Business Owners Forget About Their Personal Insurance

Recently we have had numerous discussions with business owners about their personal insurance.  What may surprise many is how often business owners do not pay attention to their personal risk exposures in the same way they do their businesses.

Business owners review their business insurance annually.  This typically means meetings with their insurance professionals, loss control and safety specialist.  They are acutely aware of the cost and components of theirinsurance and risk.

Now you need to apply the same strategies to your personal insurance.  Here are just a few simple things you should consider having to protect yourself and your family better.

1. A personal umbrella.  You probably have one for your business and you really should have one personally.  This should provide coverage over all the stuff you own such as home, rental homes, cars, boats etc…

  • Make sure you ask about including uninsured/underinsured motorist on your umbrella.  Only a few carriers provide this but it is essential to have.

2. Do you have all your toys covered?  Some of them may be excluded from your current coverage and you do not know it until it is too late.  At that time you have coverage under “MUTUAL OF YOUR BACK POCKET”. (this is really a bigger issue for liability)

3. Do you have the correct amounts of coverage on your stuff? Home, rental property, collections, jewelry etc…

These were just a couple of items in recent discussions that have come up and you should consider addressing.  In a call this morning one business owner said their focus on their personal financial stuff is an administrative nightmare.  My question is what are we working for if we do not take care of what we are creating in terms of personal wealth and assets?

So what should you do?

1.Treat your personal insurance like you do your business insurance.

  • Review it annually
  • Have it with someone that is an expert and you trust

2. Make sure the insurance carrier is on solid financial footing

3. Make sure you understand special issues related to your personal insurance most agents miss:

  • Personal Articles
  • Flood
  • Coastal property issues
  • Wind deductibles
  • Second home issues
  • Kids away at college

4. You need to be an open book to your insurance professional so they can protect you.

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