Managing Your Business

 

08 29 2017

Business insurance for small businesses

08 29 2017

Do You Need Business Insurance When Starting Or Growing A Company?

Starting a small business always comes with a little bit of risk. Your venture may not pan out as planned, or it may take more time than expected to turn a profit. These risks are unavoidable, and every business owner must contend with them.

Then there are other risks, like an employee who gets injured, a chef’s kitchen that catches fire or a criminal who steals inventory. For these types of risk, business owners can prepare themselves with various types of insurance.

How to get business insurance

According to the Insurance Information Institute, there are four types of insurance that nearly every business owner should have:

  • Property insurance.
  • Liability insurance.
  • Business vehicle insurance.
  • Workers compensation insurance.

Here’s what you need to know about these types of insurance and more:

Property insurance

Property insurance will help out if your brick-and-mortar location is damaged by fire or vandalism. It’ll also come into play if your inventory is lost or stolen. Additionally, property insurance can help out if your personal property, like computers, machinery or other items necessary for your business become damaged.

Liability insurance

Every business is at risk of a lawsuit. A customer can claim that your product caused them harm or that you provided an unsafe environment that caused injury. There are countless scenarios that can result in a person suing an enterprise. Liability insurance helps pay for legal fees, medical bills and other fees related to claims against a business.

Business vehicle insurance

If you use a vehicle for your business – even if it’s your personal car – you should at least consider business vehicle insurance. If your car is mostly driven for business purposes and you get into an accident, there’s a good chance your personal auto insurance policy won’t cover it.

Workers compensation insurance

Almost every state requires workers compensation insurance once your business employs a certain number of people. This number varies from state to state, but it’s usually between three and five employees – yourself included. The only exception is Texas.

Umbrella insurance

If you have a small home-based business, full property or liability insurance policies may not be necessary, but you might still need a little more coverage than your homeowners insurance policy provides. An umbrella insurance policy can give you the coverage you need but isn’t as costly as a typical property insurance policy.

Business interruption insurance

Destruction due to natural disasters can close a business down suddenly and unpredictably, costing the business owner lost revenue and potentially inventory and property. Business interruption insurance can cover losses in these circumstances, Small Business Trends pointed out.

Certain companies might determine that a specific insurance product suits their needs while another type of business finds it irrelevant. For example, a person with a robust property insurance package might find that business interruption insurance is redundant. It’s important that business owners thoroughly review their options with an agent before making any decisions.

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General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

Text Messaging:

By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

  
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.