Do You Need Business Insurance?

The basic reason to carry any type of insurance is for the peace of mind it provides. Knowing you're financially protected in the event something terrible happens can be well worth the cost. Owning a business has enough headaches, you don't need the added stress of worrying about a potential disaster. Although paying the premiums may strain your budget, it would probably be a good investment--if for no other reason than the peace of mind.

Litigation Runs Rampant

An unfortunate aspect of modern life is that we live in a litigious society. It seems like some people are ready to sue at the drop of a hat, for any number of seemingly insignificant reasons. As a business owner, you are a target for them. You are seen as rich because you own property and produce a product or provide a service. It's sort of a modern day share the wealth point of view. You need to be financially protected from that kind of person.

Legitimate Claims

Keep in mind that there may be legitimate reasons for a claim or lawsuit to be brought against you. Accidents do happen, and people get hurt. No matter how safe you try to make your property, it's possible for someone to slip and fall. You can take every step you can possibly think of to ensure your product is safe, and someone may still be injured while using it. Although you may have instituted the very latest in safety measures for producing your product, someone could still be injured on the job. It doesn't matter how well trained you are, or how carefully you fulfill your professional obligations, it's possible that someone may not react the way they should to your services, and you could be named in a malpractice suit. The list of potential problems is endless.

Better Safe than Sorry?

There are many factors to consider when you try to make up your mind about whether or not to carry business insurance. The more conservative you are, the more likely you'll be to err on the side of caution. Better safe than sorry, right? It's a smart approach. The potential for financial disaster far outweighs the price of business insurance. That is the feeling of the majority of business owners, especially those who actually have adequate insurance coverage. Knowing you will still have a business even after a disaster or devastating law suit can help you sleep at night so you can operate your business efficiently, and with a clear conscious.

Types of Business Liability Insurance

There are four basic types of business liability insurance available, although you can get coverage for nearly any eventuality. The fundamental types are general liability, product liability, professional liability, and discrimination liability. Each will cover you for specific aspects of the business.

Mandatory Coverage

There are a couple of types of insurance that are mandatory, depending on your circumstances. If you have a certain number of employees, which varies from state to state, you will have to carry workman's compensation. If vehicles are used within your business you must have business vehicle insurance. Certain professional people, such as doctors, are required to carry errors and omissions coverage, usually called malpractice insurance.

Purchasing Business Insurance

There are many other types of business insurance you can get to protect yourself, and you have a choice as far as the amount of insurance to carry, as well as how much deductible. Consult with a business planner, an attorney, or your accountant to decide on how much and what type of insurance to carry. Discuss the possibilities with your insurance agent as well. With your security at stake it would be wise to study your options and weigh the pros and cons before deciding against carrying business insurance. If you are worried about the cost, get several different business insurance quotes. Costs can vary from company to company and may not be as high as you think they are.

Guest post from Bailey Harris. Bailey enjoys writing about business, insurance, finance, and related topics.

7 Smart tips on refinancing home loan

A lot of people consider refinancing their home loan to take advantage of lower interest rates. Refinancing can indeed save you a lot of money, but it can be a complicated business too. So remember the following tips before you put your right foot forward:

1. Exit fees: Carefully check the terms and conditions of the existing loan before you decide to refinance. This is because some lenders will impose penalties if you leave before the loan term is over. This is known as exit fees. Heavy penalties in the form of exit fees might render refinancing meaningless. Exit fees might vary depending upon how long you have had the loan.


2. Shop for the best lender: You have no obligation to refinance by borrowing from your current lender. Contact multiple lenders in order to get yourself the best deal. You can also contact mortgage brokers to know current mortgage refinance rates. Compare the rates and make sure that you do not end up accepting the first offer that comes your way.


3. Do not ignore your existing lender: Sometimes staying with your current lender can be the best decision. You might approach them saying that you have got great refinancing offers from other lenders. To keep your business, they might come up with a good offer.


4. Settle for nothing less than what you want: You are willing to take the trouble because you are not happy with the current rate or mortgage terms. But refinancing involves a lot of complications. So do not agree to anything less than your expectations. Remember that you can’t refinance again for a certain period of time.


5. Consider the extra costs involved with refinancing: There might be a host of extra fees associated with refinancing. These include closing costs, exit fees etc. Take these fees into account and then decide if it is viable to refinance your home loan.


6. Borrowing from home equity: If you have some equity in your home then borrowing against home equity is often a pretty effective idea. Refinancing with a home equity loan usually results in a low interest rate and longer repayment period. Both will suit you perfectly. Also note that many people take a debt consolidation loan to refinance their mortgage.


7. Home loan professionals: If you are not too confident about refinancing yourself then consider hiring a home loan professional. He will analyze your situation, find you the best deal, and do all the work on your behalf. Life will get a lot easier for you.