Business Development Associates
Main PageServicesThe BDA WayEventsAbout BDAResourcesTestimonialsBDA
spacer
spacer
spacer
spacer

Bookkeeping Inadequacies That Can Ruin Your Business

In this continuing blog series titled “5 Bottlenecks to Scaling Your Business and Building True Wealth” I have been discussing the 5 simple operational constraints (bottlenecks) that hold restoration businesses back from being more productive and profitable.

Now, in this post I will I will identify the Bookkeeping Inadequacies That Can Ruin Your Business”

When it comes to a restoration company’s bookkeeping practices, the business will only operate as efficiently as the processes that are in place. Proper bookkeeping is essential to the health of any company. If it’s done poorly, it can ruin a business gradually through higher costs; suppliers, subcontractors, and other vendor services that become reluctant to work with a company; and most importantly- lost profits. A reliable bookkeeping system is the basis on which all of a company’s vital financial data is built.

During peak periods caused by microbursts, surge events, and catastrophic events your jobs are coming in on a rapid basis and money should be flowing at the same pace to meet the demand. This is a time when many restorers let their bookkeeping process get behind with the intent to catch up when things slow down. This is a bad decision that will have major consequences when lean times come, and they certainly will! An effective accounting system will keep you alive and provide the necessary financial data, i.e., cost containment, profitability, and the cash flow necessary to continue to provide services to your clients and customers.

Effective bookkeeping requires your company to enter transactions on a daily basis and you must be disciplined to ensure that no items are missed or forgotten. Mistakes can cost your company money and cause issues with important financial matters, such as paying bills, receiving customer payments, and estimating and managing jobs.

Bad bookkeeping can ruin your business in a number of ways. Here are some issues relevant to inadequate bookkeeping processes:

Hiring the wrong person

  • Whether it is a family member, an inexperienced office temp or even the business owner who hires themselves to do the bookkeeping, the wrong person can create financial problems that go beyond just making uninformed decisions. In fact, trying to save money or help a loved one out can actually lead to audits or penalties. Hiring the wrong person can create issues that haunt your business for many years to come.

Lack of accountability

  • The problem with finding the right bookkeeper for a small business, even outside of cost, has to do with management of the bookkeeper, which in many situations is not done at all. As a result the bookkeeper does whatever the bookkeeper is going to do on whatever schedule the bookkeeper is going to do it. The lack of accountability and direct management in these situations leads to poorly motivated or poorly trained bookkeepers, who, to be fair, aren’t being properly guided to provide bookkeeping that helps a small business grow.

Poorly structured Chart of Accounts

  • Almost universally, troubled companies have a poorly structured chart of accounts that inhibits good financial management. The cornerstone of your restoration company’s accounting system is the Chart of Accounts no matter what service lines you offer. It serves as an information catch-all that should be designed for easy understanding and implementation by the company’s bookkeepers, estimators, project managers, supervisors, and field personnel. By segregating operating, marketing, general and administrative expenses, various performance criteria can be effectively analyzed resulting in better and more confident decision making. Without a properly structured Chart of Accounts, it is impossible to provide meaningful information for you and your management staff.

Failure to account for Work in Process (WIP)

  • Calculating the true gross profit for your company depends on your bookkeeper understanding and implementing “WIP accounting” that results in a periodic adjustment to the financial statements to accurately reflect your jobs in process.

Improperly categorizing income and expenses

  • Without knowledge of formal bookkeeping practices it will become a problem in scaling your business profitably to the next level. Accurately tracking income and expenses in the correct categories ensures proper measurement of profitability. You should use general bookkeeping guidelines for standard categorization that is relevant to the disaster restoration industry that follows generally accepted accounting practices (GAAP). Separate registers for each bank account and credit card, as well as properly classifying categories and sub-categories, make a big difference.

Making data entry errors

  • Data entry errors will happen from time to time and you cannot prevent all data entry errors so the preventative measure is to have a policy to perform various reconciliations timely to ensure that data entries are detected quickly and can be corrected. For example, you will want to perform monthly bank reconciliations, as well as accounts receivable and payable reconciliations. You can also run budget-to-actual variances to identify possible errors in classifying revenues or expenses, or run customer receipts or vendor payment reports periodically to ensure that all receipts and disbursements seem reasonable. Unusual transactions should be reviewed to ensure that no data entry mistakes were made and that the transactions are accurate.

Failure to stay current with your financial reporting

  • I recommend a weekly review of the Income Statement and Balance Sheet. Receiving your financial statements once a quarter or yearly at tax time is just not acceptable. It is so much easier to find and fix a mistake that happened in the last few days than trying to track down something strange from six months ago. Also, you can fix the mistake in the current month. That is better than having to re-open a previous month and adjust it.

Not performing basic account reconciliation

  • One of the key elements of a good bookkeeping system is to consistently reconcile the books with the bank statements, credit card statements, and any other statements each month. Many restoration businesses either fail to or improperly reconcile on a regular basis. A major benefit of reconciling the bank statement is ensuring that the cash on your company’s books equals the amount of cash shown by the bank. Reconciling your accounts every month also helps to minimize errors and identify potential issues that in many instances can be corrected in the current month.

No back-ups

  • The heavy dependence on technology brings with it the chance that something could happen to your data. Data needs to be backed-up and kept in different locations to avoid potential losses. Experts recommend that you back up your accounting data daily. This is even more important if you are operating in a paperless environment.

Mixing business and personal finances

  • One of the most common bookkeeping mistakes restoration business owners make is to mix their business and personal finances. Keep these separate and distinct to provide a more accurate track record of what was really used for business and what specifically related to personal use only.

What should you do now?

  • Your accounting team can help you and is honor-bound to help you find and fix your in-house accounting so that you oper­ate from a creditable financial position. That’s the first step and from there you can see the impact of operational, marketing, and sales behaviors.
  • Perhaps now is a good time to have a meeting with your office staff and map out all the roles and responsibilities, including the primary and secondary activities required to maximize your accounting system. Be a systems thinker.
  • Register for my webinar on July 20, 2016, “How to Develop an Effective Bookkeeping System to Generate Higher Profit”, to learn more about implementing a high-performing bookkeeping system.
  • Act now to save money and schedule a 30 minute complimentary call to discuss your business and what constraints may be holding you back. Email me to schedule a complimentary call, which is a $497 value, any time during the upcoming blog posts.

My mission is to serve business owners and corporate executives that suffer from sleepless nights, making little to no money, and having people problems. I help them increase year-over-year performance and profits, build high-performing teams, and get some time back for themselves.

Make it a prosperous month! See you on the next blog.

John Capponi, CR

Business Development Associates, Inc.

Operations and Management Consultant

john@gobda.com

Share:
  • LinkedIn
  • Twitter
  • Facebook
  • Digg
  • del.icio.us
  • Sphinn
  • Reddit
  • Tumblr
  • SphereIt
  • StumbleUpon
  • Google Bookmarks
  • Technorati
  • Blogplay
  • Mixx
  • Live
  • Yahoo! Buzz
  • Add to favorites
  • email

5 Bottlenecks to Scaling Your Business and Building True Wealth – Part 2

5 Bottlenecks to Scaling Your Business and Building True Wealth – Part 2

laptop

In Part 1 of this series, I discussed the fact that generally there are 5 simple operational constraints (bottlenecks) that hold restoration businesses back from being more productive and profitable. We discussed that constraints can be the consequence of poorly designed business systems and processes, untrained or an insufficient number of workers, adverse company policies, and even owners and managers that are not systems thinkers.

Based on my coaching and consulting with numerous restorers I have found that one of the preliminary tasks in laying a solid foundation for effective project management, customer satisfaction, and profit is the lead intake process.

There are several methods of incoming leads e.g., incoming call, fax, over the internet, through a TPA, or through a claims management system such as XactAnalysis to mention a few. Yet, in many situations inadequate attention to detail is void in many busy offices. The phone is continually ringing and there are constant interruptions not to mention urgent fires (no pun intended) to put out daily.  Everyone is running as fast as they can!

Here is a list of common details frequently not gathered during many initial conversations and interactions in the lead intake process:

  • Source eliminated
  • Rooms affected
  • Number of stories/levels
  • Access to building
  • Electricity and water available
  • Property owner available to sign work authorization
  • Accurate contact information
  • Incomplete insurance company information
  • Deductible requirements
  • Source of business
  • Who is responsible for paying for the services
  • Lack of details regarding actions required

An effective process will address the following chunks of information:

  • Job-site information
  • Property owner information
  • Payee information
  • Insurance company information
  • Source of business
  • Schedule information
  • Mobilization and deployment

Inadequate lead intake is costing many companies tens of thousands of dollars in lost profit and causing unnecessary stress, anxiety, and frustration with their workers.

What should you do now? Perhaps now is a good time to have a meeting with your office staff and map out all the roles and responsibilities, including the primary and secondary activities required to maximize your lead intake process. Be a systems thinker.

Act now to save money and schedule a 30 minute complimentary call to discuss your business and what constraints may be holding you back. Email me to schedule a complimentary call, which is a $497 dollar value, any time during the upcoming blog posts.

My mission is to serve business owners and corporate executives that suffer from sleepless nights, making little to no money, and having people problems. I help them increase year-over-year performance and profits, build high-performing teams, and get some time back for themselves.

Make it a prosperous month. See you on the next blog.

John Capponi, CR

Business Development Associates, Inc.

Operations and Management Consultant

john@gobda.com


Share:
  • LinkedIn
  • Twitter
  • Facebook
  • Digg
  • del.icio.us
  • Sphinn
  • Reddit
  • Tumblr
  • SphereIt
  • StumbleUpon
  • Google Bookmarks
  • Technorati
  • Blogplay
  • Mixx
  • Live
  • Yahoo! Buzz
  • Add to favorites
  • email

5 Bottlenecks to Scaling Your Business and Building True Wealth – Part 1

5 Bottlenecks to Scaling Your Business and Building True Wealth – Part 1

For more than 15 years Business Development Associates, Inc. has been helping restoration business owners develop robust marketing systems that grow their companies to the next level. During that journey we have discovered a few universal truths about the process. Generally, there are 5 simple operational constraints (bottlenecks) that hold businesses back from being more productive and profitable.

I believe that every restoration business owner should be acquainted with the profound yet simple principles contained in the Theory of Constraints. This business improvement methodology is based on the premise that: “Every real system, such as a business, must have within it at least one constraint [limitation or restriction]. If this were not the case then the system could produce unlimited amounts of whatever it was striving for, profit in the case of a business. . .” (Dr. Eli Goldratt, “The Goal”).

Using the Theory of Constraints as a starting point to increase performance, every business or system has something preventing it from reaching its full potential—a weakness that limits its performance and output. This weakest point or constraint determines the maximum capacity of the entire business.

Constraints are also the consequence of poorly designed business systems, untrained or an insufficient number of workers, adverse company policies, and even owners and managers that are not systems thinkers.

Some of the constraints I have identified from working with numerous restoration companies that cause them to underperform are:
1. Failure to record complete, timely, and accurate lead intake information.
2. Inadequate accounting and bookkeeping systems and processes.
3. Ineffective project management and cost controls.
4. Non-existence of organization structure, job descriptions, and standards of performance.
5. Lack of effective billing and collection processes causing cash flow issues.

My experience from 35+ years of service to restoration businesses in the capacity as an owner, consultant, coach, and advisor has shown me that building true wealth in your business is a journey and not an event. Performance improvement requires the owner’s full commitment, focus, and engagement and without it the success of the process is marginal at best.

Look at your business as a tool for wealth creation to achieve personal success and security while enjoying the fruits of your hard work. Your goal may be to pay off debt, employ family members, fund your children’s education, take vacations, or accumulate adequate funds for an enjoyable retirement. Whatever your aspirations and goals were when you started your business, reignite them and build that business that will accomplish your dreams.

Over the next 5 operations and management posts I will explore each of the 5 Bottlenecks to Scaling Your Business and Building True Wealth. Stay tuned and watch for the next post. You will be glad you did!

Additionally, I will be available to schedule a 30 minute complimentary call to discuss your business and what constraints may be holding you back. Email me to schedule a complimentary call, which is a $497 dollar value, any time during the upcoming blog posts. Act now to save money!

My mission is to serve business owners and corporate executives that suffer from sleepless nights, making little to no money, and having people problems. I help them increase year-over-year performance and profits, build high performing teams, and get some time back for themselves.

See you on the next blog. Best wishes for a prosperous month.

John Capponi, CR
Business Development Associates, Inc.
Operations and Management Consultant
john@gobda.com

Share:
  • LinkedIn
  • Twitter
  • Facebook
  • Digg
  • del.icio.us
  • Sphinn
  • Reddit
  • Tumblr
  • SphereIt
  • StumbleUpon
  • Google Bookmarks
  • Technorati
  • Blogplay
  • Mixx
  • Live
  • Yahoo! Buzz
  • Add to favorites
  • email

Monday Marketing and Sales Tip: Treating Gatekeepers Properly(They’re Human Too!)

Dealing effectively with gatekeepers can make or break your opportunity to get to the decision maker. Remember, it’s their job to minimize disruption (I.E.: sales calls) to their boss’ day! They are dealing with screening numerous calls and sales people making in person visits every day. They have the ultimate responsibility of letting through only those people that will matter to their boss! Because of this, they also tend to deal with people who will treat them badly or poorly for not allowing access to the decision maker. It’s vital to remember that gatekeepers are human too, and need to be treated as such. And, you only have a matter of moments to sink or swim in your efforts to get to that all important decision maker.

Because we hire, train and manage sales reps across the country, we see how this lack of proper communication has caused business development reps to sink quicker than the Titanic when it comes to dealing with the brick wall that is the gatekeeper. Common sense to most? Yes–but you’d be surprised how often it bears repeating!

So, next time you’re up against a gatekeeper, remember to be polite and in your few precious moments with them, try to 1) address them by their name and 2) say please! A dash of courtesy and directly addressing them can throw even the crustier gatekeepers off their game, as you’ve now shown up differently from other sales people.

By adding this “human” touch and level of respect to the conversation, you have a greater chance of getting past them and even having them become your ally.

An example of this would be saying to the gatekeeper “Thanks Sandy, could you please let me know if Mr. Smith will be available to speak for a few moments?”

Gatekeepers are people just like everyone else–showing them that you recognize this and engaging them respectfully can go a long way by using these simple yet powerful communication techniques!

Want to learn more strategies for dealing with gatekeepers and improve your sales process overall? Click here to sign up for sales and marketing tips designed for the restoration industry!

Share:
  • LinkedIn
  • Twitter
  • Facebook
  • Digg
  • del.icio.us
  • Sphinn
  • Reddit
  • Tumblr
  • SphereIt
  • StumbleUpon
  • Google Bookmarks
  • Technorati
  • Blogplay
  • Mixx
  • Live
  • Yahoo! Buzz
  • Add to favorites
  • email

5 Keys to Surviving & Thriving in Today’s Restoration Industry

The changes brought about by the fluctuating weather patterns, the economic collapse of 2007/2008 and the maturation of the restoration industry have created major challenges for restoration contractors.

The constant downward pressure on margins, increasing competition, skilled labor retention issues and a reduction in weather-related work has many restorers working harder than ever doing what they have always done to get business—except it’s no longer working.

While there are no “magic bullets” to change the current situation, a clear eyed look at the realities of the market is essential. Business owners need new ideas, information and thought processes to use as building blocks to create a new future.

There is a way that restorers can break free from these destructive circumstances and “entrepreneur” their way to a new business reality!

Check out the recent C&R article, “5 Keys to Surviving and Thriving in Today’s Maturing Restoration Industry,” authored by BDA President, Tim Miller. You’ll learn five objectives that can make a positive change in the short, medium and long term. Tim previously addressed this topic during his keynote address at the recent 2015 RIA conference. If you missed the keynote or not able to attend the RIA conference, now is your chance to still take advantage of this powerful information!

Click here to view the C&R article, “5 Keys to Surviving and Thriving in Today’s Maturing Restoration Industry“!

Share:
  • LinkedIn
  • Twitter
  • Facebook
  • Digg
  • del.icio.us
  • Sphinn
  • Reddit
  • Tumblr
  • SphereIt
  • StumbleUpon
  • Google Bookmarks
  • Technorati
  • Blogplay
  • Mixx
  • Live
  • Yahoo! Buzz
  • Add to favorites
  • email

Why Weather, Hope and Good Luck are Not Business Strategies

Come join BDA at the RIA Convention & Expo in Vegas next week, where BDA President Tim Miller will be presenting the second keynote address on Friday, May 8th, from 8:45-9:45 AM. The Keynote is entitled: ” Why Weather, Hope and Good Luck are Not Business Strategies: Five Keys to Surviving and Thriving In Today’s Ever More Challenging Restoration Industry.”

During this keynote, Tim will discuss the changes brought about by the fluctuating weather patterns, the economic collapse of 2007/2008 and the maturation of the restoration industry in relation to how they have created major challenges for restoration contractors.

The constant downward pressure on margins, increasing competition, skilled labor retention issues and a reduction in weather-related work has many restorers working harder than ever doing what they have always done to get business—except it’s no longer working.

While there are no “magic bullets” to change the current situation, a clear eyed look at the realities of the market is essential. Business owners need new ideas, information and thought processes to use as building blocks to create a new future.

Restorers that are looking to break free from these destructive circumstances and “entrepreneur” their way to a new business reality will benefit greatly from this keynote, and learn five keys that restorers must consider to make a positive change in the short, medium and long term.

Come join us for this exciting and informative keynote address, and visit the BDA team at Booth #306 during the Expo hours. See you in Vegas!

Share:
  • LinkedIn
  • Twitter
  • Facebook
  • Digg
  • del.icio.us
  • Sphinn
  • Reddit
  • Tumblr
  • SphereIt
  • StumbleUpon
  • Google Bookmarks
  • Technorati
  • Blogplay
  • Mixx
  • Live
  • Yahoo! Buzz
  • Add to favorites
  • email

With Great Power…Comes Great Responsibility

In the beginning of their business, the entrepreneurial restorer is involved in all aspects of their company, from the operational side to the marketing of the business and everything in between.

As the business grows, their ability to continue this intense level of owner involvement becomes more and more difficult. As the company grows from Point B to Point C, the owner becomes faced with the responsibility and challenges that come along with the onslaught of complexities found in every growing business: the need for, the decision to, and the implementation of new processes, employees, strategies and more to get them to the next stage of the company’s growth.

In the article, “With Great Power, Comes Great Responsibility” by Business Development Associates’s President, Tim Miller, this subject will be discussed in more detail, including what not to do as the company grows.

Click here to read the full article, which appeared in the June 2013 edition of Cleanfax Magazine.

Business Development Associates, Inc. is a full-service marketing and sales agency specializing in the restoration and cleaning industries. We are helping restorers and other businesses grow their companies using proven and proprietary programs, systems and services that are generating millions in new business. If you’re a restorer looking to grow your business, visit us here to learn more or call us at 847-386-6556.

Share:
  • LinkedIn
  • Twitter
  • Facebook
  • Digg
  • del.icio.us
  • Sphinn
  • Reddit
  • Tumblr
  • SphereIt
  • StumbleUpon
  • Google Bookmarks
  • Technorati
  • Blogplay
  • Mixx
  • Live
  • Yahoo! Buzz
  • Add to favorites
  • email

LinkedIn’s “Sponsored Updates”; Tips for Restorers on Content Marketing

alt="linkedIn content marketing for restorers"
LinkedIn recently announced the addition of “Sponsored Updates” to their product suite, allowing members the opportunity to get their content in front of other LinkedIn members that are a match for the content of the update, even if those members are not following their company profile.

In the constant battle to win the content war, LinkedIn, much like Facebook, is offering another way for members to get their content put in front of the right people, and hopefully clicked on and read (while the social media giant makes a pretty penny of course, watching companies battle for market share via their platform).

Facebook, unfortunately, learned a hard lesson about going too far with using the personal information of their members for their former “Sponsored Stories” advertising product, ending up in a lawsuit that was said to be a potential revenue loss of $103 million. Facebook would then modify and re-market the same idea of paid advertising for content, slimming their 27 ad unit options to half the amount and making other modifications.

Done correctly and consistently, like any paid social media initiatives, the LinkedIn “Sponsored Updates” could be a great boost for companies as part of a larger integrated campaign for the product or services the paid update’s content is steering the B2C or B2B audience to. And, creating content that is compelling to the audience and speaks to their needs will always draw in higher click-through and conversion metrics.

As part of “expanding their content ecosystem,” LinkedIn’s new Sponsored Updates will allow for content to appear in the homepage feeds of targeted, prospective business partners or customers. Updates can be seen on both PC and mobile applications and will be marked as “sponsored” to the viewer.

For those purchasing the product from LinkedIn, you can choose either CPC or CPM pricing and track the effectiveness of the content through analytic tools provided by LinkedIn.

Tips For the Restorer:

By now, you have probably heard about content marketing and how it can help you boost your business. Creating viable content that keeps people watching your page, sharing your posts and hopefully, recommending and using your company’s services and products, is key to content marketing success. Be sure to share more than just about your restoration company–remember, it’s not all about you !

What do people really want to read about?

About themselves of course, and the things that affect them ! There is certainly a time and place to share content about your restoration company in your content marketing strategy-but be sure to engage and share things that your reader will find interesting. Instead of talking about the fact your restoration company performs mold remediation, share information about the dangers of mold in the home, for example. You’ll see your likes, retweets, shares and more start to improve!

And when your restoration company does great things, be sure to share that too. Did your company get involved in a community event? Did individual team members do something above and beyond? Share it! This is a great way to express your reputation-online!

And of course, be sure that social media is a piece of your overall integrated marketing plan, versus your only sales and marketing method! In today’s over saturated world of communications, restorers must have an effective strategy and accompanying plan utilizing several communication outlets to break through the clutter of communication in order carry out that strategy so they can predictably grow their business not only from a mass marketing perspective, but also through their 1:1 direct selling efforts.

If you’re a restorer looking to predictably grow your business, Business Development Associates might be the solution you’re looking for. Although we’re not a perfect fit for everyone, we’re helping many restorers across the country to predictably grow their business using a proprietary and proven marketing and sales system that generates millions in new business. For more information, call 847-386-6556 or email info@theBDAway.com.

Share:
  • LinkedIn
  • Twitter
  • Facebook
  • Digg
  • del.icio.us
  • Sphinn
  • Reddit
  • Tumblr
  • SphereIt
  • StumbleUpon
  • Google Bookmarks
  • Technorati
  • Blogplay
  • Mixx
  • Live
  • Yahoo! Buzz
  • Add to favorites
  • email

Insight Into The Customer Lifetime Value of Your Digital Customers

A recent study from marketing company Custora, who analyzes customer retention and acquisition, provided insight into the lifetime value of customers, based on the digital medium from which the customer came.

The study shows shows the varying Customer Lifetime Value of digital customers, with PPC (Pay Per Click), referral and even e-mail topping the list, beating out Facebook and Twitter in regards to obtaining a higher quality customer.

alt="Customer Lifetime Value Chart"

For customers seeking a product or service via the search engines directly (IE: Google) or click on ad specifically of what they are looking for, these results are easy to account for because those channels utilize the intent graph (the consumer is looking for something specific). Social media platforms like Facebook and Twitter will have to use their graph searches to redirect the customer to the product or service they seek.

Another result that came out of this study is that rural area customers tend to be more valuable and loyal over time, as their choices of vendors are more limited due to their living area. The Wyoming customer, for example, is 28% more valuable than the average American.

Tips for the Restoration Contractor:

While this study proves to have compelling information to help you see where valuable customers through digital efforts can come from, it’s important to incorporate a variety of digital and non-digital tactics to not only prospect for new business, but also, to make sure that they will be the kind of customer you want. The study makes a strong point for digital marketers to not put all their eggs in one or two baskets, in particular, Facebook and Twitter, who have made great strides to provide advertising, targeting tools and other strides in order to build a stronger (and more profitable) user community.

While SEO and PPC can bring in several to handfuls of leads a week, are you finding that those customers are jobs you are wanting to take on? Recently, we spoke with a prospective client who was receiving numerous leads a week through their PPC efforts, but 90% were the types of jobs they did not want, and thus, their return on investment was not what they had hoped for either.

On the flip side, we also have restoration contractor clients who see decent work come through their digital marketing efforts. But, it’s part of their overall marketing mix, and contributes as another source of business. As we mentioned before at the beginning of this blog…don’t put all your eggs in one (or two) baskets!

The most effective way to ensure a steady and predictable stream of work is to make sure that you not only have the right tactics in place (SEO, PPC, Direct Marketing Tactics, etc.), but also, the right sales reps in place and a dynamic way to hire, train, coach and manage them. Check out this article on “How Managing Your Salespeople is Different From Your Techs” to give you a flavor of what we are talking about.

And most of all, you’ve got to have a strategy as the foundation of your marketing plan, that supports the tactics and the sales force.

If you’re a restoration contractor looking to predictably grow your business, you should take a few minutes to visit us at www.gobda.com. While we’re not the perfect fit for everyone, we are a sales and marketing consulting agency helping restorers all over the country through proven and proprietary programs that help them to generate millions in new business. Now doesn’t that sound like an egg you want to have in your basket?

Share:
  • LinkedIn
  • Twitter
  • Facebook
  • Digg
  • del.icio.us
  • Sphinn
  • Reddit
  • Tumblr
  • SphereIt
  • StumbleUpon
  • Google Bookmarks
  • Technorati
  • Blogplay
  • Mixx
  • Live
  • Yahoo! Buzz
  • Add to favorites
  • email

Will Proposed Insurance Bills for New York Backfire?

Insurers fear that a collection of nine different insurance bills up for consideration in the New York state senate will backfire, placing the state on the “worst insured markets” list.


Lawmakers, looking to help insured affected by Hurricane Sandy, have recently approved a post-Sandy insurance reform package that has several methods to better serve policyholders affected by Sandy and other related disasters. This includes:

-Establishing a “homeowner’s bill of rights”
-Creating standards for hurricane windstorm deductibles
-Restricting an insurer’s ability to cancel or not renew a homeowner’s policy
-Reducing time frames to settle claims

One group that has been vocal in the fight against these bills passing is the American Insurance Association (AIA). Believing the legislation is “misguided”, the AIA warns legislators and the public that this group of bills can create a scenario similar to that of legislation that passed in Florida after 1992’s Hurricane Andrew, also intended to help and further empower policyholders who suffer from catastrophic weather. Those laws backfired, creating a 40% decrease in insurers in the state of Florida and consequently, shrunk the insurance marketplace.

For New York, AIA warns that following in the same footsteps similar to Florida will create a tight marketplace where insurance will now come into a situation of high demand, low supply and increased premiums to the policyholder. Part of the increased cost to policyholders may come from the fact of putting more litigious power in the hands of consumers against insurers, which will get passed back down to the policyholder’s premiums eventually.

AIA also stated that insurers have closed 95% of all Sandy related claims with $5 billion going directly to New York with a 1% complaint rate, further defending AIA’s stance that this legislation is unnecessary.

With two weeks left in the legislative session, it remains to be seen if the Senate will bring the measures to the floor.

Share:
  • LinkedIn
  • Twitter
  • Facebook
  • Digg
  • del.icio.us
  • Sphinn
  • Reddit
  • Tumblr
  • SphereIt
  • StumbleUpon
  • Google Bookmarks
  • Technorati
  • Blogplay
  • Mixx
  • Live
  • Yahoo! Buzz
  • Add to favorites
  • email


spacer
spacer
www.gobda.com
spacer
©Copyright 2011 Business Development Associates, Inc.