Oxford Bank Corporation · OTC:OXBC
Oxford Bank — Investor Presentation (September 2016)
32 slides from Oxford Bank's investor presentation, September 2016
Slide 1: Insurance for a Small Business
Insurance FOR A SMALL BUSINESS Updated: 09-2016 1
Slide 2: Welcome
Welcome 1. Agenda 2. Ground Rules 3. Introductions INSURANCE 2
Slide 3: Objectives
Objectives • Identify the types of insurance required for a small business • Identify other types of insurance a small business should consider • Explain why insurance is important for a small business INSURANCE 3
Slide 4: What Do You Know?
What Do You Know? What do you know or want to learn about insurance? INSURANCE 4
Slide 5: Insurance for a Small Business
Insurance for a Small Business • Six key areas • Insurance your business may require • Other types to consider • Reasons for insurance • Location-related considerations • Selecting a policy, agency and agent • What to do after the purchase INSURANCE 5
Slide 6: Insurance Your Business May Require
Insurance Your Business May Require • State and Local Requirements • Always check with federal, state, county and local governments • Medical insurance with specific coverage may • be required for employees • Automotive insurance coverage for vehicles used in connection with the business INSURANCE 6
Slide 7: Other Liability Insurance
Other Liability Insurance • Professional Liability Insurance • May be required for • Certain professional licenses • Certificates of business or professional business registrations • General Liability Insurance • Directors & officers Liability laws change – Stay Informed INSURANCE 7
Slide 8: Discussion Point #1: Work-Specific Insurance
Discussion Point #1: Work-Specific Insurance 1. Review examples of work-specific insurance which are required by certain licenses. Here are a few to begin: • Restaurant – food business insurance • Construction company – general • contractor’s liability • Auto repair shop – business general liability
Slide 9: Worker's Compensation Insurance
Worker’s Compensation Insurance • Protects against illnesses, injuries at work. • Pays for rehabilitation, retraining • Addresses payments to beneficiaries and medical payout limits • Required by most states, check state laws • Private or state administered INSURANCE 9
Slide 10: Unemployment Insurance
Unemployment Insurance • Benefits those who are unemployed through no fault of their own. • Willing and able to work, actively searching • Federally regulated, state administered • Check with state and Federal Dept. of Labor • Always make payments, avoid penalties • and actions (lien, misdemeanor, f
Slide 11: Other Types of Insurance to Consider
Other Types of Insurance to Consider • Property Insurance • Commercial – natural disaster and theft • Equipment – coverage in commercial policy and repair and replacement of parts • Inventory – suppliers shipments and in stock INSURANCE 11
Slide 12: Other Types of Insurance to Consider (continued)
Other Types of Insurance to Consider (continued) • Loss of income • Life • Disability • Medical INSURANCE 12
Slide 13: Discussion Point #2: Required Insurance
Discussion Point #2: Required Insurance 1. Review examples of required business insurance. • Is your business required by law to carry any of these types of insurance? • Liability • Worker’s Compensation • Unemployment • Disability 2. If not required, should it carry the insurance anyway? Why? INSUR
Slide 14: Lender or Investor-Required Insurance
Lender or Investor-Required Insurance • When financing, a lender or investor may require you show insurance protecting: • Business assets (building, property) • Cash flow – provision for interruption of business (e.g., reconstruction, repairs) • In the event of owner’s disability or death INSURANCE
Slide 15: Activity 3: "Key Person" Policy
Activity 3: “Key Person” Policy Think about and respond to these discussion points. 1. Do you have a list the names who could run your business or that you would trust to do so, if you were ill for an extended period of time? 2. List who would take over your business in the event of your death. 3. D
Slide 16: Activity 3: "Key Person" Policy (continued)
Activity 3: “Key Person” Policy (continued) Think about and respond to these discussion points. 5. What about employee ownership? 6. Would selling to the employees provide income to a spouse not involved in the business? 7. Do you have life insurance to cover all liabilities of the business? INSURAN
Slide 17: Surety Bonds
Surety Bonds • A surety bond is issued by a third party, known as a surety, as a guarantee the second party will fulfill its obligations or meet certain laws. If the second party fails to do this, the bond covers the damages. • Required for some licenses or permits (e.g., car dealer, construction co
Slide 18: Reasons for Insurance
Reasons for Insurance • Why is it important to have insurance? • Manage the risks involved in business • Protection of assets – cash or property • Protection from loss of income • Maintain continued financing • Protection from injuries and damages received or inflicted INSURANCE 18
Slide 19: Reasons for Insurance (continued)
Reasons for Insurance (continued) • Why is it important to have insurance? • Legal and regulatory requirements • Retention of employees • Business continuity – recovery from disasters, systems continuations, maintains cash flow • Protection from errors INSURANCE 19
Slide 20: Location-Related Considerations
Location-Related Considerations Business location affects type of policy • Home-based – Add-on to homeowner’s or separate Warning: Your traditional homeowner’s insurance may NOT cover damage caused by your home-based small business! • Retail – one or more locations, inventory theft, credit card thef
Slide 21: Location-Related Considerations (continued)
Location-Related Considerations (continued) Business location affects type of policy • Commercial – greater coverage than Retail, larger businesses • Vendor – kiosks at festivals, conferences, full- time or shorter periods INSURANCE 21
Slide 22: Selecting a Policy
Selecting a Policy Weigh the costs to insure the risk • Does it make sense? Could you cover it without insurance? • Consider policy costs with deductibles and coverage limits • Is the coverage sufficient? • Does the policy provide for growth? • Are there time constraints on modifying coverage? INSUR
Slide 23: Selecting a Company and an Agent
Selecting a Company and an Agent Compare quotes, coverage, deductibles, and other details • Stable and accessible? • Check consumer and business reviews, network with others Know what’s NOT covered! INSURANCE 23
Slide 24: What to Do After the Purchase
What to Do After the Purchase • Keep policies easily accessible • Keep phone numbers readily available • Maintain insurance-related procedures in business continuity plan • Review policies periodically • Meet with agent from time-to-time INSURANCE 24
Slide 25: What to Do After the Purchase (continued)
What to Do After the Purchase (continued) • Financing no longer needed? Make beneficiary changes • Handle credit responsibly – premiums are affected by credit worthiness • Get credit or refund for cancellations • File complaints with state insurance department or commissioner if needed INSURANCE 25
Slide 26: Assuming Risk is Part of Doing Business
Assuming Risk is Part of Doing Business • Going outside is a risk, but so is staying in. • Going out may require boots, coat, or an umbrella for protection, but staying in can result in missed opportunities. • Business insurance eases the burden of risks, so owners can “go out” to… Focus on business
Slide 27: Key Points to Remember (1 of 3)
Key Points to Remember (1 of 3) • Check federal, state, county and local laws for insurance requirements • Paying Unemployment Insurance and Worker’s Compensation premiums on time will keep your business reputation intact • Professional licensing may require additional insurance or surety bonds • Le
Slide 28: Key Points to Remember (2 of 3)
Key Points to Remember (2 of 3) • Insurance • Minimizes the impact risks can have on your ability to continue operations • Impacts continued financing • Helps retain employees • Provides protection from liabilities • Your location, facilities, autos and type of business operations determines insuran
Slide 29: Key Points to Remember (3 of 3)
Key Points to Remember (3 of 3) • Evaluate your risks, ask questions, compare policies and agencies • Keep accurate records for claims • Keep emergency contact information in an accessible place • Update beneficiaries, obtain releases and maintain adequate coverage INSURANCE 29
Slide 30: Summary
Summary • What final questions do you have? • What have you learned? • How would you evaluate the training? INSURANCE 30
Slide 31: Conclusion
Conclusion You learned about: • Small business insurance requirements for professional licensing, unemployment and worker’s compensation • Insurance required for the protection of lenders and investors • Other types of insurance to lessen risks of disaster, liability, loss of income, injuries and de
Slide 32: Conclusion (continued)
Conclusion (continued) You learned about: • The importance of insurance for your business • Differences in insurance policies for various types of facilities and locations • Comparing policies, agents and providers • What to do before you buy, while you have the policy and after the purchase INSURAN