Growth and destruction

March is just a day away! We know cold weather will soon give way to warmer, I-only-need-a-light-jacket weather. Though March usually brings us at least one last snowfall, it comes with the knowledge that it will be short-lived; we can endure! We feel as though there is an insurance policy for rejuvenation. Moods are transcending from the gloom of February to the anticipation of nature's rebirth. Sunshine! Warmer weather! Flowers popping up through the soil! Leaves starting to bud! Yes!

Unfortunately, March also marks the beginning of tornado season. Such a contrast between the beauty of the awakening of spring and the total destruction of the forces of a storm. Though a tornado has occurred in every one of the 12 months, The Indiana Department of Homeland Security states that March through June is considered tornado season due to their frequency during these months.

Here are some tornado facts:

• Tornadoes are violent rotating cones of air that can spin as fast as 300 mph, be more than a mile wide, and cover up to around 50 miles during their short path of destruction.
• Weak tornadoes last between 1 and 10 minutes, strong tornadoes can last more than 20 minutes, and violent tornados may exceed an hour in duration!
• Indiana ranks 3rd in the country, averaging 23 tornadoes per year.
• 75-85% come from the south/southwest, while less than 5% come from the east.
• Most occur in April, but the most violent are in June.

And a reminder of these two special terms:
WATCH means that a tornado is possible. A WARNING tells you that a tornado has been spotted or is indicated on radar and you should take cover.

Compile your inventory now. We know people who have been devastated by a tornado - 2 who didn't have an inventory and 1 who did. I'm sure you can guess who had a much easier time filing their insurance claim. And the cost of just 3 clothing items covered their investment in their inventory service!

The 51st Annual Indiana Flower & Patio Show

In just 15 days, the gloomy, cold of winter will be transformed into the awakening of spring! Well, at least indoors. March seems to always bring us one last blast of winter, but you can escape the cold and revel in the beauty of everything spring by visiting the 51st Annual Indiana Flower & Patio Show at the Indiana State Fairgrounds.

More than 30 gardens will be on display and hosted by many of Indiana’s premiere landscapers. Do you have questions? They have answers and suggestions for all of the items on your outdoor living wish lists. In addition to the gardens areas, you'll also be able to dream, plan, browse and shop to your heart's content with the other exhibitors who will be hosting a booth. All there for one reason - to serve you.


For 50 years, the Indiana Flower & Patio Show has been one of the nation’s most renowned outdoor living shows, with more than 100,000 guests attending each year. Visitors come for the gardens, but stay to learn about, compare, and purchase premium outdoor living products and services.

When, where, features, schedules, event and ticket purchases.


Watch for an opportunity to win tickets - a $24 value. I'll also be featuring some of the exhibitors over the next couple weeks, so continue to follow my blog as we anxiously look forward to spring.

Contest for Indy Flower and Patio Show tickets

I'm blogging for the Indiana Flower and Patio Show this year. I'll be discussing tips for a good experience, what to expect to find there, "meet the exhibitor" and reflections of my personal experience when I attend. My first post offered friendly advice to the exhibitors from someone who has been through the grueling days of a trade show (me). Shortly after, I provided suggestions to the attendees. I trust these tips will help make it a more enjoyable time for all.

Now to the contest ... are you one of the many Indiana residents planning a trip to the State Fair Grounds between March 14th and 22nd to see all the beautiful flowers, gardens, patios and room additions to start your spring planning? Would you like to win a couple tickets?

I'll post a contest next week, so follow this blog to learn how you can win. I'll also be writing about some Indiana vendors who are exhibiting - this will give you a preview of what you'll be able to see at the 51st Annual Indiana Flower & Patio Finer Outdoor Living Show.

Not the finish line he hoped for

Eugene Nolan's #20 car was stolen last week. After competing for over 30 years, he may have crossed a different kind of finish line. As reported in the Indianapolis Star, the truck and trailer were also stolen.

The trailer also contained a spare engine, spare parts and tools. Nolen stated that he was not certain if he could continue to race due to the theft.

Think about all the small and medium size business owners who depend on their tools and equipment to do business on a daily basis - electrical contractors, plumbers, remodelers, HVAC contractors, landscapers, lawn maintenance services (the list could go on, but you get the point). How horrible would it be to find their trailer full of the tools of their trade gone - stolen?

And what if they have no inventory of these items? How difficult would it be for them to make the list of each tool, manufacturer, cost and when purchased? How much would be forgotten? How much would not be replaced? How long could they be 'out of business' while trying to get all this settled? Enough with the questions...what is your answer?



Seems to me an ounce of prevention...

Sell by educating

Most people will state they don't like to be sold to. So how do business owners and sales people sell their product or service - especially when they don't know they need you? JoAnne Barton asked that question on Twitter (@JoAnneBarton) and my answer was that we educate people about the need for a business and/or home inventory. That led to a nice, hour-long chat a few days later.

A home inventory service is a new concept - why would people buy something they don't know they need?!? So we started educating, instead of trying to sell. JoAnne was interested in hearing what we do because she faces the same issue with her virtual assistant business. There are a lot of people who still don't see the value in hiring a VA.

I covered what we do, hopefully helping her find new ways to provide the education-based selling. We explain why people need an inventory even though they have insurance (you still need to remember what you owned and sometimes prove it, plus compile a written list of each item). We discuss how much stress and emotion would be alleviated for an executor if you have an inventory before you die. Information is offered to show how the financial loss after a theft, fire or natural disaster could adversely affect your retirement plans. Stories about losses during a move or placing items in storage inform people of the importance of having an inventory of their belongings. Business owners need to know the value of the assets when buying or selling a business.

Our education happens through speaking opportunities with civic organizations, clubs and chambers of commerce. But, we don't do all the educating. Trusted professionals in the insurance, financial and legal industries provide the education in our newsletters and blog posts.

It's much easier when people buy, rather than trying to sell to them. But first, they need to know why they need you. Education is the key to growing an inventory services business, and quite possibly your product or service as well.

A plea for help - the good, the bad and the ugly

THE GOOD. Our website is working! Article marketing is working! My blog is working! People are finding our home inventory service among the masses!

THE BAD. I received an email from Matt in California seeking help (he found us by Googling - see 1st paragraph). I find it sad that he had to contact someone as far away as Indiana for assistance. His email started, "My mother's house recently got broken into and had a bunch of personal items get stolen. Luckily, no damage was done to the house but lots of items are missing and this is our first time dealing with such a situation. I was hoping to get some advice as far as how to best write my missing items and whom to deal with. ..."

THE UGLY. His email continued, "I am with (I won't name the well-known insurance company) and so far it seems that everyone is sort of brushing me off and not really wanting to deal with the situation. I have been told twice that I should just "write a list and description and fax it to the central office". I feel like such an open ended description is hiding some sort of actual proper procedure to go about getting all of the money that is due. Can you help clarify how best to handle this? - Thanks, Matt from California."

The reason I find this ugly is it would have been so easy for the insurance agent to give Matt a little guidance. His question about the "proper procedure" could have been answered in just a few minutes. But he had to reach out to a total stranger to get the advice he needed to move forward. All he needed was a few minutes of the insurance agent's time, a few instructions for guidance and a few words of comfort. Is that too much to ask? It took me less than 5 minutes to email him how we log the items when we compile a personal property inventory.

Too bad he's not from Indiana - I have a long list of insurance agents I could recommend to him, all of which would have given him the customer service he so desperately needed!

It doesn't always have to happen to you

So often when we talk about a home inventory, we hear the denial ... "It (whatever the 'it' is) won't happen to me." There are quite a few people with stories about a fire started in one home (it didn't happen to you), but was so hot, so out of control, that it affected the house(s) next door.

As I write this, there is a fire raging in Noblesville. And by now you've probably figured it out - it has damaged the houses next door.

Consider - no, I'm going to be a little stronger here, do - an inventory of the contents of your home or business. And if you don't want to do it yourself, give us or another inventory service a call. For the cost of just one nice item in your house or business, you can have someone document your belongings, create an insurance company-approved report, and even save a backup copy. Many will even update your records on an annual basis.

What is the value of everything you own? Especially if you lose it all?

What is your next move?

I read a great post by Bill Taylor of Taylored Systems. They supply custom communication solutions. When visiting a partner company, he faced an opportunity to rethink his disaster preparedness strategies. Here is Bill's story...

A disaster rips through your town, power is out, businesses are closed, families are shaken, homes are destroyed, and a sense of worry is all around. This happens all the time all over the United States. Recently the floods in Iowa, tornados in Indiana, hurricanes on the coasts, and fires in California have made people think; if that is happening there it could easily happen here. Worrying about your own family’s safety is one thing, but if you are a business owner or manager you have the families of your employees on your mind as well.

When Bill Taylor took a trip to Cedar Rapids, Iowa last summer to visit a partner company, he saw that worry first hand when the company he was visiting had to evacuate their location due to rising waters. He began thinking in his mind. It was the same thought process many business owners face…what would I do if that happened where I operate my business?????????When Bill asked himself if his current disaster plan was going to ensure the 40 people he employs would be able to continue to work and provide for their families even in the event of a disaster, the answer was not as clear as he would have liked.

At that time Taylored Systems was doing back ups on discs and tapes; and then physically moving these items to off site locations. So he began to think through scenarios to determine if his plans were where they needed to be.

Read the rest of Bill's post regarding the need for disaster preparedness...

Expect to get frustrated

I'm just full of advice! My post, Put on a happy face, offered some simple advice to exhibitors at the Indiana Flower and Patio Show. A successful show is a two-way street, so I wanted to also provide some timely advice to the shoppers.

Arrive with the expectation that it'll be crowded, you'll get bumped into, stepped on and treated grumpily (is that word?) by other attendees. For some reason, year after year, people go, knowing what the crowd will be like, then act surprised when they once again get frustrated by the mass of people 'in their way'.

Treat the vendors with respect. They are there to promote their business. If you are "just looking", be sure not to monopolize their time. Someone else might be a serious shopper, so if another attendee comes up to the booth, allow the exhibitor access to this person.

If the booth is not attended, but a "be back at X time" sign is there, understand that sometimes only one person is there for the entire day. They need a break, and will be back as promised.

Looking for an addition on your home? A major landscaping project? An enclosure for your patio? Bring plans or photos with you. However, sometimes the people hosting the booths are not ones who can give you all of the answers. Big projects often need a few days to pull a quote together. Leave your name and phone number; they will contact you, sometimes even before the show is over. Also ask for the person who will be calling you in case you need to get in touch with them immediately.

Arriving prepared for the above issues will make your time at the Flower and Patio Show much more enjoyable for you, for the exhibitors, and for the other attendees.

Enjoy the show as we welcome spring to Indiana!

Minor mishaps can be a major catastrophe

An award winning marketing professional, Lorraine Ball and her team at Roundpeg help small business owners become big business owners. A business owner herself, Lorraine provides expertise in writing business plans and related business services. She knows the importance of protecting your assets and being able to recover from a theft, fire or natural disaster. As our guest blogger today, she shares her tips to be sure you can remain in business no matter what interruption you suffer.

Accidents happen! But even minor mishaps can be major catastrophes for small business owners. Every year, thousands of companies are unprepared for the interruption caused by a minor fire, flood, and burglary or computer meltdown.

According to a NFIB National Small Business Poll, man-made disasters affect 10% of small businesses, and natural disasters have impacted more than 30% of all small businesses in the USA.

For many small business owners, the computer is the heart and soul of the business. Unfortunately computers crash, virus' attack, natural disasters occur and every user makes mistakes from time to time. The consequences can be disastrous. Rebuilding financial information, contact lists, E-mail records or project files can be time-consuming, expensive and sometimes impossible.

Important information should be copied to some type of external media such as a zip disks, CDs or DVDs, tape back-up or external hard drive, then stored off-site. Many business owners diligently copy all key files, and store the CDs or external hard drive, right next to their computer. A flood or fire will damage both.

An on-line backup provides a simpler, more secure, and less time consuming disaster recovery solution. For a nominal fee, on-line back-up solutions allow you to store information on a secure, encrypted server. The program runs overnight, in the background, as long as you leave your computer on. The cost will vary depending on the amount of data to be stored.

Operation Continuity - More than Just Data
Having access to your information is a key starting point, but surviving a crisis requires more than just data recovery. Your disaster recovery plan should also include:

• Where you will operate if your office is damaged or destroyed.
• How you will finance equipment replacement. Do you have adequate insurance to replace office furniture, equipment, inventory and other assets?
• How you will cover business expenses. Continuity insurance provides additional insurance to cover expenses such as moving, or damages caused by missed deadlines.
• Documentation of everything you own. Even if you have adequate coverage, most policies require a detailed list of what was lost, damaged or stolen.
• Who will take care of your customers if you can't. In the event you can not complete a project or meet a deadline because of the business interruption, do you have a relationship with someone else can serve your customers on a short term basis?

According to the Financial Planning Association, of the businesses which suffer a disaster, 40% fail to reopen. An additional 25% of those which reopen never recover from the losses and setbacks and close within a year.

Disaster may never strike, and you may never need to execute your plan. But if something does happen, a well thought out plan will help you through the transition, and increase the odds that a temporary business interruption does not become a permanent one.

Put on a happy face

I have been an exhibitor and an attendee at various "shows" - vendor, trade, craft, home, etc. Now I have the opportunity to represent both sides as a blogger for the Indiana Flower and Patio Finer Outdoor Living Show that will be held March 14-22 at the Indiana State Fair Grounds. I think from now on I'll call it the Indiana Flower and Patio Show.

We'll see many fresh ideas, fresh designs and fresh flowers. But about 6 days into these big shows, it isn't easy to find fresh faces! I am amazed at how many exhibitors - or "booth people" - lose their freshness.

Last year, I walked up to one booth, ready to be a customer, and was totally ignored by the 2 men representing this company that was my #1 choice. They were having a friendly conversation about their dinner the night before. After a few moments (I don't wait long, because there are plenty of vendors to serve me), I went on to choice #2. A woman was sitting on a stool, staring into space, obviously totally bored with her lot in life that day. She pretended she didn't see me. I believe she was pretending, because these booths aren't huge, and it's hard NOT to see someone standing in front of you. So, off to the booth who was my 3rd choice as a vendor. A very friendly, welcoming "Hello!" greeted me. Now, THIS is the vendor who wanted my business. Cha-ching! In hindsight, I wish I had called or written to the owner of that company, to let him know exactly why I became their customer.

On the flip side, please don't make me feel guilty about saying "No". Please, please, please let me leave without feeling that I'm being rude. I can't even count how many times I had to walk away while someone was still talking to me, trying to convince me that I needed this newest gadget, household item or service. Please understand that sometimes we are there just to look, get ideas, see what's new and decide who to call when we are ready to buy. The tactic of "I'm-going-to-talk-without-taking-a-breath-so-they-won't-leave-until-they-buy won't work with me. And it won't bring me back if I do choose to make a purchase. This, too, along with the boredom, seems to become more the norm as days go by. Maybe because they haven't met the sales goals the company established? Maybe because they haven't met their own goals? Whatever the reason, this technique only sends people on their way, hands empty and wallets full.

I know your back aches and your dogs are screaming at you for standing for 12 hours a day. But that's the pain that comes with the opportunities. Prepare for it. Suffer through it. But suffer with a smile on your face and a fresh, welcoming greeting when we approach your booth.

Treat each person as though they just might be your next customer. Or treat them so they become your competitor's next customer. Your choice; it all depends on you.

I can hear Tony Bennett singing "Put on a Happy Face" already ... see you there!

A theft is not a laughing matter ... or is it?

We take our commercial and home inventory service very seriously. But that doesn't mean we don't have a sense of humor. And sometimes people just make us laugh!

You need a written report of your belongings to remember and prove ownership for many reasons - fire, natural disaster, prenuptials, divorce settlements, estate planning and settlement, moving, storage and theft. It should include the manufacturer plus the model and serial numbers of your electronics, appliances and, of course, video game units like Playstation and Wii.

When you have a theft, this information helps you file your insurance claim and police report quickly and thoroughly, which increases your odds of getting your stolen items back. However, we DO NOT recommend that you document or report some items. Like ... maybe ... drugs?

Dumb Criminals reports that, according to the San Diego Union-Tribune, someone called the police to report a theft - of a Playstation and pot! Yes, they reported stolen pot!

Now THAT is a very detailed home inventory!

An insurance agent's view: fixing Social Security

In our business of providing home inventory services, property and casualty insurance is the coverage we normally discuss. But estate planning and estate settlement are other times when an inventory is important. So when Kevin Hill of Brown & Brown wrote a blog about pre-mature estate distribution, it caught my eye.

Good information, good thoughts, and I look forward to reading his other ideas tomorrow.

People ask why I spend time on Twitter

My first response when people ask me why I spend time on Twitter is to say I'm not "spending time" as that term usually implies. To me, spending time means wasting time. I'm promoting my home inventory business by. I'm connecting. I'm marketing. I'm meeting people who I can help and who can help me.

For instance, I met J.Sewell Perkins (@TheSCICoach) on Twitter. She wrote her 1st-person (very hilarious) story about her house fire for our blog. She has a wonderful following, and she brought a high number of unique visitors to my site that day.

DeAnna Troupe (@deannatroupe), a virtual assistant, has a blogtalkradio show. I was her guest one evening; we talked about social networking and how I use the various sites to promote our inventory and turnkey businesses. Freelance writer Julie Roads (@writingroads) was offering prizes for her contest winners. I was fortunate to be chosen as one of the prize providers.

And most recently, Lori Feldman (@lorifeldman) contacted me. Though known as the Database Diva on Twitter, she is also the social media consultant for the 51st annual Indiana Flower and Patio Show. I am one of the Indianapolis area bloggers who will be promoting the Flower and Patio Show through Twitter, Facebook and other sites.

So, why do I spend time on Twitter? I have really cool people offer to guest blog, I get to be on the radio, I receive recognition by being part of contests, and I get to be linked to the Flower and Patio show (virtually and physically) which will drive people to my blog and hopefully to the website.

I'm not 'spending time', I'm marketing, introducing my business to people who might not otherwise know me or what I do, finding new prospects and new business associates - and of course, new friends. What does it cost me? A little time, and obviously a chance to pay it forward and help others.

How have you been 'spending' your time?

Save money on your insurance policy. Tip #8 of 8- ask for discounts

Most insurance companies offer a 5% or 10% discount for a smoke detector, alarm or dead-bolt locks.

Sprinkler systems might also provide additional discounts, and possibly an alarm that rings at the police or fire department. These can be costly, so do a cost analysis. Ensure that you’ll reap enough pay-back if your sole reason for purchasing them is the insurance premium discount.

Inquire about other discounts, too. These vary from state to state and company to company. Many companies offer discounts to people 55 and over. Some provide a discount for retirees.

Often membership in special groups organizations such as alumni and business associations will entitle you to a discount.

Ask your agent about other opportunities to reduce the cost of your premiums.

Brian Tracy is a regular guy

As business owners, entrepreneurs, self-employed - whatever term you want to use - we are always open to learn about additional income streams. That is what lead us to having the honor of meeting Brian Tracy recently. Well, actually, I met him for just a few minutes, but Mike was with him for several hours during the day.

He is friendly, conversational, sincere and attentive when others speak. And he's funny! You truly like him. Immediately. He is just a regular guy!

Like I said earlier, I only met him and had maybe a 2-minute conversation. Mike introduced us when they arrived at the Ritz Charles. This is what truly impressed me...he met a lot of people that evening, but after he finished his entertaining and inspiring presentation, he didn't just go back to his seat. He shook the hands of people in the front row - and when he shook mine, he called me by name! Now that I think about it maybe he's not 'a regular guy'. Most people don't remember others' names very well.

Back to why we were at the event that evening. Mr. Tracy was in Indianapolis to help introduce iLearningGlobal, the Number 1 online learning center where you have access to top trainers and speakers in all areas of personal development and business success. We are customers and marketers for iLearningGlobal and invited friends and business associates to learn more about it. I can't think of another person I'd rather be in business with - and learn from - than Brian Tracy.

How about you?

Save money on your insurance policy. Tip #7 - it matters where you live

Thinking of buying a home? Take your insurance policy into consideration.

Often insurance is less expense if the electrical, heating and plumbing systems are less than 10 years old. Buying a house close to a fire hydrant or in a community that is served by a professional fire department rather than volunteers will also affect your premium.

Save money on your insurance policy. Tip #6 - annual review

Compare policy limits and the value of your possessions annually. This will prevent you from spending more than you need to spend. If you have riders on jewelry, fine art, collectibles, etc., and have sold or given some items away, make sure those riders are cancelled.

Save money on your insurance policy. Tip #5 - know your credit score

Credit information is acquired to help the insurance company determine your premiums. Check your credit score periodically and correct any errors. Then when shopping for insurance, if they state you received a higher rate due to your less-than-preferred credit score, you’ll know whether they received an accurate report.

Save money on your insurance policy. Tip #4 - loyalty

Loyalty is important in so many areas of life. This is also true when considering insurance. As a long-term policy holder, you might receive a reduced premium. Some companies offer 5% for retention of 3 to 5 years, and increase it to 10% if you remain for 6 yeas or more.

Sometimes people switch agents on a whim, or if they were upset about something the agent did or didn't do. Don't be hasty; talk to them before going elsewhere. It could be a good financial decision.

This makes me very sad

A tornado touched down near Muncie, Indiana, yesterday. It destroyed a barn, and though the news reporter on the radio didn't state any details, I assume many items were blown away. Do you think the farmer had an inventory of the contents in his barn? I have a feeling the answer would be "no" to that question.

So how many pieces of equipment, how many tools, how many electronics, do you think he had? No idea? I'll bet he has no idea, either. Now it will be difficult to file a complete insurance claim. That means he won't maximize his investment in his insurance premiums. Sad. Very sad.

Save money on your insurance policy. Tip #3 - purchase all policies from one insurer

Many insurance companies carry homeowners, liability and auto insurance. This will provide a multi-policy discount.

Also, if you’re a business owner, check to see if they carry commercial insurance as well. This could net you an additional discount.

The LOVE ebook

I met Julie Roads, a freelance writer, on Twitter a few months ago. She is fun, entertaining and giving. And now she has found a way to spread the love, in honor of Valentine's Day by compiling an ebook of poetry and photographs.

Julie states that the goal of The LOVE ebook is to "spread happiness & positivity and to make a difference for people struggling with the recession." The cover (pictured here) was designed by my friend Kyle Lacy, the very creative owner of Brandswag.

But Julie didn't just stop at creating this great book (I have read it and it's fantastic!), she found a way to help others as well. She's asking us to spread the love by donating to Career Gear, a non-profit organization that helps men find jobs and keep them through skills training, interview clothing and relationship building.

I encourage you to Download The LOVE ebook...then head over to Career Gear to make a donation - every little bit helps! Don't delay - the LOVE ebook will only be available through February 14th.

Save money on your insurance policy. Tip #2 - raise your deductible

The amount you pay toward your loss prior to any money your insurance company pays is your deductible. The higher the deductible, the lower your rates will be because you are taking more of the risk up front. Most people have $500 deductibles. Can you risk more? Would a $1000 - or more - deductible be a wise choice? By doubling the deductible, it is possible to save up to 25%!

Ask your agent to quote both a $500 deductible and a $1000 deductible premium and determine which is the best for you.

Save money on your insurance policy. Tip #1 - get quotes

It’s wise to make sure you’re getting the best price on your homeowners insurance. And it’s equally wise to compare your rates AND your agent’s customer service to make sure you’re receiving the best value for your dollar.

I'll be providing a series of cost-savings tips - all provided from insurance agents.

The first tip is to shop for quotes periodically. Markets change, and one company that offered great rates a couple years ago might now have some of the highest rates. Also get a quote on line. This will give you a starting point to know what each of the quoted companies will charge. Make sure you receive identical quotes (liability, personal property coverage, deductibles, etc.) so you can properly compare the policies.

Price isn’t the only thing you’re purchasing, however. Customer service is very important, especially when you're filing an insurance claim. A few dollars saved isn't worth losing an agent who will work for you and be there when you need them. Ask friends and family for referrals before you start shopping.

Inventory included 51 head of cattle

Often times when people hear about our inventory service, they remark about what a unique or new idea. An inventory service provider might be a new concept to many, but the need for an inventory has been understood for centuries.

A recent article, titled Reading a will and inventory records in the New Bern Sun Journal, provided a look at life - and death - in the mid 1700s. The article gives an account of the Brice family, who were early settlers of New Bern, NC. It was customary 'back in the day' to have a reading of wills and inventory records upon someone's death. These two documents give a great deal of information about a person, "including the wealth of the tester as well as who received the estate."

This particular reading: the "inventory of goods and chattels of the estate of William Brice, Jr. was made on April 17, 1753 as follows ... 51 head of cattle; 18 sheep; 20 hogs; five horses; three feather beds; three guns; two desks; four tables; three chests; eight chairs; one persil of old pewter; one looking glass; one persil of old books; eight iron pots; one bell; one mettle skillet; three brass candle stick holders; one pair of iron dogs; one pair of tongs; one hand mill; two chests; two tarkills ready set; five spinning wheels; one hanger; one cross cut saw; and one grindstone."

Times have changed...but you can be certain that the need for an inventory of your belongings has remained just as important.

Retention = $

We all know that it costs more to gain a customer than it does to retain one. This is very evident today as customers shop quotes hoping to find lower premiums. Though I advocate comparison shopping your insurance policies periodically, I also strongly encourage people to consider the service they receive from their current agent. A few dollars saved doesn't mean it's a wise choice to go elsewhere. (Next week we will be posting tips on how to save money on your insurance premium.)

As stated in an article by National Underwriter Property & Casualty News, the loss of an insurance customer can be costly, especially in the current economy.

Richard Kerr, chief executive officer of Dallas-based MarketScout explains that "Insurers and brokers are faced with diminished premium bases before they even consider the terms of renewal or rates. If a firm’s exposure base is down 20 percent and it renews 90 percent of its customers it only captures a true premium renewal rate of 72 percent. The resulting lower retention puts incredible pressure on new business initiatives in order to maintain premium volume."

This means insurance agents will be bidding on new business. This also means that there is a greater opportunity to lose business. Customer service is one area that will help dictate their retention rate. The wise insurance agent will be - and has been - offering exceptional customer service!

Is it time to shop for a new premium and/or agent? Or are you being served well by your current agent, which has earned him/her your continued business? Share your experience here.

It is not about fear; it's about taking control

Michele Urban, known as “One L”, is the owner of Ncompass Group, LLC. A woman-owned business, their focus is on helping companies hire employees painlessly, without the arduous process of running ads and poring through resumes. Ncompass Group streamlines the hiring process, making search efforts more efficient and working quickly to pre-screen, reference, and background check all candidates. They match and place candidates for fit as well as skill set in order to find the ideal placement for your business, and ensure guaranteed satisfaction.

Michele@Ncompass-group.com . www.Ncompass-group.com . 317-405-9680

I am such a passionate advocate of knowing what you own that I've had an inventory of my house TWICE!

WHY? Because life has a way of changing unexpectedly. I bought my home 3 years ago and decided that it was important to know what I owned and if I was properly insured. The Hartman's came to my home and did a wonderful job of counting, recording and photographing the contents of my home.

Two years later, my son and my mother came to live with me, and with them came a whole new household of belongings. My very first call was to the Hartman’s. In my mind, it doesn't make sense not to have an inventory. The trauma of losing your home and its contents can be emotionally and financially devastating.

Insurance alone is not enough. Your insurance agent can only help you sufficiently if you can provide a list of your belongings and their value. The time to think about that kind of information is NOT when you are pumping out water from your flooded basement or sifting through the rubble left from a tornado or fire.

This is not about fear or unnecessary worry; for the same reasons that we lock our homes when we leave, it is about taking control of your life and being responsible. In times of strife, wouldn't you want to recover your losses as quickly as possible?

I can't think of a better investment than a full inventory of your home or office. Hartman Inventory has earned my trust, loyalty and gratitude by providing peace of mind. They have my highest recommendation and I urge all property owners - commercial and residential - to have them take care of you.

Insurance coverage: cash value

Yesterday's topic was replacement value insurance coverage. Replacement value coverage will provide replacement cost for damaged or stolen items after a thorough list is provided to the insurance company.

There is a huge difference in insurance settlements between replacement value and CASH VALUE, also known as fair market value. The actual cash value takes depreciation into consideration, paying you the amount your contents are worth the day of the loss. Most often the insurance company will use a formula to determine your settlement, based on the replacement cost less depreciation. Sometimes these numbers are also based on a combination of the adjuster’s opinion after seeing the item (or a photograph) and/or assumed wear and tear.

To explain this further, let’s consider the family room sofa, which has a 10-year life. As in yesterday's example, you purchased it 5 years ago for $1000. A tornado destroyed your home and all the contents in it. Since the sofa is 5 years old, it has a depreciated value of $500 (50% of the expected life of this piece of furniture = 50% of the purchase price). This is the amount you’ll receive for your sofa when you submit your insurance claim. When you purchase a new one ($1200 in our example), you'll have to come up with the $700 if you want to purchase a similar sofa. You can see that a replacement value policy provides much better coverage than a cash value policy. Though replacement value policies cost more than cash value, it is well worth the difference. Consider the amount of money you'd need to add to your cash value policy when you have a claim.

Policies are different from company to company. Check with your insurance agent to make sure you know what type of coverage you have. Only you can make the decision that is right for you.

Thunder god Thor deals with a burglar

My friend Erik Deckers is one of the funniest people I know. I always enjoy his Laughing Stock Blog posts, and today he offered great content for my blog. He tells of Torvald Alexander of Edinburgh, Scotland who arrived home from a costume party. When he entered his house, dressed as Thor, he discovered a burglar...


I'll let Erik tell the story, but when you're finished think about this...if you don't have a Thor or an inventory, you'll wish you had when it's your turn to deal with a theft.


Thunder God Thor Stops Home Burglary in Edinburgh, Scotland

Insurance coverage: replacement value

Ask 10 people which coverage they have - replacement or cash value - and 5 will probably say they don’t know. If you are one of the latter, read your policy or call your insurance agent to determine whether you have cash value or replacement cost coverage. Payment from the insurance company will vary widely between the two.

No matter what type of insurance you have, if you can provide a list and photographs (personal property inventory) of your belongings, you’ll receive a greater settlement than if you have no documentation to support your claim. In fact, the first thing you’ll need to do is create a list for the insurance adjuster, preferably room-by-room, of everything that was damaged, destroyed or stolen, plus when it was purchased and what it cost.

This information will be used to determine the amount of payment you’ll receive from your insurance provider. And that settlement amount will depend on the type of coverage you have.

REPLACEMENT COST
If you have replacement cost coverage, then you should have a favorable settlement when you file a claim. The insurance company will provide payment to replace each item for the full cost of purchasing a new, identical or similar item. (They do reserve the right to repair it to like-new condition.) This is normally completed in a 2-step process once you provide them with a detailed list itemizing your losses. The first step is receiving the cost of the items, less depreciation. Then, after purchasing a like item, and you submit the receipt, the insurance company will pay you the difference.

For example, let's say you had a fire and a sofa was damaged beyond repair. This sofa cost $1000 when it was purchased 5 years ago. A sofa has a 10-year life, so it has depreciated 50%. Therefore, your initial payment will be for $500 ($1000 new, less 50% depreciation). You purchase a new sofa similar to the damaged one, but it now costs $1200. You'll receive an additional $700, reimbursing you for the full REPLACEMENT value ($1200 less the $500 already paid to you = $700).

One exception to this statement is if you reached the limit of your policy. For example, your policy has a limit on many categories of items. Most have a jewelry limit of between $1000 and $3000. If you have a theft of $5000 worth of jewelry, your payment would max out at $3000 unless you have a rider on your policy to cover the additional amount.

Another exception would be if it costs less than the original purchase price to repair or replace the item. This is typical with electronics. A CD player that was purchased when they first hit the shelves cost a great deal more than what you would pay for one now. Your payment would be for the amount that one costs today, not what you paid for it. This is because you received REPLACEMENT value.

Policies differ according to what you purchase and what your insurance company offers. Please consult your insurance agent with any questions related directly to your situation.

Check our blog tomorrow, as we discuss CASH value insurance coverage.

Property/Casualty insurance fraud tops $30 billion a year

The Insurance Information Institute estimates that fraud accounts for 10 percent of the property/casualty insurance industry’s incurred losses and loss adjustment expenses, or about $30 billion a year. The III states on their website that common frauds include "padding," or inflating actual claims, misrepresenting facts on an insurance application and submitting claims for damage that never occurred.

So the question "Why do I need an inventory?" is answered by this $30 billion issue. As fraud continues to grow, my guess is that insurance companies and adjusters will become more demanding for proof of ownership and/or loss before settling an insurance claim.

Distraction when he needed focus

Throughout his career, Steve Ferrucci has successfully served in both operational and legal roles. He recognizes that, as a business owner, you want to protect your business and yourself while preserving your bottom line and limiting the distractions legal problems present. Steve understands that a business owner’s time should be spent growing his or her business, and not fighting legal problems. Consider Steve as your outsourced “in house” counsel. He takes the time to know you, your business environments, your unique goals and concerns, and he stands by you as a trusted counsel in the face of legal threats.

The Law Office of Stephen E. Ferrucci, LLC . steve@ferruccilaw.net . 317-590-6634

I wanted to share an experience I had at the end of 2008. I represent small business owners in a variety of capacities, including the purchase and sale of businesses. The week before Christmas a client came to me explaining that she had been approached by one of her competitors asking whether she was willing to sell her home based marketing business. My client was very excited as she had been thinking of selling her business and winding down. The offer was fair and we soon went to work completing the due diligence process. We needed to work fast as the purchaser absolutely wanted to close by December 31.

As you know, the due diligence process can be quite tedious. Not only did we need to supply very detailed information on existing contracts, intellectual property, financials, products and services, but we also were faced with providing detailed information related to all office furniture, computers, software, supplies and inventory. I recommended my client contact Hartman Inventory, but she insisted on completing the inventory herself. Compiling this information took a great deal of time and energy. It distracted my client when I needed her to focus on the business terms of the deal. She even worked on Christmas.

In the end we were able to close the deal on the eve of the New Year. Had my client contacted you, I am confident that the deal would have been much smoother. I urge business owners to consider retaining Hartman Inventory...you never know when or how quickly business may change.

Risk assessment process takes on growing importance in a challenging economic environment

Kevin Thompson, MBA, JD, is President of Insurance & Risk Management Services. IRMS provides risk management advice for property and casualty clients, serving virtually all organizations needing P&C insurance, including private industry, municipalities and not-for-profits. Kevin's experience includes: Director of Corporate Risk Management for Eli Lilly & Company, VP of Risk Management for Mayflower Group, CFO and Treasurer for Monroe Guaranty Insurance Co., and Financial and Budget Analyst for Chrysler Corporation. His diverse background provides the foundation for a unique perspective concerning complex property/casualty insurance matters. This experience translates into a comprehensive and thorough review of insurance issues resulting in significant benefits to the client. He is also Of Counsel to Plews Shadley Racher & Braun LLP. PSR&B is the leader in the fields of insurance coverage and environmental law throughout the Midwest.

kthompson@psrb.com . Insurance & Risk Management Services . 317-637-0700

Any successful business (particularly small to middle-market companies that do not have a dedicated internal risk-management professional) must take a more active role in managing their risks to continue to obtain viable insurance coverage at an affordable price.

More important, the attributes of a good risk-management program simply make sense in efficiently managing your business, not to mention the direct benefits to your employees’ safety and well-being.

The Risk Assessment Process
The starting point of a successful risk management program begins with a risk assessment. At a minimum, the assessment consists of reviewing in-force insurance policies, historical loss experience, safety and loss prevention programs, and liabilities inherent in the operation of your business.

A principal product of the assessment is a written report, including findings and recommendations, which will lead to dialogue between your management team and your commercial insurance agent. Among other items, a comprehensive risk assessment should include the following areas of review:

• Ensure proper documentation to avoid unwelcome surprise or exposure. Audit policy information, endorsements, certificates and named/additional insured records.
• Do not inherit others’ losses. Conduct loss-run review and verification of historical loss experience.
• Ensure appropriate premium credits received. Take actions to mitigate/prevent losses, and communicate details to your insurance carrier.
• Do not pay for unnecessary coverage. Analyze potential gaps/overlap and resulting impact on premiums.
• Pending claims unpaid? Review outstanding demands, update to extent necessary, and pursue valid claims against current and previous insurance carriers.
• Verify that coverage aligns with assumed liabilities. Review contractual liabilities, indemnification and assumption of risk.
• Confirm that premiums are driven by accurate property and asset values. Conduct comprehensive review of values, aligning coverage limits with the property exposures.
• Clerical errors can inflate cost. Complete review of Worker’s Compensation employee classifications, experience modification and related premium calculation.
• Analyze insurance program design. Develop optimal insurance structure and limits; self-insure to appropriate levels.
• Review industry and company-specific coverage needs. Survey current developments in the insurance market and identify alternative coverages available.

Most CFOs, financial professionals or others responsible for property/casualty insurance administration devote only part of their time to risk management. The risk assessment will provide tools for the financial professional to manage risk more proactively and to develop a fundamental understanding of your company’s risk management program, and it will even the playing field in negotiating pricing and terms for the insured’s range of insurance products and services.

The risk assessment will also ensure the coverage aligns properly with underlying exposures, contributing to the overall cost-effectiveness of your property and casualty insurance program.

Risk Assessment Follow Through
Detailed communications to the insured’s broker regarding risk-mitigation efforts can significantly reduce or otherwise control premium increases at renewal. Just doing the right thing is not enough, since communications via the broker to the commercial markets is the key to telling your story.

Even the best risk-management practices are only as good as the communication to and understanding of your property/casualty carrier.

The risk-assessment process will help build a sound partnership between the property/casualty insurance carrier, your insurance agent and the insured. Over time, the financial professional or other individual with direct responsibility for the risk-management function will develop expertise to better manage risk.

Wine, cheese & conversation

We are very excited - and honored - to be featured on the cover of the Hendricks County Business Leader. Sponsored by the State Bank of Lizton, the cover parties are an evening of business networking and casual conversation alike.

Please join us on February 10 from 5:30 - 7:30pm at Chateau Thomas Winery in Plainfield. Please RSVP by February 9 to either coverparty@businessleader.bz or Cindy@HartmanInventory.com.

Here is our story.