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Are You Insured to be a Successful Entrepreneur?

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Disaster RecoveryIn business, contracts hold a lot of weight.

A contract is a legally binding agreement that states that you, as the business owner, will fulfill certain obligations to the client. But what if a contract is not enough on its own?

This is where surety bonds come in.

A surety bond is an agreement that goes a step beyond a simple contract in that it utilizes a third party that vouches for, and becomes obligated to, the service provider being able to get the job done.

Essentially, a surety bond is a guaranteed agreement between your company, the client, and the bond provider.

The bond provider is telling the client that if your company is unable to complete the agreed upon work, someone will be brought in to finish the job. The client can be “sure” of that

Do You Need a Surety Bond?

Think of a surety bond as insurance.

In traditional business insurance scenarios, the insurance provider will cover costs in the case of damage or injuries. Surety bonds work in the same manner such that, if your company is unable to complete the agreed upon work, the client will be financially rewarded and protected.

Many types of businesses can benefit from surety bonds, including those that work on long-term creative projects.

The truth is that, in such circumstance, a clear resolution is not always available when a conflict arises. When hitting such a crossroads, surety bonds can make a big difference in satisfying the client and avoiding a lengthy and costly lawsuit.

How Do You Obtain a Surety Bond?

In the article, “Step-by-Step Guide to Obtaining Surety Bond Insurance,” the author discusses a number of steps that need to be taken prior to obtaining surety bond insurance.

The first step is to ensure that your personal or business credit is at a high enough level to receive a security bond.

You should also have all business information, including financials and safety records, available to present to a potential insurance provider.

From there, you will also need to determine whether paying your premium upfront is the best option or whether making monthly payments works best.

In the end, you may benefit more from speaking with a surety bond expert who can examine your individual needs and make recommendations.

Just as no two businesses are the same, no two surety bond options are the same.

By consulting with an expert, you may be able to save yourself and your company time, money, and headaches in the future.

Photo credit: BigStockPhoto.com

About the Author: Andrew Rusnak is an author who writes on topics that include business development and insurance.

Are You Spilling Money Away?

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asuccessfulYou’ve got your business going quite well.

It’s just you and yourself, working from your home, but you’ve got some great clients and accounts. Maybe your business is a bit bigger and you’ve got a few employees and a nice office.

Here’s one thing you need to make sure you have, as well, no matter the size of your business – insurance.

Why do you need insurance if your business is small?

No matter the size of your business, if you are working with anyone, you should have insurance.

If a client comes to your home to meet with you (or your office for that matter) and trips on a loose carpet or an icy stair, you can be liable for paying all costs. If you don’t have insurance, you could be in big financial trouble.

Many customers want to know your insurance background, especially if you are doing work on their property.

For instance, if you are in construction and working in someone’s home, your customers will more than likely want to see you are insured before they’ll sign a contract with you because they don’t want to be responsible if you or your employees get hurt.

What kind of insurance is best?

Most professionals recommend general liability insurance, or commercial general liability insurance.  This protects a broad spectrum of claims, including negligence and injury.

With this, you’ll be covered in the case of a lawsuit, with court costs and reasonable expenses being covered through insurance. Your employees are also covered, even volunteers.

However, liability insurance does not cover if your employees get hurt and sue you. This would fall under workers compensation, which is another story.

Are these lawsuits common?

Unfortunately, yes.

Many slip and fall lawsuits are actually hoaxes by con-artists looking to make money, in fact, probably more are scams than not. However, people do legitimately get hurt and want compensation.

And, it’s not always a slip – as the article “Common Spills in Businesses” notes, these can include a trip, a stumble or anything that causes a fall.

Sure, it can be due to the client being careless, but it also can be your fault, maybe you have loose stones in your walkway or boxes were left in the way inhibiting safe stepping.

Even the legitimate cases are often quite hard to prove and the plaintiff needs a combination of documentation including photos of the scene, proof of injury and medical damage, and other evidence. However, the cost of the lawsuit itself can be detrimental to your business.

Bottom line, you need insurance to protect you and your business.

You don’t want something that could have been prevented or a dishonest person to be the downfall of your business.

Photo credit: Image courtesy of Praisaeng at FreeDigitalPhotos.net

About the Author: Heather Legg is an independent writer who covers a variety of topics including small business, social media and education.

Is Having Clients at Your Home for Business a Wise Move?

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You finally have your small business up and running. And it’s in your home. How do you have clients come to see you? What do you need to think about?

Many small business owners can’t afford office space, or really don’t need it, so they work from home.

A lot of questions arise about meetings in the home, so here are some of them with their answers:

1.    Do I need a separate entrance?

Ideally yes, but that’s not always possible in the real world. If you have a separate entrance, you will come off as more professional than if a client comes into your home filled with your personal life. But if it’s not possible, just make sure you have any area clean of clutter (even if you stuff it all in a cabinet), pets are put away and no one will bother you during your meeting. If your office is upstairs or somewhere else in the home where you’d need to walk through much of it, have your meeting in the dining room or another neutral area more easily accessible in your home.

2.    Should I tell my client beforehand or will that make me look bad?

Many people say they drive up to a house for a meeting and think they have the wrong address. Be upfront and let your client know you work from home and that is where you’ll be meeting.

3.    What if my client hurts him or herself in my home?

This is a tricky one. If your client slips and falls or your dog bites him, you’re legally responsible. The smartest thing you can do is have insurance to cover this. If you don’t and something happens, it can turn into something pretty big and bad.

4.    Should I just meet at a coffee shop or somewhere else instead?

Sure, some people who home office have off site meetings. It depends a lot on what you do. If you need to look at material that takes up space, your home is probably better. At home you can avoid distractions that may be found elsewhere. You also have all your materials and don’t have to lug anything around. But if you have kids or pets at home, or another working adult, it may be too distracting and you should think about another spot.

5.    Are there any other little tips I should know?

Yes.

• Dress professionally. Maybe you work most of the time in sweats, but remember you’re meeting with a client, put on your work clothes.

• Try to avoid any household smells like last night’s dinner or your golden retriever. You can use a candle or other air fresheners; just make sure nothing is too strong or offensive.

• Oh, always make sure the bathroom is clean!

Many people work from home and as long as you keep it professional and let your client know up front, you should be fine.

If you run your small business from home, do you allow clients to come by? If so, what have your experiences in such cases been like?

 

Photo credit: thesmarterwallet.com

About the Author: Heather Legg is a writer who covers topics related to small business, social media and personal finance.