June 28 marks National Insurance Awareness Day—a timely reminder for your business and for your personal life to review and reassess your insurance coverage and ensure you have the right policies in place to protect your assets and loved ones.
Here are a few often-overlooked exposures for both businesses and individuals.
Business Exposures and Solutions
Business exposures are constantly evolving, and it is crucial for companies to stay ahead of potential risks. Regularly reviewing and updating your insurance policies can help mitigate these risks and ensure that your business is adequately protected.
Consulting an insurance agent can help you understand your coverage needs and uncover any gaps. They can offer valuable assistance in evaluating and updating your insurance policies to ensure adequate coverage and peace of mind.
1. Cyber Risk
In today’s digital age, organizations of all sizes are susceptible to cyber-attacks. These can range from ransomware attacks that hold business information hostage to breaches that steal customer credit cards and personal information. The consequences of compromised data can be both costly and damaging to your business’s reputation.
Solution: Make sure you have adequate Cyber insurance, which is essential coupled with best practices to manage cyber risk. This is especially critical for growing and larger businesses that handle increasing amounts of customer data.
2. Business Interruption
The incidences of business interruption claims have been rising, with causes extending beyond fires to include strikes, civil unrest, destroyed shipping containers, collapsing buildings, and technical issues. Smaller companies often do not have the necessary coverage, and larger companies don’t have sufficient limits.
Solution: Business Interruption insurance covers lost income and expenses incurred while your business is non-operational. An Extra Expense policy can further assist in resuming operations swiftly.
3. Other Business and Auto Risks
As your company expands, new locations and increased customer traffic introduce additional risks. Customers slipping and falling on your premises can lead to lawsuits. Similarly, employees renting cars or driving company vehicles pose liability risks in case of accidents, highlighting the importance of car insurance. Also, a shift in working patterns, such as telecommuting or hybrid work results in less driving, which can potentially lower your business or even your employees’ personal insurance rates.
Solution: General Liability and Owned and Non-Owned Auto insurance with adequate limits are vital for long-term protection. Additionally, consider reviewing your existing Umbrella coverage to protect against excessive claims that exceed your primary policies. If your company does not have Umbrella coverage, it would be a good investment.
Personal Exposures and Solutions
National Insurance Awareness Day is also a good opportunity to not forget your personal policies—and the variety of related risks that can occur. It is important to understand the various types of insurance needed for different situations. Speaking to an insurance agent can help you determine the best coverage for your needs. Reviewing your insurance policy periodically ensures that it still provides adequate protection for your personal exposures.
1. Home Protection
Home insurance is essential as it protects you and your family, even if you rent, from a typically range of perils, including fire, theft, vandalism, and certain natural disasters like windstorms or hail. Homeowners policy also offers liability coverage in case someone is injured on your property or if you are responsible for damage to someone else’s property. Additionally, Homeowners insurance may cover living expenses if the home becomes uninhabitable due to a covered event. Overall, this insurance ensures that you are safeguarded against unforeseen incidents that could result in financial hardship.
Solution: If you add an addition to your home, update your Homeowners coverage so you don’t end up underinsured and have to pay for out-of-pocket for claims in these cases:
Your addition might increase the value of your house which now needs to be reflected in your policy to be covered should something happen.
If you added more square footage, your policy would need to be adjusted to cover rebuilding costs.
2. Loss, Injury, and Damage on the Road
Many assume that being struck by another driver means the other party’s insurance will cover all damages. However, this is not always the case, especially if the other driver is uninsured or underinsured—a common scenario given that one in eight drivers lacks sufficient coverage. Taking a defensive driving course can also lead to significant savings on your auto insurance policy.
Solution: Uninsured/Underinsured Motorist insurance covers pain and suffering, economic damages, and legal costs in accidents caused by drivers with inadequate insurance.
3. Death
Significant life changes such as purchasing a new home or expanding your family can financially strain families if a primary wage-earner passes away.
Solution: Life insurance provides peace of mind by ensuring your family is financially protected in such unfortunate events.
4. Loss, Damage, and Theft of Valuables
Expensive valuables like fur, jewelry, art, antique collectibles, and cars may not be covered under standard Homeowners policies, which often carry specific terms, limits, and conditions.
Solution: Additional coverage tailored to protect these valuables is necessary. Discuss these needs with your insurance advisor as part of your annual personal risk management planning.
Stay Ahead of Changing Risks During National Insurance Awareness Day
Change is constant in business and personal life, bringing new exposures that require extensive management. Having the right insurance offers security by protect your assets and personal belongings from various risk, such as losses, illness, or damage. Regularly re-evaluate your policies to remain protected against emerging risks.
Also, even if your circumstances don’t change, the insurance market is constantly introducing new services and products with features and benefits that can help you improve your protection while containing your costs.
So, to celebrate National Insurance Awareness day, ensure your business and personal life are safeguarded through comprehensive and up-to-date insurance coverage. We can help you with any type of business or personal insurance or answer your questions. Contact Hilb Group at clientcare@hilbgroup.com.