Orlando, Fla.—If Covid-19 restrictions weren’t hard enough on small businesses, these entrepreneurs are now facing new challenges related to the pandemic that continues to affect their businesses performance. The National Federation of Independent Business said in its monthly jobs report that 48% of small business owners reported unfilled job openings in May on a seasonally adjusted basis, up from 44% in April. May's reading is 26 points higher than the 48-year average of 22%. The report showed that 93% of owners looking to hire reported few or no “qualified” applications for the positions they were trying to fill last month.
Unemployment appears to be the most obvious cause, because former employees may feel now more comfortable receiving government aids, than working 40 hours at low wages, and may be seeking the opportunity to get better work conditions and benefits in order to get back the workforce. Ultimately, higher labor costs are being passed on to customers in higher selling prices. Anyway, that is one hypothesis. The economic reopening is continuing and should be positive for job growth.
Government reports showed that claims for unemployment benefits were slightly declining in May. Many factors may have contributed to this effect. Some states, like Florida, are stopping the federal aid provided in addition to what states allow as unemployment assistance in normal cases.
Restaurant owners, for example, have been experiencing this situation for a while. It is not unusual to find large signs offering sign-on bonuses to those who apply. And so is the case for so many other businesses in the service category.
Many businesses—especially small businesses with fewer employees—depend on a single person or a few key people for their success. If a key person becomes unable to work or dies, the business might lose valuable accounts or be temporarily unable to operate, resulting in lost revenue. There are no hard-and-fast rules for identifying key persons in your business. Generally, anyone who directly contributes to a company’s bottom line or is fundamental to its operations might be considered a key person.
These are typical examples
- C-Suite Executives—such as a CEO or COO.
- Leading sales personnel.
- Heads of product development.
- Engineers or other difficult-to-replace personnel.
In a restaurant, a Chef could be someone who contributes to the bottom line as well as he/she is fundamental to the operation.
When buying business insurance, it is very important to ask detailed questions, discuss them with your agent and find out what possible solutions are available in the market.
Key Person Insurance could be an area to explore, in addition to your basic business insurance package, like your General Liability, Commercial Auto, and Workers Compensation.
At Garzor Insurance our experienced professionals are dedicated to providing commercial insurance, including business general liability coverage in Florida as well as Georgia, Texas, and now many other states across the U.S.A. If you have questions about business insurance, or any other commercial insurance aspects, please do not hesitate to visit us online at Garzor Insurance, or you may want to call us directly at (321) 206-8035.