What Question Should You Ask Before Renewing Your Insurance Policy?

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Before You Renew Your Business Insurance, What Question Should You Ask?question_hand

“What are you going to do for me?”

As you begin the process of receiving business insurance quotes, you may notice that they pretty much fall within the same price range. There isn’t really much difference between different agencies, and by default – you may just stay with your current insurance broker.

Why is there so little to choose from? Because the brokers competing for your business are typically going to the same few insurance carriers that service companies in your industry. They don’t understand that your protecting your business is more than just purchasing insurance.

At NEC, we do. That’s why, in addition to a competitive price quote, you can have access to unique risk prevention business services from top-rated experts in their field. Services such as:

  • Free Unlimited Employment and Labor Law Consultations
  • Free Unlimited Construction and product Liability Law Consultations
  • Free Unlimited Workers Compensation Cost Reduction Consultations
  • Free Unlimited Billing and Collection Consultations

We take the holistic approach to protecting your business. That’s why we provide these, along with many other value-added services along with our very competitive insurance price quotes and great client service.


NEC Insurance is one of the largest independent insurance brokers in Missouri offering business and personal insurance, financial services, and risk prevention. For more information visit www.necins.com or call 636.271.2481.

 

What are the Chances of a House Surviving an Atomic Blast?

first-atomic-bomb

first-atomic-bombAccording to the National Lumber Manufacturers Association (NLMA), if the house is made of wood, and is located away from the immediate target area, chances are fairly good that it will survive.

In a report just published by the NLMA describing a test of two typical wood houses in the Nevada desert, using 15,000 tons of TNT, 25% less than the bombs used on Hiroshima and Nagasake during World War II, showed that an average wooden house located 1.5 miles from ground zero would collapse but the rubble would be dispersed so that simple wooden lean-to shelters in the basement would protect occupants from bodily injury. The nature of the construction, plus the resiliency of wood would prevent the wood structure from crashing into the basement in a single heap.

The same test performed on another wooden house located two-thirds of a mile from ground zero showed that the house remained upright however experienced some exterior structural damage, with serious damage to plaster interior walls and other brittle materials. The exterior and interior walls made from wood paneling responded fairly well and could be easily repaired.

Either house when painted white would probably not catch fire even at the closer range provided the house was not exposed to fire from other sources. It’s expected that any surface charring, which might result from atomic heat waves would cease before the shock wave hit the building. Neither house experienced free flaming to be extinguished by the aftershock.

The exceptional ability of wood being able to withstand shock without fragmentation is noted for the success of these tests. There was additional danger, however from loose facings, and use of large amounts of glass and other fragile materials.

According to House & Home, the Federal Civil Defense Administration has requested funds to build houses and shelters for continued atomic explosion testing.

 

For more information on how you can protect one of your most valuable assets, visit NECins.com or call NEC Insurance at 636.271.2481 for more information.

7 Ways to Minimize Small Business Risk

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Accepting risks is part of the equation when you’re a small business owner. Unfortunately some businesses aren’t as prepared as they should be because they don’t know what they don’t know.  Here are 7 areas ofRisk unsuspecting small business risk and how to avoid them.

  • Be Cash Conscious
    Improper cash flow is the number one risk for most small businesses. Scott Lovingood, CEO of The Wealth Squad, Inc., Riceville, TN recommends that each month you calculate how much cash you have on hand and determine how long it will last if your income dries up. Also, evaluate your total accounts payable because a slowdown in A/P will lead to a cash flow crunch.Set up a contingency plan by setting aside three to six months of operating costs in reserves. Don’t hitch your wagon to only one major client, because if they leave for a competitor, their revenue goes with them.
  • Insure Against Your Specific Risks
    Standard insurance is no longer enough defense against small business risk. Every industry has its own set of specific risks, and you want to know what they are. For example, an air-conditioning company may insure its tools and equipment, but are they insured if stolen during an installation? Would they be covered if a customers’ property was damaged while in their workers’ care and control?If your business has an online component, how effective are your policies if your web hosting company closes, and one of your major sales channels is interrupted for months? Or what happens if someone posts pornography on your customer forum and you can’t get it down fast enough? Do your business interruption and general liability policies cover these things?
  • If Your Business Changes, Your Insurance Should Too
    Review your insurance policies every year and outline what has changed during the past 12 months. Have you acquired a company, introduced a new product, begun doing business in a new state or country, hired new people? All this things could trigger a new small business risk you aren’t aware of.
  •  Insure Key People
    If you are your business, and you get hurt or are unable to work – what happens to your business? Your entire business could fail. If you get key-person insurance on anyone who is mission-critical to your business, you can protect yourself against the financial loss caused by a job change or any unplanned accident or illness. If you already have key-person insurance, evaluate your policy quarterly. If your business has changed, your policy could be outdated.
  • Use Contractual Indemnification Clauses
    Seek indemnification for potential damages caused by other people and businesses which you rely on regularly. You don’t want to get sued for something that is totally out of your control.
  • Give Yourself an Out
    When you launch a new venture, or enter into a new contract, include a clause describing what happens if you want to cut your losses. Describe how you can end the relationship and what happens if you do.
  • Create Separate Entities
    When you take on a new risk, consider creating a new legal entity, especially if it adds additional risks from a monetary, lawsuit or partnership standpoint. If you cross state lines, add partners, or add legal risks your business doesn’t currently deal with, and you aren’t insured for; look at developing separate legal structures. Separate entities can also prevent the loss of your assets, i.e. real estate.

The key to minimizing small business risk is being able to foresee and prepare for them. Its human nature to assume that happened today will also happen tomorrow. Unfortunately, that isn’t always the case. Be clear on what risks you carry, and how they affect your business model.


NEC Insurance is one of the largest independent insurance brokers in Missouri offering business and personal insurance, financial services, and risk prevention. For more information visit www.necins.com or call 636.271.2481.

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