I Assure You: Insurance is Important
1 Dec, 2008 By: Peter F. Schopen Jr. Pest Management Professional I have four baskets in my office. One is for personal mail. Another is for personal bills. A third is for business mail and the fourth is for business bills. Recently, I had to add a fifth basket. This new basket is for all of my friends at Metro Center for Health, McHenry Radiologists, Crystal Lake Orthopaedic Surgery, Centegra Northern Illinois Medical Center and the list goes on and on.
 SCHOPEN'S OPEN BOOK |
Why am I the most popular person in the ER since John Stamos? Because my poor wife had a horrific month in June. A few months ago, I wrote about how she not only had an appendectomy but also spent three days in the hospital with blood poisoning from a dog bite. The Tsunami of medical bills hit in September like a Brock Lesnar fist on a pinata. All told, the bills totaled more than $45,000. Despite what you think about AIG, thank goodness for health insurance. Of that staggering amount, we are only responsible for $5,000. It's a big amount but it won't put me in the poor house. It'll just kill the Disney trip this year.
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Insurance might just be the most important purchase a start-up can buy. Whether it is general liability, auto or disability insurance, you really can't have enough. I currently have the following:
- Home insurance
- Auto insurance (business and personal)
- General liability (business)
- Health insurance (through my business for my family)
- Life insurance (personal)
During the past three years (since I started my business) I have also had:
- Boater's insurance (don't ask)
- Disability (canceled it due to high costs)
- Workman's compensation insurance (for my first and only hire thus far)
If you are a start-up business or thinking about starting a pest management company, there are a few insurances you must have (and some ways to save a few bucks). For example, depending on what state you live in, you need to have a minimum of $1 million general liability insurance. I have $2 million in coverage, costing me $222 per month.
If you hire an employee — even part time — you should have workman's compensation insurance. Most carriers will charge you 4 to 6 percent of the gross wages that employee will make for the upcoming year. Example: If an employee is projected to make $30,000 then you will probably pay $1,800 in workman's compensation insurance.
(NOTE: Make sure you give a reliable guess because you will be audited at the end of the year by the insurance company, and they will charge you back payments if you guessed light.)
To save money, shop around and find good deals and try to keep a clean record on claims. Currently I shopped around and found a good company for small business that cut my premium by $100 per month. Also, if my family maintains a clean bill of health for four years, my $5,000 deductible will drop to $0! You can also save money on your general liability and workman's comp insurances by paying the entire amount up front. Most insurance companies will offer you financing, but if you can avoid this you will save at least 10 percent.
You can reach Schopen, owner of Schopen Pest Solutions, by e-mailing
pete@schopenpest.com
or call him at 847-529-BUGS.
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