For many of us, the start of a new year is a time to reflect on what we have been doing and figure out what we could do better. New year’s resolutions don’t just have to be unrealistic fitness or diet goals you abandon a few weeks into the new year. They can also involve taking stock of what you currently have and finding even small ways to improve. Whether you’re an individual going over your personal policies or a business owner or executive looking at your company’s coverages, here are some ways to improve your insurance in 2023.
Auto Insurance
Many drivers, especially if they have not been an accident recently, don’t really think much about what their auto policy actually covers and can be unpleasantly surprised if they do ever get in an accident. Minimum liability coverage may satisfy the state, but it won’t cover any damage to your own vehicle or your personal medical costs, and the coverage limits can be quite low. For example, here in Illinois, minimum coverage only gets you $20,000 in property damage, and then you’d be on the hook for the other driver’s repairs above that.
It’s a good idea to increase your liability limits and add comprehensive and collision coverage. It might not cost as much as you think, certainly much less than you’d be on the hook for in an accident with minimum liability coverage. Many policies also include 100% coverage for any glass damage if you add comprehensive and collision coverage.
And business owners, don’t assume your employees’ personal policies are sufficient if they’re driving their cars while on the job. You need separate commercial auto policies to protect them and yourself, and make sure your coverage limits are high enough to cover all of your vehicles and driving activity. Business-related auto accidents are a large driver of commercial insurance claims, and you want to be prepared.
Homeowners and Renters Insurance
Inflation has not just increased prices at the grocery store; it has also increased replacement costs for your home and your existing personal property. So think about what it would cost to replace your personal belongings or your home’s structural components in 2023 and compare that to the limits on your current homeowners or renters policy. You’ll likely find it insufficient, especially if you haven’t revised your coverage in a while.
Pay attention as well to your riders, and make sure you have the ones you need. For example, many standard policies exclude water backup coverage, which is a problem here in the Midwest, where our sump pumps can fail and drain pipes can freeze. So ask about adding a water backup coverage rider to your policy so you can avoid this common cause of costly damage.
Also, if you run a business from your home, you’ll likely need a separate commercial policy for that, especially if customers come to your home or you store inventory or business-related equipment there.
Life Insurance
Many people rely on the life insurance offered by their or their spouse’s employer, especially younger people. However, the coverage you can get through your employer, even if you purchase the maximum voluntary life amount offered, is typically not enough to cover what your dependents would actually need if they were to lose you. And the coverage usually ends if you change employers. So it is prudent to look into an individual life insurance policy, even if you don’t think you need it right now.
Individual life insurance premiums are not usually as high as you might think, especially if you purchase a policy when you’re younger. But even if you’re not in perfect health, an experienced broker can help you find a solid policy at a price that won’t break the bank.
For term life policies, make sure to check at what age the coverage ends. Also make sure to update your coverage if you gain dependents, such as having a new baby or aging parents who need your care.
Business Insurance
It can be tempting for businesses to cut corners on their insurance, but this would be a huge mistake. Severe weather events are becoming more frequent, auto accidents are all too common, and cyber attacks pose an increasing threat to even small businesses.
For small businesses, a business owner’s policy (BOP), bundles general liability and property insurance into a convenient package. Larger businesses can also get a package policy like this or choose from standalone property and liability coverage. Make sure your coverage limits are high enough, especially with inflation increasing replacement costs.
Workers compensation is a must, even if you only have one part-time employee, and usually requires a standalone policy. Commercial auto insurance is also crucial, as auto accidents are on the rise, and employees’ personal policies don’t cover claims while on the job.
Errors and omissions (E&O) insurance covers you in the case of lawsuits related to accidental negligence or errors. Business interruption insurance, created by our founder, Willian J. Kamm, in the 1920s, helps cover lost income in the event of a natural disaster, civil unrest, or other even that forces your business to cease operations for a certain time period.
And don’t forget cyber liability insurance. Even if the smallest business can be a target for cyber criminals who can run off with the entire operating budget.
Employee Benefits
And don’t forget to look over your employee benefits offerings. Are your medical plan offerings competitive in your sector, or are you losing employees to better offers? Dental and vision insurance are relatively inexpensive ways to enhance your health insurance offerings. Standalone telemedicine policies, like Teladoc, can also be a valuable offering and create goodwill even for part-time employees who would be ineligible for regular major medical benefits.
Ancillary benefits, such as accident, critical illness, or hospital indemnity policies, are another inexpensive way to augment your benefits package. These policies reimburse employees a set amount, on top of their medical insurance benefits, if they or an enrolled dependent experience a qualifying medical event.
To get the widest array of options, talk to the insurance advisors here at Kamm Insurance Group. We can compare policies, coverage, and costs across different insurance carriers to give you the best value for you or your business.
Kamm Insurance Group is an independent insurance agent located in Chicagoland and serving the entire United States. We can provide you with excellent coverage for commercial and personal insurance to suit both your needs and budget!
Sources: https://www.huffpost.com/entry/why-the-new-year-is-a-goo_b_14004966
