Deciphering Car Insurance Basics

Car insurance is a critical safeguard that protects you from potential financial losses related to your vehicle. Essentially, it’s a contractual agreement where you pay the insurer a certain premium, and in return, the insurer agrees to cover certain financial losses during the policy period. Various types of coverage are available, including liability, collision, and comprehensive insurance, each offering different levels of protection.

Navigating Car Insurance Laws in San Antonio

Texas law mandates that all drivers possess car insurance. Specifically, each driver should maintain minimum coverage, often referred to as 30/60/25 coverage: $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $25,000 per accident for property damage.

Unpacking Factors That Influence Car Insurance Rates in San Antonio

A range of factors can affect your car insurance rates, including your age, driving history, and vehicle type. As a first-time buyer, you may face higher premiums due to your limited driving history. However, rest assured that safe driving over time often leads to lower rates.

Identifying the Right Car Insurance Provider in San Antonio

With various reliable car insurance providers in San Antonio, you have plenty of options. Look beyond the price, considering each company’s reputation, customer service quality, and claim filing process. Remember to compare quotes from different providers to ensure you secure the best value.

Strategies to Save on Your First Car Insurance Policy

Look for opportunities to save on your first car insurance policy. Many insurers provide discounts for good students, defensive driving course completion, or cars equipped with safety features. You could also consider a higher deductible for a lower premium, but this would mean more out-of-pocket expenses in case of an accident.

Understanding Your Chosen Policy

Car insurance policies can seem complicated, but understanding your policy’s terms and coverage is crucial. Feel free to ask your provider any questions if something isn’t clear.

Post-Purchase Considerations

Once you’ve secured your policy, keep proof of insurance in your vehicle – it’s a legal requirement in Texas. Familiarize yourself with the claim filing process to ensure a smooth experience should an accident occur.

Taking out your first car insurance policy in San Antonio can be straightforward when you’re equipped with the right knowledge. At SOGO Insurance, we aim to make the process even easier, offering comprehensive coverage tailored to your needs. Ready to hit the road with confidence? Get in touch with us at SOGO Insurance today, and let us help you protect your new ride.

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Sole proprietor insurance is a critical component of any successful business venture. As a sole proprietor, you are personally responsible for your business’s debts and liabilities, which means that your personal assets could be at risk if your business encounters financial difficulties. With insurance for sole proprietorship, you can protect both your business and personal assets from potential financial burdens, giving you the peace of mind you need to focus on growing your business.

Liability Protection

A major advantage of having sole proprietor insurance is the liability protection it provides. General liability insurance covers claims of bodily injury, property damage, and personal and advertising injury that may arise from your business operations. By investing in insurance for sole proprietorship, you can ensure that your business is protected against costly legal fees and potential damage to your reputation.

Professional liability insurance, also known as errors and omissions insurance, offers protection against claims arising from professional mistakes or negligence. This type of insurance for sole proprietorship is particularly important for businesses that provide professional services or advice, as it helps protect your business and personal assets from potential legal disputes.

Asset Protection

Commercial property insurance is another vital component of sole proprietor insurance. This type of insurance for sole proprietorship covers your business’s physical assets, such as buildings, equipment, and inventory. In the event of a disaster, such as a fire or theft, commercial property insurance can help you recover your losses and quickly resume business operations.

For those running their businesses from home, home-based business insurance is an important consideration. This type of insurance for sole proprietorship covers the additional risks associated with operating a business from your residence, ensuring that both your personal and business assets are protected.

Business Continuity

Business interruption insurance is a crucial part of sole proprietor insurance, as it provides coverage for lost income and operating expenses when your business is forced to temporarily close due to a covered event. By investing in insurance for sole proprietorship that includes business interruption coverage, you can minimize the financial impact of unforeseen events and maintain your business’s stability.

Enhancing Credibility and Trust

Having sole proprietor insurance can also help enhance your business’s credibility and trustworthiness in the eyes of clients and vendors. By demonstrating that you have taken the necessary steps to protect your business and personal assets, you show potential clients and partners that you are a responsible and professional business owner.

Securing Your Business’s Future with Sole Proprietor Insurance

Securing a comprehensive sole proprietor insurance policy from SOGO Insurance is an essential step in protecting your business and personal assets. With the right insurance for sole proprietorship policy, you can enjoy peace of mind knowing that you are prepared for the unexpected challenges that may come your way. Don’t leave your business and personal assets vulnerable, contact SOGO Insurance today to find the perfect insurance solution for your sole proprietorship.

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Read on for important tips on how to step up Diversity, Equity, and Inclusion in your workplace.

What Do Diversity, Equity, and Inclusion Look Like in The Workplace?

Having a diverse workplace doesn’t automatically mean that the workplace is equal and inclusive. Just because there are people of all backgrounds in a workplace doesn’t mean they feel welcomed or appreciated. 

A diverse and inclusive workplace makes employees feel equal no matter who they are or what they do in the organization. Everyone should feel equally involved and supported in the workplace.

If your workplace looks like this, you’re doing a fantastic job. But you can always do more to make diverse employees feel welcomed.

How Do I Know if Diversity, Equity, and Inclusion Are Missing in my Workplace? 

Lack of diversity, equity, and inclusion can be very obvious. But still, in some cases, it’s hard to find exactly what’s missing and how to read the signs.

The most significant sign to look out for is when diverse employees leave for other jobs. Diverse employees will look for another workplace where they feel valued and included.

Another sign is the leadership team lacking diversity. According to the US Census Bureau, over 75% of managers are white. The executive level of management is 85% white. If there’s no diversity in leadership, diverse employees may feel like there is no space for them at the top. As a result, employees will leave, causing a high turnover rate for diverse employees at your company.

There is also conflict in the workplace if diversity is missing. If someone doesn’t feel welcomed or appreciated, their emotions toward the workplace become negative. Having unhappy employees will also decrease their work productivity. If work productivity is dwindling in employees, there might be a problem. 

How Can You Change Your Workplace to Step up in Diversity, Equity, and Inclusion? 

You can do many things to learn how to step up diversity, equity, and inclusion (DEI) in your workplace. The first thing you can do is ask and listen to your employees about their feelings. When employees feel heard and validated, they’re more likely to be happy in the workplace.

Here’s a list of a couple of things you can do to improve diversity, equity, and inclusion in your workplace:

• Make DEI strategy a priority.
  • Making DEI a priority will make diverse employees feel heard and appreciated, reducing employee turnover and saving your company money.
• Conduct pay equity reviews and make adjustments as needed.
• Create a mentorship program.
  • A mentorship program that uplifts diverse employees will lead to meaningful change in employees as they feel a greater connection to the company. This will create a pipeline of well-trained and engaged employees wanting to advance with the company.
• Host DEI training sessions often.
  • Ensure employees gain meaningful insights from these training sessions by bringing in subject matter experts, creating a safe space, and having crucial conversations.
• Ensure that all benefits are inclusive. Programs as well.
  • Every person in the company should have equal access and opportunity to the benefits and programs offered. Benefits or programs shouldn’t be exclusive to certain groups of people. 

You can do hundreds of things to improve your DEI strategy, but you have to listen to the needs of your diverse employees first.

Need help figuring out where to start? 

Contact SOGO Insurance’s employee benefits experts to learn about our comprehensive benefits package. These packages can include group health insurance, disability insurance, and Professional Employer Organization services. As our client, we want to ensure you have access to these resources that support your staff. Don’t miss out on the opportunity to take advantage of these incredible benefits. Take the first step today and contact SOGO Insurance to learn more about what’s available to you.

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What exactly is a surety bond? 

A surety bond is a legally-binding agreement held between parties ensuring the obligations of a paid project are fulfilled. For example, suppose the hired party does not complete the outlined project entirely and correctly. In that case, the hiring company can file a claim for the bond amount, and the hired party would be responsible for the payment of the bond back to the institution that funded it. To put it very simply, a surety bond for a project is similar to a bail bond for an individual who has recently been out of jail. A surety bond keeps everything in balance and protects each party involved. 

How Surety Bonds work:

Three parties are involved in a surety bond: 1) the principal, 2) the obligee, and 3) the surety.

The principal is the business that purchases the bond to guarantee the quality and completion of the work the obligee hired them to do. The obligee is the organization that asks the principal to buy a bond. The surety is the organization that gives out the bond and financially guarantees the principal’s ability to complete their work.

How much do surety bonds cost for principals? 

It all depends on several factors. It can depend on the bond type and whether you need a commercial or contract bond. It can also depend on how long you’d need the bond, as the length of risk matters. Different industries require different licenses and other items that cost money in addition to the surety bond, so consider that as well. It can also depend on how your business credit looks currently. If you are worried about having low credit, several helpful options can still get you bonded, so don’t give up the fight for the bid just yet. 

How do I know if I will need a bond? 

When announcing the RFP (request for proposal), an obligee will usually inform potential bidders of the requirements, including the length of the bond, the type needed, and the amount of coverage required. Varying states will have different requirements, but you can count on our agents to help you work through the Texas-specific bond requirements so that you can get bonded quickly and successfully. SOGO has provided high-risk bonds for over 20 years, including those with lower credit. Contact us at info@sogoinsurance.com to receive information about surety bonds. We can answer any questions you may have, and we work quickly and efficiently so you can get started on what you do best. 

 In case you missed it: Check out “Key Facts About Key Person Life Insurance” to understand the importance of protecting your key employees.

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What is key person life insurance, and why might you consider it for your business? 

Key person life insurance is life insurance for a specific person within your company who the business relies on for success. Of course, we know small businesses rely on every employee to a degree. Still, this type of policy is for someone nearly irreplaceable for the company to continue being successful. This type of policy tends to be helpful to small businesses as these types of companies are often passed down to beneficiaries or family members of the owners. Two other significant ways this policy would help a business: helping to keep the business afloat while employees and executives pick up the work of the key person who passed. Or by helping to “wind down” operations while the company closes in the coming months after a key person’s death. 

Who pays for this life insurance policy? 

You might think that the key person would pay the premiums because this is a life insurance policy. However, since this is life insurance built specifically for a key business person, the business pays for the policy, not the individual. Therefore, you can consider it as life insurance for your business, with the payout benefitting the company and those left behind. Our agents are happy to help you decide how much coverage you need based on several factors, including salary, replacement costs, and other expenses to be considered when securing these policies. 

Is death the only way to receive a payout? 

Actually, no. Even though this is a life insurance policy, some key person insurance policies will pay out even if the key person is diagnosed with a terminal illness or suffers from a disease that makes them unable to work. For example, suppose a key person at the business was diagnosed with a terminal illness. In that case, the company could receive the payout, giving everyone time to emotionally and financially cope with the situation and decide how the business will move forward. No matter what happens, the company will also face costs like legal fees for attorneys who help decipher business documents, potential marketing expenses with press releases, and the “wind down” expenses that come with laying a business to rest along with the key person. Having some financial backup during this challenging time will remove potential added stressors when the business needs it most. 

 In case you missed it: Check out “What You Need to Know About D&O” to learn how to protect your board of directors.

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What is D&O liability insurance? 

D&O liability insurance protects directors and officers (and their spouses and personal assets) of a corporation if employees personally sue them, vendors, competitors, investors, and customers for perceived wrongdoing. The policy usually protects the company, covering legal fees, settlements, and other legal costs. Reasons for suing can include the following: 

• Breach of fiduciary duty resulting in financial losses or bankruptcies 
• Misrepresentation of company assets
• Misuse of company funds
• Failure to comply with workplace laws
• Lack of corporate governance 

Why is D&O liability insurance an excellent policy to have? 

Besides the layer of protection against litigation, having D&O liability insurance can help encourage top talent to be a part of your board of directors. Board members with good business experience qualified to serve on your board are usually seasoned executives with significant corporate and personal assets, leaving them vulnerable to these lawsuits. If you have a D&O liability insurance policy, these potential board members will feel more secure knowing their assets are protected. This is particularly helpful when your business is a non-profit, as most board members spend extra time on your board as a generous measure. Protect your board volunteers with D&O insurance. 

Does D&O liability insurance exclude any coverage? 

D&O insurance will not provide coverage against dishonesty, fraud, and criminal or malicious acts committed deliberately. It also does not cover bodily injury or property damage (usually covered under standard business insurance policies) or pending litigation at the time of policy start. Knowing what your insurance policies cover and don’t cover is essential, so be sure to research and ask our helpful agents what you need for your unique situation. 

How do I get started? 

Ask yourself if you need D&O liability insurance if your company works with vendors or government entities. Gather some background information and contact one of our helpful agents to discuss your next steps. Visit our website or give us a call today. 

 In case you missed it: Check out “Cybersecurity Protection is not Just for October” to learn how to stop hackers from stealing your confidential information year-round.

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What effects could a cyber attack have on your small business? 

In the unfortunate event that a hacker breaches your security network and accesses your clients’ data, your business can be held liable for the costs of recovering data and face potential fines by various entities in the industry. It would help if you also considered the cost of repairing or replacing equipment that was infected or attacked and any loss of income while dealing with a network attack. Imagine a small retail site offering products for sale online during the upcoming holiday sale season. A cyber attacker can take down a site in minutes, meaning the loss of hours of potential sales. That small business will suffer financial implications, but it could also suffer from bad PR. If customers lose trust in online sales, a small business could risk losing business altogether. 

How can SOGO Insurance help my business with cybersecurity? 

SOGO Insurance can start by providing a cyber risk assessment to your small business. Penetration testing is a standard and helpful tool to find out just how easy it would be for a hacker to attack your company’s site, poking holes in your security plan to offer solutions before you get hacked. We can also help you create a cybersecurity incident response plan for an unfortunate attack. There are specific ways to handle these crises, and you would want to avoid putting your small business in even more jeopardy by handling an attack the wrong way. Finally, of course, we also encourage the training of your employees on standard hacking techniques and ways to prevent them. With hackers becoming increasingly clever, we recommend training at least annually, but likely more often due to regularly changing tactics. 

Contact us today for more information on our cybersecurity insurance plans that help protect your business from cyber attackers. 

In case you missed it: Check out “Reflections During Breast Cancer Awareness Month” to reflect and ensure your employees feel safe and taken care of at work.

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In the simplest terms, the significant difference between these two types of new hires boils down to 1) company employees and 2) independent contractors, or the self-employed. Of course, both are paid by your company, but taxes and withholdings are different for these two types (hence, the additional tax forms required at the hiring point.) 

W2 Employees AKA Company Employees – When the time is right, hiring W2 employees will be a big commitment, but with big rewards. One advantage is the massive vote of confidence you show employees and community members by growing your company and investing in the people that work there. In addition, most businesses develop loyal employees and “long-timers” that appreciate the benefits of working at your company full time, including insurance and other company-assisted assets. Of course, your business must withhold taxes and pay payroll taxes for its employees, so consider this when hiring. You also have to consider that there are more legal risks with W2 workers as your company is responsible for working conditions and other legal expenses such as potential personal injuries or damage. 

1099 Employees AKA Independent Contractors or the Self-Employed – Hiring 1099 employees has several advantages. Still, perhaps the nicest one of all would be the flexibility of scope that fluctuates with your flow of needs. Think of it as a pay-as-you-go wireless phone instead of committing to an annual contract with a wireless carrier. A 1099 employee can submit a proposal, and you can decide at your own pace how much you’re willing to spend at a time on this consultant. You don’t have to pay all of the “extras” that you have to pay W2 or company employees because you don’t legally have to offer insurance or any other benefits that come with being a full-time employee. 1099 employees file their taxes without your company’s assistance, so that is a time and money saver. 

Whatever you choose, talk to your tax advisors, insurance agents, and the IRS to ensure you make the right choice. SOGO Insurance can help you with all types, from business insurance to personal insurance options for your employees. Our knowledgeable agents are ready to go over the pros and cons of each of your questions to help you decide what works best. Call us or visit us online at SOGO Insurance for a quote. 

In case you missed it: Check out “The Reality of Opening Up a Bar” to make sure your bar opening goes as smoothly as possible!

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Here are some real situations to consider when opening a bar:

Fights & Assault On Property- Alcohol can help people relax and enjoy the night, but it can also trigger emotions that don’t mix well with a low-key evening. Fights can (and will) break out at your bar, leaving your business vulnerable to being sued if someone gets hurt. Injuries do not have to be physical, either. If a patron sees a violent situation where someone is seriously injured or even killed, they can file for emotional damage. Lawsuits are never easy, but as a bar, your business will automatically be at a disadvantage in the eyes of a jury or court system for providing the situation to be injured. 

Food or Alcohol Poisoning – Even if you pride yourself on serving the freshest and most sought-after ingredients in your food and drinks, there’s always the chance that someone can get sick from too much of a good thing. Patrons could sue your business for serving any ingredients that make them sick enough to visit the hospital, seeking damages for the expensive medical care they received or time off from work if they missed any days. 

Vehicle-Related Accidents and Death – Unfortunately, alcohol-related accidents are not uncommon in the United States. According to the Texas Department of Transportation, in 2021, a whopping 1,029 people in Texas were killed and 2,522 seriously injured because someone got behind the wheel while impaired from alcohol. Your business could fall for any alcohol-related accident on the road if you overserved someone at your establishment.

Expensive Equipment Breaking or Damaged – Owning a bar means having expensive equipment like wine refrigerators, beer taps, cocktail-making tools, and more. If this costly equipment breaks or is damaged, you’ll be quickly unable to serve your big money-maker. In addition, most bar equipment is not easily purchasable from your local grocery store, making it even more precious and essential to consider. 

Before you open the doors to your bar establishment, you should consider these and many other situations that can happen with opening a bar. One important thing to do is reach out to your SOGO Insurance agent to discuss the appropriate insurances that can keep you from getting into a bind. Some examples include a winery, brewery, and restaurant insurance policy, among other business insurance coverages. We can help you evaluate your goals and secure the right insurance for your operation. So call our helpful agents today and let us help you focus on the fun aspect of being a bar owner while we help plan the rest. 

In case you missed it: Check out “Sole Proprietorship vs. LLC vs. Corporation” to decide what business structure will best suit your business needs.

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Let’s start with some definitions of the types of business structures most common in Texas: (Note: Business structure definitions and regulations can change by state, so be sure to check locally.)

Types of Businesses:

Sole Proprietorship: This is when a person operates a business with no formal organization. If Jane Doe bakes cakes, her company will act as a sole proprietorship, either as “Jane Doe” or a DBA like “Janes Cakes,” for example. This is considered the “easiest” type of business structure to have; however, there is little to no legal or financial protection if something goes wrong. 

General Partnership: This is when two or more people have a for-profit business, and they operate together. These partners may have a written partnership agreement, which is not required to be filed with the state. This can be troublesome if there is a legal issue in the future. 

Corporation: When owners of a business are called “shareholders” under a single person that manages the company, usually a Director of the business. To be an official Texas Corporation, you must file with the Secretary of State and agree to meet minimum state requirements. There is an added layer of protection with a Corporation as the state law requires shareholder agreements. The option to add an “s” at the end of “Corporation” is the difference between tax elections, so check with your business attorney and tax specialist before deciding what works best for your company. 

Limited Liability Company or LLC: An LLC has powers of both a partnership and a corporation. Owners of an LLC are called “members” and can be a person, a partnership of two or more, or a whole legal entity. An LLC provides the same legal and financial protections that corporations do but is simpler to operate since the members are not personally liable for potential damages and usually are provided with preferred tax treatment. The consensus is that this is a happy medium structure with flexibility and coverage. 

Limited Partnership: This is when a marriage of business structures combines a partnership with a general or limited partner. Of course, the limited partnership operates under the partnership agreement and certificate of formation. 

Limited Liability Partnership: When a business wants to limit the liability of all general partners, it can file as a Limited Liability Partnership with the Secretary of State. 

So, after reviewing the types of business structures, have you decided which one best applies to your business type? It’s a plethora of important information, so before you make any big decisions, always review the information with your business attorney and tax specialists. Regardless of what you choose, remember to protect your business with the right coverage. As always, your SOGO team is here to help out with any resources and advice you may need!

Still need help figuring out the location for your business? Check out our last blog “Location: The Most Underrated Part When Starting a Business” to learn more on why you need to re-think the location.

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