Accounts Receivable Factoring Helps Small Businesses with Insurance Costs.

http://www.nytimes.com/2009/12/10/business/smallbusiness/10insurance.html

This New York Times article reminds us that even if you have insurance for floods, fires, or other disasters, if a small business is taken out, the owner may still owe salaries and rent.

Have you heard about something called “business-interruption insurance?” Research shows that many people have not heard about it. This is just one more reason why as the New Year approaches, you need to consult with an expert to plan ahead. And one way to spare the funds to get insurance if you do not already have it, is through invoice factoring, otherwise known as accounts receivable factoring.

First you may want to know the difference between representatives. Independent agents, or brokers, represent several carriers and are paid on commission by the insurance companies. Captive agents represent one insurance company that pays them a salary.

Second, there are other types of insurance you many need to research and carry to avoid risk. Many small businesses operate without liability insurance, for example. Workers’ compensation insurance, however, protects employers from liability for an accident involving an employee and it is required by law in all states. Most business owners simply want to cut down on operating costs. The Bureau of Labor Statistics noted in 2007 there were more than 335,000 cases of employees injured on the job due to contact with objects and equipment.

There are also basic guidelines from the National Federation of Independent Business and Small Business Administration, or The Insurance Information Institute has a comprehensive guide.

For more information on how you can factor invoices to have the money ready to purchase insurance for your small business, go to http://www.ifgnetwork.com.

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