What is Professional Liability Insurance?

                            (Photo credit: Wikipedia)

If your an independent contractor you have probably already purchased many different kinds of insurance like health insurance, business insurance, and other insurance products. But have you given thought to the need for professional liability insurance which will protect you if a customer sues you for how you did or didn't fulfill your professional obligations. This kind of insurance is also called how you did or didn’t fulfill your professional obligations. This kind of insurance is often forgotten because many professionals think that their general liability coverage policy is enough to protect them from client lawsuits.

As with liability insurance, proliability insurance is there to protect your financial resources in the event of a customer lawsuit. Many companies that hire you sometimes require this kind of insurance as a general policy. A lot of 1099 sub-contractors are finding that the requirements to carry professional liability insurance are increasing because of the demands of clients. 

The services rendered today by independent contractors are increasing in complexity. Projects that you could be working on may interface with multi-million dollar infrastructures that could be damaged by your interaction, through no fault of your own. Having the right protection is a necessity in today's business world.  If your in the IT or tech industry you are especially vulnerable because of the complexity of the businesses your customers have. 

There can be instances where a client is just dissatisfied or claiming that you have not fulfilled your contract, even though you have. An angry client can easily bring a lawsuit on you and fighting the undeserved suit will waste your time and money. Having someone on your side is where professional liability insurance comes through.

Consumer Confidence Returning To Payment Protection Insurance

 (Image credit: Getty Images via @daylife)

Many consumers are still coping with the problems caused by the mis sold payment protection insurance policies. Naturally consumers are still distrustful of protection policies. But now negativity of the protection products is starting to wane and consumer confidence is returning.

The Financial Services Authority (FSA) has reported nearly £2 billion in redress has been paid back to PPI customers in 2011. Much of this has been because of the help to consumers from PPI claims companies.

The problems surrounding payment protection insurance are not because of the quality of the product but because of the way it was sold. PPI is a very helpful product to have because it protects you should you find yourself unable to work because of illness or accident. With its protection you will still be able to meet your credit card and loan payments.

Consumers realize that protection of this kind is needed because unforeseen circumstances due arise. Making preparations for illness or loss of job is on the minds of workers who have the responsibility of a family. The past problems of the mis-sold payment protection insurance is still a concern but help from ppi claims companies have alleviated much of the worry with their help in redress paid back to consumers.

The consumer has learned to question the products being sold at their banks and not just take them at their word. With this attitude, customers should benefit from more beneficial financial products.

Commercial Insurance An Often Neglected Necessity

King Henry VI (Photo credit: TranceMist)Starting a new business requires the decision maker of the fledgling company to decide on many matters. Many of these decisions concern important to trivial matters that can lasting effects. One of these important decisions is the choice to purchase commercial insurance.

Many states require a company to have insurance as a part of the license of just operating. There are requirements for insurance to cover an employee getting hurt on the job. Many governments want coverage on the commercial vehicles that a business operates on the roadways. When borrowing money to operate the business, lenders require an adequate commercial insurance protection before processing a commercial loan.

Commercial lenders are understandably concerned for the welfare of the company they are lending their money to. They are concerned about the firms ability to pay if some unforeseen circumstance happens or some liability problems occur.

Once the funding has been acquired the principles of the company should appreciate that things could go wrong and often do. Planning for that rainy day a good business owner takes steps to secure proper commercial insurance.

Other problems, concerning the health of the business, is coverage of possible robbery, vandalism, and liability. Having an adequate emergency fund for these types of problems makes sense. But having comprehensive commercial indemnity protection will help you cover all the problems that the business can't afford to cover.

If your company builds a product, then it is important to have liability coverage to address any claims concerning use or misuse of the product. There may be unknown defects that a good liability policy will address. This is very important because many lawsuits have put companies out of business, when just some commercial insurance could of offered protection.

Your business may someday suffer disaster, man-made or an act of God, a comprehensive commercial coverage policy is important for a quick recovery. A business wouldn't operate a vehicle without good liability protection, doesn't the same apply to your business location.

Resources You Need to Know About Before Filing Your Taxes

Tax (Photo credit: 401K)So you've spent the last month dreading the thought of doing your tax return, but the day has come and you know it's time to get it over with. You sit down and pull up your tax software, and start answering questions. Name? check Address? check....Then, you run into that question that you're unsure about. It might be the number of deductions you can take, whether you are eligible for this credit, or how many business expenses you can claim. Whatever it is, you don't want to get it wrong and have the IRS come knocking at your door. But, you have other work that needs to get done, and you just want to get this damn tax return over with!


Here are three options you should consider that I've tried and tested over the years. Each one has its merits.

1. The free solution - The IRS actually offers a free helpline that you can call to get tax filing help. Since it's a free service (besides the 15 minute wait time), it doesn't hurt to try this one out. If you're lucky, you'll get in contact with an enrolled agent who can help you with your question. However, the help service is notoriously spotty, with a recent Washington Times study showing 3 out of 10 people who call the toll-free helpline won't get through to a human being, and those that do are often redirected to the IRS website.
2. The costly solution - Hiring a last-minute CPA or tax assistant to answer your question is also a popular solution (especially for business owners). However, beware that this costs anywhere from $100-200 per hour, and is limited to availability as the tax deadline approaches. The benefit here is you will be getting someone to do your taxes for you, whose job is to keep up to date with the current tax code.
3. The happy medium - There's a clever new website called Task.fm that offers a place where tax professionals will answer your personalized tax questions quickly for a set cost. For those of you with one-off questions that need to be answered, I would highly recommend looking into this. For an affordable rate (~$20), you get a certified CPA who will answer your question immediately. Not a bad deal if you ask me!

All said and done, what you're looking for is a quick, accurate, and affordable answer to your tax questions.


If you have the disposable income and are willing to pay for someone to do your taxes, hire a CPA (make sure you do your due diligence!).


If you are willing to do the gritty work of reading and understanding the tax code yourself, use the IRS helpline.


If you just want an answer quickly for an affordable rate, go to Task.fm. (Click here to bookmark).

Paying Taxes With A Credit Card Can Be Expensive

Tax (Photo credit: Images_of_Money)Your taxes are coming due and you do not have enough money to pay them. So you push the easy button and pull out your credit card. Sure Uncle Sam takes credit cards but did you know that there is going to be a processing fee tacked on to your transaction.

You are going to pay the fee that credit cards normally charge merchants to use the card. The government wants the total taxes due and is not going to eat the transaction cost. If your credit card provides a reward program or miles that cover the extra fees it may be worth it. But generally, with the high processing fee it just does not make sense to pay by credit card.

Credit card payments to the IRS are processed by third-party providers. These companies charge a processing fee, which averages 2.35% (as low as 1.89% through PayUSATaxes.com and as high as 3.93% charged by FileYourTaxes.com). The fee is a deductible business and individual expense.

For example if your tax bill is $8,000, a processing charge of 2.35% will cost $188 which will be added to your total transaction. So if you do not pay off your balance every month you will be paying interest on $8,188 as you slowly pay off your balance. Interest on top of fees makes the whole process, just not make sense.

Even if you pay off the entire balance, your rewards or miles probably will not offset the extra expense.

"Before charging your taxes on a credit card, check into installment options from the IRS, especially if your credit card has a high APR," says Bill Hardekopf, CEO of LowCards.com. "The IRS will charge interest, but it may be less than what you would pay with your credit card."

If you must use your credit card follow these tips:

• Make sure the transaction doesn't push you over your credit limit.
• Don't write your credit card info on your tax documents.
• Make sure your payment is treated as a purchase and not a balance transfer because the you will be paying higher interest and a balance transfer fee as high as 5%.
• You can't cancel payments to the I.R.S.
• If you can use your debit card than go to Pay1040.com, where they only charge a $3.89 fee.

If you pay your taxes by credit card because you do not have the money, it is an indication you are not managing your money properly. Do not let this happen again next year. Start putting away the tax payment little by little every month.

Where To Invest When Interest Rates Are Low

International Money Pile in Cash and Coins (Photo credit: epSos.de)Putting your money into a savings account is a safe way to protect your money. It is not, however, a great way to grow your money. Interest rates for savings accounts today average around one percent. This means you would get about a $1 in interest for every $100 you have in your savings account. Luckily, there are plenty of ways to invest your money if you want to continue growing your money.

Alternate #1: Invest In Gold

There is never a bad time to invest in gold. It is a commodity that is always going to increase in value. Gold provides you with a safe haven for your money today while growing your money for the future. Consider investing in gold if you are thinking about leaving some of your wealth behind for future generations. Selling your gold is also quite easy to do should you decide to liquidate that asset.

Alternate #2: Real Estate

Purchasing a home could be a great way to grow your wealth over the next decade or so. The key is to put enough down on the home to ensure that equity can be attained right away. Also consider where you are going to purchase the property. The housing market is going to vary depending on where you decide to buy. Finding a good home in a good location can result in an asset that will steadily grow in value over time.

Alternate #3: Find Works Of Art

An art collection can yield you some serious cash should you ever decide to sell. Fine art is always going to be in demand as collectors try to line their walls with classical pieces. A keen eye is needed to determine whether a particular art work is going to be valuable or not. Always have an appraisal done to determine the authenticity of the piece. Clever forgeries will make your piece almost worthless.

Alternate #4: Collecting Original Manuscripts

Holding an original copy of the Canterbury Tales would net you a massive sum of money on the open market. Original drafts by authors such as Stephen King would also be quite attractive if you were to ever sell his work. There is nothing more valuable than a piece that is not widely available to the general public. Be sure to authenticate everything before you try to sell it.

Alternate #5: Sports Memorabilia

The value of sports memorabilia tends to do nothing but go up over time. Having an autograph from Johnny Unitas is going to enhance the value of his trading card. Possessing a championship ring that was given to Kobe Bryant would be worth a small fortune if you could ever acquire it. Sporting goods stores are very popular across the country because almost anything sports related is quite valuable. Your decision to keep your baseball cards in pristine condition could really pay off in the long run.


Savings accounts are one way to make sure that your money is safely accounted for. However, there are many Alternate investments that you may want to look into. Putting your money into gold, art and sports memorabilia are fine ways to grow your money. You can feel secure that your money will last as long as you need it to.

Resources for Investing

• 10 Life Changing Books About Managing Your Money - CreditCardCompare.com.au 
• 5 Alternative Investments Worth Looking Into Now! - YouthfulInvestor.com 
• Alternative Investment News - Guardian.co.uk

With interest rates at historical lows in several developed countries, where have you been investing your money? Have you been investing in any other alternatives?