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Avoid Common Business Insurance Mistakes

Business owners work hard to grow their enterprises, investing countless hours, intense labor and careful attention to assure success. Yet many overlook one of the most basic components in securing their business’ long-term viability: adequate, appropriate business insurance.

When it comes to insurance, business owners make some common, potentially terminal, mistakes that may be remedied easily with a little knowledge and guidance.

Setting limits too low. Business owners often don’t understand that once you pay for an initial policy, extra coverage costs only slightly more. In some cases, you can actually double your limits for only 10 percent more in premiums.

Not reading policies. Insurance policies can be intimidating, containing as much legal jargon as virtually any business contract you’ll ever see. If you don’t want to read or cannot understand the policy, ask an attorney or financial adviser who is well-versed in insurance. And do it before you purchase it. Afterwords, it’s too late.

Misunderstanding duties to defend or indemnify. Every business owner’s policy addresses these two issues, often in different ways. When purchasing a policy, you need to know whether your insurer will defend you if you get sued. You also need to know whether your insurer will pay–and to what limit–if there is a judgment against you.

Buying the wrong type of insurance. Casualty and liability are the two basic types of insurance that virtually all business owners need. Casualty will cover a business’s own losses arising from sudden, unexpected events, such as an accident, and liability will protect you from the losses of others who claim their loss was your fault. Most business owner policies will provide both casualty and liability coverage, but you need to understand the variables within those two categories. Some provide pollution coverage or protection from advertising injury or completed contracts; some don’t.

Eighty percent of businesses will find that business owner policies cover their needs sufficiently, but if you have a specialty business of some kind, your needs may differ. Also, if your business puts out products in any way–as a designer, manufacturer, distributor, retailer, etc.–you will need product liability insurance as well.

Overlooking business interruption insurance. If something happens to your business–a flood or fire, for example–you may have insurance to rebuild your business, but if the business has no income in the meantime, you may have to shut down permanently anyway. Business interruption insurance can cover overhead and other expenses while your business is out of commission.

With all the variables in industries, businesses and policies, your best bet to avoid insurance mistakes is to get help from a knowledgeable expert. Many trade associations offer advice and even insurance policies especially suited for their industries. You can also talk to a reputable insurance agency–one that your business counterparts or competitors use. And if you’re in a specialty business, seek a specialty agent. Finally, look at ratings. Companies, like Standard & Poore’s and A.M. Best, among others, assess the financial strength of insurance companies and their ability to pay. Much of the information is available online.

It’s important to take your time in choosing insurance companies and policies. Approach the decision with the same prudence and thoroughness you would employ if you were borrowing money. Your business may be one-of-a-kind, but just like the seven million other small businesses in the United States, one lawsuit or disaster could mean the end. Having the right business insurance can make all the difference.

Earn Maximum Profit From Your Investment

Most of us still have preconceived notion about the stock market, and consider it as a risky platform for investment. Why people still have kept such an opinion about the market is a matter of concern. The first and foremost reason is the lack of adequate knowledge about the market. Furthermore, many of us think that bureaucrats are the one who really enjoy the benefits.

Online stock trading today is not limited to a particular class of people instead it has become a global investment option for all class of people. Forget about the traditional brokerage house, today anyone can invest money from any corner of the world. All credit goes to the technology that has brought a new revolution globally. Yes, Internet has made things much easier and by just sitting at home, anyone can invest and manage funds.

However, there are several factors that determine your success in the stock market. Sinceit’s a place where everybody wants to make profits in a very short period of time, one needs to be aware of the market moods, knowledge about major share companies, and all those terms that are associated with the market. Though, all kinds of information about shares, brokerage house, etc., are available on the Internet, still we don’t really care and start investing in stocks – this is the main cause of failure. Investment is easy but drawing profits is not as easy as it seems. But, no doubt, anyone can gain substantial profits, if the planning is good.

A good investment planning leads to success in such trading. Planning can be done on the basis of your financial strength, how much you want to invest, long-term or short-term investment, etc. For this purpose, you can consult with financial experts who not only guide you; they also keep you aware of the pitfalls associated with the market and how to avoid those drawbacks to minimize the risks, if any.

Once you have a good investment plan, you can proceed further. If your base is strong, you are bound to get success from your investment. Since all trading is done online, you need to open an account with a stock trading company. It’s a simple procedure, but you need to select the best industry from the market. Do some research and find the one that offers best services and charge low commission. This way, you can earn more in a short timeframe.

Since, trading is done through a broker and he is the person who takes care of your finance, you should have an intelligent stock broker. Buying and selling of stocks on the other hand should also be done wisely. Always target major company shares and once share prices go high, sell them. As, you are investing your hard earned money in a flexible market; you have to be aware of the share prices through stock quotes. Many times, an investor wants to retain shares even when the share prices go high – but it is always better to sell stocks and gain profits.

In addition to major company shares, there are many small-scale companies who have got an excellent growth curve. You can also look for such company shares. These are some of the fundamental points that need to be considered while investing. Keep your eyes open and invest wisely. Today, online stock market trading has opened a new vista for investment. Everyday, many people are getting attracted towards such type of investment plan. So, if you are also planning to gain profits from your hard earned money, then invest today and build a strong financial backup for your future.

Tips In Investing In Real Estate

Real estate is a popular investment. There are many modifications in the monetary system having puffed-up risk or lesser returns, the investment marketplace go on with the plan imaginative and good-looking investment approaches. These developments make it important for real estate licenses to have an elementary and up-to-date knowledge of real estate investment. Of course, this does not mean that licenses should act as investment counselors. For all he time they should refer investors to knowledgeable tax accountants, attorneys, or investment professionals. These are the professionals who can give expert advice on an investor’s specific needs.

Consider All the Three Factors Before Investing in Real Estate

The three factors of investing in real estate are area, perception and economics. The key to making the best investment in real estate, and specifically in cooperatives, and townhouses, is to consider all the three factors. Investing in real estate correspond to a certain commitments on the part of the purchaser. Investment in real estate made solely upon the location of the property will not yield those results. Before making an investment, it is essential to include the three considerations

o Consider on the whole area.

o Consider awareness of the area.

o Consider the financial factors.

Merits of Real Estate Investment:

Real estate values have varied extensively in various areas of the country. Yet many real estate investments have shown above average rates of return, generally greater than the prevailing interest rates charged by mortgage lenders. In assumption, this means the investor can utilize the influence of rented money to invest a real estate purchase and feel comparatively sure that, if held long enough, the asset will yield more money than it cost to finance the purchase.

Real estate offers investors greater control over their investments than do other options such as stocks etc. Real estate investors also are given assured tax advantages.

Demerits of Real Estate Investment:

Liquidity refers to how quickly an asset may be converted into cash. For instance, an investor in listed stocks has only a call a stockbroker when funds are needed. The stockbroker sells the stock, and the investor receives the cash. In contract, a real estate investor may have to sell the property at a substantially lower price than desired to ensure a quick sale. Of course, a real estate investor may be able to raise a limited amount of cash by refinancing the property.

Huge amounts are generally necessary to invest in real estate. It is not easy to invest in real estate without professional guidance. Investment decisions must be based on careful studies of all the facts, reinforced by a thorough knowledge of real estate and the manner in which it is affected by the marketplace.

Real estate has need of dynamic administration. A real estate investor can rarely sit idle by and watch his or her money grow. Administration assessments must be made. The investor may want to manage the property personally. On the other hand, it may be preferable to hire a professional property manager. Physical improvements accomplished by the investor personally may be required to make the asset profitable. Many good investments fail because of poor management.

Finally, it involves a high degree of risk. The opportunity forever survives that an investor’s property will diminish in rate during the time it is held or that it will not make enough income to make it advantageous.