December 11th, 2009 by DieWolf

In the world of broadband internet access, cable and DSL are the front-runners. However, slowly but surely, satellite internet is making headway into this extremely competitive market. While DSL and cable typically provide the fastest bit rate, they are simply not available in all areas because they depend on a land-based connection. Satellite internet, on the other hand, works no matter where you are, because data is transmitted through the air instead of though a wire in the ground.

With Clear Wireless Internet people in Atlanta can get 4G wireless internet provide by Clear Atlanta. Why people like to use this new wireless internet because it is faster that the common one. Once you purchase it, you will get the fastest internet broadband speeds for now on. With new Clear USB modem, you can download movie, send email, upload videos faster that before. Even though 4g wireless internet is using the latest technology, the equipment is simple and easy to use.

Clear Broadband Internet, Clear Wireless Internet, Clear Wireless Internet 4G

August 31st, 2009 by DieWolf

The insurance industry enjoyed record profits of $60 billion less than two years ago. In the wake of these prodigious returns, the commercial insurance market was flooded with hundreds of millions of dollars worth of capital. This created an increase in the amount of carriers, as well as a greater capacity to take on risk. Ultimately, the influx of capital into the insurance market has resulted in an insurance environment that is extremely soft, with prices falling quickly. For restaurant owners who approach this soft commercial insurance market correctly, some of the largest premium decreases in years are available.

To understand why such attractive premiums are out there, understand a couple points:

First, insurance pricing is cyclical. The inflated prices simply cannot be maintained in the new commercial insurance environment of 2008. A major reason for this is that most commercial insurance companies are public companies. Thus, their shareholders demand growth. In order to grow, prices must be reduced to entice new clients and retain current ones. In addition, insurance carriers must enter new areas that they have no been active in historically. These carriers are then forced to write new lines of the coverage for industry segments like foodservice, hospitality, and franchise programs.

The second point to understanding the reason for the availability of lower premiums is that in the world of commercial insurance foodservice and hospitality is a niche area. Consequently, there is a limited amount of insurance carriers competing against one another to write a restaurant insurance account when the market is stable or hard. Now consider the reality of 2007 and 2008. You may have found that the number of carriers seeking your business doubled. The impact of this insurance market on niche industry segments like foodservice and hospitality can be exponentially greater than what is happening in the standard insurance market. This large supply increase as demand stays static leads to the falling prices that restaurant owners are now finding.

Why is it that buyers are usually the last people to realize the state of the commercial insurance market? Most policies only get renewed one time each year. The can lead to an information gap because the reality is that buyers rely on their brokers to let them know this critical information about the direction in which the market is headed. With markets shifting course substantially, and quickly, insurance buyers sometimes are not made cognizant of the shift until nearly a year later.

Furthermore, select industry groups, brokerage houses, and insurance carriers themselves usually are the ones formulating reports about the insurance industry. Oftentimes, these reports can lag six months behind. Rarely do they portray a precise picture of the current environment in the market. However, consumer expectations are driven by these reports. Many large companies who settled for a 10% pricing reduction will find out later than they could have gotten reductions of 25-30% instead.

There is no doubt that this inefficiency is the Achilles’ hell of the commercial insurance industry, especially at a time when the industry seems to be cannibalizing itself. For foodservice and hospitality companies it is also a situation that should be taken advantage of, especially in light of the fact that it will eventually swing the other way.

While we are currently in a buyer’s market, do not allow yourself to become careless when it comes to risk management. You can keep your insurance expenses at levels 25-40% lower than your competition by paying close attention to details and working with an expert. Controlling the basic elements of your risk will allow you to enjoy the benefits available in the market regardless of what cycle it is in.

Here are three additional questions you should be asking that your broker might not be answering adequately, or at all:

1) What is my renewal strategy? Keep in mind that you want to work the commercial insurance cycle, not the other way around. In soft markets, it is sensible to cancel a current policy in an effort to capitalize on lower rates. However, when the market hardens, you may want to negotiate 18-month or multiyear rate terms. You have the potential to reduce your restaurant insurance costs by 20-40% over a five-year period simply by paying close to attention to insurance cycles and acting appropriately.

2) Am I overinsured? You have little to no chance of losing every building you insure in any one single event. However, some people continue to purchase coverage for that very unlikely occurrence. If you have ten $1 million buildings in a state, you do not need a $10 million insurance policy. This is wasted coverage and can be extraordinarily costly, especially in a hard market. Your broker should run a Probable Maximum Loss to determine what the appropriate loss limit should be. Depending what your locations are, you realize that you only need between a $2-$3 million policy to cover the $10 million in buildings.

3) How can I effectively manage my loss history? A good broker will assist you in this endeavor, but most do not even mention it. Understand that your insurance losses stick with you for five years, regardless of whether you have two locations or 1,000 locations. Commercial insurance companies use these past losses to help them predict what your future losses may be. This can have a tremendous effect on your insurance prices. If you are like most companies, you have limited knowledge of the details behind the insurance companies’ loss runs. In essence, you are still being charged for a claim that occurred three or four years prior. Have them audited to be sure that details and numbers are accurate.

One point that cannot be overstressed is the importance of choosing the right broker to partner with. Unfortunately, most brokers simply do not handle enough restaurant insurance claims to maintain up-to-date knowledge on the insurance market for the industry. Obviously, the firm you partner with must understand your business, but you need to also be confident that they also are competent in understanding the environment and knowing the markets.

Keep in mind that these people are your representatives. You should choose them as meticulously as you would choose your legal representation. Try not to be a firm’s lone client, but also make sure that you are not a “small fish in a big pond.” A great broker will keep you ahead of your competition, keep you safe, and ultimately add to your bottom line.

You should also make every effort to meet your insurance carriers. Have a relationship with them, in addition to your broker. The carriers need to know you and understand what expectations you have. Not to mention, being on a first name basis will be a big help if you ever need a favor; inevitably you will at some point.

Finally, make sure you are maintaining open dialogue with both consultants and internal employees regarding customer-and-employee injury issues. You have to be tough on claims; but remember that communicating proactively and listening empathetically can turn cut fingers and strained backs into loyal employees and lifetime customers.

June 16th, 2009 by DieWolf

Many small business owners truly believe that when they have a proper and comprehensive insurance
program for their business, they will be “fully protected” from financial losses. Setting aside the
grey areas on the fine print of most insurance policies, there are many losses that insurance cannot
be extended.

Some of the such losses that small business suffered after occurrence of accident; are lost of goodwill to customers due to failure to deliver merchandises on time; lost of faith from employees for not
providing a conducive working environment, and many more losses which do not have financial impact
initially but gradually translate into financially losses.

While insurance is important in indemnifying small business owners in case of fire damaging their
properties and/or accidents that causing injuries and loss of life thus downtime in productivity,
small business owners should practice risk management in order to create a more sustainable business
and have a competitive edge over their competitors to minimize their lost time hence cost.

The basic methods of risk management are

1.Avoidance of Risk

Simple procedures and things that most small business owners took for granted can have huge impact
when they resulted in accident. Always practice the maxim of “prevention is better than cure.”

2.Reduction of risk and losses

Be aware of the consequences of risk and accident, develop a loss prevention or reduction system to
minimize the occurrence of risk and losses when risk happened.

3.Transferring of Risk

Transfer the risk to other parties like insurance company.

4.Keeping of risk and absorption of losses.

If transfer of risk is not possible, you may have to absorb some of the risk and/or losses. Some of
the insurance policies require the insured to bear a portion of the losses term as deductible or
excess.

Arranging a comprehensive insurance cover for small business is crucial for the survival, many small
businesses have overlooked or ignored the important of a proper coverage for their business, when
accident happens, they found themselves in a financial distress and thus loosing their customers to
their competitors.

It is thus advisable to seek professional advice for a proper insurance coverage and more importantly practice good risk management.

May 23rd, 2009 by DieWolf

Not having insurance is risky business. It’s an expense that many business owners deem unnecessary, but adequate insurance coverage in times of loss is invaluable. As a small business owner, only you can decide what type of insurance coverage is best for your business. Take stock of the physical and personal property that is essential, and protect your assets with a policy that matches your business’s needs.

Fire, theft, and other emergencies and cause costly interruption to your business activity. Protect your physical business assets with a Business Owner’s Policy or Property Insurance . Additionally, you may want to consider Worker’s Compensation in case employees are injured on the job-check your state’s laws regarding this type of insurance.

All business owners should consider General Liability Insurance in the case of injury to a person or to someone’s property that occurs at your place of business. Entrepreneurs who work in the service sector should also consider Professional Liability Insurance to protect themselves financially against claims of negligence, errors, omissions, or wrongful acts in the performance of their duties.

All business owners should invest in Health and Disability Insurance -unforeseen medical expenses and cause a serious financial burden. Additionally, entrepreneurs with partnerships and businesses that rely on a key employee should consider purchasing Keyman’s Insurance in case that employee becomes unable to work.
Whichever type of insurance coverage you choose be sure that the policy contains all the coverage your business needs.

You can cut down on insurance expenses by avoiding duplicate coverage. Also, use due diligence in evaluating different policies from different insurance providers. It’s essential to read the policy and understand it fully before buying and signing any insurance agreement, as the insurance provider can deny claims if certain conditions are not met on the part of the policy holder.

April 24th, 2009 by DieWolf

Co-Insurance is a clause imposed on most commercial property insurance policies that requires you to insure your property up to a certain limit of insurance (usually 80%-90%, sometimes 100%). This means that if you you fail to insure your property to full value, you have become a “Co-Insurer” on your property & in the event of a claim you could be looking at a penalty.

Now we understand that if we under-insure our property, in the event of a total loss, we are short the difference. Take that same concept & apply it to a smaller loss:

Example: Actual Building Value $500,000
Building Insured for $300,000
Co-Insurance Clause 90%
Fire Loss $60,000

In this example the insurance policy states that you must be insured up to 90% of the value of the property (building) ($500,000 x 90% = $450,000). You only have the building insured for $300,000 thus leaving you under-insured by 33 1/2%.

You have a fire loss totaling $60,000. Because you were under-insured, the insurance company will reduce the amount paid on the loss by the same ratio that you are under-insured. In this case, the insurer would reduce the payment by 33 1/2% and pay you $40,000. As the “Co-Insurer” you are responsible for the remaining $20,000.

So always be aware of the co-insurance clause on your policy. My suggestion is that you pay to get appraisals done on your property every few years and ask your broker to move you to “Stated Amount Co-Insurance”. Most insurers will move you to this stated amount co-insurance in return for a copy of the appraisal and a signed Statement of Values. This binds the company to agree that there will be no penalty for under-insurance on partial losses as it proves to them that you have done your best to ensure your values are adequate.

The most important point is to remember that the onus is on you to ensure that your values are adequate. Even if you have had help from your broker or another outside source in determining the value of your property, in the event of a covered loss, the insurers are really only just taking your word for it at the end of the day. It means nothing to them if you under-insure your property, that’s why they have this clause to protect them. Who’s protecting you?