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... Newsletters Employees Articles Blog Photos Group Connections Reviews IMMS Library Immerse yourself in our stacks. Take some time and browse through our library. We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Extra Expense 4/30/2013 10:37:10 PM by CompleteMarkets Editor This content has not been rated yet. EXTRA EXPENSE &# 160 KEEP YOUR BUSINESS DOORS OPEN Dear (Customer Name): Try to imagine posting this notice on your fire-damaged building: Sorry about the fire. It will take approximately five months for us to rebuild. Thank you for your patience, and we'll ... you then. Ridiculous, of course. If your business needs to provide continuing service while repairs are being made, you need Extra Expense insurance. (Your Brokerage Name) can provide you with this insurance, which covers the additional expenses necessary to continue the normal operation of your business following damage to your property. The extra expenses covered include things like renting temporary premises, renting equipment, contracting for telephone service, and other necessities to get you back to work. Extra Expense insurance is a sensible precaution for all businesses. I'll call you soon to tell you more about it. Sincerely. Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join? Need insurance for you, your business or your family? Get quality appointments - ...

Business Income - Extra Expense
BUSINESS INCOME - EXTRA EXPENSE Dear (Customer Name): If yo...ut down, and the second provides for expenses (such as rental of temporary pre...

...that previously had been giving an extra five points on business taken from an... $600 Less Producer Expense @ 35% - 210 Less CSR Expense - 150 Less Overh...

...;t generate the expense savings or extra cash flow that an external fold-in bu...est not to plan on a higher level of expense savings. MINORITY OWNERSHIP DISC...

... experienced and qualified insurance agency appraisers adjust the income and expenses to exclude items that aren't absolutely necessary for operating the agency and producing its policy sales. For instance, unless a buyer will also purchase the building, the appraiser might exclude rental income. On the expense side, if three cars are expensed on the corporate books, but only one is needed to produce income, the expenses for the extra two vehicles are excluded. Such adjustments, together with others, usually show what the real cash flow would be for a new owner if they step in and run a lean and mean' agency. In other words, the value of an agency is what the present owner or a new owner perceives as its worth to them in ongoing buying power — what they know they can take home ... . Having dealt with hundreds of agency sales and acquisitions, it's become very clear that many sellers and buyers expect to price an agency using a multiple of commissions. Although this method has been commonplace for decades, using a multiple of commissions to purchase or sell an agency can lead to gross overpayment. Why? It fails to consider the profitability of the agency. Unless every agency has the same expense structure — and we know that expenses vary widely from agency to agency — how can a multiple of commissions be accurate? This is a simplistic approach that can be very costly for an agency purchaser. To which commissions should a multiple apply? Just Property/Casualty? Would Life and Health use a different multiple? Should you apply the multiple to gross commissions or to net commissions (after ...

...etitive pricing. Agents who go the extra mile and help the insured evaluate th...d. In general, based on all of these expense factors, we find that most agenci...

... personnel costs are $500,000, and all other expenses are $400,000, you're earning a 10% profit. If you grow the agency naturally (through sales and retention rather than acquisition) by 8%, it probably won't cost you 10% more in non-compensation overhead to manage the agency. And, in most agencies, you won't even have to add employees. That extra $80,000 income in the following year is available to cover some minor increases in costs, pay staff, and contribute to profits. If you pay a raise based on the percentage of growth (8 %) , your compensation costs will increase from $500,000 to $540,000 (your personnel costs are frozen at 50% of revenue) and you have $ ... raise to growth. The more the agency (or their department) grows, the greater their raise. If the group (agency or department) grows by 8%, their salaries will grow by 8% . The basic principle is that non-compensation overhead is generally, and relatively, fixed. If your revenue is $1 million, personnel costs are $500,000, and all other expenses are $400,000, you're earning a 10% profit. If you grow the agency naturally (through sales and retention rather than acquisition) by 8%, it probably won't cost you 10% more in non-compensation overhead to manage the agency. And, in most agencies, you won't even have to add employees. That extra $80,000 income in the following year is ...

...e value of the agency by providing extra volume, commissions, and expense savings. But they can also detract f... your total operating/administrative expenses more than 20% of total revenues ...

...rounded total of $80 per hour. If extra software or hardware will be necessar...per hour and the fee with operating expense allocation should be $120 per hou...

...oduce income, the expenses for the extra two vehicles are excluded. Such adjus...