TXINS August E-News: Important Facts About Small Business Insurance, Ask the Agent, Agency Happenings, Texas Trivia & More!

Important Facts About
Small Business Insurance 

There are more than 27 million small businesses currently operating in the United States ranging from incorporated, self-employed individuals to community banks and construction firms. If you own a small business, it’s important to consider acquiring the proper insurance to protect your business venture.

What Types of Insurance Do Small Business Owners Need?
Very small businesses often do not have employees and are therefore exempt from insurance requirements. However, if your company does have employees, you may need the following insurance for small businesses:

  • Workers compensation insurance: This coverage can be purchased either through your state’s worker’s compensation insurance program or through a commercial insurance agent. Refer to the guidelines set by your state or speak with your TXINS agent for more information.
  • Unemployment insurance: This coverage is paid for through unemployment insurance taxes collected by your state. Once you establish and register your business with your state’s workforce agency, you will begin paying this tax.
  • Disability insurance: Small business owners are currently only required to purchase this insurance for their employees if they are located in one of the following six locations: California, Hawaii, New Jersey, New York, Rhode Island, or Puerto Rico. Otherwise, this coverage is optional.
  • Medical insurance: Under the Affordable Healthcare Act, small businesses that employ more than 50 people could be required to purchase healthcare coverage plans for employees. Medical insurance for small business does not have to be unmanageably expensive. Your TXINS agent can help you find insurance providers that offer affordable rates through group insurance for small business.

What Is Small Business Insurance?
Small business insurance is an optional insurance plan that provides you with the coverage necessary to keep your business operational, especially in the aftermath of a catastrophe or a lawsuit. Catastrophes can include fires, major weather events, and accidents with extreme losses. Lawsuits can also devastate your business. These insurance plans can be customized to meet the inherent risks faced by your particular business.
Nearly half of all businesses forced to temporarily stop operations because of a natural disaster fail within 5 years. Of those that are unable to resume operations within 10 days, nearly 80% close within one month. A solid business insurance policy can prevent this from happening by allowing your small business to remain profitable, even in the face of disaster.

Small Business Insurance Protects Against Property Loss and Damage
There are many different kinds of small businesses, all with varying degrees of property coverage needs. Here are some considerations:

  • If your company is home-based and your business equipment and materials have a value lower than $2,500, you might be best served by purchasing a business property rider on your homeowners or renters insurance policy.
  • If your assets are between $2,500 and $10,000, a home-business insurance policy may be your best choice.
  • If your property coverage demands exceed this amount or your business is located outside of your home, you will most likely need the protection of a small business insurance policy.
  • If you own the building in which your business is located, you will want to make sure that you purchase enough insurance to cover the structure of the building as well as any contents within. This coverage will provide the compensation necessary to repair or replace lost, damaged or stolen materials and equipment.
  • These policies almost always exclude damages caused by floods, so you will want to consider purchasing a flood insurance policy as well.

Small Business Insurance Protects Against Liability
Small business liability insurance is one of the most important components of your commercial policy. Different industries have different liability risks, and for this reason, small business insurance policies can be customized. You need only purchase the type or types of liability coverage you require. Your small business liability insurance options can include:

  • General liability: This covers most liability claims that may be brought against you. It protects against payments for bodily injury, property damage, libel, and slander. It will also cover court costs and legal fees associated with covered events.
  • Professional liability: This coverage is also known as errors and omissions insurance. It protects your business from liability claims due to malpractice, negligence, and errors. Some states may require certain businesses, such as those in the medical field, to have this coverage.
  • Product liability: This is important for companies that manufacture, distribute, or sell products. If a product defect results in illness or injury, your company may be sued. This will provide coverage for this type of lawsuit.

Find the Right Insurance Policy for Your Small Business
Small business insurance policies are as varied as the many different businesses that need them. Your independent TXINS agent can help you assess your risks and build a policy that meets your coverage needs. TXINS agents have relationships with several different top-rated insurance companies, unlike captive agents who can only sell the products of one insurer. Contact your TXINS agent today to start comparing small business insurance quotes.


We Are Here for You 

Texas Insurance & Financial Services, Inc. is your trusted advocate. As an independent insurance agency, TXINS represents a wide network of A-rated insurance companies, which allows us to find the best insurance policy to fit your needs and budget. We don’t believe in cookie cutter policies and will customize a plan specifically for you. Your overall satisfaction is our top priority. That’s a promise.

TXINS offers complimentary insurance reviews to ensure you are getting the right coverage for yourself, your family, or your business. To schedule your review, contact us today at 800-541-9849 or via email. Together, we will ensure you are protecting what matters most.

The employees of TXINS are active members in our communities. Here’s a quick list of what we have planned for the month.

  • It’s time once again for the the TNLA Nursery/Landscape Expo! This year’s show, Roaring Forward, will be held at the Kay Bailey Hutchison Convention Center in Dallas on August 10-12. Producers David Green, Doug Roberts, and Russ Taylor as well as Commercial Lines Manager Jo Ann Hernandez will manning the TXINS booth so be sure to stop by and say hello! For more info on the expo, click here.
  • Elyse Hlavinka spent the last two weeks in July in Columbus, OH at The PaceSetter Program by State Auto Insurance Company. She will bring a new skill set to TXINS in order to serve our customers, current and potential, in a more efficient and knowledgeable manner. Mr. Sorrel joined Elyse on the last two days and learned the newest trends in cutting edge insurance agency management.
  • Al Ford is retiring from the agency on August 15. We wish him the best as he moves on to this next chapter in his life and thank him for the years he’s spent as a member of the TXINS family!
  • Happy belated July birthday to Marcy Diaz! We’re very sorry we missed highlighting you last month. Hope you had a wonderful birthday!
  • Happy August birthday to Kara Wood and David Green! We hope you enjoy your special day!
  • Happy August work anniversary to the following TXINS staffers: Nancy Pfeil-13 years; Allison Silvas-6 years; Kara Wood-5 years; Lindsay Malek-4 years; and Jo Ann Hernandez-2 years. We are so proud to have each of you as a member on the TXINS team!
  • Congrats to our July Texas Trivia winners Susan Brent and Wanda Eiteman! Don’t miss the new Texas trivia question below. Be one of the first three people to answer the question correctly and win your own full-sized Texas flag!

The ladies from all TXINS branches got together on July 20 at Paint Perfection in downtown El Campo for some “girls only” fun. We had such a great time bonding over food, wine, and our best attempts at being creative. We have a few Picassos in the group, don’t you think? We are looking forward to the next get together!

Lindsey Malek and Celeste Socha, with the help of Hector Gutierrez, participated in the 4th Annual El Campo Lady Lions Ice Cream Social on August 1 at the American Legion Post in El Campo. TXINS was a proud sponsor of this family-friendly event! Community members stopped by and enjoyed ice cream sundaes with all the toppings, entertainment, children’s games, and raffles. Free eye screenings were also provided. For more fun photos, click here.

Beginning Aug 1, TXINS is starting a new “Like, Comment, Share” contest on Facebook. Make sure and “Like” your local TXINS branch’s Facebook page and look out for our LCS contest posts to win $50 and earn an entry into our annual Grand Prize of $1,000!

TXINS El Campo
TXNS Needville
TXINS Georgetown

Elyse Hlavinka joined the TXINS team a short 5 months ago but has already made a big impact on our agency. She is a kind soul with a bright personality and a tireless passion for helping others. Her “let’s get it done and get it done right” attitude is an inspiration to everyone in the office and we are excited to see what her future with TXINS holds. To learn more about Elyse, click here.

I went skydiving for my birthday and I caught the adrenaline bug. I love it! I’d like to get my instructor’s certification and teach others. I haven’t purchased life insurance yet because I’m still pretty young. If I continue with skydiving, will I be able to?  – Tyler M., College Station, TX

Dear Tyler:

Wow! Skydiving is an exciting! If you’re serious about getting your instructor’s certification, it’s important to get the right type of insurance to protect your future.

The cost of life insurance for skydivers varies from one insurance company to another. There are insurance companies that provide specialized life insurance for skydivers. The types of insurance policies skydivers can buy include both term insurance and permanent insurance, which consists of whole life, universal life, and variable life options.

Skydivers will pay a standard premium based on how they are rated, plus an additional cost called a “flat extra fee.” This fee is an extra charge for what the life insurance companies call a “dangerous hobby.” Skydiving actually has one of the lowest flat extra fees on average.

The cost depends on whether the life insurance company considers you to a recreational skydiver (performing 50 jumps or less per year). For recreational skydivers, the flat extra fee will usually cost an additional $2.50 to $3.00 per thousand dollars of life insurance coverage. This amount increases as the number of jumps increases. The additional cost may be anywhere from $5.00 per thousand dollars of coverage for over 50 jumps, and up to $7.50 per thousand dollars of coverage for over 100 jumps per year.

You have several choices when buying life insurance for skydivers. You can buy regular life insurance policies like term insurance or permanent insurance. Permanent life insurance consists of whole life, universal life, or variable life insurance policies. You can also opt for specialized life insurance policies, known as skydiving life insurance.
Here are your life insurance options:

  • Term life insurance: This is the most affordable and basic life insurance available, as it covers death benefits only. Term life is purchased for a specific period of time, such as 10, 20, or 30 year periods, and will pay out death benefits if the policyholder passes before the term lapses.
  • Permanent life insurance: This is a more costly life insurance option which covers you for your entire life as long as you continue to pay the premium. Permanent life insurance also includes an investment component. There are a few different types:
    • Whole life: Whole life provides death benefits and a cash value accumulation feature. It has guaranteed premiums and a minimum guaranteed rate of return.
    • Universal life: Similar to whole life, but you’re able to adjust the death benefits and have flexibility in how you pay your premium.
    • Variable life: Variable life provides both death benefits and a cash value accumulation feature, but gives you the ability to choose how the money will be invested.
  • Skydiver’s insurance: Skydivers insurance is specialized coverage tailored to your needs as a skydiver, and the risks you face when you’re jumping. Types of skydiver’s insurance include:
    • Mandatory third party policy: This provides liability coverage and can also include accidents and injuries.
    • Personal accident skydiver insurance: This provides compensation for accidents or death resulting from a skydiving accident.
    • Travel insurance with skydiver coverage: This protects you with medical coverage when skydiving in another country, and can include coverage for your parachuting gear along with your luggage and personal possessions.

You may be able to reduce your costs on skydiving life insurance if you buy two separate policies instead of one large policy. For example, you could purchase one policy covering parachuting that requires the extra flat-fee rate, and another policy excluding parachuting with the same costs a non-parachuting person would pay for premiums. This way, you can close any gaps you may have in your life insurance coverage while still making sure you’re paying a reasonable premium rate.

Talk with your TXINS agent today to learn more about the different options available to you. And be sure to video your next jump. We’d love to see it!

Do you have a question for our agents? Email it to us! If we choose your question, we’ll send you a thank you gift! Be sure to include your mailing address and phone number in your email.

Congrats to Leo Noska of El Campo, TX, our July Referral Program winner! Thanks for your referrals, Leo!

If you love Texas Insurance & Financial Services, Inc., tell a relative, friend, or co-worker about us. When they call to receive a quote make sure they let us know that you referred them.

As a thank you, you’ll receive a surprise gift and will be entered into our monthly gift card drawing and our annual Grand Prize drawing for a $1,000 gift card!!!

(Grand Prize drawing will be held on December 7, 2017.)

Texas Trivia

There’s no doubt when Texans have a hankerin’ for a big, juicy hamburger, Whataburger is one of the first places to come to mind. Whataburger has been satisfying the biggest appetites since Harmon Dobson opened his first hamburger stand in Corpus Christi on August 8, 1950.

Harmon wanted to sell a burger so big a customer needed two hands to hold it. He asked a local bakery to bake 5-inch buns for his giant patties. Unfortunately, they didn’t have pans big enough. Undeterred, he found a manufacturer to make larger pans and the 5-inch bun was born. While the first three days of business were slow, word of the “two-handed burgers” eventually got around Corpus and on day 4, Harmon sold more than 550 burgers. And the rest, as they say, is history!
Whataburger is a true Texas Treasure. Loved so much that couples get married, celebrate anniversaries, and even have family reunions in their local Whataburger restaurant. One NANA astronaut loved Whataburger so much he requested a supply of their chocolate chip cookies be aboard the shuttle so he could enjoy them from outer space. To serve every customer’s unique taste buds, Whataburger employees are dedicated to making your burger “just like you like it”. How many different ways can you customize your Whataburger? Email your answer to Kara Wood. If you are one of the first three people to answer correctly, you’ll win a full-sized Texas flag!

Show Your Spirit, Texas!

TXINS is proud to be a Trusted Choice® agency. We are dedicated to you and are committed to treating you as a person, not a policy. This commitment means we will:

  • Work with you to identify the insurance that is right for you, your family or your business, and use our access to multiple companies to deliver those products.
  • Guide you through the claims process for a prompt and fair resolution of your claim.
  • Help solve problems related to your coverage or account.
  • Thoroughly explain the coverage and options available to you.
  • Return your phone calls and emails promptly and respond to your requests in a timely manner.
  • Use our experience and company relationships to customize coverage specific to your unique needs.
  • Treat you with respect and courtesy.
  • Conduct our business in an ethical manner.

This is our promise to you. For more information on Trusted Choice, click here.

From our customers…

“The staff at TXINS is always on their toes, very professional, courteous and friendly. I appreciate their thoroughness and competence.” –Judy Jurek, Brady, TX

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