About Premiums

The amounts of your death benefit, accumulated cash value, and premium are all interrelated with universal life. The more you pay per month in premiums, either the more protection you’re buying or the more cash value you’re building. You can’t have both.

The higher the protection you buy, either the higher your premiums or the lower your cash value. And the more cash value you want to build, either the higher the premium or the less protection you’re buying. Because your primary goal in buying insurance is protection, your primary consideration should be the amount of the death benefit. Cash value and your premium cost should be secondary factors, but clearly, your premium should be in line with how much you can afford to pay.

Electrical Inspections

Every year thousands of properties are destroyed by electrical fires.

Overtaxed circuits, frayed cords, improper use of extension cords all can cause problems.

Hot plugs or cords are a sign of trouble not to be ignored. Buildings with wiring over ten years old should be inspected. Fuse boxes should be replaced with circuit breakers.

Extension cords should be for a temporary need and should never be placed under a carpet.

Electric meters should be regularly inspected for tampering or corrosion.

Disaster Planning - First Step - Communications Plan

I'm often asked about disaster planning.

The task seems daunting to many business owners. I suggest a step-by-step approach.

A good place to start is with a communications plan. You must be able to contact your employees, suppliers, and clients in the event of a disruption.

The process is pretty straightforward. Survey your employees getting all of their contact information - home phones, cell phones, beepers, pagers, home e-mail, work e-mails, etc. See a sample form here. Feel free to change the form to fit your needs.

Use the completed forms to build a telephone tree and email list. I suggest the lists be put on Google Docs or other on-line storage application. You can access the data when and where you need it.

Also build a list of supplier contact info. A sample form is here.

Both lists need to be updated quarterly.

Test your system by running an unannounced drill over a weekend. Have employees call through the phone tree. Send a blast email to everyone and ask for a reply.

Bloggers!! Do You Have The Right Liability Insurance?

Is blogging covered by your insurance? The short answer: probably not very well.

As an insurance consultant I get a constant stream of requests for policy interpretations. I don't sell insurance, so, people come to me for advice without worrying about my biases. I have no axe to grind. I have no commissions on the line.

The Exposures of Blogging

The act of blogging has limited but definite exposures to legal action: libel, slander, defamation of character, invasion of privacy, copyright infringement, advertising injury, harassment, and trademark infringement.

Personal Liability Insurance

Personal liability insurance is part of your homeowner's insurance policy. It pays for bodily injury and property damage caused by you and your family. Most standard homeowners insurance polices don't cover the perils of blogging. Some policies include libel, slander, and invasion of privacy. All personal policies have an exclusion for business activities. If you are blogging for business, don't expect your homeowners insurance to provide much coverage. The protection, at best, is light to nonexistent for the big causes of a lawsuit bloggers should worry about.

Talk to your insurance agent about solutions. You might be able to add coverage for libel and slander if you are not blogging as a business. A personal umbrella policy may solve part of your problem.

Commercial General Liability Insurance

For most small businesses commercial general liability coverage (CGL) is a part of the standard insurance package policy. It's the section of insurance where you have coverage for products liability and slip-and-fall accidents.

The CGL policy is designed to pay for bodily injury and property damage arising out of your business operation. There is also coverage for false arrest, malicious prosecution, wrongful eviction, slander, libel, violation of privacy, infringement of copyright, trade dress, or slogan in your advertising.

However, the policy excludes criminal acts and acts where you intentionally violate the rights of another. Copyright infringement that is not a part of advertising is also excluded. Further, most policies exclude coverage for insureds in the advertising, broadcasting, and web hosting business. Also excluded are Internet search companies, chat rooms, bulletin boards, and content providers.

The Solution

Talk with your insurance advisor. You must accurately describe your business activities and the way you make money. I suggest you provide a written description so that there are no misunderstandings. Even if blogging is an incidental part of your business activities, you should have this conversation.

Your agent can tell you what's covered and what's not covered in your current insurance program. Once you identify the holes, you can work to plug them. You may need a media liability policy or professional liability policy to fill the gaps.