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By Guest Contributor Steve Chesnut – www.abideagency.com
Abide Agency provides insurance policies that protect individuals and businesses from financial loss resulting from automobile accidents, fire, theft, storms, and other events that can damage property. Business Insurance, Property Insurance, Casualty Insurance and Workers’ Compensation Insurance are the main coverages for your business. There are many other coverages but those 4 are usually the required coverages. In Florida if you have 4 or more combined full time/part time employees you are required to have workers’ compensation. If you have a construction-based business and have one or more employees you are required to purchase workers’ compensation.
Abide Agency Insurance Solutions represents a number of insurance companies, or “carriers”, and sells the products that most appropriately meet the needs of their clients.
When getting quotes for your new business, you want coverage, but do not want to pay more for your insurance than you did for the business. If your insurance premium is based on sales or payroll, base your new insurance on realistic numbers. This is especially true for restaurants. Restaurant premiums are based on the insurance rate per $1000 of sales. If you underestimate there is a good chance at the end of the policy period you might owe some additional premium. If you estimated $500,000 in sales at the rate of $4.25 per $1000, but you actually did $600,000 you would owe an additional $425. If you estimated $500,000 and only did $400,000 you do not get any money back. Better to estimate low and owe than to overpay.
This is especially true in coastal areas where there is the possibility of a slowdown in business due to storms. Using a knowledgeable agent is really a key in getting the best value for your insurance dollars.
With workers’ compensation your business has the option of having their own policy or going with a PEO (Professional Employer Organization). With the PEO they handle the payroll, taxes and required workers’ compensation. In this relationship the PEO must have the employee application before the employee is covered. The other option is your own workers’ compensation policy and doing your own payroll or using a payroll service that does the payroll and taxation. With your own workers’ comp policy all employees are automatically covered for work related injuries. Also with your own policy you are establishing a workers’ compensation history that could lead to discounts and safety dividend questions.
For any business insurance questions please contact us at Abide Agency Insurance Solutions.
Steve Chesnut
239-841-7526
Michael Monnot
941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907
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