SMALL BUSINESS INSURANCE & RISK MANAGEMENT GUIDE

The following is a list of helpfull publications from the Small Business Administration.  I am attaching a copy of the SMALL BUSINESS INSURANCE & RISK MANAGEMENT GUIDE.  You might download any of the other publications at the SBA website, sba.gov

 

1. PROBLEMS IN MANAGING A FAMILY-OWNED BUSINESS MP-3:   Specific problems exist when attempting to make a family-owned business successful. This publication offers suggestions on how to overcome these difficulties.

2. BUSINESS PLAN FOR SMALL MANUFACTURERS MP-4:   Designed to help an owner/manager of a small manufacturing firm, this publication covers all the basic information necessary to develop an effective business plan.

3. BUSINESS PLAN FOR SMALL CONSTRUCTION FIRMS MP-5:   This publication is designed to help an owner/manager of a small construction company pull together the resources to develop a business plan.

4. PLANNING AND GOAL SETTING FOR SMALL BUSINESS MP-6:   Learn proven management techniques to help you plan for success.

5. BUSINESS PLAN FOR THE SMALL RETAILER MP-9:   Business plans are essential road maps for success. Learn how to develop a business plan for a retail business.

 6. BUSINESS PLAN FOR SMALL SERVICE FIRMS MP-11:   Outlines the key points to be included in the business plan of a small service firm.

7. CHECK-LIST FOR GOING INTO BUSINESS MP-12:   This is a must if you’re thinking about starting a business. It highlights the important factors you should know in reaching a decision to start your own business.

9. COMPUTERIZING YOUR BUSINESS MP-14: Helps you forecast your computer needs, evaluate the alternatives and select the right computer system for your business.

10. BUSINESS PLAN FOR HOME-BASED BUSINESS MP-15:  Provides a comprehensive approach to developing a business plan for a home-based business.

 12. INSURANCE OPTIONS FOR BUSINESS CONTINUATION PLANNING MP-20:  This publication discusses the life insurance needs of a small business owner and how important business life insurance is when planning for the future of business.

13. INTRODUCTION TO STRATEGIC PLANNING MP-21:   This best seller helps you develop a strategic action plan for your small business.

14. INVENTORY MANAGEMENT MP-22:  Discusses the purpose of inventory management, types of inventories, record keeping and forecasting inventory levels.

  15. SELECTING THE LEGAL STRUCTURE FOR YOUR BUSINESS MP-25:   Discusses the various legal structures that a small business can use in setting up operations. It identifies types of legal structures and the advantages and disadvantages of each.

16. EVALUATING FRANCHISE OPPORTUNITIES MP-26:   Evaluate franchise opportunities and select the business that’s right for you.

17. SMALL BUSINESS INSURANCE & RISK MANAGEMENT GUIDE MP-28:   This guide can help you strengthen your insurance program by identifying, minimizing and eliminating business risks.

18. HOW TO START A QUALITY CHILD CARE BUSINESS:  This comprehensive manual developed by child care professionals in both private and public sectors, explains the business and academic dimensions of operating a child care center.

19. CHILD DAY-CARE SERVICES MP-30:   An overview of the industry, including models of day-care operations.

20. HANDBOOK FOR SMALL BUSINESS MP-31:   Handy information for getting started – in a new publication developed by the SBA’s Service Corps of Retired Executives (SCORE).

21. HOW TO WRITE A BUSINESS PLAN MP-32:   What you need to know to write a good plan at the start. It can save your business down the line.

Farmers Insurance Goes ‘Green’ for Homeowners

Los Angeles, CA – With an industry-leading commitment to the environment, The Farmers Insurance Group of Companies® has began offering a new eco-friendly product for its Texas customers wishing to ‘go green”. Called “Eco-Rebuild”, this new endorsement will supplement Farmers homeowners insurance by allowing customers to replace destroyed property in ways beneficial to the environment.

“We are excited to bring this product to the market and give our earth-conscious customers an option previously not available to them,” said Jeff Reinig, Farmers Insurance Senior Vice President of Home Product Management. “This is quite literally an investment in our global future and we are excited to be the industry leaders.”

The “Eco-Rebuild” endorsement includes:

•$25,000 for extra costs incurred to rebuild or replace with “green” materials.

•If the house is an Energy Star Qualified Home, the endorsement will cover the cost of upgrading damaged property to meet new Energy Star requirements.

•Reimbursement for recycling debris rather than disposal.

•Reimbursement for extra costs incurred by using other means of power in the event of loss of alternative power generating equipment.

In addition to Texas , the product is also available in 28 other states: Alabama , Arizona , Arkansas , California , Colorado , Idaho , Illinois , Indiana , Iowa , Kansas , Michigan , Minnesota , Missouri , Nebraska , New Mexico , North Dakota , Ohio , Oklahoma , Oregon , South Dakota , Tennessee , Utah , Virginia , Washington , Wisconsin and Wyoming .

This is one of many “green” products Farmers offers its customers including a discount for owning a hybrid vehicle and other green initiatives offered through Zurich Financial Services.

About Farmers Insurance Group:
Farmers Group, Inc. is a wholly owned subsidiary of Zurich Financial Services, an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Farmers® is the nation’s third-largest Personal Lines Property & Casualty insurance group. Property and casualty products are underwritten and issued by the Farmers Exchanges and their subsidiaries, which Farmers Group, Inc. manages but does not own. Headquartered in Los Angeles, Farmers insurers provide Homeowners, Auto, Business, Life insurance and financial services to more than 10 million households. For more information about Farmers, visit our Web site at http://www.farmers.com.

Cool, moist weather slows wildfire season in West

(AP) PHOENIX – Wildfires are usually raging by now in Arizona , but something odd happened this year.

As June drew to a close – typically the busiest part of Arizona’s wildfire season – the temperature fell and moisture was above normal, surprising fire managers who had expected an active season.

“The first part of summer we’ve really dodged a bullet in terms of our weather,” said Rick Ochoa, a fire weather meteorologist with the National Interagency Fire Center in Boise, Idaho. “We’ve had rainfall and the cooler temperatures really kept a lid on things.”

Similar weather has also led to fewer fires than normal across much of the West, he said. But the season is still early and parts of the West will heat up significantly at the end of this month, Ochoa said.

An above-normal fire potential is expected in portions of California and Washington later this month because they’ve missed out on spring rainfall and had quick snow melt-off. There’s also above-normal fire potential this month in parts of Texas, Louisiana and Mississippi.

States that likely will see below-normal Julys are parts of Arizona, Colorado, Nevada, New Mexico, Oregon and Utah.

Arizona and New Mexico’s fire seasons typically begin earlier than other parts of the West, wane when summer monsoon rains roll in and sometimes pick up again in the fall if rainfall is scant.

The rest of the Western fire season follows a more typical pattern, with peak fire season hitting in midsummer and early fall.

Arizona’s season has been below normal so far. The state had 990 significant wildfires that burned about 117 square miles so far this year. That’s compared to a five-year average of 1,800 wildfires that destroyed 357 square miles, according to the Southwest Coordination Center in Albuquerque, N.M.

New Mexico also has seen less activity than normal, with 730 wildfires consuming about 481 square miles. That’s compared to that state’s five-year average of 880 fires that burned about 585 square miles, according to the coordination center. 

From the beginning of the year through mid-May, southeastern Arizona, southern and eastern New Mexico and west Texas were experiencing fairly active seasons before moisture hit the area, said Chuck Maxwell, predictive services meteorologist for the center, which oversees those three states.

“What we really didn’t expect was for things to shut down in the second half of May and not come back again,” Maxwell said. “It’s a year without any widespread, long-term, big fires.”

He said less fire can be good and bad.

“We want to have regular fires of some intensity to burn out the stuff that’s there; we just don’t want to have catastrophic fires,” he said, adding that low-intensity burns renew the ecosystem and restore forests to their natural states.

Forest managers in the West are taking advantage of the break.

In northern Arizona’s Kaibab National Forest, for example, fire managers are letting a small lightning-caused fire continue to burn because it’s doing more good for the land than harm, forest spokeswoman Jackie Banks said.

The lower temperatures and moisture this June also allowed Kaibab managers to start a prescribed fire that burned three square miles.

“It’s been a good thing in so many ways because we’ve been able to reduce the risk of higher intensity fires instead of running around trying to put everything out,” she said. “It helps improve forest health, improve wildlife habitat, reduce some of those accumulations of fuels on the forest floor.”

Not everyone is benefiting from a slower wildfire season.

Seasonal firefighters and government contractors are getting no work or less work than they’re used to.

Beryl Shears, owner of Phoenix-based Western Pilot Service, said his 13 airplanes contracted by the government have flown 20 to 30 percent of the amount they flew in 2007 and about 40 percent of what they flew last year.

“It’s awfully hard to stay prepared when our pilots don’t fly as much, to be ready to fly in 15 minutes after sitting around day after day,” he said. But regardless of what type of season it is, Shears said, the government still pays his company to have the airplanes and pilots at the ready.

“Yes, we do make more money in big years,” he said, “but really when you think about it, it’s the best of both worlds for all of us. We make a livable income for pilots, employees and mechanics, and yet there’s no wildfire, so nothing burns.

“The cost to government agencies is less, and we’ll be here next year if its a more severe wildfire season.”

FIRE VICTIM WARNS OTHERS: GET RENTERS INSURANCE

(KVAL News – Oregon )  After a fire destroyed all of her family’s belongings, a Eugene-area woman is warning all renters to purchase insurance.

“You can’t save the sentimental things, of course, but at least if you have children, there is something” if you have insurance, said Rhea Chrismer. “You can replace their bedrooms again.”

A fire destroyed Chrismer’s rented house and garage last Monday, charring most of the family’s belongings. The cause of the fire has not been determined and the investigation is on pause unless new information surfaces, according to Heather Miller with Lane County Fire District 1.

Chrismer, boyfriend Micheal Kezer and Chrismer’s three children were not home. The family was renting the property on Territorial Road but did not have renters insurance.

According to a Farmers Insurance branch in Eugene , the average person will pay less than $200 a year for a renters insurance policy.

“We’re not going to let this stop our little family,” she said. “I’m learning good things come from bad things. You meet really good people.”

People like the passerby who saw smoke coming from the house Monday, searched the rooms for people and finding none, let the family’s dogs outside. The dogs survived.

People like the communities of Crow and Lorane, who have offered clothes and started fundraising efforts. If you would like to donate to the family, an account has been set up at the Selco Bank on Gateway Street. Mention the Kezer Family Fund.

To see a short video of this story, click here: http://www.kval.com/news/49463987.html

45,000-plus Valley properties remain in foreclosure

(The Arizona Republic) Thomas Kelly explains the foreclosure process to those outside the banking industry by likening it to a tube.

“You get put in the tube when you’re 90 days late, and you might come out the other end of the tube six months later,” said Kelly, spokesman for JPMorgan Chase & Co.

What Kelly’s analogy doesn’t explain is how, for the past three years, thousands more Phoenix-area property owners have been entering the tube each month than coming out of it.

At present, the system is backed up with more than 45,000 “pending” foreclosures, up from about 2,300 in June 2006, according to a historical analysis by the Information Market, a Phoenix research firm.

Most experts expect pending foreclosures to increase even more before leveling off sometime within the next 12 months.

There has been much speculation among real-estate professionals about reasons for the apparent backlog of houses and condominiums headed toward foreclosure.

There’s a widespread belief that banks are purposely limiting the flow of foreclosure homes onto the market, which helps prevent home prices from sliding even further but could prolong the market’s long-term recovery.

Likewise, some say lenders are dragging their heels on repossessing and selling extravagant homes, and to a lesser extent commercial properties, including raw land, because the demand for big-ticket real estate is too low and because selling off large assets at sharply reduced prices could cause some smaller banks to fail.

Lenders have been relatively quiet about their strategies for working through pending foreclosures, which has only fueled various theories.

But Kelly said such theories give the banks too much credit.

“We’ve got such an enormous portfolio of homes to deal with, we don’t have time to say, ‘Let’s do this with this one, and let’s do that with that one,'” he said.

Monthly foreclosure totals have risen and fallen a number of times since the housing market peaked in 2006, although the general trend has been upward.

However, the number of pending foreclosures, properties on notice for a trustee sale but not yet sold, has increased steadily without exception since April 2006. In the past year, it has climbed by anywhere from 500 to 5,000 properties each month.

As of Friday, there were 45,709 total pending foreclosures in Maricopa County , according to the Information Market. Those are in addition to the roughly 73,000 foreclosures completed during the past three years.

Also as of Friday, the county was on track to reach 5,000 foreclosures by the end of this month, which would be the second-highest monthly total on record, having reached a high of 5,240 in February.

Even if 5,000 properties complete the foreclosure process this month, an even greater number will enter it.

As of Friday, lenders had served pre-foreclosure notices on 5,700 additional properties, a net increase of at least 700 in pending transactions for the month.

Actual foreclosures in the past three years total about 73,000, according to the data.

Some Valley foreclosures may be taking longer than the usual 91 days from notice to sale because the borrowers are attempting to work out a loan-modification or “short sale” agreement with the lender.

In Maricopa County, short sales have increased in the past year but still account for less than 5 percent of property sales.

 

Modifications help

 

Colleen Gunderson, Tempe-based Century 21 All Stars owner and designated broker, believes banks have intentionally slowed the release of foreclosure properties onto the market at the behest of the federal government, which provided many banks with bailout funds.

“There is a process in place to sort of warehouse these properties until a time when it’s more beneficial to place them on the market,” she said.

It’s the right approach, Gunderson added, because dumping 45,000 foreclosed-on properties onto the market all at once would deliver the knockout punch to a real-estate economy already leaning against the ropes.

New, standardized loan-modification guidelines issued by the Obama administration in March appear to be doing a better job of keeping some borrowers out of foreclosure than modifications made in 2008, according to two federal bank regulators, but it’s still too early to know for sure.

More than half of loan modifications negotiated before the Treasury Department launched its $75 million Making Home Affordable program in early March were back in default within six months, according to a study conducted by the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.

Those same officials said in May that the rate of re-default fell by about 12 percent among those borrowers whose monthly payments were reduced.

However, the number of loans headed toward foreclosure has risen significantly despite better modifications.

In March, the Investigative Reporting Workshop at American University in Washington, D.C., conducted a study of the nation’s roughly 8,000 banks with online-news service msnbc.com and reported finding a 150 percent increase in loans at risk of foreclosure compared with a year earlier.

Kelly said job losses are one likely reason for the continued high volume of foreclosures, in addition to people walking away from mortgages even though the payments are affordable because they owe far more than the home is worth.

 

Commercial is next

 

Although most Valley foreclosures thus far have involved residential property, commercial-property owners and lenders are preparing for apartment, office and retail foreclosures to rise sky-high in the coming months.

Selling those properties back to the market could take years in some cases, analysts said, because there is little interest in new office and retail space, even at the low-rent end.

Craig Henig of commerical real estate brokerage CB Richard Ellis in Phoenix said banks aren’t in any rush to foreclose on commercial real estate because it forces the lender to adjust the property’s book value to today’s considerably lower market price.

Significant write-downs on a few multimillion-dollar commercial loans could put a small or financially stressed bank out of business, he said.

“I don’t know how they could sustain the amount of markdowns,” Henig said.

However, Kelly said the holding costs associated with thousands of foreclosed-on properties outweigh any benefit the bank might realize from waiting to sell them.

He also noted that the value of commercial real estate and high-end homes is still on the decline, which means waiting is likely to cost lenders even more.

“The goal is to get that asset back earning money for you,” he said.

Is the job market really turning around?

Experts say the employment picture will start to improve soon. Workers say the proof is in the pink slip.

NEW YORK (CNNMoney.com) — According to some recent headlines, conditions are finally starting to improve for the unemployed.

Some indicators are showing positive signs in the job market for the first time since the credit crisis caused job losses to soar last fall. But for the growing number of unemployed workers in the U.S., macroeconomic statistics aren’t worth much.

After peaking in January, the pace of job losses has slowed dramatically , according to the Labor Department. Employers cut 345,000 jobs from their payrolls in May — 32% fewer than the previous month. And the number of Americans filing for continuing claims for unemployment insurance fell last week for the first time since early January.

But for those unemployed workers pounding the pavement, jobs are still hard to come by.

That’s because even though job cuts have slowed, employers have not started hiring just yet. According to the Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics, the number of new hires remains near an all-time low.

“In general, companies have been in a wait-and-see posture,” explained Dr. Jane Goldner, a human resources expert and author of “Driven To Success: A 10-Point Checkup for Achieving High Performance in Business.” “There’s some level of confidence coming back,” but in terms of hiring, “I don’t think we’re there yet,” she said.

Many unemployed workers agree.

Ann Fry made a good living as professional speaker and executive coach in New York until last fall. Now the companies that hired her in the past have cut back and individual clients signed off.

“I completely rely on whether conferences are happening and whether they are hiring speakers,” she explained. “What I notice is that companies are reluctant to pay for ‘extras’ like corporate training and coaching,” she said. “Also, the professional associations I speak for nationally are cutting their budgets way back.”

With fewer clients and fewer gigs this year, Fry, 63, has had to tap into her savings in recent months to make ends meet. As a self-employed professional, there is no safety net such as unemployment insurance to fall back on, but she’s hopeful that business will pick up again.

“I think we’re already seeing some signs of improvement,” Fry says of the economic environment. “Do I see it turning around yet?” she asked of her own employment status, “no, not yet.”

“For the job seeker it’s probably not necessarily obvious right now that things are improving,” said Jennifer Schramm, the manager of workplace trends and forecasting for The Society for Human Resource Management.

Although anecdotal evidence suggest that hiring expectations will improve in the second half of the year, “we have to wait a few months to see if this is a trend,” she said.

Once companies stop decreasing headcount, it could still take time before hiring plans take hold, and even longer for there to be a noticeable change in workers’ attitudes.

Chuck Jentlie has been through this before. His career as a recruiter for the tech industry was rocked by the dot-com bust earlier in the decade. Since then the 52-year-old went back to college at Arizona State University to get a degree in architecture.

But once a growing industry, architectural services has steadily lost jobs since the beginning of the year. Now a large percentage of architects are out of work, including recent graduate Jentlie.

“None of us can find a job,” he said of his classmates.

Although the industry as a whole could bounce back quickly once the economy improves, “a lot of the reports seem like wishful thinking,” Jentlie said.

“I’m definitely not seeing [employers] saying ‘yeah we’re looking for workers,'” he said. “Realistically I think we’re probably looking at another year.” 

Investors not flipping houses, but renting

I found this in the Arizona Republic.  I believe it might shead some light on the state of our market.  As related to insurance, we have seen a significant increase in Landlord policies, as well as Vacant Home policies (this are typicly homes in the renovation process).  Enjoy.

by J. Craig Anderson – Jun. 12, 2009

Real-estate investors have returned to the Valley in a big way, prompting concerns that the housing market is becoming too speculative to sustain the recent buyer activity.

The lure of once-in-a-lifetime deals on bank-owned homes is driving investor purchases, which experts say account for 50 to 70 percent of recent home-buying transactions. Still, it’s the ability to generate revenue by renting the homes to tenants – in some cases, previous owners – that makes the properties such attractive investments.

The Phoenix-area housing market has been flooded with homes for rent in recent months, raising concerns about whether there will be enough tenants to keep the Valley’s estimated 130,000-and-growing rental properties out of financial jeopardy.

Even some longtime supporters of the home-investment market say they’ve noticed a disturbing return of the can’t-lose mentality that got so many speculators and house-flippers into trouble a few years ago.

“Investors are starting to look at the market from a speculative standpoint,” said Alan Langston, who runs the Arizona Real Estate Investors Association. “We could end up with an oversaturated rental market.”

Although the demand for rental homes is still strong, Langston said, speculators seeking big returns could be in for an unpleasant surprise, especially if they don’t treat rental-home ownership as a business that requires time, effort and cash reserves.

Dealing with tenants also requires legal knowledge, he added. “You need to have a good lease, and you need to know how to enforce it,” he said.

Langston has created a second organization, the Arizona Rental Property Owners and Landlords Association, to provide resources such as proper lease agreements, market data and legal advice in exchange for an annual fee of $129.

Rental-home owners who lack a full understanding of the financial risks and recommended precautions could find the homes they purchased from lenders right back on the market, which would be bad for investors, tenants and the area’s economic recovery.

Home foreclosures have created an atypically high demand for rental properties, but that demand is not unlimited, and rental investments are not immune to financial risks such as tenants losing their jobs or continued decline in rental rates as supply increases. The glut of single-family homes for rent, overbuilding of apartments and failed condominium projects have created a difficult and highly competitive market for rental-property owners.

Many apartment managers have responded by boosting incentives such as lower rents, waived or reduced fees and complimentary services.

Many rental-home investors have purchased the properties with cash, which means there is little chance of those homes going into foreclosure. Of the estimated 131,000 rental homes in the Phoenix area, only about 5,000 are currently in the foreclosure process, according to Valley market-research firm NetValueCentral Inc.

Langston said it’s likely that many of the houses in foreclosure are owned by what he calls “reluctant landlords,” people who were forced to leave their homes and rent them to tenants because of financial problems.

But whenever there is a perceived opportunity for investment gains, he said, it will attract what Langston calls “stupid money.” Stupid money was flowing like water during the housing boom, he added.

“The idea is that you could make money even if you didn’t do anything right,” he said.

Chaz Smith, senior vice president of the LandSource Group at Colliers International in Phoenix, said first-time buyers in the current market are all too aware of the investor presence.

“Young people looking for a starter home, they get outbid by investors,” Smith said.

Still, Smith and Langston see real-estate investment as a positive. The competition that’s causing frustration for other buyers is keeping prices from falling further, they said. Starter-home buyers alone would not create enough demand to absorb the supply of bank-owned homes coming on to the market each month, they said.

Investors have fixed up many dilapidated or trashed homes and prevented the Valley from having neighborhoods littered with abandoned properties.

“Homes are being bought, neighborhoods are recovering,” Langston said. “Imagine this market today without investor activity.”

However, he said, there is a big difference between an investor and a speculator.

“Investors follow solid investment practices. They add value to the transaction,” Langston said. “Speculators are looking for a very quick turnaround and a very large return.”

Despite the economic benefits of investor participation in the market, some observers say, the return of investors – even responsible ones – has disturbing moral implications.

Jim LaVanway, vice president of Homeowners Financial Group in Phoenix, is among those who blame the investment community for creating a bubble in the first place.

“That’s the irony of it,” he said. “Now, we’re waiting for those same guys to come back and buy those same homes at a lower price.”

FENDER-BENDERS IN MICRO CARS CAN BE COSTLY

Ken Thomas (Forbes.com) Recent crash tests conducted by the Insurance Institute for Highway Safety indicate that even a minor accident in a minicar can require thousands of dollars to repair. On June 10 the institute reported that repairing damage to microcars in crashes of speeds as low as three to six miles per hour could cost from $474 to $3,701. The crash tests were conducted on the front and back bumpers and the front and rear corners of seven 2009 model year minicars. These cars have become more popular as a result of rising fuel costs in recent years. The Kia Rio sustained the most damage among the minicars, requiring $3,701 to repair the full front bumper. In the four tests the cost of repairing the Rio averaged $2,705. Of the seven vehicles, the Smart fortwo had the lowest average repair cost of $899.

AUTO INSURANCE FOR YOUR DOG

A dog driving

A dog driving

(KOTV NewsOn6.com – Tulsa , OK ) Some auto insurance companies are offering a unique type of coverage and it may not cost you a dime. It’s not unusual to take Fido for a ride in the car. And now car insurance companies are offering pet owners some peace of mind by allowing customers to add animals to their policy.

Besides making sure they get daily exercise, Cheryl Steckler, the owner of the Pet Limousine Service, drives her clients’ pets to important appointments.

“I pick up animals and take them to the kennel and to the groomer, places like that,” Steckler said. She knows how much the animals mean to their owners and makes sure they are safe inside the van and covered in the event of an accident.

But Steckler had a hard time finding an auto insurance company to cover the pets.

“It’s not something everybody offers,” Steckler said.

But now several large car insurance companies are offering at no extra charge coverage of $500 to $1,000 for pets injured or killed in car accidents.

“We’ve had several calls asking about the coverage for pet insurance,” Farmers Insurance agent Loretta Bond said.

Farmers Insurance is one of the companies that offer the unique coverage. Bond said unfortunately Farmers does not offer it yet in Oklahoma , but when it is offered she knows it will be a popular request because it will save owners money if their pet needs medical care after a car accident.

“It’s no different than a human being, they have bones that break, they need surgery and things like that,” Bond said.

Progressive Insurance does offer this free coverage.