Business Insurance | Blog

2020 has been bad. But not the worst.

Posted on August 14, 2020July 6, 2020 by Victor Varma

Let’s hope that no one looks back at 2020 and thinks: Those were the good old days. That implies there are going to be worse days.
Still, as bad as 2020 has been, there were countless really bad years in recorded history. There have been so many bad years, how do we really choose? If we choose death as a yardstick, we really should narrow that down. Do you want death by war, disease, bad policy, starvation, drought, or what? Or maybe we choose sheer brutality. Tons of choices there. Or, how about choices that seemed okay at the time, but had long-lasting terrible ramifications? Maybe, natural disasters?
Here are four really bad years plucked out of history for their general awfulness:

Disease and Natural Disaster Award: 1300s. In 1315, Europe’s warm period of prosperity ended with a bang. Possibly because of volcanic activity, winters became brutal and summers cold and rainy. Crops failed. About 80 percent of animals died of infections. Famine took hold. Life expectancy was about 29 years. Cannibalism, infanticide, and mass starvation were characteristics of a 60-year period in that century. As for disease, 1348 was a banner year. The terrifying black death visited not just on struggling Europe, but also the world. In 18 months, up to 200 million people worldwide died. Bodies were unburied in the streets where animals tore them apart. Survivors lived in fear, stench, and desperation with no understanding of the Plague and no way to fight it.
Political Chaos, Disease, Social Unrest Award: 1919. In the economy, inflation and unemployment skyrocketed after World War I. Influenza killed 500,000 Americans. The bloody summer of 1919 was filled with race riots, with 500 wounded and 38 dead in five days of violence in Chicago. Across the country, 76 black Americans were lynched. A million workers went on strike, affecting the steel and coal industries, and even the Boston police force. Bombs were mailed to federal officials and fear gripped the nation.
Dashing of Hope Award: 1968. Mass demonstrations for civil rights both buoyed and frightened Americans. A sense of positive change was in the air. But the worst moments were yet to come: The assassinations of Martin Luther King, Jr., and Robert Kennedy. The riots at the Democratic National Convention in August shook the nation.
Cruelty Award: 1943. In Germany, systematic deportation of Jews to extermination camps was well underway. Everyone knew about it. No one stopped it. In the U.S., 240 instances of interracial battles in cities and military bases terrorized communities. But, according to historian Matt Delmont, public awareness of atrocities did not prevent them from continuing.

Insurance can cover costs associated with rioting

Posted on August 7, 2020July 6, 2020 by Victor Varma

It’s a scenario that has happened all over the country.
The owner of a small restaurant or boutique just gets the store ready after the long coronavirus quarantine and then, a riot. Windows smashed. Building vandalized. The entire inventory ransacked and stolen.
Were they finished for good?
For the insured, there was good news in May and June and for those whose enterprises were not hit, there were lessons learned.

Business Insurance
A standard Business Owners Policy typically covers fire, riots, civil commotion or vandalism. Plate glass insurance can be purchased separately. The key is whether the insurance was sufficient to cover all losses, including inventory and equipment. According to the Insurance Information Institute, some small business owners, cutting costs after the virus quarantine left them without income, may have discontinued insurance policies.

Income Interruption Insurance
Business Interruption Insurance pays for loss of income when businesses are forced to close because of rioting or some physical damage to the premises. However, according to the Institute, only about 40 percent of small businesses have this coverage.
Businesses have to document their income and expected loss from the looting. If a business was closed due to the virus outbreak, and then was looted, most insurers will assess the loss based on a 12-month income picture, according to the Claims Journal.

Outlook for Business Insurance
Property losses were still ongoing, but with rioting taking its toll on cities across the country, insurers were estimating losses to be the biggest in U.S. history, the Claims Journal reported in June.
For the insurance industry, the timing of the riots is especially difficult since the Atlantic hurricane season began in June. Hurricane and flood claims are extremely high.
Most observers expected insurance premiums to rise overall while the industry limits coverage. Insurers are likely to stop writing policies that cover looting and rioting.

Do I Need Commercial Insurance?

Posted on July 31, 2020July 31, 2020 by agentinsure

InsureUS offers commercial insurance in Cypress, TX. Most business owners find that they need some type of commercial insurance. Like personal insurance, there are a wide range of types of commercial insurance and coverage options.

Business Property Insurance

If you own a physical business, including a retail store, manufacturing center, or office, you’ll need commercial property insurance. Business property insurance ensures the property itself against damage including fire and vandalism. It covers the structure and your business inventory and equipment.

Business Liability

Most businesses need some form of liability insurance. If you own a physical business, you’ll need liability in case someone is injured on your property. Many businesses choose liability in case their products or service fail and cause expenses to the customer.

Business Income

If you are temporarily unable to operate, you’ll experience a loss of income. Business income covers many situations where you can’t generate income. Many expenses remain when you can’t operate, like lease costs. Business income insurance can help keep you afloat while you ride out the storm.

Workers Compensation

If you have employees, you’ll need worker’s compensation insurance. It’s not a legal requirement in Texas, making it the only state in America that doesn’t require worker’s compensation for some businesses. However, worker’s compensation is still a smart idea. If someone gets injured on the job, worker’s compensation will cover their lost wages and medical bills. Without it, you would be liable for those expenses.

InsureUS knows that you’ve worked hard to make your business successful. Unforeseen disasters of all types can spell the end of your business if you aren’t properly prepared and insured. If you live in Cypress, TX, let us help you protect your business with the right insurance policies for your needs.

On The Road With Your Business

Posted on July 18, 2019July 18, 2019 by agentinsure

From ride sharing to delivering food and goods, transportation-based businesses have seen a surge in popularity around Cypress, TX. Putting your personal vehicle to run your own business can be a smart choice to earn income in an ever-changing convenience service industry. InsureUS knows one of the most important considerations to make when you start such a business is auto insurance coverage.

Even if your personal vehicle already has insurance, that policy is likely not adequate for commercial use. In fact, accidents that occur while you are using the vehicle for business might not be covered at all by your personal use policy. So, how can you decide if you need a commercial auto insurance policy?

Personal VS Business Usage

A vehicle is considered to be used commercially when a business requires it in order to maintain normal operations and/or it is used over 500 miles per week. How you use your vehicle also matters in determining if it is mostly personal or commercial.

Commercial Examples – Regularly visiting clients or business properties, Hauling equipment to work sites, Delivering goods or paying customers, Selling goods or services out of the vehicle (i.e. a food truck or traveling cleaning service)
Personal Examples – Regular commutes to work, Taking non-work trips with coworkers, Picking up lunch, Business use less than 3 times per month

Unique Opportunities, And Dangers

Using your vehicle to generate income can be exciting, but it can generate problems, too. Your vehicle will likely deteriorate in condition faster and is far more likely to encounter dangerous weather and accidents. These situations are just some reasons why commercial auto insurance offers special coverage for business vehicles.

Whether you’re using your personal vehicle to run your business or own a whole fleet of work cars and trucks, InsureUS encourages all of our Cypress, TX customers to reach out and discuss commercial auto insurance with us today.

Legal issues crucial when forming small business

Posted on March 19, 2019February 6, 2019 by Victor Varma

Entrepreneurs are busy people. They’ve got a ton of things on their mind from marketing and advertising to customer service and phones forever ringing to business appointments — and more.
Unfortunately, legal and technical issues have to be attended to at the same time.
According to Entrepreneur magazine, small businesses need to take some basic steps as they grow.

Set up the proper business structure. There are sole proprietorships, LLCs, S corporations, C corps, and partnerships. Choosing the correct one means learning the advantages and disadvantages of each. For example, as a sole proprietor, the business owner and the business are considered as one in the legal system. If your company is sued, all your personal assets are at risk. Corporate structures and LLCs offer protection of personal assets, although this protection isn’t a guarantee. Talk to a lawyer and accountant about the structure you need.
Set up and follow customer service policies. When you access company websites, especially those that provide services of some sort, you’ll usually see a Terms and Conditions agreement. Included in this agreement are all the specifics for the use of your products or services and the customer’s obligations in that use. If you do not have this policy in writing and a box for a customer to check before a purchase, you are wide open to inclusion in a lawsuit should that customer become a defendant.
Set up accounting and tax systems. Is your business subject to sales/VAT taxes? When must you file your business income tax returns? Do you need to make quarterly payments? Business tax laws are complex. You need a good business accountant–or at the very least, proven accounting software–to keep accurate records and file your taxes on time.
Obtain appropriate and complete contracts with outside vendors. When you use the services of or purchase raw materials from someone outside of your business, demand iron-clad contracts. Never agree to anything with a contractor without a legally-binding agreement with the terms and language set out clearly and properly.
Get the proper documentation on employees. At minimum, before hiring, document and verify past employment. After hiring, document work hours, complaints, responsibilities and attendance issues such as sick days, personal days off, and vacation.
Be sure to specify, in writing, work expectations – including whether work can be done remotely.

The no-spend challenge
A financial writer set out to spend no extra money for a year.
Michelle McGagh and her husband vowed to pay bills, but not to buy coffee, clothes, or a beer at a pub. They didn’t eat out or even buy gas. Instead she rode her bike everywhere all the time. She spent only $35 on food every week, so she had to plan cheap meals.
What happened? At the end of one year she saved $23,000.
She admits the effort was not easy. She missed having face cream and fresh flowers. She missed socializing with friends at a pub. And they missed her.
On the other hand, she also found new ways to have fun for free and she realized how much money she frittered away. McGagh wrote about her extreme challenge in her book, “The No Spend Year: How you can spend less and live more.”
McGagh’s challenge was extreme–but what if you could spend nothing extra for just one month. Could you save money? Definitely.
According to Bankrate.com, the first thing to do is decide why. It could be to pay off a big bill that is coming or pad your savings account, but the goal should mean something to you.
Next steps:

Eliminate any optional expense that comes out of your checking account such as subscriptions. They will take your money next month.
Eliminate luxuries and start thinking of some things as luxuries. For example, cable TV. You could get rid of Netflix for $10 a month or cable for $120, or both.
Make a barebones food plan and stick to it. No prepared foods. Make your own cookies. This is nearly its own challenge. Can you spend $100 a week or less on food?
Cellphone: No extra overages or get rid of the plan, if you can.
No restaurants or pubs. Plan some things to do that are free.
Then count your cash at the end of the month!

Starting a family business has unique problems

Posted on March 8, 2019February 6, 2019 by Victor Varma

Starting a business with a spouse, parents, siblings, children or other family members is not like the typical startup.
According to the Family Firm Institute, family-owned businesses comprise two-thirds of the companies worldwide. However, only 30 percent endure into a second generation, 12 percent to a third, and 3 percent to a fourth.
The typical snare of a family business is putting too much weight on family and not enough on business. Rarely are the qualities of a healthy business entirely compatible with family harmony. When the business is going well, there will be jealousy. When it is going badly, there will be blame.
The earliest stages of a family business are the most ominous. Family members can join the promise of a new venture without clear definitions of their roles, duties, compensation–and, should they become problematic, exit arrangements.
To avoid miscommunication and hard feelings in the future, advises StartupNation.com, always put family business relationships in writing.
While various family members may qualify for similar duties, they must be divided up to avoid conflicts. Significant decisions can be reached together, but disputes over minor procedures impede the overall progress of the business.
The dominant structure of a thriving family business is having one person serve as the ultimate leader of the endeavor. When this leader is resilient and competent, he or she can persevere, stay focused, and proceed with their responsibilities and intentions despite the obstacles and challenges.
These capabilities are especially essential in a family business where professional and personal issues frequently become intertwined.
Leaders of strong family-owned businesses know that setting boundaries among participating family members is critical to continuing success. Precise methods of communication must be installed.
Since business quandaries and differences of opinion are inevitable, consider weekly meetings to assess current progress and plans, air differences, and resolve disputes. Moreover, keep family issues out of the boardroom and office.
Keeping pace with the times is vital to any business, more certainly those with multigenerational roots. Regardless of age, family members must continuously evolve and deliver or risk alienating both employees and customers.
Furthermore, so-called sympathy jobs should not be open as a last resort to children, cousins, or other family members for any reason. Employment must be based on the experience, knowledge, or skills a family business demands.
For leadership and staff positions the business demands, look outside for the qualities family members do not possess.

Sometimes injury numbers don’t tell the story

Posted on November 30, 2018October 10, 2018 by Victor Varma

Organizations with low numbers of on-the-job injuries can be proud of their record.

But number of injuries alone doesn’t tell the whole story.

Safety expert Don Groover, writing in Safety and Health Magazine, points out that, in dangerous situations, luck plays a part.

Groover gives this example: An observer stands below a worker on a high platform. The worker is using a hammer. The hammer falls and misses the observer. There are zero injuries on the job that day but, the fact is, the observer was lucky, not safe. The exposure to danger was still there.

The key is creating a work environment and a safety culture that recognizes exposure, not just injury.

In that example, you could say that the workers were in error, either because of the way the hammer was used or because of the position of the observer. While that might be true, Groover points out that the pool of exposure points is more important.

“A focus on exposures is a radical departure from a focus on hazards or unsafe actions,” Groover writes.

The key is focusing on the factors that cause vulnerability to dangerous situations before the injuries occur or, with luck, don’t occur.

“When a person is exposed, the outcome is out of their control,” Groover says. They could have good luck — or bad.

The significance of safety exposures becomes clearer when seen over time.

Groover gives the example of a worker who climbs on a unit to install a strap on a shipping container. When he steps back, he stumbles and falls five feet. He is uninjured.

He is lucky, and the company has zero injuries but their exposure, when considered across the system, is huge: An employee climbs up twice for each unit loaded. About 25,000 units are loaded per day, equaling 50,000 exposures per day or 18 million exposures per year.

Given this immense number of possible falls, relying on perfect execution each time from employees reveals a much bigger risk than merely calculating injuries per day.

Can I use my home insurance for my home business?

Posted on July 16, 2018July 13, 2018 by agentinsure

Especially with how easy and inexpensive it is to have access to equipment like printers and copiers now, many small business owners in Cypress, TX are choosing to operate from home in order to save money. A lot of them assume that the homeowner’s policy will cover whatever happens in the home, but unfortunately a lot of the time this will probably not true. A policy that you obtain through InsureUS or another insurance company will have limitations and exceptions, and most policies have rules about how the property will be used. This makes sense because different kinds of ventures carry different kinds of risks, and insurance is about risk assessment.

If you have a physical office space, you may want to talk about property and liability insurance. Some of the most important things to protect are your equipment and records, and you may have some expensive electronics that allow you to work from home. These may include computers, furniture, and other items specifically for your home office.

Liability insurance is also important. If clients come to your home business in Cypress, TX, they could fall and become injured on your property, or become injured in another way. Also, if you are making a product or providing a professional service, you want to be protected from liability if someone becomes injured using your product or taking your professional advice.

The good news is that you may be able to offset some of the costs by claiming them as business expenses. If you have a home business or are thinking about setting one up, call InsureUS today so we can help protect you,

How small businesses can use the gig economy to grow

Posted on May 11, 2018April 6, 2018 by Victor Varma

About one in three workers in America are currently freelancing and this growing gig economy allows small businesses to grow more efficiently by hiring specialists quickly and cheaply, according to Small Business Trends.

An estimated 40 percent of those who work in the gig economy are engaged by small businesses, and those same freelancers are more likely to consider working full time for a smaller company than a larger one in the future.

Many entrepreneurs start their businesses with a small budget and limited access to human capital. It just isn’t feasible to hire full-time experts to provide the skills needed to build things like online infrastructure, branding material, or a social media presence. In these cases, a small business can turn to a freelancer that specializes in these specific tasks but often charges less than an established firm in the industry because they have less overhead and more flexibility with their time, according to CNet. Online services such as UpWork, Fiverr, and Freelancer.com allow business owners to connect with freelancers quickly and provide a secure way to track activity.

When searching for a freelance worker to complete a project, such as building a website for your small business, the ability to search among many talented individuals across a variety of factors will allow you to find the perfect match for your situation. Narrow the field by focusing on individuals that have a solidly reviewed track record with a particular kind of project and offer a portfolio of work. From there, sort out whether they prefer to be paid by the hour or completed project and find someone who meets your budget. Once you find a freelancer, there will always be a contract employee on call to help your business grow.

Do You Have Adequate Commercial Coverage if An Employee Gets into an Auto Accident While Working?

Posted on March 28, 2018April 1, 2018 by agentinsure

Business owners in Cypress, TX may not be aware of the complexities that are involved in commercial and company auto insurance policies that provide coverage to employees if they get into an accident on company time. Even if they are driving their own car, if an employee is involved in a car accident while performing company business, the firm can be held liable for any damages or injuries that are caused. InsureUS is here to help our customers in the greater Cypress, TX area get the comprehensive insurance that they need to protect their business interests.

If, for example, your secretary goes to the bank to make a company deposit in her own vehicle, the company can still be held responsible in the event of an accident. The insurance policy of the involved vehicle will take the primary position, and if the policy is not adequate to cover the costs of the accident, the business’ insurance will be next in line to pay.

Also, it is important to add all employees to the employer’s auto policy, for both company-owned vehicles, leased vehicles, and any auto that is rented for use in company business. These simple and straightforward steps can safeguard the financial health of your company in the event of an unforeseen accident. Does this all sound complicated? It doesn’t have to be! The professional and highly-trained staff and agents at InsureUS are here to help!

If you are a business owner in the greater Cypress area and have questions about your commercial insurance, stop by and see us! Our helpful and knowledgeable agents can help to ensure that you have all of the commercial and vehicle coverage that you need to protect your company.