $25,000 of property damage insurance for per accident. The property damage refers to damage that is done to the car and property. Alaska does not require the drivers to possess the PIP (Personal Injury Protection) insurance and uninsured/underinsured motorist coverage.
You should purchase higher limits of car insurance. In this way, if you are responsible for causing the accident, you don’t have to pay for their medical costs. If you only buy the minimum liability coverage, the insurance will not be enough to cover the medical expenses. The medical expenses can be expensive and cause you to become bankrupt. If you don’t have many personal assets, you can buy the minimum insurance coverage.
Before buying an insurance coverage, you must read the insurance policy. If you don’t read the insurance policy, you will end up purchasing the wrong insurance plan. Besides buying the liability insurance, you can buy the uninsured/underinsured motorist coverage. Even if you have a full medical coverage, purchasing the uninsured/underinsured motorist coverage can help to pay for your injury costs. The uninsured/underinsured motorist coverage will pay for your damages if you are being hit by someone that is not covered. The mechanical breakdown insurance can be purchased to if you own a leased car or a car that is still being financed by you.
Car Insurance New York – What You Need To Know
Having a good car insurance policy protects you where it matters: legal responsibility during a collision and against losses, physical or financial, during a nasty accident. Some states demand that owners carry transport insurance policies, which could vary from policy to policy.
New York City car insurance policies usually carry a Bodily Harm Liability clause to the amount of $25,000 to $50,000 per person, in addition to the legal responsibility on Property Damages Legal that can cost about $10,000 per person, usually referred to as the ten/fifty/twenty five insurance plan. New York City residents are also required to carry an insurance plan called the Individual Injury Protection that can cost at least $50,000, in addition to the Underinsured/Uninsured Motorist protection plan which can cost between $25,000 to $50,000 per individual/incident.
New York Insurance Plans
New York car insurance plans usually carries a “no-fault” condition, meaning the insurance plan will cover any claims of up to a certain specified limit regardless of who is at fault at the time of the incident. The State of New York also requires residents to carry liability insurance for any registered automobiles, even if the car just sits in the garage and is not used. This spare car also needs to be registered under the name of the same owner and driver. Also, New York residents are required to file their insurance policies with the Department of Motor Vehicles.
Carry Proof of Insurance at all Times
The state also requires drivers to not only maintain their car registration but carry their proof of insurance with them at all times. If the car owner is stopped by police, he may be required to show proof of this coverage especially during an accident. He is also required to exchange insurance information with the other party involved in the accident.
The state of New York automatically suspends the license and registration of car owners with lapsed insurance coverage. If a driver figures in an accident and he is not insured, he might lose his license for a year and more. If the car is uninsured, the owner will still be held liable, even if another person is at the wheel when the incident occurred. The state of New York also requires drivers with lapsed insurance policies to surrender their license plates, regardless of whether the lapse is intentional or accidental.
In most states, individuals usually pay a minimum amount for their insurance plans but they can opt to pay for a higher valued coverage. New York Auto Insurance usually provides car owners with minimal protection deals that come with emphasis on safety coverage. Most car insurance assists customers in customizing their insurance coverage protection plans based on individual needs and financial assets.
Buy New York Car Insurance
If you’re looking to buy an auto insurance coverage plan, first determine how the deductible, the usual amount you spend before the coverage kicks in, works. Deductibles usually vary — the higher the deductible amount, the lower the insurance payment. You can also choose to pay the insurance policy on either a monthly, quarterly, or yearly payment plan. Though the coverage may seem costly at first glance, the penalties and fines the state could slap you with for driving without an insurance, or allowing another driver to drive your uninsured vehicle, will cost more in terms of money and headaches than you’re willing to pay for a good insurance policy.
When choosing a good New York City car insurance policy, make a habit of comparing prices by calling on several Auto Insurance companies before making a decision. Auto insurance in New York is not cheap. It has gone up from $1,800 to $2,400 in 2009. Though other states do not require a set auto insurance coverage, it is different in New York City. So, better get the protection you need with the auto insurance plan you can customize to fit your budget.
Why do You Need to Insure Your Business?
When people are starting new business insurance seems to be overlooked quite often. For many new entrepreneurs it doesn’t seem as an important element of risk management and the costs involved with insuring a business seem to be too high for the new business to take upon. However, fact is that insuring a business is very important especially for an enterprise that’s just starting out and is more vulnerable to sudden risk exposures than a business that has been a while on the market and is able to adjust to the situation.
Why do you need to insure your business?
Insuring a business is not a legal requirement such as auto insurance, but the common sense dictates the necessity of doing so these days. A typical business insurance policy will cover the operational costs, business assets and the business owner against various forms of liability and losses due to unforeseen events such as natural disasters. In case the business is exposed to an exceptional even such as fire in the working space or severe damage of facilities due to windstorm the losses that eventually occur are covered by the insurance policy. Employees are also protected by this form of insurance and any liability towards them is also included. In fact business insurance is a great risk management tool that can protect your enterprise in situations that otherwise can ruin your endeavor for good. Here are some of the things a typical insurance policy will cover:
- Natural disasters
- Fire – Equipment failure that leads to operation halt
- Loss of income due to employee malpractice
- Legal action against the business
- Man-made circumstances that affect the business
- Consumer issues or problems
Most insurance policies will cover the substantial part or the entire cost of loss arisen due to the circumstances mentioned above. And most small business owners know that even such things as fire and flood can be devastating for a small enterprise that doesn’t have the assets to cover the loss. The need for insurance in small enterprises Today it is very important for a small business to have adequate insurance. The smaller the enterprise is the higher risk of substantial failure due to various risks it has. Bigger enterprises usually have emergency funds to cover exceptional situation, but they are still using business insurance for risk management. Just imagine that your whole life’s efforts will be destroyed by a simple flood or circuitry problem and you won’t be able to keep the business alive anymore. Moreover, most banks and lending institutions require small business insurance for securing loans and long term credits. No one wants to risk working with a business that can go down suddenly due to an unforeseen event. Keep these things in mind when considering insurance for your business. There’s no excuse in leaving your enterprise without proper coverage if you really care about your efforts. What’s the point in spending time, energy and money on a business that you won’t be willing to insure in the future? Is it worth it?