How To Avoid Six Situations That Can Destroy A Business

Posted on August 21, 2018 by Owen Rosen

1. “I KNOW WHAT MY BUSINESS IS WORTH”
•Have you ever had your company value appraised by an outside resource?
•Has that appraisal been done within the last three years?
•Do you have a Buy/Sell agreement? •Is it funded?
•Has it been reviewed within the last three years?
•Do you know where your Buy/Sell agreement is kept?

2. “I’M TOO BUSY RUNNING THE COMPANY”
•Do you have a will? •A trust?
•Is it up to date?
•Do you have a plan to retain key employees if something happens to?
•Has your Trust & Estate Plan been reviewed in the last three years?
•Have you identified and written down your trusted advisors?

3. “THAT’LL NEVER HAPPEN TO ME”
•Do you have a succession plan in place?
•Have you involved both key employees and family members in your succession planning?
•Does your succession plan have a provision for disability?
•Have you identified or written down who you want to run the company?
•Do you have disability buy-sell overhead expense coverage?

4. “THERE’S PLENTY OF TIME FOR THAT”
•Do you know when you want to retire? •How much income will you need?
•Do you want to be running the company full-time, five years from today?
•Do you know how much control in the business you must maintain in order to secure your retirement income?
•Have you explored financing opportunities for key employees to buy the company in the future?

5. “MY BUSINESS IS MY RETIREMENT”
•Do you have a retirement vehicle other than your business?
•Is 25% or less of your business assets a part of your retirement plan?
•Will your retirement funding come from more than four sources?
•Have you had your retirement income projected/analyzed to identify shortfalls?
•In the past year, have you spent more than one hour planning for retirement?

6. “YOU CAN’T BEAT UNCLE SAM”
•Do you have a TEAM of financial advisors working with you?
•Are you proactively planning to deal with changes in the tax laws?
•Will any sources of your retirement income be received tax free?

Questions? Concerns? Call Owen Rosen at (248) 682-7445 today or email owen@philkleininsurance.com

How Commercial Insurance Can Protect from Legal Costs in West Bloomfield, MI

Posted on July 31, 2018August 2, 2018 by agentinsure

If someone is hurt, injured, or experiences property damage while in your business, you could be financially responsible. The same goes for any issues involved while you perform work outside the business location. You worked hard to build your business, don’t let one court case threaten your assets. Business liability insurance is the answer, and your Phil Klein Insurance Group agent can help ensure your West Bloomfield, MI business has the right coverage. Meanwhile, here’s some basic information about a commercial policy.

How Does it Work?

Liability insurance protects you if someone sues your business. Make sure your coverage is enough to cover the risk for your particular type of business. If you are performing a business service, such as drywalling someone’s home, and you accidentally damage expensive flooring, your business insurance pays for the damages provided it’s an insured event.

Business liability covers legal and court costs, as well as judgments found against you. Protect yourself and your customers from liability and accidents that could occur at any time.

Other Business Insurance

You can also get coverage specific to the risks associated with your type of business. Every business can benefit from insurance for property damage, medical costs, bodily injury, and other insurance coverage like loss due to bodily injury, defending attorneys, property damage, libel, slander, and others.

What Coverage is Right for You?

If you manufacture, distribute, or retail a product, consider product liability for protection against a defective product that causes bodily harm. CPAs and doctors need professional liability insurance to cover errors and omissions that arise in the normal course of business. If you have a steady stream of customers, you have a successful business, but that means you need to have adequate coverage against injuries and property damages that occur during business.

Contact your Phil Klein Insurance Group agent in West Bloomfield, MI today to set up an appointment for a quote on commercial coverage and other insurance policies today.

The Ins and Outs of General Liability Coverage: What’s Covered – And What’s Not

Posted on June 14, 2018 by Owen Rosen

As a small business owner, you have a lot on your plate. From accounting, to marketing and sales, to product development and inventory — the to-do list can seem never ending. That’s why it’s no surprise that details like liability insurance can so easily slip through the cracks, leaving your business financially vulnerable.

Unfortunately, nearly anyone your business interacts with can make claims against you. And without the right insurance protection, these claims could cripple your operation.

What General Liability Insurance Covers

General liability (GL) coverage can be part of a standalone policy or can be part of a business owner’s policy (BOP). This coverage safeguards your business’ finances and reputation in the event a customer or third party takes legal action against you or your employees.

The following are types of claims covered by a GL policy:

Bodily injury: If a third party is injured at your place of business (or as a result of work performed away from your business), your GL policy would cover costs, including medical expenses, lost wages, and any court-awarded compensation or out-of-court settlements.

Property: If your business’s actions result in damage to someone else’s property, your GL policy will cover costs to repair the damage. This applies to real estate, equipment, and supplies, as well as compensation for loss of use during the time it takes for the damaged property to be repaired or replaced.

Personal and advertising injury: If your business causes nonphysical damage to a third party through advertising tactics or other activities, your GL policy will cover these damages. However, coverage does not apply if your business intentionally makes a false statement knowing it will cause harm.

Additionally, if a lawsuit is filed against your business for a covered loss, your GL policy will also cover the legal costs to defend you in addition to your policy limits, including attorney fees and court costs.

GL coverage safeguards your business’s finances and reputation in the event a customer or third party takes legal action against you or your employees.

What General Liability Insurance Doesn’t Cover

GL coverage does have limits — both in dollar amounts and types of situations covered. This depends on a number of factors, including your specific industry and your business’s exposure to visitors and clients.

However, there are a few limits that apply to businesses across the board. GL does not cover the following types of damages:

Workplace injuries: GL normally doesn’t cover workplace injuries to employees. Instead, you’ll need workers compensation coverage, which is legally required by most states.

Damage to your own property: GL covers damages to other parties’ property, but it doesn’t cover your business’s property. Instead, you’ll need a business owner’s, inland marine, or commercial property policy.
Intentional damage: Damage done purposefully or maliciously is not covered under a GL policy.

Damage to client property in your care: GL does not cover damage to a customer’s property while it is in your care. Inland marine and other property coverages can provide this type of protection.

Professional mistakes: Mistakes resulting in a loss aren’t covered by GL. For instance, if your business misprints 10,000 books, general liability coverage won’t reimburse you for the cost of reprints. However, many insurers offer separate policies for businesses that require professional liability protection.

Damage to vehicles: This protection requires a commercial auto policy.

While general liability insurance won’t cover every incident and expense your business might face, it can protect your business from claims brought against you by third parties — and it’s a relatively inexpensive way to create peace of mind.