In proper order.
-Spiritually fit
-Physically fit
-Family fit
-Financially fit
There can be some debate about what is ultimately most important to each person. I believe it is vital that each person take a minute to consider what order the four corners of life should be placed in.
Also please note that things like “country”, and City, or giving, etc... All are sub parts of one of these four corners and should be considered as such. The reason for creating four corners is to have the ability to visualize yourself as a complete person acting and living the life you want to live. If the sub parts become “parts” and we have 10, or 20 things on our list it is impossible to keep and hold a simple vision of ourselves. So the technique which is very powerful is to take each part, and detail all the sub parts to it, and then visualize each subpart as part of the part. Example; physically fit, includes your mind, and learning or classes, as well as eating and working out. And spiritually includes service, so service to country, and community fit nicely here.
It isn’t important to spend any time thinking about where the sub part of the goal fits. Rather almost like word association if I say community service, and you only have four choices where would that fit for you?
I have found that importance of the order “priority” of your goals changes as your life progresses. But the changes I have noticed are not what we might typically think of. In most cases the priority (what you spend your time focusing on) is based on lack of sufficiency in a particular area, rather than any conscious decision or consideration. Seldom does the true order or our priorities change on their own. Typically an unbalanced life causes the order or our priorities to change as we attempt to rebalance our lives.
So if any one item, or items is lacking in our lives then the order becomes distorted by stress and strain, and the unbalance created by the lacking area of our lives. This however is a natural state of growth, stress, strain; resistance is a needed part of growth. Don’t feel bad because you want your spirituality to be your number one priority but seem to spend all day trying to get your finances in order! All that means is you have progressed further in your spiritual growth than you have financially, so you are unbalanced, not greedy, or superficial, just unbalanced. It is really important to make this distinction, between living in a manner that violates your personal priorities for life, and living in a manner that is just trying to balance your life.
Most people have a predetermined set of priorities, or feel that their priorities must match their idealism about what and how life should be lived. If you have noticed this tends to lead to despair as we realize we are not living our lives focusing on the order of our ideal life.
But again I want to refocus on the concept that our focus will be on the areas we are lacking in more than those were we are already blessed with abundance.
I watched a strong man demonstration the other night on TV. The person held onto a chain attached to the back of a Ford Cobra as it pealed out. There was a device to monitor how much pressure in terms of pounds this strong man was holding back as the car spun its wheels and didn’t move. It was an in human 1,500 pounds of pressure. The show went on to explain how this could have happened. Based on the attached electrodes it was revealed that each area of this strong man’s body parts were firing in exact order to generate enough strength to hold on to 1,500 pounds. As it was broken down it was easy to understand, if his legs could squat 400 pounds, and his biceps could curl 150 pounds and his back could hold another 150, etc..
As we consider being able to bench pressing 300 pounds that is pretty strong. But like our key life objectives, in the case of the strong man, if the rest of his body is weak, then he couldn’t hold back the 1,500 pounds of pressure he held onto. Rather his muscles had been developed on purpose, following a plan over time to become strong in each muscle group, and well balanced so his muscles could work in order assisting each body part by combining each individual muscle group into one super human powerful force.
Let’s think about our life objectives in much this same way. This is sometimes referred to as Goal Setting. I like to talk in terms of Goal Attainment. Setting goals is fun, and we can spend a lot of fun time writing down our dreams, and fantasies for our lives. But goal attainment is a completely different concept all together. There are of course many books written on this subject, as well as many lectures and meetings, as well as seminars all focusing on detailed goal setting programs. I have read about them all, taken the classes, listened to the tapes, then Cd’s, and now the MP3’s all sharing the secretes to setting goals. But let me ask you this. Have you ever set a goal that you didn’t achieve? Yep so have I before I made the simple distinction between setting goals, and achieving them. Achieving goals is much easier than you might think.
It starts with self awareness. You must understand two things. You must understand your ideal order, and next you must become aware of your actual order. Remember the ideal order is how you want to live, while the actual order you are living is based on strengthening your weak area, or areas. Those areas are the ones that you find yourself focusing on. This doesn’t mean your ideal order is not correct, or you should feel bad about not focusing on the items you want to be the most important parts of your life. If you step back and look chances are pretty good that you are spending a lot of your focus on the areas that are not as important to you as the ones that are. But let’s take a look at our strong man again. If your first priority is your spiritual life, and as a strong man you had focused on your bench press you would find that what you focused on first became strong first. But as you become self aware, as the strong man decided to he wanted to be able to hold back a car from taking off, some 1,500 pounds of pressure he would have to hold onto to achieve his goal, he had to begin focusing on more than his bench pressing ability, and focus on developing his other muscle groups. That doesn’t mean that his primary focus or importance has changed from being able to bench press a certain amount, or yours has changed from your spirituality being the most important part of your life. If just means that you have become aware that to live the life you want to live you need to develop the other areas of your life also.
So then self awareness is the beginning of all change! With self awareness comes a very important key to goal attainment. I personally have no desire to develop myself into a man strong enough to hold back a car from taking off. But the strong man I watched on TV did, and hence now can. Our dreams and goals are not some random set of things firing off in our minds. Rather our dreams are very much specific to us. By this I mean I am pretty sure my body couldn’t be developed to the point I could hold back a car from taking off. This might be a key as to why I have no desire to develop that strength.
The reason I break down goals into just 4 categories is a belief that to achieve a goal you have to be able to see it and believe it. Defining dozens of goals again is a lot of fun, as most blue sky thinking is, but it is nearly impossible to stay focused on dozen of areas at one time, yet it is your ability to stay focused on a goal that allows it to be achieved!
What should be done? First create a list of everything you can think of you want in your life, and what you want your life to stand for. “who are you?” Then type a one paragraph statement for each category thing you wrote down you wanted to achieve. Now place all items as members of your 4 corners. Then create a vision of yourself. This may have to be done in two steps. The first vision must be for each corner of your life, taking all the items you placed in that corner and seeing them as one part of your life as we discussed before. Then the second vision is the four corners combining to create the person you want to become. There is a lot about visualizing I can share with you, but for now let me say two things.
1. Thoughts are real, real is not. Over time we naturally become what and who we think we are.
2. Once you have the vision of who you want to become you want to hold that picture of yourself up and to the right. So when you think about the person you want to become you look up and to the right.
3. Ok, I know I said two things… but this is key to goal attainment. As you notice the differences between how you act today, and what the person you want to be would have done you are not failing, rather you are succeeding. You must notice the small differences in who you are today, and how you act, and compare that to what the ideal version of yourself would have done.
Don’t get down on yourself, rather realize that big changes are created by a series of small changes. So as you notice the little things, make the little changes and soon you will achieve your goals!
Sales Professionals and Doctors Both Should Position for the Sale
So as a red head, in my mid life it is time to have the moles checked.
One came back abnormal, so it had to be cut out. A few weeks ago I
showed up for my appointment only to be told the DR. was over booked,
and I would have to wait 45 minutes to an hour just to get me in. Of course I just rescheduled for the first morning appointment which happened to be this morning.
I wanted to share something I noticed that the doctor does naturally, and we in sales should do with purpose.
I sat in a waiting room and then was brought into a room by a medical assistant. In insurance I would call the person a CSR = Customer Service Representative.
The medical assistant explained what was going to go on, (it was written down and she read from the paper) in sales this would be called sales scripting. The assistant checked my vital signs and prepared the room for the Dr's arrival. The final step before the medical assistant was done was completing a check list to make sure she hadn't missed anything. It was 8:15 when she was done getting everything in order. She told me it would be about 15-20 minutes before the Dr arrived as the Dr doesn't come in until 8:30 for the first appointment. When the Dr finally came in to do the procedure, I was ready, and waiting for the Dr’s arrival. Even anticipating it a bit, after all shortly I would be meeting the person that could help me, and clearly that person was very busy and needed lots of assistants to get things ready for the Dr’s arrival.
When the Dr had finished, the medical assistant was left to to finish bandaging me up, and give me all the info I needed, as well as set the next appointment to have the stitches taken out. I noticed I didn't take any cell phone calls while I was with the DR, or check my email, or excuse myself to do a more important task etc. No instead because of positioning, when the Dr got there the Dr had my full attention. Why? Because the Dr was positioned as important, busy, an expert in the field. (Hummm? Salesmanship positioning?) I thought about my office and how things are running here. I thought about how my staff helps my clients and gets them ready, or prepared to meet with me. They collect policy information, create the summaries, and gather loss runs, and summaries them for me as well. My staff uses check lists as well. Typically I am handed a file, with all the info I need to do my part, and when I am done I had the file back to my staff, and move onto the next appointment.
It is an interesting similarity as I don't do the prep work, and I don't do the work after the procedure either. It was just a great lesson in working at our highest capacity, and leveraging the time we spend working. Of course the key is great staff that understand what you will be doing and why, and love helping our clients. Interesting.... Before I left the office the medical assistant read to me a script about what I am suppose to do, and not do for the next few days. (Interesting we have everything in our office sales scripted as well) PS. The Dr did make small talk while cutting me up..... And hopefully will soon be another one of my clients! What is interesting about this is that I am also able to have easy conversations with my clients as well, as my staff has done all the misc stuff so my mind if free to concentrative on my clients needs, rather than the misc stuff that has to be done to allow me to service my clients. How about you? Are you making the coffee? Filling the copier with paper, and typing your own file jackets?
The medical assistant explained what was going to go on, (it was written down and she read from the paper) in sales this would be called sales scripting. The assistant checked my vital signs and prepared the room for the Dr's arrival. The final step before the medical assistant was done was completing a check list to make sure she hadn't missed anything. It was 8:15 when she was done getting everything in order. She told me it would be about 15-20 minutes before the Dr arrived as the Dr doesn't come in until 8:30 for the first appointment. When the Dr finally came in to do the procedure, I was ready, and waiting for the Dr’s arrival. Even anticipating it a bit, after all shortly I would be meeting the person that could help me, and clearly that person was very busy and needed lots of assistants to get things ready for the Dr’s arrival.
When the Dr had finished, the medical assistant was left to to finish bandaging me up, and give me all the info I needed, as well as set the next appointment to have the stitches taken out. I noticed I didn't take any cell phone calls while I was with the DR, or check my email, or excuse myself to do a more important task etc. No instead because of positioning, when the Dr got there the Dr had my full attention. Why? Because the Dr was positioned as important, busy, an expert in the field. (Hummm? Salesmanship positioning?) I thought about my office and how things are running here. I thought about how my staff helps my clients and gets them ready, or prepared to meet with me. They collect policy information, create the summaries, and gather loss runs, and summaries them for me as well. My staff uses check lists as well. Typically I am handed a file, with all the info I need to do my part, and when I am done I had the file back to my staff, and move onto the next appointment.
It is an interesting similarity as I don't do the prep work, and I don't do the work after the procedure either. It was just a great lesson in working at our highest capacity, and leveraging the time we spend working. Of course the key is great staff that understand what you will be doing and why, and love helping our clients. Interesting.... Before I left the office the medical assistant read to me a script about what I am suppose to do, and not do for the next few days. (Interesting we have everything in our office sales scripted as well) PS. The Dr did make small talk while cutting me up..... And hopefully will soon be another one of my clients! What is interesting about this is that I am also able to have easy conversations with my clients as well, as my staff has done all the misc stuff so my mind if free to concentrative on my clients needs, rather than the misc stuff that has to be done to allow me to service my clients. How about you? Are you making the coffee? Filling the copier with paper, and typing your own file jackets?
How to get leads. The easiest part of a professional sales person's job!
No matter what business you are in, or what product or service you are selling you must have people to talk to about your product or service. AKA: Leads.
I have worked with lots of sales professionals over my 30 + years, and early in on I bought into the common thinking about lead generation. But as I learned more, tested, retried, and most importantly noticed what was and wasn’t working for others, as well as myself I made several key distinctions that I want to share with you and hope it helps you with your business so your business will bless those it serves, your family and your community.
1. Most focus on lead generation is incorrect. It is like taking a telescope and focusing it on the moon when you want to see Mars. You have good equipment, and can see clearly, you just have it pointed in the wrong direction.
Lead generation starts with having a great story to tell. Not a fictional story, but more of a great documentary. Usually your story can be developed as you develop your proposal systems, and presentation books. (Both a topic of other posts I have made and will make).
If you have a good story, that describes clearly how your product or service will help someone else, and you can see it clearly using simple math, and terms then you develop your story into a mission.
It starts by caring about others. (I call this a back porch sales technique). Most can’t really pull this off as they can’t stop thinking about what they get if they make a sale. The key is to help no matter if you get paid or not. I count it as a “sale” when I leave a family or business better off for having met me.
Once you have come to this pure calm place where your sincere desire is to simply help make another person or businesses life better, easier, and more profitable then generating leads will become easy.
How do you start? Once you have your story ready to tell, you tell it. If you do this right, each person you tell your story to, will have more people for you to tell your story to. AKA referrals.
I have a lot of cool techniques and activities you can do using good lists, and sales systems to generate leads once you have your story ready. So please keep following my blogs, and podcasts I promise to share them with you. Also if anyone has a specific product or service that you would like my help with to develop leads for you, just reach out to me and I will respond directly here.
I have worked with lots of sales professionals over my 30 + years, and early in on I bought into the common thinking about lead generation. But as I learned more, tested, retried, and most importantly noticed what was and wasn’t working for others, as well as myself I made several key distinctions that I want to share with you and hope it helps you with your business so your business will bless those it serves, your family and your community.
1. Most focus on lead generation is incorrect. It is like taking a telescope and focusing it on the moon when you want to see Mars. You have good equipment, and can see clearly, you just have it pointed in the wrong direction.
Lead generation starts with having a great story to tell. Not a fictional story, but more of a great documentary. Usually your story can be developed as you develop your proposal systems, and presentation books. (Both a topic of other posts I have made and will make).
If you have a good story, that describes clearly how your product or service will help someone else, and you can see it clearly using simple math, and terms then you develop your story into a mission.
It starts by caring about others. (I call this a back porch sales technique). Most can’t really pull this off as they can’t stop thinking about what they get if they make a sale. The key is to help no matter if you get paid or not. I count it as a “sale” when I leave a family or business better off for having met me.
Once you have come to this pure calm place where your sincere desire is to simply help make another person or businesses life better, easier, and more profitable then generating leads will become easy.
How do you start? Once you have your story ready to tell, you tell it. If you do this right, each person you tell your story to, will have more people for you to tell your story to. AKA referrals.
I have a lot of cool techniques and activities you can do using good lists, and sales systems to generate leads once you have your story ready. So please keep following my blogs, and podcasts I promise to share them with you. Also if anyone has a specific product or service that you would like my help with to develop leads for you, just reach out to me and I will respond directly here.
Employment-Related Practices; are you prepared
Employment-related lawsuits are a growing concern for employers of all sizes. In 2004, the EEOC reported 79,432 charges filed for harassment, and harassment charge receipts filed and resolved were $251.7 million. According to the Watson Wyatt Company, win or lose, the average cost of legal fees and related defense costs for the average liability claim are approximately $114,000 (not including settlement amounts).
Salesmanship Simple Fixes Defining Who Is A Prospect
Salesmanship is a trade, just like any other. Work has to be planned, and plans have to be followed just like any other tradesman would have to do. Last week I was working with a sales professional that was having problems getting the attention of his prospects during presentations. The prospects cell phone rang, and he had to go. He told my friend "just give me the bottom line" which was the price, and leave the presentation. As my friend left he noted his presentation was thrown on a stack with another 3 proposals that look just about like his.
There were many things going very wrong here. Much like a carpenter that doesn't know how to use a circular saw. My friend is a salesman that doesn't know how to use the "tools of his trade" here are just two that needed training.
Homeless
Jesus was homeless
I was reading one of my favorite passages to my son Jon today. Matthew 25:31-46. The words in our family bible are written in red. In this section Jesus speaks about how he shall judge the world. He will divide the good from the bad. Casting the bad to his left, and the good to his right. He uses agricultural metaphors of separating the sheep from the goats.
Being a positive person, I would like to just share with you what he says to those on his right hand, his sheep. Matthew 25:34-40 Then shall the Kind say unto them on his right hand come, ye blessed of my Father, inherit the kingdom prepared for you from the foundation of the world, for I was a hungered and ye gave me meat; I was thirsty and ye gave me drink, I was a stranger and ye took me in, Naked, and ye clothed me, I was sick and ye visited me, I was in prison and ye came unto me. Then shall the righteous answer him, saying, Lord, when saw we thee an hungered, and fed thee? Or thirsty, and gave thee drink? When saw we thee a stranger and took thee in? or naked and clothed the? Or when saw we thee sick, or in prison, and came unto thee? And the King shall answer and say unto them Verily I say unto you, Inasmuch as ye have done it unto one of the least of these my brethren ye have done it unto me.
It goes on to talk about those on his left hand, the goats as it were.
I feel badly about the homeless in my home town Turlock. We are a town that boasts the Guinness world record for more churches per capita than any other city in the country. Yet with all the grand buildings to worship Jesus in we don’t have so much as a drafty barn to house our homeless.
I wonder in my heart what Jesus thinks about this? I have read my bible many times in my life and cant find any place in it with words in red that Jesus said build me a grand building to worship me in! I am simple minded in my faith. So I may be missing something.
A year ago I went to lots of meetings and participated in lots of discussions about the HUD sponsored shelter Turlock had, but wouldn’t open. A few things bothered me greatly. The dominate comments I had from some of our elected officials that are just flat out against any homeless shelter was that the homeless, were primarily drug addicts, thieves, mentally ill, with only a few being displaced normal people, or families. Which to me reads like Matthew 25:40 “what you have done for the least of these you have done for me”
This is the reason I started with what Jesus says in Matthew. The words are in red so we don’t need to think much about who said what, or what is meant by these words. One counsel member last year quoted his study bible stating it wasn’t the government’s responsibility to provide for the homeless per Matthew 25. I could only bow my head and let the tear drop fall. Miss quoted at the least, intentionally manipulating even the words of Jesus at worse.
I am not critical of our counsel. I am saddened by them. As my family and I worked with hud to make an offer to buy the homeless shelter and use it for its intended use, our offer was ignored. In the end the shelter was sold for less than half of what it was bought for and the money sent back to HUD.
So all this is water under the bridge. But it is 28 degrees outside @ 8 pm on Sunday night; the weather reports a chance of snow in CA central valley this week.
I don’t know what to do, but what we can as a family which isn’t near enough to help get all the cold and hungry out of the cold, and feed. I do think that if lots of us got together, and everyone helped as they could collectively we could do this.
If anyone is interested give me a call and let’s see if we can figure this out. Maybe rent some of the abandoned homes around town? I don’t know but doubt the city could stop us from letting people stay in homes we rented? Or even a larger facility, with all the businesses going out and the vacant buildings all over town? Or maybe you have an idea?
I was reading one of my favorite passages to my son Jon today. Matthew 25:31-46. The words in our family bible are written in red. In this section Jesus speaks about how he shall judge the world. He will divide the good from the bad. Casting the bad to his left, and the good to his right. He uses agricultural metaphors of separating the sheep from the goats.
Being a positive person, I would like to just share with you what he says to those on his right hand, his sheep. Matthew 25:34-40 Then shall the Kind say unto them on his right hand come, ye blessed of my Father, inherit the kingdom prepared for you from the foundation of the world, for I was a hungered and ye gave me meat; I was thirsty and ye gave me drink, I was a stranger and ye took me in, Naked, and ye clothed me, I was sick and ye visited me, I was in prison and ye came unto me. Then shall the righteous answer him, saying, Lord, when saw we thee an hungered, and fed thee? Or thirsty, and gave thee drink? When saw we thee a stranger and took thee in? or naked and clothed the? Or when saw we thee sick, or in prison, and came unto thee? And the King shall answer and say unto them Verily I say unto you, Inasmuch as ye have done it unto one of the least of these my brethren ye have done it unto me.
It goes on to talk about those on his left hand, the goats as it were.
I feel badly about the homeless in my home town Turlock. We are a town that boasts the Guinness world record for more churches per capita than any other city in the country. Yet with all the grand buildings to worship Jesus in we don’t have so much as a drafty barn to house our homeless.
I wonder in my heart what Jesus thinks about this? I have read my bible many times in my life and cant find any place in it with words in red that Jesus said build me a grand building to worship me in! I am simple minded in my faith. So I may be missing something.
A year ago I went to lots of meetings and participated in lots of discussions about the HUD sponsored shelter Turlock had, but wouldn’t open. A few things bothered me greatly. The dominate comments I had from some of our elected officials that are just flat out against any homeless shelter was that the homeless, were primarily drug addicts, thieves, mentally ill, with only a few being displaced normal people, or families. Which to me reads like Matthew 25:40 “what you have done for the least of these you have done for me”
This is the reason I started with what Jesus says in Matthew. The words are in red so we don’t need to think much about who said what, or what is meant by these words. One counsel member last year quoted his study bible stating it wasn’t the government’s responsibility to provide for the homeless per Matthew 25. I could only bow my head and let the tear drop fall. Miss quoted at the least, intentionally manipulating even the words of Jesus at worse.
I am not critical of our counsel. I am saddened by them. As my family and I worked with hud to make an offer to buy the homeless shelter and use it for its intended use, our offer was ignored. In the end the shelter was sold for less than half of what it was bought for and the money sent back to HUD.
So all this is water under the bridge. But it is 28 degrees outside @ 8 pm on Sunday night; the weather reports a chance of snow in CA central valley this week.
I don’t know what to do, but what we can as a family which isn’t near enough to help get all the cold and hungry out of the cold, and feed. I do think that if lots of us got together, and everyone helped as they could collectively we could do this.
If anyone is interested give me a call and let’s see if we can figure this out. Maybe rent some of the abandoned homes around town? I don’t know but doubt the city could stop us from letting people stay in homes we rented? Or even a larger facility, with all the businesses going out and the vacant buildings all over town? Or maybe you have an idea?
GDI Insurance. Member of United Valley.
GDI as an owner member of United Valley brings the buying and service strength of 52 agencies, 65 offices and
over 600 employees. We write in excess of $500,000,000 in annual premiums ranking us as one of the largest
agencies in the country. As a result our client’s consistently receive the best insurance terms: Coverage and Pricing.
Supported by state of the art Human Resource and Risk Management Programs no broker can or does more for
their clients than GDI Insurance Agency, an owner member of United Valley Insurance.
Partial list of insurance companies;
www.gdiinsurance.com/companies
The Million Dollar Round Table
GDI as an owner member of United Valley brings the buying and service strength of 52 agencies, 65 offices and
over 600 employees. We write in excess of $500,000,000 in annual premiums ranking us as one of the largest
agencies in the country. As a result our client’s consistently receive the best insurance terms: Coverage and Pricing.
Supported by state of the art Human Resource and Risk Management Programs no broker can or does more for
their clients than GDI Insurance Agency, an owner member of United Valley Insurance. GDI as an owner member of United Valley brings the buying and service strength of 52 agencies, 65 offices and
over 600 employees. We write in excess of $500,000,000 in annual premiums ranking us as one of the largest
agencies in the country. As a result our client’s consistently receive the best insurance terms: Coverage and Pricing.
Supported by state of the art Human Resource and Risk Management Programs no broker can or does more for
their clients than GDI Insurance Agency, an owner member of United Valley Insurance.
over 600 employees. We write in excess of $500,000,000 in annual premiums ranking us as one of the largest
agencies in the country. As a result our client’s consistently receive the best insurance terms: Coverage and Pricing.
Supported by state of the art Human Resource and Risk Management Programs no broker can or does more for
their clients than GDI Insurance Agency, an owner member of United Valley Insurance. GDI as an owner member of United Valley brings the buying and service strength of 52 agencies, 65 offices and
over 600 employees. We write in excess of $500,000,000 in annual premiums ranking us as one of the largest
agencies in the country. As a result our client’s consistently receive the best insurance terms: Coverage and Pricing.
Supported by state of the art Human Resource and Risk Management Programs no broker can or does more for
their clients than GDI Insurance Agency, an owner member of United Valley Insurance.
The Attidude of Farming, Gardening, and Business Deals
The attitude of farming, gardening, and business deals.
I am blessed to live in the middle of a 22 acre Almond Orchard. My home is at the end of a long crape myrtle lined driveway. I have a fence full of ivy around our home, and back yard. Beyond that I have a large Koi pond, and a horse corral. I spend my quite time sitting by our pond watching the fish, horse, and goat play looking beyond them into our orchard. It is a very affective spot to find clarity and God.
Running a large insurance brokerage is a real full time job so I hire a real farmer to take care of my orchard. That leaves me responsible for about 2 acres of landscaping and horse corrals. Although I have a gardener, they limit there activities to about a quarter acre of the manicured landscaping. Mow and blow usually.
For the most part the rest is pretty low maintenance. Clean out the pool and check the chemicals once a week. Spot check sprinkler systems, and keep the weeds down. Pretty much like any other homeowner. Except a few acres of distance to cover, and instead of one or two systems to check I have a dozen or so to keep track of.
Weeds have gotten my attention lately. Normally once a month I jump into my mule which has a 15 gallon spray rig mounted on it full of round up and some misc bug sprays mixed in to keep the ants and other crawlers down. This last year I haven’t had the time to keep up with the weeds. And of course when you don’t pay attention to weeds they tend to grow! Similarly when you don’t pay attention to business problems or poor attitudes they also seem to grow.
I see some great similarities between business and weeding. I started clearing out my 2 acres of weeds. Some up to two feet high! I would like to share with you a few of my thoughts about weeds.
When weeds first pops up they are very small and week. Just like when a bad attitude at work first pops up. If I tend my land, and spray the seedlings of these weeds when they are just getting started they quickly die, and wither away leaving no trace that they were ever there. I have many ways to deal with seedlings. One it chemical sprays, the other is a torch attached to a large propane tank. I don’t need to burn the seedlings completely to kill them; just the increased heat from the torch passing over them is enough to kill the weed when it is just sprouting. So a little heat works well on weeds and bad attitudes.
If I wait a bit and let the weeds grow even just a little, and then spray them when they die they leave more of a mess. I then have to clean up of dead grass, and stems that have to be dealt with after the weed gone. When we allow the bad attitudes of people to mature in our businesses even for a bit, they to leave behind bigger messes that has to be cleaned up once we get rid of them.
The biggest mistake I seem to make from time to time is to allow a weed to grow. In fact sometimes I have gone to the extent of allowing weeds to be fertilizing and watered along with my orchard. The funny thing is that no matter how well I take care of a weed it never magically morphs into a fruit bearing plant. Instead of course what happens is the weed gets bigger and stronger and then starts germinating spreading seeds of discontent throughout my orchard. This of course causes more weeds to begin to sprout. Funny how letting weeds grow in my orchard does about the same damage as letting bad attitudes grow in my agency.
On my farm, and in my business the best way to deal with weeds is to have a formal weed control system to find weeds as they sprout, and deals with them right away.
I have never seen a problem get better by ignoring it, or hoping it will get better on its own. Weeds and attitudes are the same way. If I let the weeds just do what they want, soon my entire orchard would be full of weeds and choke out even the healthiest of my trees. Stealing their nutrients, and taking their water.
Someone once told me they could work with anyone and make them successful. The only thing they couldn’t fix was a bad attitude.
I am blessed to live in the middle of a 22 acre Almond Orchard. My home is at the end of a long crape myrtle lined driveway. I have a fence full of ivy around our home, and back yard. Beyond that I have a large Koi pond, and a horse corral. I spend my quite time sitting by our pond watching the fish, horse, and goat play looking beyond them into our orchard. It is a very affective spot to find clarity and God.
Running a large insurance brokerage is a real full time job so I hire a real farmer to take care of my orchard. That leaves me responsible for about 2 acres of landscaping and horse corrals. Although I have a gardener, they limit there activities to about a quarter acre of the manicured landscaping. Mow and blow usually.
For the most part the rest is pretty low maintenance. Clean out the pool and check the chemicals once a week. Spot check sprinkler systems, and keep the weeds down. Pretty much like any other homeowner. Except a few acres of distance to cover, and instead of one or two systems to check I have a dozen or so to keep track of.
Weeds have gotten my attention lately. Normally once a month I jump into my mule which has a 15 gallon spray rig mounted on it full of round up and some misc bug sprays mixed in to keep the ants and other crawlers down. This last year I haven’t had the time to keep up with the weeds. And of course when you don’t pay attention to weeds they tend to grow! Similarly when you don’t pay attention to business problems or poor attitudes they also seem to grow.
I see some great similarities between business and weeding. I started clearing out my 2 acres of weeds. Some up to two feet high! I would like to share with you a few of my thoughts about weeds.
When weeds first pops up they are very small and week. Just like when a bad attitude at work first pops up. If I tend my land, and spray the seedlings of these weeds when they are just getting started they quickly die, and wither away leaving no trace that they were ever there. I have many ways to deal with seedlings. One it chemical sprays, the other is a torch attached to a large propane tank. I don’t need to burn the seedlings completely to kill them; just the increased heat from the torch passing over them is enough to kill the weed when it is just sprouting. So a little heat works well on weeds and bad attitudes.
If I wait a bit and let the weeds grow even just a little, and then spray them when they die they leave more of a mess. I then have to clean up of dead grass, and stems that have to be dealt with after the weed gone. When we allow the bad attitudes of people to mature in our businesses even for a bit, they to leave behind bigger messes that has to be cleaned up once we get rid of them.
The biggest mistake I seem to make from time to time is to allow a weed to grow. In fact sometimes I have gone to the extent of allowing weeds to be fertilizing and watered along with my orchard. The funny thing is that no matter how well I take care of a weed it never magically morphs into a fruit bearing plant. Instead of course what happens is the weed gets bigger and stronger and then starts germinating spreading seeds of discontent throughout my orchard. This of course causes more weeds to begin to sprout. Funny how letting weeds grow in my orchard does about the same damage as letting bad attitudes grow in my agency.
On my farm, and in my business the best way to deal with weeds is to have a formal weed control system to find weeds as they sprout, and deals with them right away.
I have never seen a problem get better by ignoring it, or hoping it will get better on its own. Weeds and attitudes are the same way. If I let the weeds just do what they want, soon my entire orchard would be full of weeds and choke out even the healthiest of my trees. Stealing their nutrients, and taking their water.
Someone once told me they could work with anyone and make them successful. The only thing they couldn’t fix was a bad attitude.
What It Means To Be A Salesman
7:02 and I just walked in the door. It has been a long time since I did a dinner table meeting at a client’s home. On the way home I thought a lot about salesmanship. I thought about all the old clichés about what it means to be a salesman.
I thought about all the books I have read over the years, the movies like Tin Men, or Match Stick Men, or even Death of A Salesmen. I tried to think about what normal people think of salesmen. I couldn’t really think of anything positive that a normal person would generally think about a salesman. Add to that I am an insurance salesman, which to most people ranks right up there with the stereo typical used car salesmen and it is really hard to think about myself or classify myself as a salesmen, yet a salesmen I am.
But then I saved myself. I thought about the meeting I just left. I thought about the process I went through on behalf of my new client, and her family. I had meet with an older client, and her children this was our second meeting where I was proposing solutions to the family’s financial issues.
I had taken the time over the years to study and master financial planning, taxes, business planning, estate planning, and yes insurance. Some would say I paid the price, or my dues, but I would say I am a life time learner, reader, and of late audio book listener.
The first meeting I learned all the details about the family’s current estate and financial plan. They said they didn’t have one when they asked for my help about a month ago. But several years ago, 20 to 30 wow, I can’t remember when exactly I had learned that everyone has a plan, they just may not be able to articulate it, or have a plan they are doing on purpose. Ie… they stumbled into their current state of being, financially or otherwise. In any event they were really concerned about having enough money to care for their mother, deal with taxes, and then pass on what is left to the kids, and grand children.
This is all pretty basic stuff, and easy to plan for? I use a question mark here although it is basic and easy to create a plan, the vast majority of families I have worked with seem to just not have a plan. Which is why I guess I get referred to so many families that need some help.
After gathering the information, I put together a plan using simple guaranteed fixed annuities. One set for the qualified money, and one set for the non qualified money, leaving some in a basic CD which will be owned by the family trust.
So this 71 year old now will be able to take $4,000 a month from qualified money for exactly 16 years based on a 5.5% return. (For those with a financial background you should be able to figure the principle from the numbers I just gave you)… Hint, hint, if you can’t then you may not be a financial planner!
Then by 87 years old the balance of the non qualified assets (also placed in an annuity) will have more than doubled increasing her total net worth by over 23% as compared to what it was today. All the money left is now non qualified which pass nicely to the heirs as compared to qualified monies. (It is always interesting to me that most people chose to save their IRA’s until they have to take the money and spend their savings down, which basically disinherits their heirs because of the income tax affects).
What was really fun was that the kids all my age or older thought that their mom needed to get returns of 12% or more to have enough to live on, and pass on the assets to the family. This was a major concern of the parent, wanting to leave an inheritance.
So I thought about what it means to be salesmen. It means a commitment to lifelong learning, listening to what our clients want to accomplish, gathering the facts about where they are, where they want to go. Then taking all the information applying all the knowledge I have, organizing it, proving it, compiling it, finally putting it into a proposal that is first correct, then easy to understand and follow, backed up by undisputable third party proof, tax, and mathematical facts that any CPA, or Estate Attorney cannot refute.
As I left tonight a family had a plan and was happy there CPA had told them to call me last month.
I thought about all the books I have read over the years, the movies like Tin Men, or Match Stick Men, or even Death of A Salesmen. I tried to think about what normal people think of salesmen. I couldn’t really think of anything positive that a normal person would generally think about a salesman. Add to that I am an insurance salesman, which to most people ranks right up there with the stereo typical used car salesmen and it is really hard to think about myself or classify myself as a salesmen, yet a salesmen I am.
But then I saved myself. I thought about the meeting I just left. I thought about the process I went through on behalf of my new client, and her family. I had meet with an older client, and her children this was our second meeting where I was proposing solutions to the family’s financial issues.
I had taken the time over the years to study and master financial planning, taxes, business planning, estate planning, and yes insurance. Some would say I paid the price, or my dues, but I would say I am a life time learner, reader, and of late audio book listener.
The first meeting I learned all the details about the family’s current estate and financial plan. They said they didn’t have one when they asked for my help about a month ago. But several years ago, 20 to 30 wow, I can’t remember when exactly I had learned that everyone has a plan, they just may not be able to articulate it, or have a plan they are doing on purpose. Ie… they stumbled into their current state of being, financially or otherwise. In any event they were really concerned about having enough money to care for their mother, deal with taxes, and then pass on what is left to the kids, and grand children.
This is all pretty basic stuff, and easy to plan for? I use a question mark here although it is basic and easy to create a plan, the vast majority of families I have worked with seem to just not have a plan. Which is why I guess I get referred to so many families that need some help.
After gathering the information, I put together a plan using simple guaranteed fixed annuities. One set for the qualified money, and one set for the non qualified money, leaving some in a basic CD which will be owned by the family trust.
So this 71 year old now will be able to take $4,000 a month from qualified money for exactly 16 years based on a 5.5% return. (For those with a financial background you should be able to figure the principle from the numbers I just gave you)… Hint, hint, if you can’t then you may not be a financial planner!
Then by 87 years old the balance of the non qualified assets (also placed in an annuity) will have more than doubled increasing her total net worth by over 23% as compared to what it was today. All the money left is now non qualified which pass nicely to the heirs as compared to qualified monies. (It is always interesting to me that most people chose to save their IRA’s until they have to take the money and spend their savings down, which basically disinherits their heirs because of the income tax affects).
What was really fun was that the kids all my age or older thought that their mom needed to get returns of 12% or more to have enough to live on, and pass on the assets to the family. This was a major concern of the parent, wanting to leave an inheritance.
So I thought about what it means to be salesmen. It means a commitment to lifelong learning, listening to what our clients want to accomplish, gathering the facts about where they are, where they want to go. Then taking all the information applying all the knowledge I have, organizing it, proving it, compiling it, finally putting it into a proposal that is first correct, then easy to understand and follow, backed up by undisputable third party proof, tax, and mathematical facts that any CPA, or Estate Attorney cannot refute.
As I left tonight a family had a plan and was happy there CPA had told them to call me last month.
Why You Must Learn All About Annuties
New market report reveals annuity critics are often biased and incorrect in their perceptions of annuities within retirement planning
First I would like to say that in over 30 years as an insurance agent and broker, not one of my clients has lost even 1 cent of their retirement money they invested in fixed annuities. Not one cent. The average return using one of my clients I did the retirement planning for 27 years ago has been just over 6%. When they come to my office they bring the original proposal I did for them all those years ago, and are elated that they have more money in their plan, than I had projected they would have.
I have wondered why people take risks with their financial plans, when without risk they can achieve their objectives! Don’t take my word for it! Here is what this one client had to say about the work I did for their family. I have lots more to share with you!
“We have been a client of Grant Davis for almost 27 years now. Years ago Grant helped us set up our retirement plan using Annuities. This week we reviewed our account values with Grant and compared them to the projected values Grant had done for us years ago when we started saving for retirement. We have more money in our account than Grant said we would have. And Never Risked A Cent! If you are like us, and want a good return without market risk I would recommend talking to Grant about your retirement plans, or anything to do with saving money securely.”
Manual & Janie Corriea, Turlock, CA
While annuities have played an integral role in retirement planning throughout most of the last century, a new report reveals that the average consumer is now ten times more likely to read information designed to discourage annuities rather than endorse them.
The market study completed by Annuities Institute included the analysis of more than 500 popular
Consumer articles on financial planning and annuities.
From the review, 93 percent of the documents researched contained inaccurate and damaging assessments of how annuities work within retirement plans.
The Annuities Institute research included compiling the most common misconceptions published on annuities, and then sharing them with professional planning advisors and retirement specialists nationally. Their comments and input were then compared against consumer satisfaction surveys sampled from a base of more than $500 billion of annuities sold to consumers between 2001 and 2005. Among the top negative press strategies and fallacies recorded:
Myth #1: Every Annuity Is a Variable Annuity
Very often, the risk properties of the variable annuity are incorrectly referenced on behalf of all types of annuities, undermining consumer knowledge and confidence in non-security-based investments such as fixed and immediate annuities. The strength and security of these annuities are not based on stock market performance however, and offer guarantees through fixed minimum interest rates and future protection against loss of principal and earnings.
Myth #2: Your Insurance Agent Isn’t Qualified to Offer Financial Planning
Some investment managers will diminish the value of annuities on the grounds that the insurance
Representative does not need a securities license to provide investment advice. A securities license is only needed, however, when selling speculative investments where the potential for loss exists. Many insurance providers focus on fixed and indexed annuities for retirement where loss to principal and earnings is not an option for their clients. They also undergo continual training and professional courses year-round to improve their knowledge.
Myth #3: Fixed Annuities Will Never Outperform Inflation
The fixed annuity offers security in knowing you are guaranteed a set interest rate over a specific period of time, and is often used to give long-term investments more growth return and tax advantages over CDs. Some investment advisors are against fixed annuities because of their perception of future inflation. They feel that some risk must be taken to grow savings to maximize personal wealth. For investors who cannot afford to lose any of their life savings, though, risk should never be a substitute for long-term planning and new income generation.
Myth #4: Annuities Are All About Penalties and Surrender Charges
Like the 401(k) and IRA, the annuity takes advantage of special legislation passed by Congress that provides incentives for individuals to save more money for their retirement. The long-term savings approach allows annuity providers to offer higher interest rates, guaranteed security, tax-deferred accumulation, and positive planning benefits for tax and distribution planning. No one would typically write negative articles about how an IRA or 401(k) incurs unnecessary penalties for accessing money before age 59 ½. Annuities are designed to provide long-term security, and the knowledge that a lifetime of savings will not be diminished due to unforeseen factors.
Myth #5: Commission-Based Planners Must Be Biased
It wasn’t all that long ago that fee-based planning was created by financial firms to ease client fears of non-objectivity. Their goal was to maximize medium-term earnings and residual income, while having more control over client investments. Ironically, many within that field do not even actively represent or sell fixed, indexed or immediate annuities for retirement purposes, even when safety and risk tolerances A frequent caveat found within tips on how to qualify your financial advisor is to automatically disregard anyone who ever recommends an annuity within an IRA. The exception to this, of course, is when safety is paramount and loss to principal is not an option, and the annuity offers a higher rate of return than other forms of investment. Many fixed and indexed annuities outperform other non-security investments while removing risk to principal and savings.
Myth #6: Only Deal with Big Names You Are Familiar With
While people typically gravitate toward big companies with names that are instantly familiar, brand visibility doesn’t automatically mean the best rates, service and performance. Restrictive affiliations and objective advice do not normally go hand-in-hand, as it can limit the guidance you receive for key financial decisions. Make sure the planner you select is not restricted in the advice and recommendations they can make to you.
Myth #7: Only Deal with Registered Investment Advisers
Some of the criticism of annuities comes from professional asset managers who earn their commission as a percentage of the total money they manage and keep at risk for growth. Many of them often forget that every investor is not after great wealth within the stock market, and too often seniors are talked into placing their money in vehicles that could instantly reduce their life savings. There is a significant difference between the professional investor who wants to aggressively grow their million-dollar portfolio, and the retiree with $150,000 that will likely need every dollar and more to get through their retirement without outliving their savings.
Myth #8: Indexed Annuities Are Often Sold Inappropriately
The opinion of many stockbrokers is that indexed annuities are often sold inappropriately to seniors, as they limit the total earnings an investor can receive during upswings in market performance. The indexed annuity was purposely created, though, as a hybrid investment that combines the growth potential of the stock market with the safety features of a fixed annuity. While potential upsides may be capped at 7 percent to 12 percent, an investor never has to worry about losing their life savings, and typically has several options by which to guarantee minimum interest rates paid regardless of performance. As far as suitability goes, according to consumer data from the National Association of Insurance Commissioners, in 2004 equity indexed annuities reached sales of $23.3 billion, with only 38 closed complaints nationally, or $614 million of sales for each complaint received.
First I would like to say that in over 30 years as an insurance agent and broker, not one of my clients has lost even 1 cent of their retirement money they invested in fixed annuities. Not one cent. The average return using one of my clients I did the retirement planning for 27 years ago has been just over 6%. When they come to my office they bring the original proposal I did for them all those years ago, and are elated that they have more money in their plan, than I had projected they would have.
I have wondered why people take risks with their financial plans, when without risk they can achieve their objectives! Don’t take my word for it! Here is what this one client had to say about the work I did for their family. I have lots more to share with you!
“We have been a client of Grant Davis for almost 27 years now. Years ago Grant helped us set up our retirement plan using Annuities. This week we reviewed our account values with Grant and compared them to the projected values Grant had done for us years ago when we started saving for retirement. We have more money in our account than Grant said we would have. And Never Risked A Cent! If you are like us, and want a good return without market risk I would recommend talking to Grant about your retirement plans, or anything to do with saving money securely.”
Manual & Janie Corriea, Turlock, CA
While annuities have played an integral role in retirement planning throughout most of the last century, a new report reveals that the average consumer is now ten times more likely to read information designed to discourage annuities rather than endorse them.
The market study completed by Annuities Institute included the analysis of more than 500 popular
Consumer articles on financial planning and annuities.
From the review, 93 percent of the documents researched contained inaccurate and damaging assessments of how annuities work within retirement plans.
The Annuities Institute research included compiling the most common misconceptions published on annuities, and then sharing them with professional planning advisors and retirement specialists nationally. Their comments and input were then compared against consumer satisfaction surveys sampled from a base of more than $500 billion of annuities sold to consumers between 2001 and 2005. Among the top negative press strategies and fallacies recorded:
Myth #1: Every Annuity Is a Variable Annuity
Very often, the risk properties of the variable annuity are incorrectly referenced on behalf of all types of annuities, undermining consumer knowledge and confidence in non-security-based investments such as fixed and immediate annuities. The strength and security of these annuities are not based on stock market performance however, and offer guarantees through fixed minimum interest rates and future protection against loss of principal and earnings.
Myth #2: Your Insurance Agent Isn’t Qualified to Offer Financial Planning
Some investment managers will diminish the value of annuities on the grounds that the insurance
Representative does not need a securities license to provide investment advice. A securities license is only needed, however, when selling speculative investments where the potential for loss exists. Many insurance providers focus on fixed and indexed annuities for retirement where loss to principal and earnings is not an option for their clients. They also undergo continual training and professional courses year-round to improve their knowledge.
Myth #3: Fixed Annuities Will Never Outperform Inflation
The fixed annuity offers security in knowing you are guaranteed a set interest rate over a specific period of time, and is often used to give long-term investments more growth return and tax advantages over CDs. Some investment advisors are against fixed annuities because of their perception of future inflation. They feel that some risk must be taken to grow savings to maximize personal wealth. For investors who cannot afford to lose any of their life savings, though, risk should never be a substitute for long-term planning and new income generation.
Myth #4: Annuities Are All About Penalties and Surrender Charges
Like the 401(k) and IRA, the annuity takes advantage of special legislation passed by Congress that provides incentives for individuals to save more money for their retirement. The long-term savings approach allows annuity providers to offer higher interest rates, guaranteed security, tax-deferred accumulation, and positive planning benefits for tax and distribution planning. No one would typically write negative articles about how an IRA or 401(k) incurs unnecessary penalties for accessing money before age 59 ½. Annuities are designed to provide long-term security, and the knowledge that a lifetime of savings will not be diminished due to unforeseen factors.
Myth #5: Commission-Based Planners Must Be Biased
It wasn’t all that long ago that fee-based planning was created by financial firms to ease client fears of non-objectivity. Their goal was to maximize medium-term earnings and residual income, while having more control over client investments. Ironically, many within that field do not even actively represent or sell fixed, indexed or immediate annuities for retirement purposes, even when safety and risk tolerances A frequent caveat found within tips on how to qualify your financial advisor is to automatically disregard anyone who ever recommends an annuity within an IRA. The exception to this, of course, is when safety is paramount and loss to principal is not an option, and the annuity offers a higher rate of return than other forms of investment. Many fixed and indexed annuities outperform other non-security investments while removing risk to principal and savings.
Myth #6: Only Deal with Big Names You Are Familiar With
While people typically gravitate toward big companies with names that are instantly familiar, brand visibility doesn’t automatically mean the best rates, service and performance. Restrictive affiliations and objective advice do not normally go hand-in-hand, as it can limit the guidance you receive for key financial decisions. Make sure the planner you select is not restricted in the advice and recommendations they can make to you.
Myth #7: Only Deal with Registered Investment Advisers
Some of the criticism of annuities comes from professional asset managers who earn their commission as a percentage of the total money they manage and keep at risk for growth. Many of them often forget that every investor is not after great wealth within the stock market, and too often seniors are talked into placing their money in vehicles that could instantly reduce their life savings. There is a significant difference between the professional investor who wants to aggressively grow their million-dollar portfolio, and the retiree with $150,000 that will likely need every dollar and more to get through their retirement without outliving their savings.
Myth #8: Indexed Annuities Are Often Sold Inappropriately
The opinion of many stockbrokers is that indexed annuities are often sold inappropriately to seniors, as they limit the total earnings an investor can receive during upswings in market performance. The indexed annuity was purposely created, though, as a hybrid investment that combines the growth potential of the stock market with the safety features of a fixed annuity. While potential upsides may be capped at 7 percent to 12 percent, an investor never has to worry about losing their life savings, and typically has several options by which to guarantee minimum interest rates paid regardless of performance. As far as suitability goes, according to consumer data from the National Association of Insurance Commissioners, in 2004 equity indexed annuities reached sales of $23.3 billion, with only 38 closed complaints nationally, or $614 million of sales for each complaint received.
Commercial Umbrella Insurance
In a culture where litigation is commonplace, business owners have so many more worries than making profits and retaining top employees. For instance, if a business’s product injures a consumer, the organization could face a devastating lawsuit, exponential damages and a ruined reputation within the marketplace.
To assist with the financial burden of a claim, many business owners are electing to purchase Commercial Umbrella Insurance on top of their standard Commercial General Liability (CGL) Insurance policies. An aggregate limit is established on most CGL policies that, once exhausted, will not cover any other excess claims.
An easy way to understand how quickly a claim can exceed the first $1,000,000 of coverage is to consider a person that is 35 years old, earning $30,000 a year. If that person is injured and cannot work as a result of your business activities or your employee’s activities the loss of income between 35 and 65 would be $900,000 alone. Not to mention pain, suffering etc... The amount grows to $3-$4,000,000 quickly. A higher wage earner grows even faster.
Although this blog is about commercial umbrella coverage it is important to point out that more family owned businesses are lost because of personal activities such as personal car accidents that because of business liability claims. Your GDI broker can help you coordinate a personal umbrella to cover your personal activities and those of you family members which you are responsible for.
Purpose of Commercial Umbrella Coverage
Umbrella coverage is designed to protect an organization against monumental liability claims that can demolish a business through a large financial judgment. Typically, an umbrella policy serves the following purposes:
1. Provides coverage for potential damages and court defense courts that exceed underlying insurance policies (typically CGL policies).
2. Provides coverage in situations that are not covered by underlying insurance policies but are not excluded from the umbrella policy. This benefit is subject to a self-insured retention (SIR), similar to a deductible, in which the policy holder is responsible for losses up to the SIR amount.
3. Applies to claims where the aggregate limit of the underlying policy has been met. The umbrella policy will cover the portion of the claim that cannot be paid with the underlying policy because there are not enough funds available in the policy to cover the entire claim. For instance, if at the time of a claim, your CGL policy has $500,000 remaining and the claim in question is $1.5 million, then the CGL policy will cover $500,000 and then the umbrella policy will cover the remaining $1 million.
Coverage Details
A typical Commercial Umbrella Insurance policy has the following features:
1. Offers coverage for the following: worldwide; personal injury; blanket contractual liability protection; care, custody and control; non-owned aircraft liability; watercraft liability; advertisers liability; liquor law liability and XCU liability.
2. Offers an extension of insurance protection for additional insured’s.
3. Policies are “following form” in which they abide by similar provisions and cover similar losses as the underlying policy. If claims are not covered by an underlying policy, the umbrella policy makes the business responsible for the loss (if the loss exceeds SIR limits). The damage must also involve personal injury, property damage or advertising injury.
4. The insurer has the right to investigate all claims not covered by any underlying insurance.
5. Policies cover all individuals or parties that gain insured status within the contract. Policies also protect an organization’s executive officers, regular employees, directors and stockholders acting on behalf of the organization. Protection for additional insured’s in typically excluded when claims involve motorized vehicles, watercrafts and aircrafts.
To assist with the financial burden of a claim, many business owners are electing to purchase Commercial Umbrella Insurance on top of their standard Commercial General Liability (CGL) Insurance policies. An aggregate limit is established on most CGL policies that, once exhausted, will not cover any other excess claims.
An easy way to understand how quickly a claim can exceed the first $1,000,000 of coverage is to consider a person that is 35 years old, earning $30,000 a year. If that person is injured and cannot work as a result of your business activities or your employee’s activities the loss of income between 35 and 65 would be $900,000 alone. Not to mention pain, suffering etc... The amount grows to $3-$4,000,000 quickly. A higher wage earner grows even faster.
Although this blog is about commercial umbrella coverage it is important to point out that more family owned businesses are lost because of personal activities such as personal car accidents that because of business liability claims. Your GDI broker can help you coordinate a personal umbrella to cover your personal activities and those of you family members which you are responsible for.
Purpose of Commercial Umbrella Coverage
Umbrella coverage is designed to protect an organization against monumental liability claims that can demolish a business through a large financial judgment. Typically, an umbrella policy serves the following purposes:
1. Provides coverage for potential damages and court defense courts that exceed underlying insurance policies (typically CGL policies).
2. Provides coverage in situations that are not covered by underlying insurance policies but are not excluded from the umbrella policy. This benefit is subject to a self-insured retention (SIR), similar to a deductible, in which the policy holder is responsible for losses up to the SIR amount.
3. Applies to claims where the aggregate limit of the underlying policy has been met. The umbrella policy will cover the portion of the claim that cannot be paid with the underlying policy because there are not enough funds available in the policy to cover the entire claim. For instance, if at the time of a claim, your CGL policy has $500,000 remaining and the claim in question is $1.5 million, then the CGL policy will cover $500,000 and then the umbrella policy will cover the remaining $1 million.
Coverage Details
A typical Commercial Umbrella Insurance policy has the following features:
1. Offers coverage for the following: worldwide; personal injury; blanket contractual liability protection; care, custody and control; non-owned aircraft liability; watercraft liability; advertisers liability; liquor law liability and XCU liability.
2. Offers an extension of insurance protection for additional insured’s.
3. Policies are “following form” in which they abide by similar provisions and cover similar losses as the underlying policy. If claims are not covered by an underlying policy, the umbrella policy makes the business responsible for the loss (if the loss exceeds SIR limits). The damage must also involve personal injury, property damage or advertising injury.
4. The insurer has the right to investigate all claims not covered by any underlying insurance.
5. Policies cover all individuals or parties that gain insured status within the contract. Policies also protect an organization’s executive officers, regular employees, directors and stockholders acting on behalf of the organization. Protection for additional insured’s in typically excluded when claims involve motorized vehicles, watercrafts and aircrafts.
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