Posts Tagged ‘long term care insurance’

The Importance of Small Business Insurance

Posted on: July 1st, 2010 by

Financial Planning - Rockville MDSmall Business insurance is more often than not a necessity, not an option.  If you are a business owner, you will have many choices, some of which are far better options than others.  Buying business insurance is among the best ways to prepare for the unexpected.  Without proper protection, unexpected events such as the death of a partner or key employee, embezzlement, a lawsuit, or natural disaster could bring about the end of any thriving operation.

Anything ranging from everyday worker’s compensation insurance to the relatively obscure executive kidnapping coverage is available for nearly any business at risk.  Considering the multitude of available options, business owners must carefully weigh whether the cost of certain premiums will justify the coverage for a given risk.  Do the means justify the end?

General Liability

Many business owners buy general liability, or an umbrella policy, to cover legal issues due to claims of negligence.  This coverage helps protect against payments as the result of bodily injury, property damage, medical expenses, the cost of defending lawsuits, and settlement bonds or judgments required during an appeal procedure.

Product Liability

Every product is capable of personal injury or property damage.  Companies that manufacture, wholesale, distribute, and retail a product may be liable for its safety.  In addition, every service rendered may be capable of personal injury or property damage.  Businesses can be considered liable for negligence, breach of an express or implied warranty, defective products, and defective warnings or instructions.

Home Based Business Insurance

Contrary to popular belief, homeowners insurance policies will not, generally, cover home based business losses.  The most commonly needed insurance areas fro home based businesses include business property, personal and advertising injury, loss of business data, crime and theft, and disability.

Internet Business Insurance

Web based businesses may wish to look into specialized insurance that covers liabilty for damages done by hackers and viruses.  On top of that, e-insurance often will cover specialized online activities, including lawsuits resulting from meta tag abuse, banner advertising, and electronic copyright infringement.

Criminal Insurance

No matter how tight the security may be in your workplace, theft and malicious damage are always possibilities.  While the dangers associated with hacking, vandalism, and general theft are obvious, employee embezzlement is much more common than business owners think.  Criminal insurance and employee bonds can provide the necessary protection against losses in most criminal cases.

Business Interruption Insurance

Some business, especially those along the Gulf Coast, may wish to acquire insurance that covers losses during natural disasters, fires, and other catastrophes that may cause the operation to shut down for a significant amount of time.

Rockville, Maryland – Basic Estate Planning Steps

Posted on: March 16th, 2010 by

CPA Rockville - Estate PlanRockville, Maryland – There are 8 basic steps to follow to planning your estate that coincide with the steps in your life:

1) Once you reach adulthood (18 yrs old), you should create both financial and medical powers of attorney.

2) Upon marriage, both you and your spouse should have, at the very least, a simple will.  At this time, powers of attorney can be switched over to your spouse if you so desire.

3) At the birth/adoption of the first child, both parents should acquire a sufficient amount of life insurance to ensure their child’s well-being until at least adulthood.  Legal documentation must also be drafted to ensure individual(s) designated to care for their child will , in fact, be the one(s) awarded custody.  As the number of children increase, so should the insurance policies.

4) As your assets increase and your children age, a trust may be developed to preserve your assets for the benefit of your children.

5) When you become an “empty nester”, your life insurance coverage may be reduced, but you may want to consider investing in long-term care insurance.

6) Your end of life wishes must be discussed and adequately documented by an estate planner in Rockville.

7) Prepaid funerals, burial plans, and cremations are very common these days.  These services only increase over time, however if you make arrangements and payments ahead of time, you can often get today’s rate for a future date down the line.

8 ) Within your trust, you should include an itemized list of your valuable possessions and who you are willing them to, to prevent turmoil in the future.