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- So, let me show you a compound interest chart. can you just type in compound interest chart. We'll pull up a really nice one on the screen here for the Thrivers to check it out. I just wanna make sure they look at these compound interest charts. And then just click on image. So, what happens is you put in a little bit of money over time, right? So, let's say you to take 10% of $100, that's what? $110. 10% of 110 is what? Now you're up to $121. 10% of 121 is 10% of 10% of 10%, pretty soon, annually, you're making like major, major returns due to the power of compound interest. - Copious amounts of interest. - Copious amounts. So, Thrive' back to the root point of this whole thing before I went off on this absolute tangent of awesome. The main thing here, okay? Is that you have to make sure that you are insuring your income. If you get hit by a bus, how does your family take care of itself? You need to go out there and buy supplemental insurance. If you're self-employed and you're even slightly responsible you need to have supplement insurance. - that is a good one. That is good. All right, number five. Too low deductibles. - Okay, so what happens is when you have insurance, let's say. And if you have, let's say, a million dollars. A million dollars of insurance. And you go, Man! If a bad thing happens. The most money that I could possibly be out, if something bad were to happen. The most money I could possibly be liable for is 1.2 million. I mean if something horrible happens. The least amount of money that I could owe 1.2 million. And the most could be 10 million; And you only have insurance for 800,000, you're in a bad spot. So, what you need to do is, go ahead and Google Search the word deductible, real quick. Just deductible. Yeah, pull that up here. We'll pull it up on the screen so the Thrivers can get all mature seeing the definitions so you kind of get this, okay? Deductible: ooh, nice! Able to be deducted especially from taxable income. A specified amount of money that the insured must pay before an insurance company will pay the claim. So, what happens is, let's say you have, your building gets destroyed by a fire, right? And you are now insured, you have 2 million dollars of insurance. And so your buildings worth 2 million. But you're not able to pay the deductible a specified amount of money that you as a business owner must pay before the insurance will pay their part. If you can't pay. Let's say that you have to pay 200,000 out of pocket. They'll pay the other 1.8. That's not a good deal for you. So, it's very, very important that you are aware of your deductible, you talked to your agent you understand what it means and you embrace the worst case scenario. You look at Murphy's Law and you realize that's gonna happen. And you realize bad things will happen. And when those bad things happen, that you wanna make sure that you can afford to pay the deductible. That's what we're talking about. - Good stuff. That is good stuff. Okay, number six. No umbrella liability. So, let's get into that. It's catastrophic coverage when someone sues you for bodily injury and property damage, a car accident caused by an employee killed several people, for example, the premiums are usually low, relative to your overall insurance costs. Clay, can you break that down for us a little bit? - Basically, an umbrella is, years ago I had a business and had a lady who came over our house. and I don't want to say her name, Amy. And she came over to our house and she was a customer of our DJ company, our entertainment company. We used to have a house at 91st and Lynn Lane. A beautiful house. And she shows up and the house at that time was about a 6,000 square foot house. On one side of it we had the business. The other side we had the home. This is probably a 3,000 square foot house to live in. 3,000 for business, and this lady shows up. and when she shows up, she looks around the house and she notices granite, marble, granite, marble. So, she starts to think what? - I can take advantage of somebody here. - So, she begins to think, if I fall and I cannot get up, if I cannot get cannot get up, maybe, I can get my net worth up. If I fall I can't get up, maybe I can get my net worth up. - I see what she did there. So, what's she's doing, she says this to me, she says, is it okay if I use your restroom. I said, sure. So, she walks around, scurries around to the restroom. And she comes out and she trips. Nothing has tripped her. Nothing has impeded her ability to walk, but she falls down. I don't know its my knee. She's a crier. For me, if I cry it's because something real has happened. So, I'm like a little bit sensitive, if someone's crying I assume they have something going on. You know what I'm sayin' - Something real. But this lady's like, the pain My knee, my knee cap, my knee cap. If feel like my sacroiliac Your sacroiliac? Is your sacroiliac okay? IMy back. My vertebra, my vertebra. And so you're goin', you hurt your vertebra and your sacroiliac? Yes, I have. - It sounds so serious. - I must leave. So, I got a letter from her attorney saying, lady, not Amy, She says, she would like to sue in the amount of $100,000 due to bodily injury. Now, there are people who do this crap all of the time. I wanna give you a Mystic Statistic, okay? 52% of all civil lawsuits target small businesses 52%, this is according to the Klemm Analysis Group. These are the guys endorsed by The Small Business Administration. 52% of all civil lawsuits, people suing people. They target small businesses. 'Cause they feel like it's a gold mine. They can get that money. Also, our main man Murphy again says, anything that can go wrong will go wrong. So, what happens is, we end up being a really bad situation, because she's suing us. And I did not, at the time, have a what kind of policy? Umbrella. - Umbrella So, I was not able to cover myself in that area. Thus, I had to write her a check. She's like, well, I'm willing to settle, for 15,000. I can be one to settle, I would. I just, I mean, I would... Hopefully, it would cover my chiropractic care. So, you write her the freakin' check. You agree. And then next week and see her around town being, she's just, She's got her brand new $1,000 glasses on, her $14,000 mink runnin' around. ` Makes you nuts! But that's how people are. So, you've gotta make sure you have the umbrella insurance that you need. - Alright.
- All right, Number 7: No Employment Practices Insurance. All right. Tell me what that means. - Okay, what happens is, is that your employees are going to be doing some weird stuff. And I hate to be the guy that has to give it to you real and raw, but-- ♫ Ooh baby I like it raw ♫ ♫ Yeah baby I like it raw ♫ - Aww yeah, I've gotta give it to you real and raw. Sometimes your employees are going to practice this dark art I call jackassery. Now, in fairness to employees, also employers practice jackassery from time to time. As a human race, we've all practiced jackassery. - We try to master it. - Now the force is the cosmic, it's a cosmic source of energy that binds the universe together. And it controls the things, and kind of quoting Obi-Wan Kenobi here, so I'm not sure the science is right on this, but the force kind of binds the universe together. It flows through us, it penetrates the galaxy, it's-- Jackassery is a wealth repulsion system. It's universal. You go to every country, every race, every age, every demographic, jackassery, we cannot escape it as a society. It's so universally understood, I'm amazed. No matter what country I've been to, no matter what companies I've spoken at, no matter who I've talked to, it just seems as though little particles, particles of jackessery are floating around. This is a wealth repulsion system. And you'll hire an employee to do the right thing. And so years ago, one of the companies I had, this is a true story, I hired the employee. And do you think that it's cool, if you're a male employee, to touch female employees randomly? - Probably not. - Okay. So he claims he did not know. He says, she comes to me, and she goes, "I was touched." Now, true thing: she apparently had invited him on a date. And she apparently had been spending a lot of time with him, if you know what I mean. - Mhm. - And he and her were spending a lot of time together, if you know what I mean. So he though, on camera, because you know we have cameras in there, reaches out and does a little "encouragement" and he violates what would be considered sexual harassment laws that are acceptable norms. Now I don't know they're dating. I don't know what's going on. I find out after the fact, but again, guess what she does? She files a- - Lawsuit - Saying "I was touched," find out later they were dating, they teamed up together to do it. This happens. Also, an employee of ours, one of our businesses, accidentally cut a customer's ear almost off. And you know what happens when that happens? - Lawsuit. - Right. So you wanna make sure that you are covered. I owned a DJ company back in the day. DJ guys drive in down to Dallas for an event. And usually when the Djs are driving, what they're doing is, they're kind of doing like this, they're in an Astro van. Have you ever seen like an Astro van? They're in like those nice, white Astro vans, and they're driving down the road and it's usually a 35-year-old man driving out to a wedding reception, gonna be like the Las Colinas Country Club, or the Dallas Country Club, or the Gaylord Texan, they're going "Aww yeah, I'm gonna be Djing tonight. Probably have a buffet, a bride and a groom, 200 people. What I'm gonna do, is I'm gonna take my cell phone out, and I'm gonna check it for some updates." Back in the day, when you had limited text messages, and it was a small phone, and it was like a big deal to type them because you couldn't type the way you can now on the screens, and you'd be looking at your phone, kind of texting. You, not you, but he was. And he's looking, and he goes "OH!" and he smashes right into a car. Does he stop though, and exchange information? - No. - Why? - Jackassery. - Well, you know, that's the thing, that's why Harry Caray once said, Yes. That's what Harry Caray said. Big Chicago Cubs fan. So the main thing is it's very important that we understand this, that employees, we all as humans are going to make mistakes. And when we do, we need to have insurance that is going to cover those mistakes. You've gotta think about all the horrible things that can happen, because our main man Murphy, our aerospace engineer, says that anything that can go wrong, will go wrong, especially as it relates to humans. So important. - So, so important.
- Okay, number eight, bone-headed exclusions. - Okay what happens is I had a DJ system. I used to own back in the day and I talked to an insurance agent, who was an idiot freaking this guy. I did not hit him with a lead pipe, but if I had a lead pipe I probably would've hit him with it. But he says Mr. Clark I'd love to help you save money, I said okay so I meet him in a van. I was stupid, it's my fault for being stupid. I meet him. He comes to my office. We talked in the office. He says, here's the deal, I believe I can save you probably $1,500 a year on your insurance. I'm just looking at it and it looks like you're way overpaying. Our company we buy wholesale, which allows us to get you better deals. And what we do, our firm has been around for like 90 years and we have the best rates, you know this whole insurance sales thing. And so what I'm gonna do and I'm this young guy, he says I will work immediately to lower your rates. Now if I can lower your rates by at least 1,500 a year are you open for business? Okay he goes, now if I can do that, is there any reason you wouldn't do business with me? If I can lower the rates, so I said well, no there's no real reason. So he comes back with a big binder, I'm talking about a big binder. Have you seen the big insurance binders? I mean this is probably like 40 pages of hoo-ha. And he goes, now you can look into it if you want I'm just gonna hit the highlights for you. Shows here I can save you this much, save you that much, everything that we talked about, everything that was currently in your policy now has been transferred over. This is a very good deal for you. I will risk my name on it. Now, I can't remember his name now and I didn't know him at the time but he says I'll put my name on it. Here's my cell phone should you need something. Here's my phone number, you can call me. So I switch over and when I switch over we have our studio, our offices, our business, it's broken into. And the guys break in and they steal a trailer full of equipment. Now guess what kind of exclusion that I had in my policy that made it impossible for me to get the insurance money I needed when I needed it. - Some type of theft exclusion. - It had an exclusion that said if the equipment is stolen off of our premises then we can't be paid. So think about this who would steal your stuff and then keep it there? - Not very many people. - I mean are they gonna break into your office, steal your stuff and just stay there with it? - Hang out. - I mean I can just see some guys who are like hey bro, what we're gonna do man is we're gonna break in to this business, we're gonna break in and we're gonna take their stuff and then we're gonna stay there with it. And then we're gonna shove each other into the bushes after we smoke some bongs. We're gonna wait for them to like. They're gonna be there cause they won't expect it 'cause like when we take it all, but we'll just leave it there and we'll be there with it. We'll break in and we'll just stay with it all night bro. Bro, bro how cool would that be? - Dude, dude we could throw a DJ party - We could throw a party with their stuff and then when the police come we're just gonna be there going hahahaha we're still here and they won't expect it which is like Bro, no one does that. So what happens is that I had a stupid, just absolutely bone-headed exclusion in that policy that made my policy absolutely worthless, which in my opinion is one of the most dumb things you can do and if you do- Thrivers listen. If you do not revere what we trained today and you don't apply these action items by meeting with your insurance agent to assume that everything is wrong and you're not fully covered, if you do not as an action item, if you do not go out within the next week and set an appointment with your insurance agent. You need to set an appointment with your insurance agent and you need to make sure you're fully covered. You my friend are not going to be happy when bad things happen and bad things do happen because insurance helps you have a bad day and not a bad - Life - That's right and if you don't do this there's a very, very, very, very, absolutely, terribly, strong chance you're gonna be ending up living in a van down by the river listening to this song with your buddies who just got out of prison going, hey bro, bro do you remember when we broke into your place and we stole your equipment but stayed there. - At the DJ party bro. - Bro that was awesome - So epic. - So anyway, make sure you get insured like you need to, otherwise you're gonna be living in a van down by the river listening to Careless Whisper by George Michael with your pothead buddies who just got back from prison after breaking in and stealing your stuff. - The ultimate heist. - Ultimate heist, heist gone wrong. - That's great stuff Clay, thank you so much.
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