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STARTING A BUSINESS

You may be thinking about starting a small business with plans to grow larger or you might be purchasing an existing business with substantial size. The David Agency takes pride in our ability to counsel entrepreneurs from the birth of a company, to a mature business, to the passing of a company from one generation to the next. As your business grows it goes through multiple phases and each phase has a different type of need for the transfer of risk.

Business Insurance (Property and Casualty)

For a more in depth explanation of these and other types of coverages, please go to our Business Insurance Section.

Typical types of Business Insurance to Consider:

  • Automobile (required by State Law)
  • Workers Compensation (required by State Law)
  • Property Insurance including Building and Business Personal Property
  • Business Interruption and Extra Expense
  • General Liability
  • Umbrella Liability
  • Peripheral Coverage

We have binding authority with our contracted insurance companies and are typically able to place coverage on an immediate basis. We want to put an insurance program together for your company that fits your coverage needs within your budget.

 

Employee Benefits

The decision to offer employee benefits to your employees is very important. In today’s environment, with the laws that are being passed by government, this process can be complicated and convoluted. We can assist you in setting up an employee benefits package that can be as simple or robust as you want it to be, based on your budget.

In addition to the normal application and census data required for all employers applying for coverage, the following additional items are required for businesses that have been in operation for less than 3 months (items vary slightly based on carrier you are applying with):

  • Copy of the Articles of Incorporation (or Partnership Agreement if company is a partnership)
  • Payroll records for at least 1 month (2 months if available)
  • Copy of form SS-4 (application for Tax ID#)
  • Listing (on employer letterhead) of all employees with their employment status (e.g., full-time, part-time, 1099, K-1 partner, etc.) indicated, signed by the owner/officer
  • Initial premium payment check must be a business check (personal and starter checks are not accepted)

From the time all application paperwork is submitted to the carrier for an underwriting review, it normally takes 1-2 weeks to get a response. Therefore, we recommend starting this process in your first phase of business planning PRIOR to the first day of your business opening. If you start the process the first month of your business opening, everything can be submitted for a quote as soon as your payroll for that first month is available. This usually results in coverage being effective starting on the third month in business. If there is a need to have coverage in place the day your business opens, The David Agency is able to engineer a plan that is constructive to your business, your employees, and your budget.

 

Home Business

The Personal Homeowners insurance policy only protects for your leisure and has exclusions for any “business” pursuit. Many personal insurance companies will add an Endorsement to your homeowners/condo/apartment policy to provide insurance for Business-owned Property and the Liabilities of your home business. This coverage is available for many home based businesses. However, more laborious classes of business would require its own separate dedicated Business Insurance policy. Additional coverage for Workers Compensation is a must to consider.

 

Financial Planning

As needs vary widely depending on numerous factors, it is important to talk to an advisor prior to making any important Financial Planning decisions.

  • Life Insurance: Whether needed immediately of for future costs, life insurance can be used to cover loans, debt, or even a buy-sell agreement between partners.
  • Individual Health Insurance: Recommended so the owner is prepared for financial misfortunes and can afford to keep the business going.
  • A Qualified Retirement or Tax Advantage Plan 401(k): These types of plans should be implemented as soon as the business turns a profit in order to cut businesses taxes and prepare for your own retirement.  These also provide benefits for employees, especially Key Employees.
  • Individual Disability: Commonly added within the first year (usually after 6 months) to protect the most important asset in the business – you.  In the event of your disability, this provides continued income for you and your family, whether it is short term or long term. The David Agency heartily recommends including the “Recovery Benefit” that covers your lost income for up to three years as your business rebuilds upon your re-entry.

 

Consult the Chicago Insurance Agents at The David Agency today to learn how we can help develop personal insurance, business insurance and employee benefit plans that are right for you and your business.

Call (630) 516-9000 or email us at
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