Most common business and personal exposures – Are you covered?

June 28^th is National Insurance Awareness Day. It is a great reminder to make sure you are adequately protecting your business and your family.

With changes in your business, personal life or circumstances around you, your exposures change as well. It’s a good practice to review your various coverages periodically and make necessary adjustments to remain protected. Unfortunately, we see many people fail to keep pace with their changing risks – they either don’t have the necessary coverage at all, or their policies lack sufficient limits of coverage.

We have identified three most commonly overlooked exposures for both businesses and individuals. Take a look and see if it’s time to revisit your insurance program.

Business exposures and solutions

1. Cyber risk – Organizations of all sizes can become targets of various cyber-attacks including holding business information hostage in exchange for ransom, or stealing customer credit card and personal information. The ramifications of compromised data can be extremely costly and detrimental to your business.

Cyber insurance and a set of best practices to manage cyber risk is critical in today’s world, especially if your business is growing and handling or storing more customer information.

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2. Business interruption – The number of business interruption claims have been on the rise in recent years. While fire is the main cause of interruption to an operation, many other factors can close your business – collapsing building, civil unrest, cyber-attack, destroyed shipping containers, strikes and various technical issues. Often, smaller companies don’t have the necessary coverage, and larger organizations don’t have sufficient limits.

Business Interruption insurance covers your loss of income and costs, while you are unable to operate and an Extra Expense policy helps you resume your operation.

3. Other business and auto risks – With the growth of your company, you are opening new locations and seeing an increased number of customers. They can slip and fall on your premises, which can lead to a lawsuit. Or perhaps, your employees are now renting cars or driving your business vehicles while traveling. If they get into an accident, you may be faced with costly injury and damage claims.

In short, if your business changes or grows, General Liability and Owned and Non-Owned Auto coverages with sufficient limits are paramount for your protection and long-term viability. In addition, you may also want to consider purchasing or reviewing your existing Umbrella coverage, which is designed to protect you in excess of your other insurance policies should you be sued.

Personal exposures and solutions

1. Loss, injury and damage on the road – Many people assume if they are struck by another driver, the other person’s policy will fully cover them. However, this might not be the case if you do not have proper coverage. We see often people losing their jobs and can no longer afford any auto insurance or will only purchase the state minimum limits. There is a systemic issue nationwide according to which one in eight drivers are uninsured or underinsured.

Uninsured/Underinsured Motorist insurance will reimburse you for pain and suffering, economic damages, and legal costs if you were in a car accident caused by a third party who does not have any or sufficient coverage.

2. Death – The two most common changes people will encounter in their lives are purchasing a new home and expanding their families. Both are expensive ventures, which can leave a family homeless or penniless if one of the main breadwinners in the family passes.

In the excitement of a new house purchase or having a baby people often forget to think of Life insurance, but it is important to give you peace of mind knowing your family is financially protected.

3. Loss, damage and theft of valuables – If you have purchased an expensive piece of jewelry lately, you may want to make sure it is protected from theft, loss or damage.

Typically people incorrectly assume their various valuables – art, wine, jewelry, fur, antique, collectible cars – are always fully covered by their Homeowners policy. However, that is often not true, as these valuables are subject to terms, limits and conditions of your policy and you may need to purchase additional coverage to be fully protected. Discuss this with your insurance advisor as part of your annual personal risk management planning.

When change happens in your business, personal life or around you, new exposures arise. Be prepared and review your coverages periodically. If you need any assistance or have questions, please contact cmorsberger@psafinancial.com.