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Saving More by Doing Less Through Outsourcing

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Outsourcing a part of your business or even just a specific project can be a highly cost-effective solution. You forego a long list of expenses for a single contract price. Plus, you can focus all of your time on your core business, such as growing your customer or client bases. Not every business has the resources to assemble an in-house team for everything that needs to be done. Sometimes, it makes sense to hire an agency that are already experts on certain tasks to do it for you. Learn more about how you can lower expenditures and get more time by unloading a part or your business through outsourcing.

Cost benefit analysis (CBA) is key to doing business. It projects the net amount of costs and benefits of at least two choices when making decisions. This guides executives to make an economic decision based on quantifiable data.

CBA is especially relevant to investments involving substantial cash flows like choosing new capital expenditure over major equipment overhaul, finance lease over land ownership, and offering a new product line over expanding existing product lines. This makes it easier to choose the best option that offers the highest net benefit or the lowest net cost.

Deciding whether to outsource a part of your business or to do it on your own is one of the common business decisions and one of the toughest to make. You need to consider all the pros and cons to choosing the option that is more favorable to your business within the next twelve months and in the long-run. With CBA, you can list all the figures that matter to both choices, compare analytics such as cash flows adjusted in the present value and eventually pick the better one that will lead to lower costs but higher returns.

Going for outsourcing is a win-win solution. You can usually pay for a fixed contract price, either on a per-project basis or a monthly rate, and you are free from managing such particular part or division. That is both savings on time and money.

Additionally, highly skilled and experienced workers are then able to do the job for you. You get to experience the expertise of professionals who might have been specializing in the task you hire them for. These are just several of the benefits of outsourcing your contact center, manufacturing, bookkeeping, marketing, and other departments of your business.

The caveat and probably the greatest risk with this set-up is the reliability of the third party service contractor. You might read compelling proposals backed by persuasive client testimonials, case studies and impeccable presentations.

But, these alluring words tend to be shallow. You need proof and that means doing research, confirming reviews directly from clients, performing ocular inspection on-site and even asking for a demo tour or free trial. The price, although cheaper, is still a big investment for you. And you need to reap the best value for your money. If the supplier fails, it is going to hurt your business. You can usually ask for a trial or demo period to test their service and see if it produces results at a smaller scale, before committing to them completely.

If you choose not to outsource, you need to tackle the birthing pains of handling it on your own. You need to hire the right people with the right skills. And you need ample time to plan, implement, monitor and evaluate the important aspects. The good thing with doing it on your own is you get full control. You see how a project progresses and you can easily tweak the processes along the way. But if you don’t have the time, the people and additional capital, then you can always ask for professional help.

Several companies have partnered with other companies, domestic or abroad, to work on business process outsourcing. Telecom giant AT&T has long-term business relationships with contact centers based in Asia for its customer service and technical support. Nike has let go of its footwear manufacturing processes to various Asian countries. Goods sold at Wal-Mart are produced from its Chinese partners. These are just of business mammoths that fueled their growth by outsourcing several of their business segments.

It takes guts to let someone do a job for you. But, if that someone can give you the expected benefits and even more, then there is no reason not to outsource. Think which works better for your business now and the years to come.

Why You Should Practice with Simulated Stocks

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As exciting as it can be to take your first steps into the stock market – the process can be pretty scary too. The last thing you want is to jump into the experience head-first and discover that you’ve ended up losing all of your money within the first couple of months. There’s risk in any kind of investment strategy. Ultimately, there’s nothing you can do to ensure that you never lose anything on your trades and investments. However, the more you learn about the stock market in advance, the more likely it is that you will make trading decisions that are good for you and your financial future. One of the best ways to learn is through a trade simulator.

What is a Trade Simulator?

Trade simulators have many different names, including virtual trading platforms, and paper trading. These systems are all about giving people an opportunity to explore the stock market and improve their skills in the space without having to put their own actual money at risk. By giving you a simulated market in which you can practice trading, a trade simulator ensures that you can make the most out of your trading skills, without wasting your money. There are plenty of ways that you can take part in paper trading or a trade simulator too. For instance, you can simply use formulas and spreadsheets. However, a much easier option is to utilize one of the many platforms that already exist online thanks to modern brokers. These pre-built environments are designed to mimic the current trading environment, so you can get a real experience of what it’s like to trade in today’s world.

The Benefits of a Trade Simulator

So, why should you consider a trade simulator before you jump straight into real trading? The obvious answer is that it gives you a practical way to develop your skills in a complicated market. A trade simulator gives you some real exposure to what it feels like to trade stocks and assets, so you’re less likely to feel overwhelmed or confused when you approach the markets for the first time. Remember, the stock market can be a scary place, particularly for people who have never explored it before. Freezing up or making emotional decisions due to nerves could mean that you end up losing a lot of money.

A trade simulator also gives you a chance to learn the basics of the market dynamics in the trading world. These simulators help you to evaluate what’s happening in the environment around you, and what different changes mean to the way that your stocks will grow or shrink in the future. The more time you spend on a virtual trading platform, the easier it will be to make informed decisions about your assets.

All the benefits that you get from paper trading are available without spending a single penny of your own money. It’s the easiest and most effective way to start building a foundation for your future in investment without risking the cash that you’ve worked so hard to earn.

Do I Really Need Disability Insurance?

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For most Americans, saving money is a priority. Unless you bring in an exceedingly high income –– or you have your priorities greatly out of whack –– chances are you think about ways to cut down on expenses and save yourself some cash from time to time. Unfortunately, young people in particular are prone cutting or omitting vital services from their budget. Consider disability insurance: it’s likely few people in their 20s or early 30s contemplate the possibility of suffering a debilitating setback. As such, it’s also probable that a great deal don’t bother applying for disability insurance coverage, or if they do, they don’t prioritize it. This oversight could prove extremely costly, though. For evidence to that point, here are three reasons why you should rethink disability insurance today:

Time is a Factor

As with just about any insurance program, the sooner you enter into it, the lower you can expect your rates to be. True, every case is unique, but in general younger people will pay lower premiums than their older counterparts. This is why it’s essential for young professionals to look into disability insurance programs now and to demonstrate a modicum of foresight. If you plan on starting a family in the future, signing up for disability insurance now will guarantee you cover yourself in times of need and lock in the lowest rate possible. Sitting around and waiting will only end up costing you in the end –– one way or another.

“Disability” is a Fluid Term

You may be wondering: if I don’t work in a high-risk work environment, why do I need to invest in disability insurance? It’s a good question, to be fair. And the best answer is the fact that “disabled” means a great deal more than most people realize ––  since different jobs require different levels of physical involvement. So what qualifies as “disabled” for one profession, might not for another. Think about doctors who utilize intricate equipment to perform surgery. If they then develop severe arthritis in their hands, they become unable to perform their duties as a result of physical disability. That’s why physician disability insurance is distinct from disability insurance for teachers, for example.

The Worst-Case Scenario

Of course, the most obvious reason why everyone should set aside some capital for disability insurance is the fact that the worst-case scenario without it hardly bears consideration. Indeed, if a person becomes physically unable to perform their job, it can then be extremely difficult –– if not impossible –– to support themselves. And that doesn’t even take into account the possibility of shouldering family-based financial burdens. Regardless of how substantial your emergency fund may be, it’s unwise to overlook disability insurance. In reality, paying a regular rate for disability insurance is a paltry amount when compared with the benefits it could provide one day. It’s never fun to think about calamity, but it’s irresponsible not to plan for it.

5 Reasons Millennials Need to do End of Life Planning

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When I was younger I always pictured end of life planning as something only old people do. Now that I am no longer a spring chicken myself, I understand that it can be important for all adults, regardless of age or social standing.

Having worked in the health care industry for many years I have seen people of all ages with lots of different health issues. But one thing they had in common is that they didn’t plan on coming to the end of their lives so unexpectedly.

Even though all of their lives mattered, it was more difficult to see sick or dying children and young people. In fact, it brings me nearly to tears right now to think about some of the patients I knew and loved that passed away.

Of course, no amount of end of life planning will bring these people back. However, the truth is, there are 5 reasons millennials need to do end of life planning as much as anyone else.

1. Pets

Young people tend to feel as if they are immortal to a degree. I know because I felt that way when I was younger.

Unfortunately, being a millennial doesn’t exempt you from passing away from illnesses or accidents. If you have furry friends that you love you probably want them to be well taken care of should something happen to you.

The law generally regards pets as property which means they may end up in a shelter or worse if something happens to you. Setting up a will, however, gives you the ability to make provisions for their care including a guardian and even a trust.

2. Personal Belongings

Even if you don’t have a whole lot of stuff you probably have some things that are of sentimental value to your family and friends. Should something unexpected happen to you that ends your life these are the people who should receive these items.

However, without a will, the state will decide who gets your belongings. Unfortunately, it may not be the person or people you would choose.

3. Social Media

Another reason millennials need to do end of life planning is for social media accounts. Nearly every young person has at least one type and some have several.

What happens to them if they pass away? It’s possible they could remain a visible reminder of your loss every day since they aren’t automatically deleted or inactivated.

To remedy this, you can name a digital executor regardless of the legality of it. Take an inventory of your digital files and assets and appoint someone as the person to handle them.

4. Kids

Some millennials, married or not, have children they will leave behind if they pass away. Setting up end of life planning can include making a choice about who should care for them when you are gone.

Naming someone to watch over your children is a decision that is not easy. Nevertheless, it can prevent the court from making the judgement in the absence of any documentation from you. It can also squash family battles that could arise over your child or children later.

5. Expenses

Should something unexpected happen that ends in your death, the expenses for those you left behind can be more than they are able to pay. That financial hardship could be avoided, however, if the proper steps are taken.

End of life planning can include building up your savings, purchasing life insurance, setting up an estate, and creating advance directives. You should also consider having a power of attorney for your health care as well as one for your finances. Although these could be the same person they do not have to be.

Everyone’s life is important, but so is planning for the reality that we all pass away sometime. As you can see, millennials are not exempt. There are at least 5 reasons millennials need to do end of life planning just like the rest of us.

Have you completed your end of life planning yet?

Jeanne is a married mother of 2 grown children who works as a full-time freelancer and also helps out occasionally on the farm she and her husband own together. Her background is mostly finance and medical office management.  She’s currently working to improve her financial well-being and hopes to help others improve theirs as well.

The Little Known Secrets for Big Savings on Your Student Loan

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Today, most students graduating from college find themselves burdened by significant debt. According to a recent study, the average student has around $30,000 in debt. If you’ve just left college, this amount is huge considering that your career is at its infant stages.

The situation is much worse for students who can’t enter into their specific career field leaving them with limited options to service the student loan accrued. Unlike in the past when refinancing was mainly used towards mortgage and auto-loans, today graduates can easily refinance student loans. Besides reducing the interest rates significantly, this method can also be effective in lowering the monthly payments.

What is refinancing?

Basically, refinancing is when a lender pays off your current debt at once and they give you a new loan. Typically, the new loan comes with better interest rates. This leads to significant savings or a more favorable payment schedule. For instance, a student loan can have interest rates of about 12%. But after refinancing, it can go down to even 3%. However, the interest rates are greatly determined by your qualifications as well as the lender.

When you get a refinancing deal with lower interests, it means the amounts added to the loan principal per month. But if you are getting your loan refinanced so that you can get a longer repayment period, it means you’ll end up paying more money compared to what you’d have paid if the duration was shorter.

Are you eligible?

Despite the fact that this refinancing is a brilliant move, not everyone will qualify to make the move. Most lenders are keen to look at your employment status as well as your income. In addition, the debt should be coming from recognized universities and colleges. At the same time, you’ll come across just right loans lenders who only approve graduates from specific.

Most lenders are impressed by graduates who have a good credit history without past missed payments. This assures the lender that you are reliable and they’ll quickly approve your loan if you have a stable income. While most lenders will approve your application if your credit score is over 600, you’d get a better deal in terms of interest when your credit score is higher.

However, you may still qualify even when your earnings or credit score are above average. All you need to do is have a co-signer who is credit worthy. You can ask one of your friends or family member to co-sign the loan with you.

Requirements for refinancing

After evaluating your situation, it’s likely that you’ll decide in favor of refinancing. But before you go out there to find a lender, you need to prepare a few things in advance.

Have a recent copy of your tax returns to prove your income as well as total liabilities.

Check your credit score at the moment to know how much you’ll be paying in interests. If you have no idea what your score is, you can easily check on Experian or Transunion.

If it is below average, you need to have a co-signer in advance. Find a friend or relative who is willing to co-sign your loan.

What are the loan terms?

When you start hunting for the most appropriate refinancing deal, it’s obvious you’ll come across several offers. Different lenders have varied interest rates as well as repayment periods. Depending on your preferences, you can choose to repay the loan in five, ten or even twenty years.

Ideally, paying the borrowed money in a short time is a wise decision but it is not always a viable financial option. Therefore, you can choose to clear the loan over an extended period, which means you’ll have a lighter monthly burden. If your earnings grow when you’re still servicing your loan, you can decide to increase the payment amount to clear the debt sooner.

Most lenders will also give you the option to choose between a variable and a fixed interest rate. Basically, variable interest rates can go as low as 2%. However, they tend to fluctuate as time goes and makes budgeting quite a challenge. While a fixed interest rate seems higher, it stays the same over the entire lifetime of the loan. This makes budgeting easier since you can predict how much you’ll be paying.

Conclusion

Making a decision to refinance your student loan can be a strategic move towards saving a significant amount of money. However, the decision requires substantial forethought as well as financial planning if you want to get all the benefits.

But before you make a decision, evaluate all the benefits of the student loan. Normally, federal loans come with attractive benefits which are not available with other sources of credit and you’d lose them if you refinance the loan.

If you are sure your financial status makes refinancing a viable option, you need to spend some time creating a specific plan that will help you to spend the money wisely.

 

Accidents Can Affect Everything: Know What Steps to Take from the Start

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No one plants to get hurt. When the unexpected occurs, it’s important to know what to do from the beginning in order to preserve your right to recovery and maximize your claim. Here are things that you can do in order to build your case from the start of an accident:

Seek Medical Attention

Not only do you need to get medical care for your own safety, but it’s important in order to document your losses. Securing emergency treatment should be your first step after an accident. Everything else comes next.

Gather Evidence

You’re the first person to serve as detective on your case. The more information you can gather on the scene, the easier it’s going to be for your lawyer to pick up the ball and prove the other side acted negligently or intentionally in violation of Kentucky law. If you’re hurt in a car accident, call the police. If you’re hurt in some other kind of accident, take photos of the scene. If you can gather names, addresses and phone numbers of witnesses, this can be a great way to begin building a strong case.

Write a Report of Your Own

Memories fade quickly after an accident. What might seem clear as day after an accident occurs can be hard to remember only a few days or weeks later. As soon as you’re able, sit down and write out everything that you can remember. Even if you think a detail isn’t significant, write it down anyways. Your attorney can help you determine what’s most important later on.

Continue to Get Medical Care

Part of proving your damages after an accident is proving your ongoing medical needs. It’s important to follow your doctor’s care plan and go to your follow up appointments. If your doctor says to return for visits each month and you don’t go, you can bet the other side is going to question whether you’re being honest about your injuries. If your doctor tells you not to work or play sports, you don’t want the other side snapping a photo of you doing these things. Stick to your doctor’s restrictions and make sure that you follow their instructions.

Save Records

Proving fault after an accident requires a lot of paperwork. If you receive paperwork from any of your medical care providers, save it. If your employer prepares an accident report, get a copy. When the police respond to a crash, they prepare an accident report. It’s important to get a copy. These records may contain critical information, and they may also lead you to important evidence.

Lawyer Up

The sooner a lawyer gets involved in your accident case, the sooner they can put their skills and experience to work for you. Attorneys at the Gray and White Law Firm have years of experience helping good people who get hurt. They know how to jump in and secure the information that you need in order to build your case.

Kentucky accident attorneys know the law, so they can help you take the correct steps. If they need to quickly file a case in order to preserve evidence, they can prepare the correct legal documents and get them filed without delay. If there are witnesses that are reluctant to come forward, experienced personal injury lawyers know when to play nice and when to take off the gloves. Having an attorney on board from the beginning helps you make sure that you’re preparing your case in the best possible light at each turn.

Rebuilding Your Life

What you do as the dust settles after an accident matters. Taking the right steps at the beginning can help you build a strong case. On the other hand, missteps can leave valuable evidence untouched. The right legal team can fight for you as you work to protect your interests and plan for your future.

Common Mental Health Issues in The Workplace

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Mental health effects as many as 1 in 4 Americans at some point in their lives and a number of studies claim that this rate of incidence is on the rise. For those suffering from mental health issues, the impact on their day to day lives can be debilitating. Unsurprisingly, mental health issues are one of the leading reasons that employees call in sick to work, although owing to the social stigma that still exists, many people feel that they have to lie and hide their mental health issues from their employer.

In the workplace, mental health issues can not only prevent employees from being able to work, they can also reduce individual morale, making it harder for that person to perform their job to the best of their ability. They can also have a knock-on effect on the other employees around them and can seriously impact the business’ overall productivity and profitability. Below are some of the ways that common mental health issues can impact your business and how you can act to minimize the disruption caused.

Anxiety

There are a number of different forms of anxiety disorders. Some people have a generalized anxiety in social situations and may feel uncomfortable outside of situations with which they are familiar. New experiences and people can trigger panic attacks for those that are particularly sensitive. For employees who have a generalized anxiety disorder, you should encourage them to seek professional help from BetterHelp. Research shows that counseling and other psychological therapies are the most effective treatment for anxiety disorders. Some doctors prefer to treat patients with both medication and cognitive therapies.

Other people have anxieties about specific places, situations, or things and for these individuals all that is usually needed is little bit of accommodation so that they can keep away from their specific triggers.

Depression

Many people equate depression with feelings of sadness but this is not entirely accurate; depression is actually described as the absence of emotion and motivation. The feeling of depressed individuals is closer to persistent boredom than sadness but the inability to enjoy activities which are usually pleasurable can soon have a detrimental impact on an individual’s overall mood.

There are a few different types of depression; the most common is known as unipolar, or major, depression and consists of a persistent low mood and lack of motivation.

It might be worth paying for someone on your team to study an online masters in counseling. Studying a masters in counseling online will equip them to help deal with mental health issues in the workplace and they can do so while continuing to work their current job.

Bipolar Disorder

Bipolar, or manic, depression is interspersed with periods of mania. Mania involves a ‘high’ or greatly elevated mood and from the outside it can sound or even look like a welcome respite for depressed individuals but in fact manic episodes can be just as damaging as depressive ones.

Mental health issues are something that any business owner is likely to have to face at some point. Statistically, any business employing a reasonable number of people will have to help some of them through mental health problems at some point. Educating yourself and your team about these issues will minimize the disruption they cause.

Is a Debt Management Program Right for You?

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A debt management program, known as a “DMP” is a program in which individual debts are consolidated into one monthly payment that is distributed on your behalf to your creditors. Debt management programs are not a loan. DMPs are popular in that many enrollees receive a significant interest rate reduction for their participation in the program. Read through below to help determine if a debt management program is right for you.

How does a debt management program work?

  • Typically a credit counselor will evaluate your debt, your expenses and your budget.
  • If you qualify (see not everyone qualifies) – The debt management company will negotiate an interest rate reduction for your participation in the program.
  • Instead of paying multiple creditors, your accounts are consolidated into one monthly payment to the dent management company.
  • The debt management company handles payments to all creditors, ensuring on time payments and provides summary statements back to you. 
  • Debt management programs typically run from 2-5 years.

Not everyone qualifies for a debt management program

Those who qualify for a debt management program typically carry higher credit card balances. Student loans, tax obligations, and other types of debts are seldom included in a debt management program. Another instance when a debt management program may not be the best solution is when your troubled debt is less than 15-20% of your annual income. In that case, consulting a certified financial counselor along with budgeting classes is most likely a better road to take.

Finding a debt management program that’s right for you

A “must-do list” published by the FTC warns of counseling agencies that charge high fees, may allude that a debt management program is your only option and even deceiving and defrauding consumers. Organizations that are nonprofit, like National Association for Debt Education & Assistance, are required to employ certified financial counselors who are trained in consumer credit, money and debt management and budgeting. The FTC noted, “Those organizations that are nonprofit have a legal obligation to provide education and counseling.” You can find more information about credit counseling agencies as well as find nonprofit agencies through the Consumer Financial Protection Bureau.

Alternatives to debt management programs

If you find that a debt management program is not something for you, or you do not qualify for a debt management program, there are a number of alternatives to consider.

  • Can the debt be handled by yourself? Perhaps by negotiating with your creditors.
  • Can the debt be handled with an isolation method? Such as the debt snowball or debt avalanche methods?
  • Is your credit good enough to qualify for a loan at a lower average interest rate? A debt consolidation loan may be an option if it is.
  • If your debt exceeds a certain amount of your annual income, say 50%, you might want to consider bankruptcy

Investing Your Way to Retirement

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One of the best reasons for people to invest is so that they won’t have to work for their entire lives. There really are only two ways for you to make money: you work for it or you get your assets to do the work for you.

If you are the type of person who prefers keeping your money in your wallet as opposed to investing it, that money will not work for you and you will never have any more than what you save. If you invest that money, you will be getting more because you will be earning interest on what you either put away or when you buy and sell assets that have the potential to increase in value.

It doesn’t really even matter the method in which you invest. You might invest in things like:

  • Cryptocurrencies
  • Bonds
  • Stocks
  • Mutual Funds
  • Retirement Funds

The objective will always be the same – to make smart investments that can earn more money for you down the road. You can do better though when you find investments that offer a big return or let you earn money without much of an investment.

It doesn’t matter if the goal you have is to put your children through college or just to retire comfortably, investing is critical if you want to achieve those goals.

Let’s take a quick look at some of those investment vehicles.

Cryptocurrency

If you are looking for an investment that really has growth potential, take a look at some of the cryptocurrencies like Ethereum and Bitcoin. A cryptocurrency is a type of digital currency that isn’t regulated by any type of central bank. It is mined by companies such as Genesis Mining, or you can buy it outright through various means. Because there is a finite amount of each cryptocurrency, the value will continue to grow as they increase in use and popularity. This is also a secure type of currency due to its use of blockchain technology, which keeps track of where it is, who owns it, and each transaction.

Bonds

Bonds can be had in a variety of forms. This is a type of investment that is known as a fixed income security due to the fact that the amount of income generated by them each year is set, or fixed when you purchase the bond. A bond is basically the same as an IOU. When you buy a bond, you are basically loaning money to a government entity or a business. The money you make on it is the interest from that loan. These are not issued by banks.

Stocks

Stocks are basically a part of a business. When you buy shares, you are buying into that business. A share is representative of ownership in the company. Company values fluctuate on a day to day basis. As the value changes, the value of your shares, or stocks, will also rise and fall. Some types of stocks also pay dividends. If you are thinking about investing in stocks, make sure you do your research on the companies you are considering first.

Mutual Funds

Mutual funds can be described as a way for a number of investors to pool their money together with the purpose of purchasing stocks, bonds, or absolutely anything else that the manager of the fund deems a worthwhile investment. With this type of investing, you won’t have the ability to manage your own investments and money, the responsibility will be given to a professional. This makes things a bit riskier in some ways, while in others – like having someone with experience controlling it – can be beneficial.

Retirement Funds

There are quite a few different plans that have been designed to create a savings for your retirement, and a lot of these plans allow for you to deposit money into them straight from your salary before the taxes are even taken out. Most of the time, employers will match what you put into the plans, or at least a percentage of it. You can have either a dollar amount deposited or a percentage of your pay. Some of these types of plans allow you to withdraw the money early for an assortment of reasons while others won’t, but they might allow you to borrow against what you have in them.

General Liability Insurance: Do You Need It and What Coverage is Best for You?

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It is probably fair to say that some business owners are not even aware that their company needs the sort of protection provided by general liability insurance and there can sometimes be some confusion or misconceptions relating to what is and what coverage it provides.

Here is an overview of what general liability insurance is all about, including a look at whether you need it and what sort of coverage would be right for your business.

Protecting your assets and more

In general terms, general liability insurance is designed to protect your company’s assets and provide a safety net when you are forced to pay for certain obligation and liabilities that would otherwise leave you financially exposed, such as some medical costs.

You can get a tailor-made cover that is specific to your type of business such as general liability insurance for contractors with a view to paying for the sort of cover that is relevant to your needs, although certain aspects of coverage will probably be similar across a range of policies available.

An example of how general liability insurance can protect your business would be a scenario where someone suffers an injury on your premises and files a claim for damages against your business.

Having the right liability insurance in place should cover the cost of your legal defense together with the settlement of an award made against you if the claim is successful.

Without having that peace of mind and level of protection from general liability insurance your business and assets could be exposed and financial losses could even put your ability to continue trading in jeopardy.

Difficult to predict

You might decide that the nature of your business or the level of diligence you apply to any work that you do should ensure that you are highly unlikely to face any sort of claim and therefore, don’t need any liability insurance.

It may well be the case that you trade for years without suffering any sort of financial loss or claim that could have been covered by insurance coverage but if a situation arises and you are left financially exposed, it could be a chastening monetary lesson that could have been avoided.

It is that element of uncertainty that may well tip the balance in favor of either arranging general liability insurance outright or adding it as a key element of your business owner’s policy.

If you do decide to add coverage to an existing policy make sure you check whether the terms and level of cover are adequate for your needs.

Know your limits

Every insurance policy you take out will contain details of the maximum amount the insurance company is prepared to pay out in respect of a liability claim.

It is essential that you understand and acknowledge these limitations as you may need to increase the payout amount if the standard figure is insufficient, although the insurer will want a higher premium and might not be prepared to increase their risk exposure.

How these limits work is fairly straightforward. If your business gets sued and is ordered to pay $500,000, for example, and your coverage is a maximum of $250,000, that means you are on the hook personally for the difference.

The case for contractors

Although there is a reasonable argument for most types of business to have the protection of general liability insurance behind them there are definitely certain industries and sectors that are potentially more prone to claims.

Construction is a case in point. It is a rightly perceived as a high-risk industry where there are numerous opportunities for an injury to occur where a claim might follow as a result of the incident.

If you are a contractor you should consider protecting your business against third-party injuries while you are working on someone’s premises or at their home and getting coverage so that you have protection against a claim made for damage to property too.

It would be wise to be aware of the threat of litigation and financial loss and one way of reducing that risk would be to arrange general liability insurance. Will the right coverage you should be able to go about your business in the knowledge that you have a financial backup plan if something goes wrong.

Seek out a professional opinion and quote for your business so that you can get the most appropriate coverage for your business and enjoy greater peace of mind once you have got general liability insurance.