The Loss of a Key Person

What consequence can your business face from the loss of a key employee?

As a business owner you try to protect your business against lost of physical assets, but what about lost of a key employee? Studies show the probability of losing a key employee is more likely than a loss due to fire or most other perils. It increases to 17 times at age 50, and to 23 times at age 55. Furthermore, about one out of three individuals dies during work life with consequential loss to his/her business.

In addition most other loss due to perils are temporary; locations can be rebuilt and office supplies can be repurchased. In contrast a new hire may need several months or sometimes years to be as productive as his/her predecessor. The deceased employee may also be impossible to replace.

How to determine a Key Employee?

Every corporation has at least one key executive or an employee who makes a substantial contribution to the operation, profitability and success of the business. Any individual that has critical intellectual information, sales relationships, bank relationships, product knowledge, and/or industry contacts that may adversely affect profits in the event of their absence, may be considered key.

Insuring a Key Employee

Although life insurance cannot ever fully replace the value of a key employee, it can indemnify the business for the financial setbacks that can occur. Life insurance can provide the business with needed funds to keep the business running, to assure creditors that their loans will be repaid, to assure customers that business will continue operations, to cover the special expenses of finding, hiring, and training a replacement.

Visit http://www.vintageinsservices.com/Loss_of_Key_Employee.html  for more information on how Key Person Insurance may work for your company.

10 WAYS TO REDUCE YOUR INSURANCE COST

If you are like most Americans you are looking for ways to cut cost in every corner. While I can’t advise you on other areas of your life, I can offer tips of how to reduce insurance cost.     

                                                

1. Investigate coverage with independent brokerage (like us) – Independent brokerages represent many insurers with different products and services to meet their client’s needs, as well as budget. Also they can provide you with that unusual coverage, not available in a voluntary market. Let your independent agent do the shopping for you.
2. Increasing your insurance deductible – Increasing your deductible can help reduce your insurance premiums. Before increasing deductible, please consider how this additional upfront out-of-pocket cost may affect you.
3. Multi-policy discount – having your home, auto and /or umbrella coverage with the same company can give you discounts on your policies. Insurance companies like consumer loyalty and would reward for that.
4. Ask for credits – Many costumers forget to mention whether they have replaced or updated their roof, electrical, heating or pluming system. These updates allow for as much as 20% discounts on your home/property coverage. Consider taking the defensive driving course if offered in your state. There are many discounts available, contact your agent for more information.
5. Scaling back on coverage- Consider removing non-critical coverage, such as rowing or rental reimbursement as many of these coverage can be paid for out-of-pocket are may be available though other affiliations or memberships.
6. Carefully consider removing physical damage coverage on your older vehicle – (This is not always a good idea) However, if you have a vehicle that’s over 8 years old, this may be an option. Consider the current value of the vehicle, to your insurance premium to see whether it would make sense.
7. Alternative Risk Management – Is there something else you can do to manage this risk if getting insurance is not a financial option? Your valuables can be scheduled on your property insurance policy, but if that’s too costly consider another option. It might less costly to keep your valuable in a safe, rather than scheduling them on your insurance policy.
8. Downsize - (when there is no other option) one people are collectors of vehicles such as cars, motorcycles, ATV, jet skis and more. You start off with one, and then your yard is full with collectibles. Consider selling some of these items that you can live without. Most of these items require insurance and getting rid of them can free up some well needed cash. Cancelling insurance prior to giving up possession of prior can expose you to additional risks.
9. Your agent knows you – your agent will be familiar with you and your circumstances, not a consumer website. Some people shop on-line and miss out on many benefits available to them. When you get that personal touch, you know the other person on the line understands you and your unique needs.
10. Does this make sense for your situation? – When deciding on any changes or termination of coverage, please consider whether this is right for your situation should you incur a lost. Only you know your finances and what you cannot afford to absorb. 

What Does Social Media Mean To The Insurance Industry?

Many people send approximately 4-10 hours a day on social media websites. From updating their status to seeing what's going on in the lives of long lost friends. What does that mean to the insurance industry? A lot! More and more people are finding the services they need on these media. Some of these services includes shopping for shoes, getting deals on flights, but what about insurance? How likely is it that someone would handle business matters, while browsing a social media network? Despite the fact that the industry is tying to appeal to a wider range of audience, how effective is it? How likely it is that someone would click on a insurance ad, rather than an ad for a sale on a designer shoe or wallet? These are the questions we would like to know your response to.

The insurance industry is stepping up their game by advertising on these network to reach the younger generation. The objective is to educate and assist them on the benefits of having a quality life insurance policy, or any other insurance for that matter. We have created several profiles on social media networks to bring the awareness to protect your family and assets while browsing. Life changes in an instant and what might be available to you today, may not be tomorrow so let's make the best of it.