SSHHHHHH......it's a secret

So you've built a business.  You're doing well.  What next?  Do you expand, stay the course, or sell?  Well, if you're like me and chose to sell, here are some helpful tips that can save you a ton of headaches down the road. 

1. Get your house in order. The most important thing to do is to make sure your business is performing as well as it can. Now is the time to assess your cash flow, your expenditures, your tax strategy and other elements of your operation to see whether they are optimal.

2. Consider the timing. It's always easier to sell a business when it's on the upswing. For this reason, owners of seasonal businesses should look to sell soon after their busy season begins

3. Consult with experts. There's no shame in seeking expert assistance. If structuring the sale in a tax-friendly manner, setting a price or other parts of the process are too much for you, consult your accountant and consider getting a business broker to handle the sale. That way you can focus on doing what you do best: running your business.

4. Show buyers a bright future. When a buyer buys a business, primarily the focus is going to be on the proven track record, but there is also the future potential to consider. One of your greatest assets as a small-business owner is your intimate knowledge of your own operation; use that to point out opportunities for the new owner to expand the business. The few days' work it requires may pay dividends in a sale.

5. BE QUIET.  This is incredibly important for 2 MAJOR reasons.  If word gets out that you're in the market to sell, customers aren't as likely to remain loyal to you.  Secondly, employees will use their "work time" as "job search time" if they know you're looking to bail as well.

Last, I highly recommend using a business broker, or someone who has actually sold a business before.  AND WHAT DO YOU KNOW?????  I've got this kind of experience!!!!

So, if you're looking to buy or sell a business, give me a call.  You'll be glad you did :)  Stay protected my friends.

Check ups, check ins, and check outs

I don't know if it's El Paso, the culture, or the water, but many El Pasoans in business like to get insurance for the certificate, then never pay a premium again. 

If you are a property owner, land lord, or lessor, you NEED to verify insurance quarterly.  Yes, quarterly.  I can't tell you how many people are running around with a piece of paper that means nothing.  That way, you can always make sure that your interest will be covered in the event of a covered occurrence. 

This insurance tip was brought to you by Southwest Insurance Management.  And remember, stay protected my friends. 

You, me, and Obamacare

The following is entirely my opinion, and is based on my background, studies, and biases.  :)

You would think that as an insurance agent, I'd be licking my chops.  I'm not.  I'm actually disgusted with Obamacare and our government.  In fact, this administration is cutting insurance agents out of the equation by acting as the enroller.  True story.  This great article from Forbes goes in to the intricacies of this disaster here: http://www.forbes.com/sites/learnvest/2013/10/11/an-obamacare-expert-tells-all-what-you-need-to-know-about-the-affordable-care-act/

Every single government entity is bloated, inefficient, and loaded with bureaucrats.  This new health insurance endeavor will be no different.  YOU NEED TO THINK FOR YOURSELF.  THIS IS NOT GOOD FOR AMERICA.  THIS IS THE BEGINNING OF THE END.  MARK MY WORDS.....

Ok, I'm done bloviating, but here are a couple of great quotes from some great men.  Ponder the wisdom of these words....

"I predict future happiness for Americans if they can prevent
the government from wasting the labors of the people
under the pretense of taking care of them."

- Thomas Jefferson

 

"Only a virtuous people are capable of freedom.
As nations become corrupt and vicious, they have more need of masters."

- Benjamin Franklin

 

"An economy hampered by restrictive tax rates
will never produce enough revenue to balance the budget,
just as it will never produce enough jobs or enough profits."

- John F. Kennedy

 

"The best argument against democracy
is a five minute conversation with the average voter."

- Winston Churchill

 

"The American people will never knowingly adopt socialism. But,
under the name of 'liberalism,' they will adopt every fragment of the socialist program,
until one day America will be a socialist nation, without knowing how it happened."

- Norman Thomas (US Socialist Presidential Candidate)

 

"Any man who thinks he can be happy and prosperous by
letting the Government take care of him,
better take a closer look at the American Indian."

- Unknown

Everyone likes flat........insurance rates??

That's right, in a world with increasing prices, we should expect our commercial insurance premiums to remain flat in 2014.  For the most part......

Obviously, if you had a claim or your insurance broker doesn't like you, your prices will more than likely increase. 

If you're in the market for a new agent or new policy, here are some things to look at:

Experience of your agent

Strength of the company that wants your business (Ratings)

Type of policy coverages (Agreed Value VS Coinsurance policies) Replacement Costs Vs Actual Cash Values, Etc etc

Deductibles

It's also important to take a look at your specific risk from a state perspective.  SO, if you own a bunch of warehouses in El Paso, the hail storms and tornadoes in Central and East Texas are going to affect your insurance premiums due to the losses for that class code for the state.  (I know, it's not fair)

Obviously, the higher the deductible, the lower the insurance costs.   However, you want to exercise caution when playing this game.  Often times, a couple hundred bucks can buy your deductibles down several thousand.

If you'd like to discuss your commercial insurance needs, I'd love to talk to you!  Stay protected my friends.

The worst advice EVER!

This article below is a great read and clears up many misconceptions out there regarding insurance. 

The following was taken from: http://www.learnvest.com/knowledge-center/the-12-worst-pieces-of-insurance-advice/2/

 

1. Lock up all insurance policies and other important documents in a safe deposit box.

Do not keep your life insurance policy in a safe deposit box. If yours is the only name on the safe deposit box, no one but the executor of your will can get into it without Power of Attorney. If your life insurance policy is locked in there, your beneficiaries will have to wait until the estate is opened by a government entity and an executor is appointed.
If you want the assurance of having important documents locked up, buy a fire-safe box.

2. You don’t need flood, earthquake or other disaster insurance.

If an earthquake destroys your home, you won’t recover a penny unless you have an earthquake insurance policy. The same rule applies to floods.
Decisions about flood insurance should be based on your proximity to a body of water that could overflow, not whether the area flooded before. On the plus side, if you’re in a low-risk area, your policy will cost less while still providing the maximum protection.
“Floods occur in all 50 states, and in many cases flood damage happens in areas that aren’t high-risk flood zones,” explains Peter Moraga, spokesperson for the Insurance Information Network of California.

3. Renter’s insurance is a waste of money.

Many renters mistakenly assume that their belongings are covered under the landlord’s policy. Not the case! If some calamity were to occur, such as a fire, your landlord’s insurance won’t cover the contents in your apartment, nor will it pay for you to live in a temporary space while your place is uninhabitable, says Amy Bach, executive director of United Policyholders.
If someone is injured while visiting you and sues you, your landlord’s insurance won’t cover that either.

4. Get the best rate even if you have to lie a little.

It might be tempting to fudge the truth on a life insurance application, especially if you have a serious health condition. “Don’t do it,” advises Steven Modell, president of Modell Brokerage Group in Wayne, Pa. “Not only is it insurance fraud and a felony in most states, but it could prevent your beneficiaries from receiving the death benefit.”

5. Base your home insurance policy on the real estate value of your home.

Experts recommend setting the structural limit of a home insurance policy on what it would cost to rebuild the home if it were destroyed, not the real estate value. Trouble is, the rebuilding cost is a subjective number.
“Many agents use online tools to estimate the rebuild value, but those tools can be misleading,” says Moraga. “It’s more important to talk to a contractor and find out what the local costs are for your home’s particular type of construction, whether it’s in a tract home or custom construction.”

6. Set your dwelling limit low.

Some insurance agents try to give customers the lowest premium possible in order to close the sale.
“One of the ways they’re doing it is by underestimating the value of the dwelling and slapping a 100 percent extended coverage endorsement on the policy,” explains Bach. “Most policies have four separate categories of coverage: 1) Dwelling. 2) Contents. 3) Other structures. 4) Additional living expenses. Three of the four pay a percentage of the dwelling, so if you lowball the dwelling value because you have 100 percent extended coverage endorsement, you’ll be underinsured for your contents, other structures and additional living expenses.”

7. Purchase the state minimum coverage for auto insurance.

Many drivers buy the minimum coverage their state law requires for auto insurance.
“In California that minimum was set in 1967,” says Moraga. “A lot has changed since then. So when you look at your auto policy, understand that if you’re only getting what’s mandated by law, you may be woefully unable to pay any kind of a claim.”
The limit on liability for property damage in California is $5,000. That can be exhausted quickly, even with just a fender bender.
For medical expenses, the limit per accident is $30,000. “If your policy has a $30,000 limit and the medical expenses of the person you hit is $100,000, you’re on the hook for that $70,000,” says Moraga.

8. Ignore uninsured motorists coverage.

Protection against underinsured and uninsured motorists is an important add-on policy for anyone who spends a lot of time on congested roads.
“If you drive frequently in a city where there’s a lot of traffic, your odds of having an accident with someone who isn’t covered rise,” observes Moraga. The added protection can be invaluable.

9. List your vacation home as your primary address on your auto insurance.

The ZIP code of your vacation home might qualify you for better car insurance rates than your primary address. But don’t lie about the principal place where your car is garaged.
“If you have a loss and your insurer finds out, they may delay your claim settlement or take other adverse action,” says Bach. “Most people don’t grasp the concept that insurers want to know about the risks they’re undertaking, and if you mislead them there can be serious consequences.”

10. Drain your retirement accounts to fund a life insurance policy.

You should never stop contributing to your 401K because an agent tells you to put that money into a life insurance policy.
“Funding a tax savings retirement account should come before you buy anything except term life insurance, which is quite competitive [in pricing],” says James H. Hunt of evaluatelifeinsurance.org. “Buy enough life insurance to protect your family, but fund all retirement accounts that save on taxes first.”

11. It’s no problem to take cash out of a permanent life insurance policy.

“Agents often mislead people about cash value policies, saying you can borrow on it later to fund a college tuition or retirement,” says Modell, “But if you take the cash out, you won’t have the insurance.”
Withdrawals from cash value reduce the coverage amount.
Also, unless you’re young and you’re putting a lot of money in an insurance policy, it’s not going to develop enough cash for you to take money out and still have adequate coverage.
“You have to be 100 percent sure you’re happy with the policy indefinitely,” Hunt warns.
Here’s more on cash value life insurance.

12. Term life insurance policies are always the best choice.

“Most people die without insurance,” notes Modell. “If you’re in your 50s or 60s and you want a burial policy, don’t buy term insurance. That’s not the purpose of term insurance.” If, on the other hand, you have young kids and a mortgage on your house, buying term insurance makes sense.

It's uncomfortable.....but it's worth it.

I was moved to put this on paper today.  With an ever changing business and social climate, it's more comfortable for us to go with the "known" commodity.   We avoid risks.  We play it safe.  We hate rejection and the fear of "No".   We all forget that Abe Lincoln ran for office dozens of times.  Ben Franklin failed thousands of times.  Countless other "Champions" of our time failed miserably before experiencing success at what they desired. 

While I was at the gym earlier, a business idea had really surfaced that had been suppressed for some time.  All the voices said no.  It's something I know very little about.  A ton of negativity started to flood my thoughts.  And, that's when  I knew it.  It was something I had to do.  It compliments what I'm involved with, and makes sense from so many different angles.  Ergo, I've decided to go with it.  So, I offer this piece of my unsolicited advice:  When you get the most resistance, you're on to something special.  When you confront the most doubt, make the move.  When you feel like you may be the only one who believes in yourself, make the first step.   And if you fail, I'll be right there to encourage you and help you back up.  Often times we have to be our biggest cheerleaders, and it takes courage and perseverance to make the move and see it through.  BUT, I know you can because the seeds of greatness were endowed in you.  I have no doubt.  And if you ever want an encouraging word, I'm just a phone call away.  See you at the finish line my friends.

Invictus

Out of the night that covers me,
Black as the Pit from pole to pole,
I thank whatever gods may be
For my unconquerable soul.

In the fell clutch of circumstance
I have not winced nor cried aloud.
Under the bludgeonings of chance
My head is bloody, but unbowed.

Beyond this place of wrath and tears
Looms but the Horror of the shade,
And yet the menace of the years
Finds, and shall find, me unafraid.

It matters not how strait the gate,
How charged with punishments the scroll.
I am the master of my fate:
I am the captain of my soul.

William Ernest Henley

Healthcare and you

Below is a description of some of the mandates that will be affecting all of us.  As always, you can quote your own policy on my website at www.epswim.com.  Stay protected my friends!!!

Beginning in 2014, the Affordable Care Act includes a mandate for most individuals to have health insurance or potentially pay a penalty for noncompliance. Individuals will be required to maintain minimum essential coverage for themselves and their dependents. Some individuals will be exempt from the mandate or the penalty, while others may be given financial assistance to help them pay for the cost of health insurance.
What type of coverage satisfies the individual mandate?
“Minimum essential coverage”
What is minimum essential coverage?
Minimum essential coverage is defined as:

• Coverage under certain government-sponsored plans
• Employer-sponsored plans, with respect to any employee
• Plans in the individual market,
• Grandfathered health plans; and
• Any other health benefits coverage, such as a state health benefits risk pool, as
  recognized by the HHS Secretary.

Minimum essential coverage does not include health insurance coverage consisting of excepted
benefits, such as dental-only coverage.
How does “Minimum Essential Coverage” differ from “Essential Health Benefits”?
Essential health benefits are required to be offered by certain plans starting in 2014 as a component of the essential health benefit package.  They are also the benefits that are subject to the annual and lifetime dollar limit requirements.
This is different than minimum essential coverage, which refers to the coverage needed to avoid the individual mandate penalty.  Coverage does not have to include essential benefits to be minimum essential coverage.
What is the penalty for noncompliance?
The penalty is the greater of:

• For 2014, $95 per uninsured person or 1 percent of household income over the filing threshold,
• For 2015, $325 per uninsured person or 2 percent of household income over the filing threshold, and
• For 2016 and beyond, $695 per uninsured person or 2.5 percent of household income over the filing threshold.

There is a family cap on the flat dollar amount (but not the percentage of income test) of 300 percent, and the overall penalty is capped at the national average premium of a bronze level plan purchases through an exchange.  For individuals under 18 years old, the applicable per person penalty is one-half of the amounts listed above.
Beginning in 2017, the penalties will be increased by the cost-of-living adjustment.
Who will be exempt from the mandate?
Individuals who have a religious exemption, those not lawfully present in the United States, and incarcerated individuals are exempt from the minimum essential coverage requirement.
Are there other exceptions to when the penalty may apply?
Yes.  A penalty will not be assessed on individuals who:

1. cannot afford coverage based on formulas contained in the law,
2. have income below the federal income tax filing threshold,
3. are members of Indian tribes,
4. were uninsured for short coverage gaps of less than three months;
5. have received a hardship waiver from the Secretary, or are residing outside of the United States, or are bona fide residents of any possession of the United States.

I don't need it

Common response when asking Texas business owners about Work Comp.  The short answer is yes, you're right.  Work Comp is NOT required in Texas, but you may want to consider the following:

• Workers' compensation insurance pays all reasonably required medical bills for a work-related injury.
• Workers' compensation insurance replaces some lost wages and compensates the employee for permanent impairment caused by a compensable work-related injury. Any benefits are based on the injured employee's income loss and the severity of the injury. Income benefit payments are a percentage of the employee's pre-injury salary, up to a limit tied to the statewide average weekly wage in manufacturing.
• If an employee is killed on the job as a result of a compensable injury, workers' compensation insurance pays benefits to qualifying beneficiaries and covers actual burial costs, up to $6,000.
• Workers' compensation insurance protects employers against lawsuits by injured employees and pays legal defense costs and indemnity (payment for losses) in gross negligence death cases.
• Workers' compensation insurance benefits society by helping injured employees and their families, instead of forcing them into the welfare system.

Does my business really need workers' compensation insurance?

Yes. There is no real match for the protection provided by workers' compensation insurance. Under Texas law, an employer's liability is limited only by providing workers' compensation insurance coverage from a licensed insurance company or by being certified to self-insure by the Division of Workers' Compensation. (This option is available only to large employers who meet stringent requirements.)

What could "going bare" cost my business?

The answer is simple:  It could cost you your whole business. You could bear complete financial responsibility for an employee's injury or death if you are found negligent. The total amount you could be responsible for is unlimited.

What about "alternatives" to workers' compensation?

Insurance companies are not allowed to represent other policies as a substitute for workers' compensation insurance. However, some Texas employers think they have found a cheaper alternative to workers' compensation coverage when they purchase life, accident and health or disability policies. However, the insurance company may cover only a fraction of the total judgment in many work injury cases.

What if I buy insurance from an unlicensed company or a company doing business on a surplus lines basis?

You lose much of the protection provided by a policy from a licensed carrier.


So, do you need it?  Call me today to discuss your business.  Stay protected my friends!

Cha Cha Cha Changes

Wasn't that a David Bowie song?  Changes .  A LOT has changed since we last talked....Sold The Abe Peinado Insurance Group and have dedicated myself to a new venture.....Southwest Insurance Management.  Check it out, and please support it!  www.EPswim.com 

I hope that you are doing well, and I hope that you keep reading.  Some good stuff will be coming!

Stay protected my friends......Oh, and here's a video we just made! 

Hello, is it me you're looking for?

Lionel Richie had some great songs, including this one.  Hello 

I haven't written in a while, but I was moved to put some thoughts down this beautiful rainy morning.  El Paso is a beautiful city with the prettiest sunsets and sunrises. 

Last week, one of my favorite eating places was locked out.  Notice on the door said it was for rent over due.  Bummer.  

Did you know that we can help?  We've saved businesses hundreds to several thousands on commercial insurance.  That particular restaurant wasn't a client, so I'm not sure what the situation was.  However, if you are looking for ways to save money for your business, please call us!  And when you call, someone will say, "Hello, is it me you're looking for?"  Hahahaha.......cheesy, I know.  Stay protected my friends!

Oh, and call me at 915-209-2886.  www.AbeInsuresElPaso.com

Thank you

2013 is underway, and it already seems like it's going to be a better year.  As part of my New Years Resolution, I want to make sure that people know how grateful I am for them.  I'm grateful for my employees, Jessica and Christina, that truly run the business.  I'm grateful for my clients who gave me a shot when I was just starting out.  I'm grateful for my friends close and far away. I'm especially grateful for my buddy Phil, who believed in me when it seemed like the world was caving in.  I'm grateful for my landlord who hasn't raised the rent....yet.  I'm grateful for the insurance underwriters who try hard to get business placed.  I'm grateful for my family, especially my brother.  I'm grateful for my health.  I'm just grateful.  And I'm grateful for you for reading this blog.  Have a wonderful day my friends.