To reach its conclusions, the company surveyed 1,000 small business owners in the U.S. and asked participants questions identifying both the kinds of business insurance they owned and their familiarity with the most used policies. The most common insurance type reported by participants was general liability coverage, followed by property insurance, compensation insurance and professional liability insurance. Only 65% of respondents said they owned general liability coverage, which the study notes is a “foundational coverage that nearly every business, no matter how small, should have.” Hiscox also claims that 75% of the small business owners participating in the survey were underinsured as of this July, although the company does not provide a methodology for how this number was ascertained.

While the number of underinsured small businesses may need closer examination, a more important conclusion drawn from the study is the level of insurance illiteracy among small business owners. Out of the survey’s 1,000 participants, Hiscox notes that 71% were unaware of the coverage provided by a business owners policy, while 83% lacked substantial knowledge of a general liability policy.

Regardless of the coverage they need, insurance literacy is a must-have for small business owners. Not only will a better understanding of the options help them make better choices for their organizations, but it will also reduce the number of underinsured companies, ensuring that assets and livelihoods are well protected. The Small Business Administration offers educational resources for those looking to learn more about business insurance, including a four-step approach to purchasing a policy. The administration heavily recommends that entrepreneurs start the process by identifying the risks affecting their operations and finances the most. Rather than staying with one provider, small business owners should also assess their insurance options on an annual basis to ensure that their coverage continues to suit their needs.

Prior to the ACA, the number of small business offering health insurance to their employees hovered at around 60 percent.

In part, this was due to the difficulty small businesses faced when trying to find health insurance which was affordable for them and their employees.

While many businesses were initially unhappy about being forced to offer health coverage to their employees, there are many benefits associated with it as well.

The ACA and Small Businesses

According to the U.S. Small Business Administration, it is either the number of employees or the value of a business that qualifies a company as a small business, depending on the industry. According to their Table of Small Business Size Standards, the greatest number of employees is 500 for most industries.

However, according to some statistics, more than 90 percent of businesses have fewer than 50 employees. While it is certainly a benefit that will help attract and keep employees, there is no federal regulation within the ACA that requires businesses with fewer than 50 employees to offer health insurance coverage to their employees. If they do choose to offer it through a group plan, they are not required to contribute monetarily to the cost of the employee plan.

Employers with more than 50 employees are required to share the cost of insurance with their employees. They are also required to offer plans that offer adequate coverage at a reasonable price. If they choose not to offer insurance to their employees, they can be fined if one of them receives a tax credit from the individual marketplace.

The SHOP Marketplace

The Small Business Health Options Program (SHOP) marketplace is the commercial version of the Health Insurance Marketplace individuals have access to from the government. To use it, non-profit organizations or businesses must have between one and 50 full-time employees. Self-employed individuals who have only themselves as an employee of the business are instructed to utilize the private Health Insurance Marketplace.

Small business owners with fewer than 25 employees may be eligible for a tax credit worth as much as 50 percent of the premium. Unlike the private insurance option, it is possible to begin offering insurance through SHOP at any point during the year even without a special qualifying event.

SHOP offers insurance policies from a variety of providers. It is completely flexible and allows business owners to choose a plan for their employees or allow them the freedom to choose from multiple plans. Employers can offer health insurance, dental insurance, or a combination of the two. The enrollment period, waiting period, and the amount the employer pays towards employee premium is up to the individual businesses.

Finally, it is possible to handle all aspects of setting up the plan online. This reduces the time needed to devote to having employees meet with insurance representatives, and usually the need to wait to speak to a person. Business owners who are uncomfortable handling the setup of their insurance program independently can choose to work with their preferred insurance agent, or one of the SHOP approved agents. There is no additional fee for utilizing the services of an expert.

Finding the Right Plan

Within the SHOP exchange, there are many insurance options. As with the individual marketplace, the plans are divided into different levels, which include platinum, gold, silver, and bronze. The lowest premium rates and the most limited coverage is found in the bronze plans. The highest premium rate and most extensive coverage are offered under the premium plans. The gold and silver plans lie in between the two extremes, with the majority of companies choosing one of the midrange options.

It’s important to note that there are many options when it comes to offering insurance benefits to the employees of small businesses. While the SHOP Marketplace certainly has some benefits, there are also many issues which make it a less than ideal solution. Long wait times to speak to customer service representatives and price are two of the most common complaints from small business owners.

Insurance consultants can be a great place for small business owners unfamiliar with the insurance landscape, or who have more than the amount allowed to utilize SHOP, to begin their journey of private insurance exploration. Consultants are already familiar with all the providers that are willing to work with small business owners and often have connections with their representatives that allow them to find amicable solutions more quickly. They can help companies analyze their needs as well as the needs of their employees to ensure they select the insurance option that offers the benefits they need at an acceptable price.

If you are a small business owner with more than 50 employees but fewer than 100, some states will allow you to utilize the SHOP marketplace. After 2016 all states will allow those businesses with fewer than 100 employees to take advantage of the SHOP marketplace. It is important to remain current on the latest developments within the ACA and the SHOP marketplace because requirements, policies, and premiums change each year. While one insurance carrier may have the best option this year, they may not be as competitive in the future.

Conclusion

Navigating the world of health insurance is one of the biggest hurdles facing small business owners today. Because of the changing rules, complicated process of finding and maintaining coverage, and knowing when and where to apply for potential grants to mitigate the cost of offering health insurance many small businesses don’t even bother trying to undergo the process on their own.

It is worth exploring the SHOP marketplace on one’s own if it is a possibility, even if you have no previous insurance experience. Learning about the exact requirements and possibilities will make it easier to answer employee questions and concerns as they arise. However, for those who find the process intimidating, there are many experienced insurance advisors and agents available to help small businesses find the best policies for their employees. 

The Atlanta Small Business Network, from start-up to success, we are your go-to resource for small business news, expert advice, information, and event coverage.

When making the selection to work for a company, having great benefits, like healthcare, has become an important factor for potential employees to consider. However, understanding and managing those benefits, even for companies, can be challenging at times. Our next guest has 20 years of experience in benefit advising and strives to change how companies manage their healthcare supply chain while driving greater bottom line profits for employers. Today we welcome certified healthcare reform specialist and Founder / CEO of InoVentive Solutions, Marcy Heath. Marcy has also been recognized as one of the Top Women in Benefit Advising of 2018.

In this segment, we learn more about Marcy’s entrepreneurial journey and the inspiration behind starting her company, InoVentive Solutions. She also discusses why most companies are paying too much for their health care plans, and the unique ways in which her company addresses that problem. We then find out more about the services that InoVentive Solutions offers, as well as how much have clients saved by implementing their strategies and solutions.

Jim and Marcy also tackle what a healthcare value chain is and how businesses should go about managing it. Marcy then debunks three popular healthcare myths that cost companies millions of dollars annually, and discusses InoVentive Solutions’s Benefits App. Lastly, we find out the plans and goals for InoVentive Solutions moving forward.

The Atlanta Small Business Network, from startup to success, we are your go-to resource for small business news, information, resources.

For many businesses having a company, vehicle is a necessity, which means having the right insurance coverage in place is crucial to protect yourself and your investments. Recently, we welcomed back Todd Kohout, CEO of T. Hudson Risk Advisors to ASBN. Todd discussed how to determine if your business needs commercial auto insurance and tips on how to keep costs low. 

In today’s segment, Todd provides key indicators that small businesses should look for to determine if they need commercial auto insurance. He also explains why commercial auto policy rates on are the rise, and the five things small businesses can do to control those rising costs, including:

• Put in place a risk management program that has specific rules in place for ALL drivers
• Run Motor vehicle reports on all drivers minimum annually and all new drivers.
• Get guidance from the carrier as to what best practices are for operation of all automobiles used for business purpose
• Limit drivers to those above 25 but below 65 years of age
• Have a formal written policy regarding non-business use of company vehicles

To hear more insight and advice from Todd, be sure to watch our entire interview above.

The Atlanta Small Business Network, from start-up to success, we are your go-to resource for small business news, information, resources.

Every single business needs insurance, but it’s often difficult to find affordable insurance that is right for your company. Here to talk about the variety of options that small businesses have when choosing and paying for insurance is Todd Kohout, CEO at T. Hudson Risk Advisors LLC.

Todd explains that the purpose of insurance is to protect a business owner for events or claims that could happen during a normal operating course of business, and despite the fact that there are only a few necessary to be in compliance with the law, business owners truly need four basic types of coverage; general liability, property, business auto, and workers compensation.

Focusing on workers compensation, Todd talks about how important it is to protect not only your employees but also yourself as a business owner. Georgia, specifically, has a deductible threshold that is different from other states in that it is $2,500, meaning that you can have a deductible of up to $2,500 and any claims that your company has that are less than that don’t get used against you. This is especially key in keeping costs low when it comes to workers compensation.

Additionally, there are several options of how to pay for this insurance that most business owners are not aware of. One is an estimated premium that is based on 10 equal payments over the course of 10 months. Another option, which Todd recommends for small business owners, is monthly reporting. And while price is very important there are other factors to consider that are equally important; what services your insurance agency is providing you, and the goal for the insurance agent or agency is to be building a relationship between the client and the carrier.

To hear more from Todd Kohout and to learn more about insurance options for small businesses check out the full interview above.

The Atlanta Small Business Network, from startup to success, we are your go-to resource for small business news, information, resources.

At first glance, choosing a healthcare plan for your business looks increasingly complicated and expensive, however, it doesn’t have to be. Here to lend us some insight and guidance about this important topic is Katie Mahoney, Vice President of Health Policy for the U.S. Chamber of Commerce. With over 20 years of healthcare experience, Katie shares with us some key healthcare planning factors from the latest Small Business Index and what it could mean for the future of your business.

Katie discusses not only about what factors small businesses should be considering when picking a healthcare plan, but also what they should be prioritizing during this process. According to the Small Business Index, business owners are very focused on cost, whether that is premiums or out of pocket expenses that are associated with co-insurance, co-pays, and deductibles. Additionally, Katie says that when it comes to deciding on a healthcare plan, businesses should really focus on the employees that they are trying to recruit and or retain.

Ask yourself or your employees themselves, “What is important to those employees?”. Is it out of pocket costs or premiums? Or is it flexibility or variety of network options? Whatever benefits and options are important to the employees that is what business owners should also be paying attention to in order to attract and retain the right kind of talent that they are looking for. Therefore evaluating the culture of your business and the type of employees that you’re trying to recruit should be a priority when choosing a healthcare plan in order to make the process clearer and simpler for your business.

To hear more from Katie on healthcare planning and prioritization check out the full interview above.

The Atlanta Small Business Network, from startup to success, we are your go-to resource for small business news, information, resources.

On-location at FinTech South Jim Fitzpatrick interviews Alan Nalle, Chief Strategy Officer at Patientco, a fintech company focused exclusively on healthcare. Since its founding in 2009, Patientco is growing fast. Currently located in the heart of Buckhead they have over 70 employees constantly working to provide service to clients all across the United States. The company experienced a 50% growth over the course of 2018 and they are forecasting another great growth throughout the upcoming year.

Alan tells Jim, “More than half of Americans have received an unaffordable healthcare bill” which is just one of the reasons that motivated the company’s founder, Bird Blitch, to reimagine the healthcare billing experience. With great tools available in bill presentment and bill payment, Patientco used this to create their own tailor-made services for healthcare-specific technology to turn the usually frustrating and confusing billing process into something that actually drives customer loyalty.

Using flexible and affordable payment options and payment plans coupled with tailored communication, Patientco is making it easier than ever to understand the healthcare bill and trust that the bill is correct.

Alan also discusses with Jim the hopes that Patientco has for the future and moving forward with their business. Alan says that five years from now Patientco hopes to be helping more health systems, partnering with health insurance companies to perhaps revisit how payments are made, and giving patients even more opportunity to pay. But Alan says that ultimately Patientco wants to be the champions of affordability.  They are aware that there are a large number of patients who defer care due to out of pocket concerns, and this impacts not only the health of communities but the health of health systems as well, and it is Patientco’s hope to provide affordable and easy solutions to this.

To learn more about Patientco and their work check out the full interview above or go to their website at www.patientco.com.

The Atlanta Small Business Network, from start-up to success, we are your go-to resource for small business news, information, resources.

Thanks to the infinite diversity of human beings and the unique ways in which we all go about things, there is always something to set one company apart from another. Because of this, premiums for business insurance are rarely going to take a one-size-fits-all approach and can be just as varied as the businesses themselves. With public liability insurance, however, there are a few factors that, in general, will always affect a policy’s premiums.

The key to understanding your policy’s premiums is in understanding how that premium is calculated and what changes you can make to reduce your liability insurance costs.

The Size of Your Company

The cost of your policy scales according to the size of your business’s workforce and volume of customers. The reasoning behind this is if you’re doing more business and you have the capacity to do more trade in general, then you are increasing the risks of inviting a public liability claim.

Having more third parties on your premises makes it more likely that someone will have an accident as a result of your business and hold you responsible.

The Kind of Work Do You Do

What trade or profession you work in can have an effect on your premium. The public liability risks presented by a construction company are different from a freelance PR consultant for example. As a result, the premiums of your policy will adjust accordingly depending on the general risk of your industry or market.

The Specific Risks Related to Your Business

Some trades will trigger little alarm bells in the heads of underwriters and they’ll want to ask a few extra questions to get an idea of how risky your business processes are. Most tradesmen, for example, are asked if they work at heights or with heat to determine the risky nature of the work.

Some business activities are simply riskier than others, so if you take part in anything considered high risk, it will bump up your premiums accordingly. Your business’s specific risks might even mean that you have to find a specialist insurer that deals with your particular line of business.

Your Experience in the Business

One of the other general factors that can affect your premiums is the amount of time your company has been trading and the average amount of experience held by its directors, partners, and principals. If you’ve been in business for a while, underwriters will consider it more likely that you know what you’re doing and are therefore less likely to cut corners, presenting less of a public liability risk.

Is this a fair assessment on the competence of startups? Well not really, but like all things to do with insurance, it is about statistics as opposed to fairness. Statistically, those with less experience make more mistakes.

Conclusion

If you have received a quote for your public liability insurance and it’s a lot higher than you were expecting, any decent broker should be able to give you a rough indication of why it is so high. It can be worth enquiring about because they might have access to a policy more appropriate for your business’s budget.

Remember, the cost of business insurance should scale with the stage that your business is in, so if something seems wrong, check with your broker before spending money that you don’t have to.

The Atlanta Small Business Network, from start-up to success, we are your go-to resource for small business news, expert advice, information, and event coverage.

There are a few different types of business insurance to be aware of. The terms of each policy type can vary depending on your unique business needs. Let’s take a look at some of the different policy types and what they can do for your business.

General Liability Insurance

Commercial general liability insurance is a broad type of insurance policy which covers general business risks. If someone slips on your sidewalk or gets run over by a forklift, general liability insurance can protect you. It’s a type of umbrella policy that is there to save you from the unforeseen. It’s a good idea for all businesses to have this type of policy.

Professional Liability Insurance

Professional liability insurance, more commonly known as errors & omissions, is a form of liability insurance which helps protect you against professional negligence. If you own a consulting business, or offer any type of service or advice to others, professional liability insurance can protect you in the event your professional services or advice does harm to other businesses or individuals. Lawyers, CPA’s, business consultants and financial planners are all good candidates for this type of insurance.

Property Insurance

Just like it sounds, property insurance protects your property. It protects your place of business, but also the equipment, inventory and other items belonging to the business. Property insurance helps in the case of fire, theft, or other situation where your property is lost, stolen or damaged.

Home-owner’s insurance is a type of property insurance, but one thing to understand is that most home-based business operations are not covered under homeowners insurance. If you run a business out of your home, it would be worth looking into commercial property insurance.

Workers’ Compensation Insurance

If you have W2 employees, Worker’s Compensation Insurance is generally required. This insurance exists to protect you in the event one of your employees gets injured or killed. Worker’s compensation is a way to protect your employees, and to protect your business from your employees.

Product Liability Insurance

Product liability insurance can protect you in the event your product doesn’t perform as it should. This protection is a must if you produce your own products, as you never know what can happen once your product is out in the marketplace. Even companies selling the most simple, harmless products can lose everything in the wrong situation without insurance.

Vehicle Insurance

As with homeowners insurance, your personal auto insurance policy probably does not offer the coverage you need for commercial use. This is especially true if you have a fleet of company-owned vehicles. Personal policies will cover you in an accident, but it probably won’t cover any inventory or equipment you may have been hauling, and it won’t protect your company from legal action, should affected parties try to go after your business.

Business Interruption Insurance

Business Interruption Insurance is designed to provide temporary compensation in the event your business cannot bring in revenue for certain reasons. Examples may include a natural disaster, unforeseen changes in the market, production delays, loss of income from faulty products, loss of income from legal actions, account suspensions, or other actions that make it difficult to perform business as usual.

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Public Liability

If a customer or a member of the public is injured in an accident on your premises, or otherwise comes to physical harm because of your business, then you could be liable for damages. Even if you’re not at fault, the costs involved in defending an action can be crippling. Public liability insurance will cover you for this.

Product Liability

Product liability insurance is often included in public liability policies, but it pays to make sure. This insurance covers the costs of being sued over injuries caused by defective or badly designed products that your business makes, repairs, or supplies.

Professional Liability

If your company provides services or advice and you’re effectively selling your expertise, then taking out professional liability insurance is prudent. If professional errors on your part cause material or financial damage to a client, there’s a good chance they could sue. This insurance will cover your legal costs and even damages, so long as you were acting in good faith.

Workers’ Compensation

However, it’s not only the public and clients to whom you have a duty of care. If you employ staff, you also need to be covered for any accident or injury they suffer at work – whether you’re at fault or not. Workers’ compensation insurance will cover wage replacement and medical benefits in these cases.

Having this type of coverage is a legal requirement in most jurisdictions, although the exact qualification details vary. Crucially, workers included in this coverage automatically waive the right to take further legal action against their employers after an incident.

Property Insurance

Whether you own your premises or rent them, you need property insurance. This will cover your building, equipment, and inventory in case of fire, storm, flood, or other disaster. If you work from home, your ordinary home insurance will likely not cover costs relating to your business, and so you need to make specific provisions.

Business Interruption Insurance

While property insurance can be invaluable in a disaster, it will only cover the costs of damage and physical loss. Business interruption insurance takes this one step further, and compensates you for lost revenue while you recover. This can keep you in business by letting you continue paying staff wages, supplier contracts, and other expenses while your income is affected.

Auto Insurance

Business auto insurance covers accidents, damage, and loss involving your company’s vehicles. Delivery vehicles and company-owned cars are covered, and most policies will also cover employees driving their own vehicles on company business. This last option provides valuable extra coverage for your employees, but also protects your business from third party claims after an incident.

Business Owner’s Policy

Lastly, many insurers offer a policy package including whichever of these types of insurance your business needs. Taking out a combined business owner’s policy can work out to be less expensive than buying individual products, and it also makes administration easier. However, make sure that the policy fully covers your needs, while at the same time not including expensive coverage you don’t require. Sometimes, putting together a bespoke package with the help of an insurance professional is the simpler and more cost-effective option.

Most small businesses run on tight budgets, and some types of insurance may seem a waste of resources that could be directed elsewhere. However, if you find yourself needing to make a claim, having the right coverage in place could be the difference between your business going under or living to trade another day.