The time to recession-proof your business is before the economy starts to downturn. Later may be too late to turn the ship around. Careful planning and taking specific steps now can help you prepare your small business for future downturns and marketplace changes.

Get a Handle on Your Cash Flow

Many businesses fail because of problems with cash flow. It is important to know your numbers as they stand at present and create a profit plan for the future. Keep an eye on what happens to your cash flow in different situations. Build good habits. Ensure your customers or clients pay you on time. Create a system to keep accounts receivable under control. Build a cash cushion, if possible.

Develop Multiple Revenue Streams

Create various ways to bring in revenue with a wide range of price points. This can help you maintain your business income, regardless of what the economy is doing. The idea is not to be caught with all your eggs in one basket. Having a variety of revenue streams can help your business remain flexible and capable of persevering in a recession.

Budget Spending According to Revenue

As a financial planning strategy, instead of creating a specific amount in the budget for marketing and other variable expenses, establish those budget items as percentages of revenue. This method will automatically boost marketing when sales increase and help you control spending if they decline. Unlike fixed expenses such as building rent, variable costs can be tied to revenue.

Arrange for Financing Before You Need It

Consider opening a line of credit to use as a cash cushion for the business. Only use it when you really need it to keep the cost minimum. Your business will only incur interest and fees on the amount you borrow. It is better to find financing before you are in a cash crunch. Lenders are likely to tighten standards once a recession begins.

Build Existing Client Relationships

Instead of spending a lot of money to attract new clients, invest in relationships with the ones you have. Give your current customers the best experience and results. They will want to continue doing business with you and will serve as a source of new clients. Word of mouth is a practical, low-cost method of advertising.

Be Prepared to Diversify

Prepare to take your business in a different direction if a major change in the economy occurs. You may need to pivot to a similar product or service in greater demand at a different time. Think of “what if” scenarios and new lines of business you could go into if the economic environment changes in a recession.

Position your business for success before the economy starts to slow down. Make any adjustments necessary to leverage opportunities that come with a recession. Our knowledgeable agent can help you ensure you have the business insurance coverage you need to protect your small business before and during a recession.

Employment Practices Liability Insurance or “EPLI” is a form of business insurance specifically to protect against employment-related lawsuits. While the suit may not be accurate, once filed, you will need to defend against the case, which can prove to be very expensive without this type of insurance. The right Employment Practices Liability Insurance can help you get through challenging legal situations without sustaining severe financial losses. There are four things to know about this type of insurance:

This insurance helps you pay to defend against employment-related claims and pay any damages awarded.

This insurance can be a lifesaver if you need to defend against an employment-related claim and pay damages awarded up to the policy limits. Employment lawsuits include wrongful terminations, civil rights violations, workplace harassment, retaliation, sexual harassment, age discrimination, and claims.

Employment-related claims are at an all-time high.

If you think your company will never be named in a lawsuit, you should be aware that few companies avoid this situation. In the last two decades, employee lawsuits have increased by 400%. Over time, the more your company grows and the longer you operate, the higher the risk. Over 75,000 discrimination lawsuits were filed in recent years, with almost 24,000 for race-related claims and over 23,000 for sex discrimination. These policies do not cover illegal employees.

Your employees must be legal hires.

If you have any person in your workforce hired illegally, your EPLI does not cover you. To avoid this risk, ensure every employee in your business was legally hired. If such an employee files a lawsuit after an injury and is successful, you will be forced to pay a settlement out of pocket.

These policies do not cover contractors or employees who are working overseas.

Your EPLI insurance does not cover any employees or contractors who work for you overseas. You will need to purchase a separate policy in the country in which they are employed.
With 61 percent of employees in the USA reporting that they have been the victim of or witnessed discrimination for age, race, religion, or gender, it is very likely that you will be served with a lawsuit with time. When that happens, it is reassuring to know you are covered. You can’t then purchase insurance and expect the insurer to pay for your defense – you need Employment Practices Liability Insurance before that eventuality, which is inevitable for most businesses.

The Costs to Your Business

Defending against an employee-related claim can cost in the range of $200,000 should the case not be settled before trial. Few businesses can afford these financial losses, and EPLI insurance provides you with peace of mind. When a lawsuit is successful and you are ordered to pay damages, it can be a financial disaster. Rather than take risks, put one of these policies in place to add a layer of protection that every employer needs in this litigious culture. Our local business insurance agents can help you purchase a policy that suits your enterprise, and we seek the best coverage at the most affordable rates.

The craft beer industry has been built by passionate, talented brewers, who have invested their time and energy to create new flavors and brewing techniques. As the brewery grows, business risks arise that should be addressed before something goes wrong. These tips cover some of the basics of brewery risk mitigation.

Proper Spill and Broken Glass Cleanup Processes

A taproom is a popular and convivial place to visit. Many of these facilities have a smooth cement floor. Beers and other drinks are often spilled by customers or employees, posing a risk of a slip and fall accident. After a spill, ensure staff fully remove glass and liquid, and place signs to alert customers of a wet floor.

The CDC reports that one out of every five falls causes an injury, such as broken bones, head and brain injuries, and spinal cord injuries. Brewery taprooms must maintain reasonably safe premises, and if they fail to do so, can be held liable in a claim or lawsuit. Ensure your business insurance coverage has policy limits that reflect the risks associated with a slip and fall.

Do Not Over-Serve

It may be difficult to watch over every customer, particularly on a busy weekend night, but customers that are obviously intoxicated can put your enterprise at risk. A drunk patron could become aggressive and assault another patron, or leave the business drunk, drive a vehicle, and cause a crash. Many states have “dram shop” laws in place that allow victims of drunk driving accidents to sue a vendor who served alcohol to a visibly intoxicated customer. Slow serving a patron who appears to be consuming drinks too rapidly. It may not be pleasant, but to protect your business, it is advised that you refuse service to a person who enters your facility obviously intoxicated.

Employ the Correct Tank and Line Cleaning Processes

Brewing beer is an art and a science. The brewing process requires keeping all brewing equipment clean, sanitized, and thoroughly rinsed to ensure no cleaning product residues remain. Draft beer lines must be cleaned properly to remove any bacteria, yeast, or mold that could be in the beer served to a customer, who could become ill. Product recalls and sick customers can lead to claims against your brewery.

Protect Your Brewery with Patents, Trademarks, Trade Secret Protections, and Contracts

Correctly registering your trademarks, registering patents, and ensuring every person involved in the brewing process signs contracts that protect your intellectual property are critical aspects of doing business. If another person steals your recipe or brewing techniques, the cost of litigation can be astronomical.

The Right Business Insurances

Breweries should have extensive business insurance policies to protect against claims, lawsuits, alcohol liability, advertising and slander claims, as well as insurances to protect against spoilage, equipment breakdown, and business interruption, along with workers compensation and other necessary policies. To put the most comprehensive brewery insurances in place, speak with one of our local insurance agents.

Cybercrimes are on the rise in the USA, and business owners need to be alert to the most common ways these criminals operate. The losses incurred by a business after a cyber attack can be staggering, particularly when the personal information of clients has been stolen. There are five general types of cybercriminals, and several techniques to help companies avoid the risk of a data breach:

Phishing

“Phishing” refers to emails coming to employees (or business owners themselves) that appear to come from a legitimate source, such as tax authorities, a vendor, client, or another party. Within the body of the email, you are asked to urgently reply, or click on a link. Once the link is activated, cybercriminals can access your internal systems, including the personal information of your customers or clients. These phishing emails may be obvious, or very sophisticated, appearing completely legitimate. It is critical that your employees are educated about phishing, as this method is one of the most common ways cybercriminals successfully perform a data breach.

Hacking

Hacking is one of the most common ways cybercriminals access company systems. They may first install malware through a weakness in system security. The malware captures passwords keystrokes, allowing access to bank accounts, business operations, and private personal information. If you are uncertain if your computer system is protected against an incursion, a security consultant can evaluate your system and install security features to reduce the chances that a hacker will be successful. Ensure every employee uses strong passwords and implements multi-factor authentication.

Former or Disgruntled Employees

An employee that is unhappy with a boss, pay, company culture or other aspects of employment can be the source of an expensive data breach. To avoid the serious financial losses associated with a cyber incursion, ensure all employee credentials are canceled immediately when an employee leaves the company, update your internal security system to track and log employee online actions.

Ransomware

Ransomware has led to disasters at hospitals, retailers, and businesses across the globe. A specific type of software is installed on the system, typically through phishing or hacking. Once the software is activated, the computer data cannot be accessed. The victim, whether a business, agency or other entity, is held hostage until the ransom is paid. The cybercriminals involved in these actions are typically sophisticated groups located overseas. They often demand payment in bitcoin, and until the ransom is paid, your systems are inaccessible. Some of the basic methods to avoid ransomware are multi-factor authentication and a full security update to your business technology.

Digital Stalkers

Your digital information can be found online, through various legal and illegal methods. Cybercriminals track your actions online, looking for information on social media, such as your pet’s name, your date of birth, the name of a parent, child, or other information to discover passwords. Once the passwords are identified, cybercriminals can then make their way through the system to gain access to personal information, which is sold. To avoid the damage, schedule regular employee seminars on cyber security, and ensure your system requires multi-factor authentication.

Your Business Insurance and Cyber Crime

If your company is the victim of a data breach, it is a disaster. It is imperative that you have the protection provided by your business insurance. Many businesses, to protect against risk, add cyber insurance to their business insurances to protect against the extreme financial losses of a data breach. You can speak with one of our local business insurance agents to discuss your options to determine the right types of coverage to protect your business assets.

Business owners put general liability insurance in place to protect against the excessive financial costs of defending claims and lawsuits. Umbrella insurance is designed to provide coverage above the limits of business liability insurance policies. This insurance takes over when your liability insurance limits have been reached.

Businesses, no matter how carefully they manage their operations, can be named in several types of lawsuits. A business may be sued by a customer, employee, or another business. The cost of defending against these legal actions may be higher than the policy limits of your liability insurance. Umbrella insurance adds an extra layer of protection.

What Risks Does Umbrella Insurance Cover?

Umbrella insurance protects against the same risks as business liability insurance, including:

• Personal injury claims
• Property damage claims
• Advertising injury claims
• Medical payments
• Attorney fees
• Damages

Is Umbrella Insurance Necessary?

In today’s litigious society, it is advised that business owners have an umbrella insurance policy for added coverage against legal claims and judgments. If the cost of a negligence claim is higher than the limits of your business insurance, umbrella insurance can be a lifesaver, and protect your company from suffering severe financial losses. If you exceed the limits of your liability insurance, you are forced to pay the rest out-of-pocket.

How Much Does Umbrella Insurance Cost?

Several factors are considered in choosing the right umbrella insurance. These factors include:

• Inherent business risks: Every company is different in the goods or services it provides, and some types of businesses come with higher inherent risks, such as construction. A work environment that includes machinery, vehicles, or offers a product that could pose a danger to consumers may be at risk of a lawsuit to seek damages, whether from an employee, visitor to the business, customer, or client. Evaluating the risks of your enterprise can assist in choosing an umbrella insurance policy needed for an added layer of protection.
• The value of all your business property: Your business owns many assets, including property, equipment, electronic devices, furniture, and other items that are costly to replace. The value of your business property must be evaluated when determining the type of umbrella insurance policy needed.
• Your current business assets: A high-value lawsuit may exceed the value of your business assets, leading to extreme financial losses related to attorney fees, damages, and judgments. The umbrella policy you select will come into play if the costs exceed the limits on your other business liability insurances, whether general business insurance, business owners’ policies, professional liability insurance, and others.

Will an Umbrella Policy Cover All Business Risks?

No policy covers all risks. A business umbrella insurance policy protects against liabilities associated with business activities and business property, just as your other liability insurance. Some risks will require other types of insurance, such as flood insurance, earthquake insurance, or commercial auto insurance. A full review of your existing business insurances will reveal any weaknesses in protection against risk. Our local agents are available to evaluate your current policies and advise you about an umbrella insurance policy.

If you own a business, you need to ensure you have the right business insurance. What is right for your company, general liability, or professional liability insurance? It could not be more critical to select the correct type of business insurance for the activities of your company. For many types of businesses, you need both general liability and professional liability coverage.

General Liability Insurance: What Does it Cover?

General liability insurance covers the cost of physical damage, and the risks of a lawsuit filed against your business related to personal injury claims, property damage, copyright infringement, or claims related to defamation in advertising, or lawsuits claiming you harmed the reputation of another company. A vast number of risks are covered by general liability insurance, including:

• The costs associated with damage claims against your business.
• The cost of medical treatment for a person injured on your property.
• Court costs, judgments, and settlements, up to the policy limits, for covered claims.

However, general liability insurance does not cover all risks, and business owners will need several types of insurance, based on what they do, such as workers’ comp or commercial auto and commercial property insurance, as well as professional liability insurance.

What is Professional Liability Insurance?

Professional liability insurance covers you should you make an error in performing professional services. If one of your clients or customers believes that an error you made led to a monetary loss, they can file a lawsuit against you for negligence, misrepresentation, or for giving advice that proved to be inaccurate. Whether the person filing the lawsuit is right or wrong, the cost of legal representation adds up fast, with some lawsuits continuing for many months or even years. Without professional liability insurance, you will face paying for your defense out of pocket.

Professional liability insurance does not cover bodily injury, property damage, or the losses associated with a cyber incursion. For these events, you need general liability insurance and cyber insurance.

Keep Your Company Safe with the Right Insurances.

Every company is unique, and the types of insurance needed vary. Your profession may require that you have professional liability insurance. Insurance companies, medical professionals, teachers, therapists, physical therapists, accountants, contractors, brokers, real estate agents, and attorneys should have professional liability insurance, which is often called “errors and omissions insurance.”

All human beings are prone to make mistakes on occasion, whether incorrect advice, a missed deadline, or an action that a customer or client claims led to financial losses. This insurance covers the cost of defending against the claim, or covers the cost of a judgment, up to the policy limits.

After dedicating years to learning your profession and building a business, the last thing you need is to lose everything due to failing to have the right insurance in place. Contact one of our local agents to review your current business insurance. We can help you find the best insurance for your business and your budget. We can help you find insurance for your business and your budget. We can find cost- affordable bundles. We are in business too, and we know the bottom-line matters.

Workers’ compensation insurance is essential for any business with employees. Unfortunately, myths about workers’ compensation coverage abound. These misconceptions can have an impact on the overall success of your business. The following are some of the most common myths among business owners concerning workers’ compensation insurance:

My Business Is Small with Low Risk of Injury, So I Don’t Need Workers’ Compensation Insurance.

Regardless of the size of your business or the type of industry, you need workers’ comp insurance. It is required by law in many states, even if you only have a single employee. Workplace accidents and injuries can happen, even in a low-risk work environment. No matter how hard you work to create a safe workplace, you cannot control everything your workers do. For example, an office worker could trip over a temporary extension cord and fracture a wrist in the fall. It is wise to be covered, just in case. Even if you only hire independent contractors, a serious work-related injury could have a major impact on your business.

My Employees Are Like Family – They Would Never Sue Me.

Medical expenses for work-related injuries can amount up to many thousands of dollars. Employees seriously injured on the job may feel they have no choice but to seek compensation, no matter how fond they are of their employers. It can be a matter of survival for employees and their families, particularly when a worker suffers a serious, disabling injury. With a workers’ compensation policy in force, employees injured in workplace accidents will have their medical expenses related to the injury covered, plus reimbursement for a portion of their lost wages.

Workers’ Compensation Insurance Is Too Expensive. I’ll Just Pay Out of Pocket If One of My Employees Is Injured.

As previously mentioned, employers are required by law to carry workers’ compensation insurance in most states. In addition to the legal requirement, when you compare the cost of a lawsuit with the cost of a workers’ compensation policy, it makes sense to have the proper coverage. Damages in an injury lawsuit often include pain and suffering and emotional distress, in addition to medical expenses, lost wages, loss of earning capacity, and other out-of-pocket expenses. Workers’ comp is designed to protect employees who are injured on the job AND to protect employers from liability for work-related employee injuries.

What If My Business Is Seasonal?

If your business is seasonal, you need workers’ compensation coverage during the times when your business is in operation. Most insurance carriers will write seasonal policies, provided the open and closed periods are defined. For example, if your business is geared toward the Holidays and only operational in November and December, your workers’ comp policy would become effective at the beginning of November and would no longer be in effect after December 31.

A workers’ compensation policy is an important part of your business insurance package. Our agents can help ensure you have workers’ compensation insurance and other essential coverage for your business.

Renting out a property is a great way to generate passive income, but there are always some risks involved. Those risks include liability for injuries sustained on the property, physical damage to the property itself, and non-paying tenants. Taking the following steps can help minimize your risk as a landlord.

Purchase Landlord Insurance

This is essential protection to cover common occurrences such as fire, lightning, wind, or hail, which can result in property damage. This insurance covers the building and other structures, such as fences or sheds, on the rental property. In addition, it covers personal property used to service the rental property, such as a lawnmower or a snowblower. Landlord insurance can also provide liability protection in case a tenant or visitor is injured on the property. It can help cover the injured party’s medical bills, plus your legal expenses and other costs in case of a lawsuit.

Buy an Umbrella Policy

Umbrella insurance can complement your landlord insurance to provide a higher level of protection. This makes sense for a property with a pool or trampoline, or for luxury properties with a risk of expensive damages and lawsuits. An umbrella policy can provide you with additional liability protection against business and owner liability and tenant, guest, or vendor injuries, as well as libel and slander.

Have a Home Warranty Plan in Place

A home warranty plan can help protect the contents of your rental property. This type of plan covers a variety of appliances and home systems in case of a breakdown. It could save you a huge repair or replacement bill in the event of equipment failure. Another advantage is that companies providing home warranties serve as intermediaries between property owners and contractors. This can save you time and help ensure the problem gets handled quickly.

Check Out Your Tenants Carefully

A basic mistake to avoid as a landlord is renting to bad tenants. The reliability of the people you rent to and how they treat your property are important factors to consider. Running background checks on applicants can help make this possible. You can pay a specialized service to do it for you or run the background check yourself. This may involve:

• Using Equifax to learn the applicant’s credit score
• Contacting the employer to get an idea of how reliable the applicant’s income is
• Searching criminal conviction databases for your prospective tenant’s name

In addition to running a background check before you rent to a tenant, it is important to conduct regular inspections to ensure your rental property is in good condition. Occasional surprise inspections can give you a better idea of how your tenants behave. Make sure these inspections are written into the terms of your rental contract, including what constitutes an inspection.

When you rent out the property, you are operating a business, and it should be treated as such. Among other things, this means you need the right insurance coverage to protect your business. Our knowledgeable agent will be happy to review your landlord insurance policies with you.

Transporting goods carries risks. Any number of things can go wrong with goods in transit. That is what makes cargo insurance so important. It can help protect the value of your goods against losses in transit by sea, air, or rail.

Cargo insurance provides protection against financial loss for cargo that is lost or damaged due to a covered event. These typically include natural disasters, piracy, acts of war, vehicle accidents, cargo abandonment, and customs rejection. Cargo insurance is not always automatically included for all shipped goods. Shippers and consignees can purchase policies from a variety of sources, including our experienced agents.

What Are the Benefits of Cargo Insurance?

Like car insurance, cargo insurance protects you in case of the unexpected. Although it is not required, it is recommended to protect your goods from exposure to risk. Even when you can prove that a carrier is liable for damages, the limits of its liability may be extremely low. Without the right insurance coverage, you could lose a large portion of the value of your cargo. This type of insurance can help protect your business cash flow from unforeseen stoppages, allowing for profits to be generated.

What Are the Main Types of Cargo Insurance?

There are mainly two categories of cargo insurance:

• Land cargo insurance: This type of insurance covers cargo carried by trucks, utility vehicles, and other types of land transportation. It is typically used for domestic cargo. Land cargo insurance covers collision damage, theft, and other risks involved in shipping freight by land.
• Marine cargo insurance: This insurance is primarily for international shipping. It covers cargo shipped through the ocean and air freight. Coverage includes damage from weather conditions, piracy, loading or unloading, and other risks.

What Types of Marine Cargo Insurance Policies Are Available?

Different types of marine cargo insurance policies are available, depending on your shipping needs:

Open coverage policies cover freight for a specific period of time and may include multiple shipments under a single policy. This type of policy may be renewable after a shipment is delivered, or permanent, allowing for unlimited shipments within the term of the policy.

Single coverage policies cover cargo on a per shipment basis. This type of coverage may be suitable if you ship infrequently.

Contingency cargo insurance covers the seller in cases where the customer is responsible for insurance but refuses to accept goods that were damaged in transit.

What Is Not Covered by Cargo Insurance?

Cargo insurance will not cover risks over which the shipper has significant control. Generally, cargo insurance policies exclude:

• Damage caused by improper packaging
• Damage due to faulty products
• Specific types of freight, including hazardous materials, certain electronic products, and valuable or fragile items
• Freight moved by other modes of transportation than ship, plane, or truck

If your business ships freight, you need cargo insurance for protection against potential loss. Our knowledgeable agents can help you find the right cargo insurance coverage for your business circumstances at the best available rates.