Think Insurance What you really care about insurance is here...

Personal car insurance and business car insurance are necessities in our daily life. Many differences align the two and the price varies as well. When it comes to personal and business car insurance, there are some distinct differences.

If you are not looking to increase your rates, you will first need to get the driving record of any applicant that applies to your business. This protects you as the owner. You do not want to hire someone for the position only to find out their driving record is less than perfect. In fact, you might not be able to add them on to your policy at all. Then, this employee you hired only becomes a drain on production. Unlike personal car insurance policies where you are only responsible for your household; business policies are more risk and the employees do not always have your best interest in their thoughts.

The flexibility of the business policy far outweighs the personal car insurance policy. This is because you have different circumstances that arise in business. A business usually deals with expensive items and carries certain items. During this time, they are responsible for it. If something happens, they have to pay up. This is business activity and not personal. A business policy is necessary.

Keeping track of gas and miles seems like a daunting task, however, it is a business necessity. It is very important that you distinguish which miles were used for personal use and which were used for business use. This helps on all fronts and is often tracked using a computer based model.

Keeping business use and personal use separate is always the recommended path. Most people find that their business use is very limited and do not see the reason why they should take out a separate business insurance policy. Although this may be logical, you need to make sure your bases are covered. This means that if you choose to use your personal car insurance policy for business use that is limited, you will need to inform your car insurance agent of this change so they can adjust your policy to cover it. They can find cause to deny your claim if you are found to be using your vehicle for business purposes that were not defined in your policy.

Realtors, Regional Directors and salesman all fall into the classification of often forgetting to note they use their car for business use. This is because some people have a road block do to the fact they do it every day. Any time a person drives to a meeting, property or a house or business for a potential sale, they are using their car for purposes that constitute business. This is the type that needs to be noted under a personal policy.

Never be challenged later down the road with not having adequate coverage or being denied a claim because you did not inform the insurance company of your situation. Talk to an agent and get the best deal. www.carinsurancesa.co.za

If you're in the management consulting business, you probably have clients that require you to carry some level of insurance. Maybe you run a small firm with a few employees, or maybe you're an independent freelancer. Either way, you might wonder if you'll ever actually use all that coverage.

If your client says it's necessary, you will need to obtain professional liability insurance if you want to secure the job. The good news is that getting the required insurance coverage can be both affordable and good for your business.

Typically, companies want their management consultants to carry some or all of the following three types of coverage:

General liability insurance

General liability insurance covers businesses in the event of an on-site injury or damage to company property. Management consultants often wonder whether they really need this type of coverage. After all, what's the likelihood that someone giving a presentation or attending a meeting will damage a client's property or hurt anyone? Is there really a risk of liability for management consultants?

The fact is, client companies often require all of their vendors who may come on-site - from electricians to delivery personnel to management consultants - to prove they carry general liability insurance. In some cases, the mandate comes from the client's investors, who seek to reduce the company's risk of financial losses from lawsuits. And of course, accidents do happen, so there is as much risk of liability for management consultants as for any other office visitor.

If you have your own management consulting office, general liability insurance will protect you in the event of an accident or injury on the premises. If a client visits your office on a rainy day and slips and falls in the entryway, your general liability insurance will cover any related medical or legal costs - and possibly save your client relationship. And that's one invaluable reason why insurance for management consultants is good for your business.

Professional liability insurance

Professional liability insurance, also known as errors and omissions or E&O insurance, is essentially malpractice insurance for management consultants. It covers you for errors and omissions that you or your employees make on the job. There's a simple reason that clients require E&O insurance for management consultants: They know that people make mistakes.

Your client's greatest risk in bringing you in as a management consultant is liability -- the fact that your mistakes could spark a lawsuit or financial loss. For example, let's say you have revamped a company's budgeting process, but made a critical miscalculation in the new system that results in big problems when the budget is reconciled with actual expenses later in the year. Your client can claim that any resulting financial loss is due to a management consultant error or omission, and will expect you to compensate the company.

Having professional liability or E&O insurance for management consultants is a good idea. Without it, you could end up paying exorbitant legal defense costs if your client makes a claim against you. A misunderstanding is often all it takes to be served with a lawsuit. Once a client alleges that you were negligent and communication breaks down, your legal expenses start to grow. E&O insurance gives you peace of mind that should things go wrong, you're covered.

Workers' compensation insurance

Some states require workers' compensation insurance, while others do not. If your client is based in a state that requires it, your management consulting firm will likely be asked to carry it, even if your own home state does not require it.

That's because, in some states, if you're injured while on the job, your client must cover you with its own workers' compensation policy. Also, in some states, your client's insurance carrier will require the client to cover all contractors that don't have their own proof of coverage. Both scenarios increase your clients' premiums, so they often require workers' comp insurance of management consultants as well as other contractors.

Workers' compensation insurance covers medical expenses as well as disability and compensation in the event of on-the-job injuries. If you're a solo practitioner with your own health insurance, workers' compensation insurance may not be necessary - but your client may still require it if you want to get the work.

If your management consulting business has employees, protecting them with workers' compensation insurance just makes good business sense. From carpal tunnel syndrome to a slippery bathroom floor, even the smallest on-the-job hazards could result in an injury that could take them off the job. Workers' compensation insurance ensures that your employees are taken care of and saves your company from paying for their ongoing care. www.businessinsurancenow.com/professional_liability.aspx

All building contractors working in North Carolina who carry either a NC general liability insurance policy or a NC workers compensation insurance policy, or both, probably know that these insurance policies are subject to an annual audit. What few contractors understand is that they have the power to stack the deck in their favor when it comes to that audit. And since some of the audit process is subjective, this can mean money in your pocket if you are a building contractor. Here are 5 tips that will put you on the road to more successful insurance audits.

Let me start by emphasizing that insurance auditors are people just like any other. If you grease the path for them and make their job easier, then they are much more likely to cut you some slack in the audit process and this can end up saving you a lot of money. So, what are those 5 tips?

Tip # 1 - Have Those Insurance Certificates Ready. I just can't preach this enough. Do not allow any subcontractors on to your job site until they have provided you with a current certificate of insurance. And more than that, be sure that the limits on their general liability insurance policy are at least equal to your own policy limits. And if you have a workers compensation policy, make sure that their certificate shows that they have one as well. Last of all, check the policy dates on the certificate to be sure that they are current and active. If any policies will run out while these subs are still on the job, make sure that you also obtain an updated certificate. Put copies of all of these certs in your audit file. If the auditor shows up at your office and you don't have your certs ready, he will charge you for the subcontractor payroll and leave it up to you to fix it later. And usually, fixing it later takes a lot more of your time.

Tip #2 - Take Some Time To Study Your Classifications. First of all, take the time with your agent to understand all of the classifications on your general liability insurance policy and your workers compensation insurance policy. Make sure that you understand the nuances of each class code and that your policy is set up accurately. If you are going to fudge the gray area between two similar classifications, understand that you might not get it past the auditor and you should have funds ready should you fail.

Tip #3 - Have The Audit Done and Ready To Hand Over. Once you have done your homework on your classifications, set up a spreadsheet to dump the payroll for each employee each week into the correct classification. You will want to keep a spreadsheet for both the workers compensation and the general liability policies. If you have done this correctly, you will be able to hand that spreadsheet over to the auditor and essentially all of the auditor's work is done. This is more likely to keep them from digging around in your books to find new problems to share with the underwriters that can cost you in increased premiums.

Tip #4 - Keep The Overtime Payroll Separate. The NC workers compensation insurance policy allows you to avoid paying premiums on the extra overtime pay. But, to keep from paying work comp rates on this payroll, you must have it segregated. I suggest that you add a column on the work comp spreadsheet that you are keeping to show the amount of payroll that is overtime bonus and deduct it from the total payroll for each classification.

Tip #5 - Always Schedule the Audit for Friday Afternoons. This one may sound a little goofy but it works. If the auditor shows up at your office on Friday afternoon, and you can put all the information in his hands with up to date spreadsheets and copies of all subcontractor certificates, then he is more likely to accept your figures and get on home for the weekend. The less time he spends digging around in your books and your operations, the less likely he is to find a surprise that the underwriter doesn't like which means higher insurance costs for you.

Most building contractors have a vague idea of when their audit is coming up and some even have a general idea of whether they should be expecting a refund or an additional premium due after the audit. But those that prepare carefully for the audit process, can turn it to their advantage to reduce their overall insurance costs and have their own cross check against the insurance company's audit report. Don't let the insurance company sweep you along; be actively engaged in the audit process by being prepared and proactive. In the long run, this will save you money on your insurance costs.

www.thecontractorshelper.com

Finding surety bond information is almost as hard as finding surety markets.

I want to contribute to the community by helping businesses as well as consumers to find easy to read surety information. Let's start with the basics, what is a surety bond?

A surety bond is a three part contract. The principal which is you, the obligee the entity requiring the bond, and the surety the one insuring the principal's obligations. A surety bond is in place to protect the obligee from what is drafted in the bond form. A bond can protect the obligee for payments, laws, contractual obligations and much more. Normally bonds are required to safeguard the public from dishonest acts by the principal.

Who needs bonds?

The majority of bonds that are required are for businesses that are highly regulated by the state or federal government such as a contractor, car dealer even mortgage brokers. These bonds are needed in order to obtain a license by the state. If the business cannot obtain bonding the state will not grant them their license.

What happens if you get a bond claim?

If you get a claim on your surety bond the surety will seek legal action to collect payment for the claim.

How to underwrite the bond.

Since you are applying for an unsecured loan. The surety will evaluate your credit, personal financials as well as your experience and business financials.

How much does the bond costs?

The cost is being different for each surety, bond type, state and credit rating. The cost for can be anywhere between 1% to 25% all depending on your scenario.
www.suretybondblog.com

I would like to write about some surety bond falsehoods that perk up their ugly heads from time to time.

Surety Bond Myth one:

I need two bonds, one for each state I am operating in. A broker told me that I could get a discount if I buy two bonds from them. This is not true what so ever, the surety would have more exposure and generally the rate can go up. When a broker tells you this they are probably charging a broker fee and are reducing the fee on the second bond. Now if the bond for the other state has a lower liability and the surety company has a lower filed rate it may be true. This is not the case 90% of the time.

A way to get a lower rate for your surety bond is if you buy your bond for multiple years than you would receive a discount for the additional years.

Surety Bond Myth two:

The bank told me that if I get a bond they would loan me the money The answer in 99% of the time is no. If a bank won't lend you the money you probably don't qualify for the loan. If you can't qualify for the loan you probably can't qualify for the surety bond. Now I am not telling you not to try to get a bond for a loan because you maybe one out of a million that may get it. The likely hood of getting it is slim to none. The surety a few years ago did do financial guarantee bonds, but the fall of Enron and a few other companies caused many sureties to go out of business. Since the fall of Enron surety companies have stopped securing loans.

Surety Bond Myth three:

The broker told me that they would not run credit. Unless it's a notary bond or maybe a defective title bond the surety is going to run credit. 99% of the time the surety will perform and review your credit. If you wanted a loan to extend credit from the bank wouldn't they run your credit? The same philosophy goes for the surety because they are extending a form of credit too.

Surety Bond Myth four:

I was told I can use this bond for every state. If you are referring to a state bond this is not true. Each state has their own bond form and surety bond regulations. If it is a for a federal bond like an ICC broker bond which is a federal bond then you could yes this for each state. Keep in mind just because you have a federal bond does not mean that the state does not require you to have a bond too.

Surety bond Myth five:

If I just get the bond the government will give me my license. The government will not let you get your license until you get the bond, but that does not mean that they will give you your license. You still must meet all of the obligee's requirements first. That includes a bond and other requirements such as zoning, background checks and sometimes educational requirements. www.integritybonds.com/surety-bond.html