All Businesses Need Insurance

By David Hopewell

State Farm® agent

The dream of owning a business becomes a reality for thousands of people each year.

For many of these would-be captains of industry, that means starting the operation on a small scale. However, your enterprise may be in jeopardy if you don’t have business insurance.

You need business insurance because most beginning entrepreneurs don’t have the financial resources to handle adversity if it should come. Adversity can happen in many ways: fire can destroy your inventory, a power outage could cause your goods to spoil or a customer could be injured accidentally while visiting your location.

Business insurance can protect you from these hazards and others by providing many or all of the coverages listed below:

· Accidental direct physical loss coverage for business personal property,

· Broader off-premises property coverage,

· Loss of income coverage and

· Extra expense coverage.

This list above is just a sample of what’s available. You should contact your State Farm agent to see what coverages are right for your business.

Many entrepreneurs start their businesses on shoestring budgets and try to cut corners by keeping expenses at a minimum. But when you consider what you get, business insurance becomes a tool you can’t afford to work without it.

Is CD Laddering Right for You?

Is CD Laddering Right for You?

By David Hopewell
State Farm® agent


With the recent volatility in the stock market, people are hesitant to put their entire nest egg into the market. Additionally, with the economy creating tight times for families, it’s often necessary to make sure funds are available if and when we need them. For those investors who are either reluctant to jump head first into the market or those who may have a need for cash, the strategy of laddering Certificates of Deposit (CD's) may be appropriate.

CD laddering is the process of structuring your investment into CD's to take advantage of the higher rates afforded by longer-term time deposits, yet maintaining liquidity by arranging it so that equal portions of the invested money is available periodically. To accomplish this, you begin by buying numerous CDs with various maturities.

For instance, let’s say you have $25,000 to invest. Rather than investing the $25,000 in one CD that matures at a designated time, by laddering CD's, you may choose to invest $5,000 in each of five separate CDs. In this example, you would then purchase a 1-year, 2-year, 3-year, 4-year, and 5-year CD in equal amounts of $5,000. After one year, when your first CD matures, you would invest it in a new 5-year CD. Each year, a CD will expire and, if the funds are not needed, they will be reinvested in a new 5-year CD to take advantage of the higher interest rate typically offered by a 5-year CD as compared to the 1- or 2-year CD's.

This approach allows you the comfort of knowing that a CD will mature each year in case you need the money, yet still take advantage of the higher rates typically offered for longer maturities. Staggering your maturity dates also helps smooth out the volatility of the market. If interest rates rise during the year, you will have money available to invest in a higher rate CD. Or, if rates fall, only a portion of your investment dollars will need to be reinvested at the lower rate.

CD laddering may be a strategy that’s appropriate for your lifestyle. Plus, with the guaranteed interest rate offered on CD's, you will be able to plan your future with confidence. Talk with your insurance agent or financial expert for more information.

**I hope this helps the conservative investor a little more. State Farm Bank offers CD's with great rates and you can do it all over the internet by going to www.davidhopewell.com and then entering State Farm Bank. If you need further help call me 24/7 at 859-734-5338. Press 2 allows you to speak to a live person 24/7.

DH

Anatomy of an Auto Policy

Anatomy of an Auto Policy

By: David Hopewell
State Farm® agent


Picture this scenario: A woman leaves her car securely locked and safely parked on a quiet side street. But the unexpected happens. When she returns, her car is severely damaged.
This scenario has a happy ending. After the initial shock, she calls her insurance agent. The agent guides the woman through the claim process and explains that her car policy’s collision coverage will pay the cost, after the deductible is met, to repair her car.

Why insurance?

State laws require owners and drivers of motor vehicles to be financially responsible for damages they cause in a car accident. Insurance satisfies this requirement. In addition, optional coverages are available that can further reduce your risk of significant financial loss from a car crash, even if it is not your fault.

Types of coverage available

There are various types of coverage available when purchasing an Auto insurance policy.
· Liability: Pays damages for bodily injury to others and damage to property that result from a wreck that is caused by an insured under your policy. Also pays for other costs including legal defense and court fees in the event an insured is sued because of a car wreck. **
· Collision: Pays for damage, after a deductible is met, to your insured car when it strikes, or is struck by, another vehicle or object.
· Comprehensive: Pays for damage to your insured car that was not caused by a collision. Some examples include damage caused fire, wind, hail, flood, vandalism, theft, or impact with an animal. There may or may not be a deductible for this coverage.
· Medical Payments Coverage: Pays the reasonable and necessary medical expenses for an insured that is injured in a car crash, regardless of who is at fault for the wreck.
· Uninsured Motorist Coverage: Pays damages to an insured that is injured in a car crash caused by a driver who does not have liability insurance.
· Underinsured Motorist Coverage: Pays damages to an insured that is injured in a car crash when the person(s) responsible for the wreck accident has insufficient liability insurance to fully compensate the insured for the injury.
· Car Rental Expense: Pays eligible rental car expenses if your car is not drivable because of a loss which would be payable under Collision Coverage or Comprehensive Coverage.
· Emergency Road Service: Pays for items such as towing expenses, the cost to deliver gasoline, and specified labor charges to unlock your car if the key is locked inside the car.
When shopping for insurance, it’s important to look at more than the total cost. Become familiar with the amount and type of coverage that is being offered. Also, note what isn’t being covered, who is covered while driving your vehicle and the quality of customer service in the event of an accident. And always remember to make sure the company you’re insured by is financially strong.
The bottom line is that you should understand your policy and buy the amount of insurance you think you need.

**How much liability you need will depend on what your financial statement looks like. If you have assets of over $300,000 (the value of your home, savings accounts, 401k, CD's ect.) and your liability limits are $25,000/$50,000 you may not have enough protection. Call us at 859-734-5338 to go over things with you.