When it comes to insurance, it’s one of those things that many people have a love hate relationship with. It’s great when you need it, but it’s often one of those expenses many people see as an opportunity to skimp on to save a few bucks. Afterall, how often do you really make a claim? If you don’t have the right coverage, it could cost you thousands!
When you have something catastrophic happen – an automobile accident, a cyber-attack on your business, or a fire destroying your home – sadly that’s when many realize the true value of their insurance coverage and learn if the limits and coverage are adequate. It is NOT the ideal time to find out that the insurance coverage has gaps or that the limits fail to replace the loss – so it’s all about knowing your risks and mitigating against them proactively!
Your home is more than just a roof over your head. It may be your most valuable asset — and one you likely can’t afford to replace out-of-pocket if disaster strikes. That’s why protecting your investment with the right homeowner’s insurance coverage is so important.
Standard homeowner’s insurance policies typically include six distinct types of coverage: Dwelling, other structures (like sheds), personal property, additional living expenses (temporarily living accommodation while your home is being fixed), liability (if you injure someone or cause property damage), and medical (if someone gets injured on your property). So if you have just basic coverage and your house becomes flooded due to excess rain, it won’t be covered by your policy unless you have flood coverage. You also want to make sure that your limits cover the actual cost to rebuild your home. It’s NOT the same as what it cost to buy your home – the rebuild cost is often much higher because it includes the cost of tearing down the structure, removing debris, and costs associated with building your home today vs. 20, 30, or 50+ years ago.
The same rule of thumb goes for your auto, personal, etc. insurance – don’t go with the cheapest option because you think you’ll never use it. Protect yourself and your investments and make sure that if something should happen to your property or you, that your medical needs will be covered, and your property will be fully replaced.
Business owners have the insurance due diligence to do. Insurance is an issue every business owner needs to consider and is especially important to the small business owner because of the often close relationship between business and personal assets.
As a business owner, you must weigh the cost of insuring against a variety of risks vs. the economic impact of an uninsured loss. Insurance premiums can make a substantial dent in any business’s budget, but, the most important coverage that you’ll purchase will probably be to insulate you from liabilities associated with what you — or your employee — might do to someone else (legal hazards), rather than to insulate against something happening to you.
Business insurance is far more complex than just determining what your general liability coverage will be, there are a lot of other policies to consider and that you may need to protect your business including:
- Workers’ Compensation
- Auto and home insurance riders
- Business interruption
- Credit insurance
- Cyber insurance
- Employment practices liability
- Errors and omissions
- Product recall
- Inland marine
- Disaster insurance
- Key person insurance
- Business overhead expense
Every company has different insurance needs, depending on the industry, location, and nature of the business. The above-named policies may or may not be right for your business. Be sure to consult with your insurance agent frequently to assess your risks and ensure that your business is getting all the protection it needs.
The world of insurance can be complex and confusing, and even though you might not understand all the lingo and industry terms, it is important that you make sure that you, your family, your assets, and your business are protected properly. Your insurance agent is your best tool to make sure you have the right coverage for your needs.
Senior Vice President, Chief Lending Officer