Insurance uses actuarial science (law of large numbers) to calculate the premium for their respective members.  Insurance is a program whereby a member of a large group pays into a pool of funds for use as reimbursement to offset a loss (claim) made by a member in the future.  The losses are accidental in nature or occur due to an act of God.  Some natural phenomenon is excluded from insurance – earthquakes, volcanic eruptions, and meteors are examples.   

This section of the website is dedicated to insurance.  Remember, most of these articles are in-depth and are designed to educate and inform the small business entrepreneur about this area of basic business.  


  • Insurance – Introduction to Business Insurance

    Insurance is a risk reduction tool used in our private and business lives.  It is founded on the basic premise that a large group of individuals will cover a catastrophic event for one of the members sometime in the future.  In general, the insurance company uses actuarial science (law of large numbers) to calculate the ...
  • Worker’s Compensation Insurance – A Basic Understanding

    Any business with employees should have worker’s compensation insurance, also referred to as workman’s compensation insurance.  Most states mandate this insurance if the employer reaches a certain number of employees (numerical and not full time equivalents).  The most common cited minimum count is three or more employees (eight states).  However, I strongly urge you to ...
  • Errors and Omissions Insurance

    Oops!  We’ve all done it at some point in our lives.  We make a mistake while serving a client.  Mine cost me a little over $2,000 in penalties to the Internal Revenue Service for failure to file an extension on a partnership tax return.  Not a good day.  My mistake wasn’t that expensive in the overall ...

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