Standard business property insurance policies only cover the potential loss of physical assets experienced in the case of a natural disaster. Traditional policies do not cover any potential loss in profits, temporary relocation expenses, continued operating costs or other additional expenses that the business may incur while repairs are being made. This is where business interruption insurance comes in. Added as a rider onto an already existing property insurance policy, it helps businesses continue to operate optimally during the unforeseen whims of nature.
Good For Any Business
Any business that has the possibility of being stuck by a disaster can benefit from interruption insurance. Obviously those businesses based in areas more prone to nature’s influence, such as coastal areas, will be more likely to find this type of insurance necessary. Just because the business isn’t located in hurricane alley however, doesn’t mean that interruption insurance is useless. It can be used to mitigate the financial impact of severe snowstorms, tornadoes, floods, earthquakes or any other disasters that causes property damage. Obviously, the greater risk the business is at, the higher the policy costs will be.
Acquiring Interruption Insurance
The step when considering business interruption insurance is to determine what level of coverage the business requires. Generate a list of all disaster related expenses including:
- Regular operating costs: This all includes items the business will still have to pay during the repair period, including payroll, rent, loan payments, etc. Utility expenses such as electricity are often not included as part of standard interruption insurance, so it may be necessary to ask about those provisions specifically.
- Projections of lost profits: Gather a history of profits to make accurate projections, and if the business is growing be sure to include potential growth in these figures. Keeping hard copies of these records in another location is wise; not much would be worse than being unable to file a claim because financial records are unavailable.
- Relocation expenses: It is likely that any disaster shutting down a business will render facilities at least temporarily unusable. Include costs for finding, outfitting, and moving equipment and personnel to a new location.
Ensuring the policy lasts enough to ensure a return to normal business is essential. Repairs oftentimes take longer than expected, and having cash-flow run out in the middle of them can potentially ruin a business. A good baseline to start from is six months, though that figure should be adjusted based on how much infrastructure the business has that may need repairing. Most policies don’t kick in until 48 hours after a disaster, so it is also important to have enough cash on hand to survive those first two days.
All About Stability
Business interruption insurance is intended to allow business to maintain financial stability as though a disaster had never occurred. These disasters are becoming more common, with a 50 percent increase in disaster frequency being reported by some insurance companies over the past few years. This increase makes it worth at least exploring the idea of business interruption insurance, whether it is a small local business or a large corporation.
Sarah works for Aor Insurances and writes all thier marketing material.
Aside from the obvious benefit of a reduced sentence, there are a number of benefits to accepting a plea bargain. Plea bargains often pose advantages to both sides, both the defense and prosecution. Time, money, and hassle are saved for both sides of the legal process. There are also several benefits the defendant should keep in mind when considering a plea bargain.
Faster Outcome
A criminal trial can be a long, expensive, and emotionally traumatic experience for a defendant. Plea bargains allow you to skip the extensive trial procedure and move right into the sentencing phase before a judge. You will know the outcome of the conviction much sooner than if you had to go through an entire trial, without needing to pay attorneys’ bills throughout the trial process.
Leave Jail
Defendants unable to get out on bail, whether bail was denied or is too expensive, will most likely need to stay in jail for the duration of the trial before being released or transferred to a prison. Once a plea is entered and accepted, you will be sentenced and moved out of the jail. Leaving jail could mean going home or starting a sentence in a prison. While prison may not seem like a good place to be, they are almost always better than jail.
Lesser Charges
A plea bargain often involves pleading guilty to offenses less serious than those you were charged with initially. The prosecution will reduce the charges, or remove some altogether, as a way of making the plea agreement more attractive to the defendant and increasing the chances of a fast conviction.
This is an especially important benefit of accepting a plea bargain if you are being charged with crimes that can be personally, socially, or professionally damaging. A lesser related offense can keep you from needing to continue feeling the negative effects of a conviction even after you have paid your debt to society.
Shorter Sentence
A plea bargain that results in you entering a guilty plea to lesser charges can also result in a shorter sentence. Not only are the required minimum sentences shorter for less serious crimes, many judges are more likely to show leniency to a defendant willing to accept responsibility and avoid a lengthy trial. A plea bargain can help you reduce the time you will need to serve.
The benefits of accepting a plea bargain affect your life in both the short and long terms. By accepting a plea bargain you can avoid the embarrassment of a trial and potentially shorter the sentence you will receive. Always consult with a lawyer before accepting a plea agreement.
Mike often writes articles to help explain the confusing criminal justice system. While he tries his best to explain the laws, he believes that hiring a criminal defense attorney is still the best way to go if in legal trouble.
Tags: attorney, bargain, economy, law, legal, money, savings, tips
Budgeting, Business, Financial Planning, Forex, Investment, Law, Money, Personal Finance, Trading
Statistics have shown that the majority of failed small businesses lack underfunding and adequate capital investment. As a small business owner, it can be difficult to find the right funding source to meet the investment levels that will ensure your business has a fair chance for success in the market. A merchant cash advance is an alternative cash source that may be an ideal way for your business to get the funding it needs without the added risk of a conventional loan.
Is a Merchant Cash Advance the Same as a Loan?
When a small business loan is contracted by a business owner, the principle amount is paid back through payments that include interest. The interest rates on small business loans tend to be less reasonable for new businesses simply because they lack the merchant credit history that is required to garner a low interest rate. Merchant cash advances are different from loans because they are based on a flat fee rather than interest. The money is paid back automatically without further action by the merchant.
How Does a Merchant Cash Advance Work?
Any business that has accepted credit card sales for more than 60 days is typically eligible for a merchant cash advance. The provider in this case is known as a factoring company. When applying, the factoring company will agree to a lump-sum payment to the applicant business in the form of an agreed amount. The business owner is then free to invest the new capital into his immediate operation. The factoring company then retrieves the investment from credit card sales payments that are made to the merchant from credit card companies in lieu of that merchant until the full amount of the cash advance and the flat-rate fee have been retrieved.
What Are the Benefits to a Merchant Cash Advance?
The most significant benefit is that the flat-rate fee associated with the transaction is highly competitive with interest rates because it does not continually accrue over the duration of the outstanding debt. Another benefit is that the risk of repayment default is lower due to the fact that the initial principle is retrieved according to the natural influx of credit card receipts. The principle is not based on a strict, predetermined timetable.
The merchant cash advance is intended to stimulate an immediate cash flow investment that is then repaid at a prorated pace according to credit card sales. The majority of small businesses that need extra funds can benefit greatly from merchant cash advances.
Fred often writes articles on how small businesses can improve their cash flow problems. He believes that a merchant cash advance company can be an excellent solution for many companies in this situation.
Tags: business, cash, cash flow, credit, debt, financial planning, money, trading
Business, Investment, Money, Trading
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