Why A Growing Business Needs To Look Into Key Person Insurance

In a small, thriving business, the death of a key employee could cause the business to collapse. It could be an owner, a founder, a key salesperson, or any other important player. Life is full of uncertainties, but key person insurance helps protect your business should the unexpected happen.

How Key Person Insurance Works

Key person insurance is life insurance on a key person in the business. The business pays the premiums and the business–not the deceased person’s family–is the beneficiary under the policy. If the insured key person dies unexpectedly, the business receives the payoff. The purpose of this coverage is to help the business survive the loss of a key person who is critical to the success of the enterprise.

Key person insurance can help a growing business avoid bankruptcy should a tragedy occur. The company can use the proceeds from the insurance policy to:

Cover expenses until a replacement can be found for the deceased key person
Help the business get back up to speed

Or, if necessary, it can be used to:

Pay off company debts
Distribute funds to investors
Pay severance to employees
Close the business down in an orderly manner

Does Your Business Need Key Person Insurance?

Most large businesses have a number of experienced executives and employees who can take up the slack when a key person is lost to unexpected death. On the other hand, most small to medium growing businesses rely on a few key individuals to make things work. In many small businesses, the founder is an irreplaceable key person who holds it all together, and without whom business would come to a stop.

To determine if you need key person insurance, take a good look at your business. Does it have certain irreplaceable key people whose contributions are crucial to its success? Without those key people, would the business likely collapse? If so, it would be wise to consider purchasing key person insurance.

How Much Key Person Coverage Does Your Business Need?

The amount of key person insurance to purchase for your business will be determined by balancing the financial needs of your company against the amount of the premiums. As with any other life insurance policy, the greater the face amount, the higher the premiums. Term policies typically have lower premiums than whole or variable life insurance policies.

To gauge the amount of key person insurance to purchase, consider how much it would take for the business to survive until the key person could be replaced and get back on its feet. As a general guideline, buy as much key person insurance as your business can afford.

Shop Around for Key Person Insurance

It pays to shop around for a key person insurance policy. Compare quotes on different policies ranging from $100,000 to $1 million. Our knowledgeable agency can help you find a key person insurance policy that will fit your budget and address the short-term cash needs of your business should the unexpected death of a key person occur.

Will Your Auto Insurance Cover Your Passengers?

Although no road trip can be completely risk-free, driver diligence can help prevent accidents. As the driver, there are steps you can take to help ensure you and your passengers remain safe. If the worst happens and an unpreventable accident occurs, your passengers will be covered – provided you have the right auto insurance policy.

What You Can Do to Help Keep Your Passengers Safe

Prepare your vehicle for the trip: Check the air pressure in your tires and the fluids in your vehicle, including the windshield washer fluid. Check your headlights and replace bulbs as necessary. Clean your windshield and windows, inside and out. Clean out the clutter to improve visibility and eliminate potential projectiles in an accident, as well any item that could become jammed under the pedals.
Make sure you are well rested, sober, and seated properly: Although modern vehicles protect occupants better than ever, the driver is still the number one factor in safety on the road. Avoid driving drowsy, as this is a leading cause of accidents. Adjust your seating for maximum visibility and control of the vehicle. It is a given that you should never drink and drive.
Use seat belts and proper child restraints: Seat belts should be in use at all times the vehicle is in motion, both in the front and back seats. If your passengers include children who are required to ride in boosters or safety seats, ensure they have the right type of seat and it is properly installed.
Watch your speed: Excess speed is a contributing factor in many accidents. The faster you are traveling, the greater the impact in a collision. Obey speed limits, check your speedometer periodically, and maintain a safe speed for the existing road conditions. Always reduce speed in rainy or freezing conditions.
Avoid distractions: Driver distraction is a leading cause of accidents on today’s roadways. Texting while driving is one of the most dangerous types of distraction, as it involves manual, visual, and cognitive functions. Passengers in a vehicle can also be a serious driver distraction, so keep conversation to a minimum. Ensure that children and pets are safely secured and children old enough to wear a seatbelt are seated in the back of the vehicle.

What Type of Auto Insurance Is Needed to Cover Your Passengers?

In basic liability auto insurance policies, bodily injury limits covers passenger in another vehicle only. To ensure your passengers are covered in case of an accident, you need a full auto insurance policy with medical or uninsured/underinsured motorist coverage.

A full coverage auto insurance policy that includes medical and uninsured/underinsured motorist coverage provides protections for you and your passengers no matter who is determined to be at fault for an accident. The cost of this coverage depends on various factors, including policy limits. Our agency can help you purchase the right auto insurance coverage at the best available rates to help keep yourself and your passengers safe.

Do You Need Business Insurance When Working Out Of Your Home?

Many small businesses in the U.S. today are home-based. For a small business owner or entrepreneur, working out of the home has many advantages. It is convenient, cost-effective, and comfortable, and you can skip the daily commute and wear pajamas or sweats all day if you like.

However, conducting business in the comfort and convenience of your own home does not make it risk-free. You are running a real business and, like any business, it needs to be insured. You can still be sued or suffer unexpected property losses.

Homeowners and renters policies do not cover home-based businesses. Our agency can help you find the right business insurance policies for the coverage your home-based business should have in place.

Types of Coverage You May Need for a Home-Based Business

The business insurance you need will depend on the type of business you are running out of your home. Possible business insurance coverage you should consider may include:

Property insurance: The typical homeowners policy will not cover business equipment losses caused by fire or flooding. You need business property insurance if you use any type of equipment in your home-based business, including computer, printer, fax, furniture, etc.
Liability coverage: You need business liability coverage if you have anyone coming to your home for business purposes. This can include clients, contractors, and any person making a delivery to your home business. A homeowners policy will not protect you from a claim made by a business visitor who is injured on your property.
Professional liability insurance: Professionals working out of their homes need professional liability coverage as much as professionals working in a firm. This insurance protects you from potential claims made by clients of negligence or a failure to deliver.
Product liability coverage: This coverage may be necessary if your business makes or supplies a product. Product liability insurance protects your business from claims of damages caused by your product to a person or property.
Business auto insurance: If you are in an accident while using a vehicle for business purposes, your personal auto insurance may not cover your losses. You need business auto insurance to be covered in this situation.

Get Professional Assistance with Your Business Insurance Needs

Depending on what type of business you have, there are several other types of insurance coverage your business may need. For example, you may want commercial crime insurance to protect your home-based business against theft, fraud, and crimes. If your business has employees, you may need to carry workers’ comp insurance.

Your business insurance premiums will depend on what type of business you are running out of your home, what types of coverage you need, whether you have employees, the location of your business, and a several other factors. Our knowledgeable agency is well-versed in the business insurance requirements in a wide range of industries. We can help you ensure that you have the coverage your business needs at the best available rates.

Does Homeowners Insurance Cover Landscaping?

Your yard is an important part of your home and requires a great deal of time, effort, and money to maintain. Landscaping can suffer damage from fire, theft, and vandalism, just like the inside of your home.

If you have worked hard and invested a lot of money to create a beautifully landscaped yard, you may be wondering whether homeowners insurance will cover your trees, shrubs, and landscaping in case of damage. Most homeowners policies provide coverage under certain conditions.

Landscaping Damage Typically Covered by Homeowners Insurance

Standard homeowners policies generally provide protection against damage to landscaping, trees, and shrubs caused by:

Fire
Explosions
Lightning
Vandalism
Theft
Riot
Vehicles (someone else’s)

Weather-related damage (other than lighting) is not typically covered by homeowners insurance. This includes any damage to trees, shrubs, and landscaping caused by wind, hail, rain, ice, and snow. Similarly, damage to plants caused by disease or insects is typically not covered.

Most homeowners policies have limits on how much coverage is available to restore damaged landscaping. There may be limits on how much a policy will cover for each tree or shrub. Under certain policies, landscaping coverage may be limited to a percentage of the total protection provided for the dwelling structure.

Homeowners Insurance and Fallen Trees

A large tree that falls in a strong wind or for any other reason can do a great of damage to structures, in addition to the damage to the tree itself. If weather conditions caused the tree to fall, your homeowners policy may not cover the cost of replacement.

However, if the fallen tree damaged your home, a shed, or a fence, your homeowners insurance may pay to have the tree removed and to repair the damaged structure. If the fallen tree did not damage any structure, most policies will not cover tree removal.

As an important note, insurance will not typically cover structural damage from a fallen tree that results from lack of maintenance. For example, if a tree on your property begins to rot and later falls, causing damage to structures, your homeowners insurance may not cover the damage.

Additional Coverage to Protect Your Landscaping

If you live in an area where weather conditions are likely to cause damage to trees and landscaping, you may want to consider obtaining additional coverage to protect this important investment. Extra coverage may be available to pay for removal of fallen trees and debris caused by wind, hail, or the weight of snow, sleet, and ice, even when no structure was damaged in the weather event.

You may also consider purchasing additional insurance to increase your landscaping coverage limits. The premium you pay for homeowners insurance is based on several factors, including the location, age, and condition of your home, policy limits, and the deductible you choose for your policy.

A well-landscaped yard is a big investment that adds to the value of your home. It makes sense to protect that investment. Our friendly agency can help you find homeowners insurance with the landscaping coverage you need at the lowest available rates.

7 Exclusions To Your Typical Life Insurance Plan

Life insurance is one of the most effective ways to ensure your family is protected. Should you suddenly become incapacitated or pass away, life insurance funds can be paid at once to the named beneficiaries without any concern about taxes or delays related to probate. However, when buying a life insurance policy, the one person who truly has your back is your agent.

Every life insurance company and individual policy varies in the terms of the policy, cost, and exclusions. However, the most common exclusions and provisions found in life insurance policies include:

Failure to disclose a known health condition. If you buy a life insurance policy and have a health condition that you don’t reveal, the life insurance company has the right to contest the payment of benefits.
Accidental death life insurance policies only cover accidental death, not death from natural causes, illnesses, or diseases. It is advised that you are covered for all eventualities, rather than only accidental death.
Exclusions for illegal or intentional acts. Many policies have an exclusion in which the death benefit will not be paid if you die while under the influence of drugs or alcohol, or while committing an illegal act of any type.
Death by suicide. This exclusion is generally written to state that if the person commits suicide within the first two years of owning the policy, the policy will pay out only the amount paid in premiums, not the death benefit.
Dangerous activities. This exclusion can come into play in cases in which a person dies while engaged in a dangerous activity, such as mountain or rock climbing, racing, etc. If you are an extreme sports enthusiast, make sure you understand the fine print. You may be able to obtain coverage for these activities by paying a higher premium.
Aviation. This exclusion means that the insurance company will not pay if the insured person dies in a private plane accident, and only pays for death on a commercial flight.
War. Death from acts of war may be excluded in many policies.

Your Life Insurance Agent Can Help

When purchasing the right life insurance policy, get help from our friendly local agency. Your policy can be customized to meet your specific requirements and lifestyle choices.

We work closely with each of our clients, we always seek the best coverage at the lowest rates, and we discuss the policy exclusions so you know before you go.

The Importance Of Key Person Insurance For Small To Midsize Businesses

Key person insurance is life insurance on a proprietor, partner, or a valued employee who is key to the successful operation of a business. Small and midsize businesses typically have one or a few key persons who are primarily responsible for generating revenue. Examples include the partners in a two-attorney law firm, the sole cosmetologist in a small beauty salon, or the owner-founder chef of an independent gourmet restaurant.

In the event of the sudden death of a key person, the business may fail or face serious financial difficulties. Proceeds from a key person insurance policy can help the business avoid bankruptcy in this situation. They can help cover expenses until a replacement can be found for the key person who passed away and get the enterprise back on track, or they can make it possible to pay off company debts, pay severance to employees, and close the company down properly.

How Does Key Person Insurance Work?

The business or company purchases a life insurance policy on the key person and pays the premiums. The business is the beneficiary of the policy. If the key person should die, the business would receive tax-free death benefits from the insurance company, which could be used to help keep the business running and to provide an alternative to losing the business to bankruptcy.

Who Is a Key Person in a Small to Midsize Business?

Many small to midsize businesses deliver a service to their customers or clients and may depend on a few key individuals to deliver the service that generates the revenues. They might be owners, partners, or key employees who have become indispensable to the continuing success of the business.

The ability to generate revenue is not the only factor to consider in evaluating a key person. The value to the business of a particular individual may lie in that person’s client list, technical skills, marketing results, or industry knowledge and experience. In a small or midsize business, it is not difficult to determine who the rainmakers are based on marketing successes and new and recurring revenues.

What Businesses Need Key Person Insurance?

Different companies need key person insurance for a variety of reasons, but it is most important for small to midsize businesses. The reason is that smaller businesses depend for their success on the knowledge and skills of a smaller number of individuals, and the death of a key person could mean the demise of the company or enterprise.

Businesses that should consider purchasing key person insurance include:

Start-ups
Businesses that need to secure financing
Companies in niche markets where potential replacements may be scarce
Businesses in which the owner wants to ensure liquidity in case of death or disability

Key person insurance can be a valuable tool for planning business succession, as it provides liquidity to transition the ownership of the company. The cost can depend on several factors, including the amount of insurance you need and the type of policy – term, whole, or variable life insurance. Our seasoned insurance agency can help you determine how much key person insurance you need and the best type of policy for your company.

When To Time Your Life Insurance Purchase

Having a young family is the busiest time of life, and raising little ones tends to tie up a majority of the available time and attention. Young parents may forget that putting a term life insurance policy in place is an important matter. Over the younger years, these policies are at their most affordable rates. Protecting your family with term life insurance can bring you peace of mind and security – you can be confident they will be cared for should you suddenly pass away or become incapacitated.

Even the wealthiest people typically have substantial life insurance so that their heirs can gain access to immediate financial support without adding to the tax burden. For others who may not be wealthy, having the knowledge that they are not leaving their loved ones in a difficult financial position is the inspiration for putting term life insurance in place.

Unfortunately, as we age, our access to low cost term life insurance diminishes, particularly if there are any health issues. In fact, most underwriting companies deny term life insurance coverage to those over 75 years of age, even for applicants who are in good general health.

We speak to many people who are middle-aged and beyond who are looking for affordable life insurance. Depending on age, we have several options to choose from.

Why Do You Need Life Insurance?

The older a person is, the more they pay in term life insurance premiums. Young people often forget to consider the importance of getting term life insurance. In fact, should a young parent pass away, the benefits provided to the family will protect them from financial disaster, particularly when the individual was a breadwinner whose income supported the family.

Not a Senior Yet?

While it is never too late to have life insurance, it is far less expensive to buy term life insurance early on. Young, healthy people have more choices and are attractive customers for insurance companies. Term life insurance during these years is very affordable and provides substantial benefits. These policies are available for a set number of years at a specific rate.

Deciding on the what term life insurance policy to buy is a hurdle that many people feel ill-equipped to manage. There are many life insurance products available; we understand that the subject can be confusing, and we are here to help make the process simple.

One of the services we offer at is a thorough evaluation our client’s needs now and into the future so that we can recommend the best option in term insurance. We have many years of experience helping people get life insurance at all phases of life.

If you don’t have life insurance and would like to find out what term policy is the best option for you, a quick call to set up a meeting is all that is needed to start the process. Whether we meet you in person or speak on the phone, we are confident we can help.

Energy Saving Tips For Hot Summer Months

Keeping your home cool in the hot summer months can be as costly as keeping it warm in the wintertime. These energy-saving tips can help you minimize your electricity bill while staying cool and comfortable during the heat of the summer months:

Set your thermostat to 78° or higher. This can lower your cooling bill by approximately 12%.
While you are away from home, set your thermostat higher and then lower it again when you return home.
Use your ceiling fans in place of or in addition to central air conditioning. Using a ceiling fan with your A/C running makes it possible to raise the thermostat setting several degrees higher without sacrificing comfort.
Open your windows and turn the A/C off in the cooler hours. If the temperature drops at night where you live, leave your windows open while you sleep to take advantage of the natural cooling, then shut them when you wake in the morning.
Keep your cooling systems running efficiently with regular maintenance that includes replacing filters.
Don’t put lamps, TVs, or other appliances near your A/C thermostat. Heat from these appliances can cause your A/C to run more than it should.
Use caulk or weather stripping to seal cracks and leaks around windows and doors to help keep the hot air out and the cool air in.
Vacuum your cooling system registers regularly and make sure that furniture or household items are not blocking airflow.
Avoid using the oven or the range on hot days. Use an outdoor grill, the microwave, a slow cooker, or a tabletop grill instead.
Choose efficient lighting that runs cool. Approximately 85-90% of the electricity used with incandescent lighting produces heat, not light. LED lights are far cooler, and last longer.
Wash only full loads of laundry or dishes, preferably in the cooler hours.
Turn your water heater temperature down to a lower setting.
Take quick showers instead of baths.

Saving Money with the Right Homeowners Insurance

Just as taking steps to save energy can reduce your cooling bill, finding the right homeowners insurance can also save you money. A number of factors affect the cost of homeowners insurance, including:

Amount of coverage
Location of your home
Neighborhood crime statistics
Fire safeguards
Type of building materials
Age and condition of the home
Claims record

The amount of coverage you choose is a significant factor in the cost of your policy. The coverage you need will depend on the size and value of your dwelling, any other structures in addition to the main dwelling, the value of your personal property, and your exposure to liability. If you live in an area where natural disasters are more likely to occur, homeowners insurance premiums are often higher.

Your home is a major investment, and it is important to protect it with the right homeowners insurance policy. Our knowledgeable agency can help you obtain the homeowners insurance coverage you need at the best available price.

5 Behaviors That Can Raise Your Life Insurance Premiums

Your hobbies, lifestyle, and overall health impact how much you pay for life insurance. For example, if you have decided to take up scuba diving, mountain climbing, rock climbing, BASE jumping, or skydiving, these activities will affect the cost of your policy.

Essentially, your life insurance policy is a legal contract between you and the company that issues it. These companies evaluate all risks associated with covering you against death or incapacitation. Certain behaviors and conditions will increase the cost of your policy and the premiums you will pay. Every policy should be customized to match the individual. The types of behaviors that life insurance companies often consider risky include:

Smoking. Insurance companies will cover smokers, but at a higher rate.
Body weight. The life insurance company underwriters will evaluate your height and weight for known associated health risk factors.
Driving record. If you have a history of traffic violations – particularly moving violations or driving under the influence – your rates may be higher.
Risky activities. If you engage in certain high risk activities, such as scuba diving, motorcycle riding, flying a plane, or similar pursuits, your rates will be higher.
Alcohol consumption. Your alcohol consumption will be evaluated as a risk factor in issuing a policy.

Getting Approved for Life Insurance

There are several criteria that underwriters employ to evaluate a potential policyholder. If you are considering purchasing a life insurance policy, get help from an agent, as they will manage the process for you. There are many types of life insurance policies on the market, and an agent will help you find the company that is right for you and your lifestyle.

We are happy to explain everything simply and clearly so that you can make an educated decision about what will work best for you and your budget. New life insurance programs come on the market, and if you already have a term life insurance policy, it is worth having it reviewed – there may be a better option for you now. We are happy to help.

Having a life insurance policy in place is one of the most effective ways to protect your family, and getting your policy issued is important. We know the system and how to work to get you the coverage you need, and at a rate you can afford. Talk to us – we are here to help.

Prevent Cyber Crime From Happening To Your Business

As a business person, you are concerned with making your business immune to cybercrime exposure, and with good reason. According to an article on CNBC, cybercrime cost the global economy $450 billion in 2016.

Prevention is your best line of defense against cyber criminals. You will want an IT security expert to assess your company’s current vulnerabilities and needs. In addition, there are certain universal steps business owners can take to reduce the likelihood of a cyber incursion and the estimated financial risk to the company.

Training and Education

Any employee with access to your business network needs an education in fundamental security. This is as vital as ensuring that employees who drive company vehicles have a license to drive. Make certain your security policies are well defined and your employees know them. Make sure they understand common hacking tactics, such as phishing, packet sniffing, and social engineering. Training goes a long way toward protecting your business.

Securing Computers, Digital Assets, and Networks

Hackers gain access to systems through software exploits. It is important to ensure that all software on your network and connected machines is continually updated. Business-class antivirus software should be installed and kept updated on all servers and workstations. Scan your website and web applications for malware. Ensure that you have reliable, securely-stored backups of all critical data.

Installing Data-Loss Prevention and Risk Assessment Software

Security issues can arise when employees are not educated about the risks of bringing their own devices to work, or from scammers working on the inside. Installing data-loss prevention and risk assessment software makes it possible to monitor the activities of your entire network and detect trespassers and events that could lead to data breach.

Cyber Liability Insurance

If your company uses technology to conduct business, you are undoubtedly facing cyber risk, and as the technology becomes more sophisticated, so do the threats. Cyber liability insurance today is simply part of being prepared and should be included in your business insurance package.

A cyber liability policy covers your company’s liability for data breaches involving sensitive information such as social security numbers, driver’s license numbers, health records, account numbers, and credit card numbers. This business insurance is designed to cover:

Legal fees and expenses associated with a data breach
Notifying customers of a data breach
Recovering compromised data
Repairing damaged computer systems
Restoring personal identities of customers affected by a breach
Loss of customers and disruption of business
Restoring public relations when your reputation has been tarnished by a data breach

The cost of cyber liability insurance will depend on certain underwriting factors used to determine your potential risk. Those factors include the type of business, the number of transactions per year, the type of information you collect while doing business, the number of your company’s computers and devices, and the security measures you have implemented.

Unfortunately, cybercrime is on the rise, and the majority of victims are not large corporations, but small to mid-sized companies. Cyber liability insurance is a must for any company that uses technology in doing business. Our agency can help ensure that your company has the coverage it needs.

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