0816_TOEFL-Test-and-Score-Manual-1997

Money Matters ● 69
Contact the ESOP Association at 1726 M St., NW, Washington, DC
20036; (202) 293-2971; via e-mail: esop@esopassociation.org; or at their
web site: www.esopassociation.org.
GREAT
IDEA
Find a Good Independent
Insurance Broker
Your insurance broker should be “part of your financial
inner circle,” according to Richard Butwin, copresident
and CEO of the Butwin Insurance Group in Great Neck, New York.
Meeting with a savvy insurance broker at least once a year can protect
you and your business from disaster. Business-related insurance is not a
luxury—it is a necessity, especially if you interact with the public, which
most businesses do, either online or in person.
“During the meeting, you should describe your business, ask questions,
and then let the broker design an insurance program,” said Butwin.
Most small companies are underinsured, which can be a big mistake.
Have you heard of employment practices liability insurance? I hadn’t. It
protects your company if you are sued for firing, not hiring an applicant,
or violating an employee’s legal rights. (The policy covers legal costs, but
does not cover fines levied by state or federal agencies).
What about business income or business interruption insurance?
A comprehensive policy can provide money to keep the lights on and the
payroll covered if your business is hit by disaster. (See Great Idea #23 on
disaster recovery planning.)
Butwin said a small business owner who sells filters for camera lenses,
was extremely grateful he listened to Butwin and bought this coverage.
A few years ago, a worker in the office below left a hot plate burning—and
nearly burned down the entire building. Firefighters saved the building,
but everything was soaking wet and covered with a thick layer of inky soot.
Luckily, the business income policy covered the cost of cleaning up
the office. They missed a few days of work but few customers even knew
what happened.
“Brokers are supposed to diagnose a loss before it happens,” said Butwin,
who also takes credit for encouraging a major travel agency client to keep
paying for coverage related to telephone and Internet service outages.