Are You Properly Insured?

A colleague reached out to me with the following story because she feels it’s a really important lesson for every small business owner. And I whole heartedly agree. Having proper insurance coverage and an emergency fund can be the difference between an inconvenience and a complete nightmare. 

“Short story-my kid got into a pretty bad car accident. It was his fault. He was cited. And just like you hear the guy thought “she’s a physician must have a lot of money….” I’m being sued. But my umbrella will protect me and my house. My acu mentor told me 21 yrs ago “get insurance. All the insurance. Get an umbrella policy. You’ll never regret having it”. So that policy that has changed over the years with assets…that is now only $400. It’s saving me. If people have teens that drive…for the love of all that’s holy spend the $$.

He’s healing from his injuries. The car was a total loss. Unfortunately it was my beloved Pilot I’ve had 16yrs. So the insurance check for the loss was extremely minimal. I used $$ in emergency fund to buy him a 7yo Honda CRV. Life goes on.

Because I had emergency fund and an umbrella policy this is simply an inconvenience.

I can put all of my focus and energy on helping him heal. Physically and mentally.”

The basic insurance policies that I recommend are:

✔Personal umbrella. 

✔Health insurance.

✔Homeowners/renter’s insurance.

✔Term life insurance for both you and your domestic partner.

✔General Liability (Slip & fall for your office. Many office buildings require you to have this, but it’s a good idea anyway.)

✔Malpractice (I just learned that some of you out there DON’T have malpractice insurance!).

✔Long-term disability.

✔Long-term care insurance. (Depending on your age.)

Another tip is to raise your Personal Injury Protection on your auto insurance policy as high as you can. Statistically, your car is the most likely place you will be injured. Raising your PIP is stupidly inexpensive to do. Mine was an extra $9/yr and could save me tens of thousands in possible medical bills. 

If this all seems overwhelming to you, working with an insurance agent is a good place to start. They can handle most, if not all, of your insurance needs.