5 Things Business Owners Should Know About Insurance Limits and Deductibles
Building a business involves making countless vital decisions, including hiring the right team, buying the right software, and finding a suitable space. Understanding the basics of insurance coverage may be glossed over during day-to-day operations. Insurance is one of the behind-the-scenes essentials that can make or break financial stability when the unexpected occurs. It is vital that you fully understand Your policy limits and deductibles.
Insurance Limits: Your Business’s Safety Net
An insurance limit is the maximum amount your policy will pay out in the event of a claim. When you think of insurance as a safety net beneath a tightrope walker, the higher the limit, the more protection you have in a fall. If coverage limits are too low, you could face severe financial losses. For example, when a business is hit by a natural disaster or is named in a high-value lawsuit with damages over $1 million when the policy limit is $500,000, the business will be responsible for paying the remaining $500,000. Choose your limits carefully to reflect the actual value of your business, the risks involved, and the potential recovery costs.
Deductibles: Lower Is Not Always Better
A deductible is what is paid out of pocket toward a covered claim before insurance coverage kicks in. It is a common misconception that it is always better to have a lower deductible. Of course, it means you pay less upfront, but lower deductibles often come with higher premiums. A higher deductible can save you more on monthly premiums, but you must be prepared to cover more in case of a disaster. This is a classic case of “you get what you pay for.” Consider your cash flow and risk tolerance carefully when choosing a deductible.
General vs. Specific Limits
Insurance limits are not all created equal. While general limits apply to the entire policy, specific limits can be tied to individual categories of coverage. For example, a commercial liability policy with a general limit of $1 million may have specific limits within the policy for product liability, employee injury, and other types of coverage. It is essential to know what each limit covers so you are not left high and dry if you need to file a claim.
When Raising Your Limits Is a Smart Move
Ultimately, understanding insurance limits and deductibles comes down to two questions: What is the worst-case scenario, and can your business survive it? As your business grows, so do your risks, and your insurance limits should grow with it. If you are expanding, launching new products, or taking on larger contracts, it is time to reassess the policy limits. Adjusting coverage to match the new reality could save you headaches down the road.
Business insurance is not a one-size-fits-all solution. It should match your unique business needs, and limits and deductibles should be re-visited as the business evolves. The right coverage gives you peace of mind to focus on what matters most – running your business. Our agents are licensed professionals who can review your business policies and help ensure you have the right coverage, including limits and deductibles.
Should I Switch to an Independent Insurance Agent?
Shopping for insurance can be a confusing, even overwhelming process, with policies loaded with obscure legal terms. Although exploring new options or switching agents may seem troublesome, it may be worth considering. Should you stick with your current agent or take the leap to an independent insurance agent? Let’s break it down.
What is the Difference Between Traditional and Independent Insurance Agents?
A traditional insurance agent works for one specific company and can only sell you policies from that company. Independent agents are professionals who are not tied to a single insurance provider. They partner with various companies and can offer multiple options from different providers.
What Are the Pros of Choosing an Independent Agent?
Switching to an independent insurance agent can have several advantages for policyholders:
- More choice; less stress: When you are shopping for insurance, prices, coverage, and policy details can vary drastically. As they represent different insurance companies, independent agents can offer a variety of options and price points. They can do the shopping for you, find the best deals to suit your needs, and ensure you are not overpaying for a policy.
- Expertise across multiple providers: Independent insurance agents are licensed experts with deep knowledge of different policies, coverage options, and industry trends. They can assess a customer’s insurance needs and match them with the best-equipped carrier at an affordable rate. Independent agents’ versatility allows them to be more flexible in addressing your needs.
- Personalized attention and advice: Larger companies may tend to prioritize volume over individualized service. Independent agents are more likely to focus on understanding your unique situation and recommend products that truly work for you. Whether you need home, auto, or life insurance, their advice is tailored to your unique circumstance and not based on a sales quota.
- One-stop shopping: Independent agents can often meet all of your insurance needs. Through the companies they represent, many can offer home, auto, renters, and life insurance, as well as business coverage.
- Ongoing support: Your relationship with an independent agent is ongoing. Once you have secured a policy, your agent is there to answer questions and make updates if your circumstances change. If you have a concern regarding billing or a claim, your agent can act as your advocate, dealing with the insurance company on your behalf.
Is It Worth It to Make the Switch?
Not all independent agents are the same. It is crucial to choose an agent with a solid reputation for service who offers a variety of options and has the depth of expertise you require. Shopping for insurance with an independent agent may require more time upfront. Communicate your needs and preferences, and your agent can compare different policies.
For a wider variety of options, flexibility, and ongoing support, switching to an independent insurance agent may be your best option if you value personalized service. Our knowledgeable agent is happy to meet to discuss your insurance needs and answer any questions you may have.
Why Your First Call After a Disaster Should Be Your Agent!
It was 2:17 a.m. when Sarah heard the crash.
At first, she thought someone had broken into the house. Her dog was barking wildly. But when she ran into the living room, she found the real culprit—a section of the ceiling had caved in, water pouring steadily from above. A burst pipe in the attic. Ruined furniture. Soaked memories. And a whole lot of panic.
In those moments, adrenaline takes over. You’re overwhelmed, scared, and scrambling. And that’s exactly when most people make decisions that cost them later.
What Most People Do Wrong in a Crisis
When disaster strikes—a tree falls on your house, your car gets rear-ended, or your kitchen floods—everyone around you has an opinion.
“File a claim right now!”
“Don’t wait—they won’t cover it if you don’t call immediately.”
“Oh, you have to use their repair guy.”
Sound familiar?
The problem is, insurance isn’t one-size-fits-all. Different carriers have different rules, claim procedures, and thresholds. And while it might feel like you need to act fast, the truth is…
Sometimes, filing a claim immediately isn’t the smartest move.
So What Should You Do First?
Step 1: Document the Damage
Take photos. Record videos. Capture as much of the situation as possible. These moments matter.
Step 2: Stop the Bleeding
Whether that’s shutting off the water, calling a tow truck, or laying out towels—focus on limiting further damage.
Step 3: Call Your Independent Agent
Before you call the 1-800 number. Before you open your carrier’s app. Before you tell the story to a neighbor who “knows a guy”…
Call your agent.
Your independent agent knows your policy inside and out. They can help you decide if it’s worth filing, walk you through the deductible math, and explain how the claim might affect your renewal or rates.
Why Timing Matters
Here’s the thing most people don’t realize:
Once you call the carrier and open a claim file, it’s on record—whether or not the company pays out.
Some situations are obvious: A major fire, a total loss auto accident, or significant water damage. But others are borderline. Small repairs might cost just a little more than your deductible—and if you file, you could end up paying more in premiums long-term.
That’s why you need someone in your corner, helping you figure out the best path forward—not just now, but down the road.
A Real Human in a Messy Moment
At Connor Insurance, we don’t just sell policies. We help you navigate the hard stuff. Because we’ve been in those 2 a.m. moments. We’ve talked to clients while they’re standing in a puddle or sitting in a crumpled car.
And we know: the right advice at the right time can change everything.
So, if something happens, don’t go it alone.
📞 Call us first.
We’ve got your back—before, during, and after the mess.
Your Business Insurance Inventory Checklist
We typically don’t give much thought to insurance until something goes wrong. In a business, ensuring your coverage is on point could make the difference between recovery and total loss. Understanding what is covered and what should be covered is key to preparing for the unexpected. Our business insurance inventory checklist is a no-nonsense guide to ensure you are not left in the dark if disaster strikes.
What to Include in Your Business Insurance Inventory
An insurance inventory for business owners is straightforward and typically includes the following types of coverage:
Commercial Property Insurance
This coverage helps protect the building and equipment you use to operate your business, whether it is owned or rented. It is vital to keep an up-to-date inventory of everything, including office furniture, computers, and machinery, complete with serial numbers, descriptions, and photos.
Liability Insurance
General liability insurance protects your enterprise from the losses of bodily injury claims and from property damage. Accidents can happen, and if a product or service of your business injures a person or damages someone else’s property, a general liability policy can help cover costly lawsuits. Also known as E&O (errors and omissions), professional liability insurance covers claims related to mistakes in the professional services your business renders. It is advisable to regularly review contracts with clients and suppliers to ensure your liability coverage matches your current exposure.
Cyber Liability Insurance
Data is everything in the business world, and a breach could destroy a healthy company. Cyber liability insurance helps your business respond to a data breach in which personally identifiable customer information or proprietary business strategies are lost or stolen. This type of coverage is the modern-day “fire extinguisher” for digital threats. If your company handles sensitive information, you need a security plan beyond paying for insurance. Assessing your internal systems, encryption practices, and data storage is a critical task.
Workers’ Compensation Insurance
Workers’ comp coverage is a legal requirement in most states and an essential safeguard for the health of your team and the future of your business. Workplace injuries can lead to expensive medical bills, lost productivity, and lawsuits. Business owners should thoroughly review employee roles, physical working conditions, and the risks they face while on the job. Include remote and part-time employees in your assessment.
Commercial Auto Insurance
If your business relies on vehicles, personal auto insurance policies are insufficient. Commercial auto insurance is specifically designed to cover accidents, damage, and theft while driving for work purposes. Ensure all persons driving for business purposes are listed on your policy.
Business Interruption Insurance
If a fire, a natural disaster, or even a pandemic stops your business in its tracks, business interruption insurance can help bridge the gap while you are getting back on your feet by covering lost income and operating expenses. To help you gauge how much coverage is adequate, review your operations and determine what expenses would continue during downtime.
Each business has its own unique insurance needs. Our agents are licensed professionals who can help you obtain the right coverage at the best available rates.
Ultimate Spring Checklist for Boat Owners
For boat owners, the arrival of spring is the time to shed the winter coats and your landlocked routine for life vests and the freedom of the open water. Before you set out, it is essential to ensure your boat is ready for the season. Spring is the perfect time to give your vessel a thorough checkup and get it in shape for all your summer adventures. The following checklist can help you get your boat back in the water and ready to enjoy the warmer months.
Inspect the Hull
The hull is your boat’s armor and the first line of defense between you and the open water. Start with a visual inspection, looking for cracks, scratches, or worn areas. After your boat has been sitting idle for months, it is a good idea to clean and wax the hull to protect it for the upcoming year. If you discover any severe damage, get repairs before launching into the season. A small crack can turn into a problem on the water.
Check the Engine and Fuel System
The engine is the beating heart of your vessel. Inspect it carefully for any visible signs of corrosion or wear. Ensure the engine oil levels are good and the oil is not too old. Check the fuel lines and fuel system for leaks or blockages. If you winterize your boat, ensure the battery is in good condition. A dead battery can quickly spoil a day on the water.
Test the Electrical System
You need the lights, horn, and all electronic systems on a watercraft to function correctly. Inspect the electrical system by checking the wiring for any signs of fraying or corrosion. This electrical system evaluation is critical if you use your boat in saltwater. Test the navigation lights, the bilge pump, and any onboard electronics to avoid being caught in the dark or stranded in an emergency.
Inspect the Safety Gear
Make sure life jackets are in good condition and you have enough for everyone on board. Inspect your fire extinguishers, flare kits, and first aid supplies to ensure they are up to date and in good working order. Double-check flares and distress signals to ensure they are not expired. Small investments in safety are more than worth it if something goes awry on the water.
Clean and Organize
A boat can accumulate clutter during the off-season. Take the time to clean and organize the interior. Clean out the bilge, wipe down surfaces, and wash the carpets. These actions can help you maintain your boat and create a more enjoyable environment on the water. Debris from earlier boating adventures should be removed.
Check Your Boat Insurance
Are you covered for your spring adventures? Last but not least, checking your boat insurance policy is essential. Make sure your coverage is up to date and suits your current needs. Whether you have upgraded your boat or want to ensure your policy reflects the latest regulations, a quick review can save you from costly headaches in case of an accident or loss. Our friendly agent is happy to review your policy and coverage needs with you.
The House That Wasn’t Home: Understanding the Coverage You Think You Have
It was supposed to be a fresh start.
When Ashley’s mom passed, she inherited the family home in Denver, NC. The house was filled with memories—birthday parties in the kitchen, her dad’s laughter echoing from the garage, the old swing in the backyard creaking in the wind. But Ashley didn’t live there anymore. She lived two hours away with her husband and newborn daughter.
So she kept the house, thinking maybe one day they’d move back. She paid the taxes, kept the utilities on, and even held onto the same homeowner’s insurance policy her mom had for years.
Then a pipe burst in the upstairs bathroom. Water flooded half the home before a neighbor noticed and called her. When Ashley filed the claim, she was stunned. Denied.
The home had been vacant for over 60 days. That was enough to trigger an exclusion buried in the fine print of her policy—an exclusion that said, quite plainly, that coverage wouldn’t apply if no one was living there for an extended time.
Not All Homes Are Covered the Same
Whether it’s your primary residence, a rental property, or a vacant home waiting for its next chapter, your insurance coverage needs to reflect what’s actually happening inside those walls. Let’s break it down:
🏡 Homeowners Insurance
This is what most people think they need. It covers a home you live in. But if that home sits empty too long, you risk a denial just like Ashley. Even if you’re just between residents or in the middle of renovations—it matters.
🔑 Landlord Insurance
If you’re renting your property out, even to a family member, a homeowner’s policy won’t cut it. A landlord policy adjusts for that risk—because you’re not the one living there, and the coverage shifts accordingly.
🕳️ Vacant Home Insurance
This is your safety net for those in-between stages. Whether it’s on the market, going through probate, or just sitting until you figure things out—vacant home coverage fills in those dangerous gaps.
A Word About “Secondary Homes”
A lot of folks ask, “Can’t I just call it a secondary home?” It sounds easier, right? But that label comes with very specific rules. You can only have one primary home. And if you try to mislabel coverage just to save a few bucks, that’s not just risky—it could be considered insurance fraud.
Here’s the Truth
If you’re paying for insurance, it should actually protect you. But only if it’s written right.
Before you find yourself in Ashley’s shoes—heartbroken, frustrated, and out thousands of dollars—let’s have a real conversation. We’ll break down the fine print, ask the right questions, and make sure your policy matches your reality.
📞 Let’s review your coverage—no pressure, no judgment, just clarity.
When Should Small Business Owners Switch Insurance Companies?
Managing a small business comes with endless challenges—and great rewards. One of the main issues is keeping your overhead as low as possible. The cost of your business insurance should be reviewed yearly—savings could be possible. If you’ve been with the same insurance provider for years, you might assume you’re getting the best deal—but are you? Switching insurance companies can improve coverage, lower costs, and improve customer service. Here’s when and why you should consider changing, especially to an independent agency.
Signs It’s Time to Switch Business Insurance Providers
Poor Claims Experience
If you’ve had trouble processing claims efficiently or received poor customer support during a claim, it may be time to move on. Delays denied claims without clear explanations, or difficulty reaching your provider are all red flags.
Difficult Customer Service
If your insurer is unresponsive or unhelpful, you shouldn’t settle. Good insurance providers offer clear communication, self-service options, and responsive agents who prioritize your needs.
Your Agent Leaves or Retires
If your trusted agent leaves, you might find that the new representative doesn’t offer the same personalized service. If the agent who understood your business was the only thing holding you to an insurance provider that otherwise lacks potential benefits and offerings, this could be a good time to reassess your options.
Increasing Premiums Without Justification
Many large insurance companies apply rate hikes, even if your business has remained low-risk. If you have signed up with one of the biggest insurance companies, they can technically afford to lose your business. A smaller, independent agency may offer more stable pricing and competitive rates.
Lack of Customization
If your business has grown or changed, but your insurance coverage hasn’t evolved, you might be underinsured or paying for unnecessary coverage. Independent agencies often provide more flexible policy options and can respond faster than larger corporations.
Your Insurer Changes Terms
Sometimes, insurance companies change their coverage offerings, exclude certain risks, or stop servicing your industry. If your provider no longer meets your needs, it’s time to explore alternatives quickly.
You Get a Better Recommendation
If another business owner you trust raves about their insurer, it’s worth considering. First-hand experiences can provide valuable insights into a company’s service, pricing, and claims process.
Benefits of Switching to an Independent Agency
Many small business owners assume that sticking with a big-name insurance provider is the safest choice, but independent agencies often provide distinct advantages:
- Lower premiums: Independent agencies typically have lower operating costs, allowing them to pass savings on to their customers.
- Personalized service: Unlike large insurers, independent agents take the time to understand your business and provide customized solutions.
- Greater flexibility: Smaller agencies offer more custom policy options, ensuring you only pay for what you need.
- Faster claims processing: Independent providers often have a reputation for handling claims more efficiently, with less red tape.
- Local expertise: Independent agents understand the risks and regulations affecting your region and industry.
- More stability: Unlike blanket rate increases, smaller insurers adjust pricing based on local market conditions and individual risk assessments.
How to Switch Business Insurance Companies
If you’re considering a switch, follow these steps to ensure a smooth transition:
Step One: Research New Providers
Get quotes from at least three companies and compare coverage, pricing, and customer reviews.
Step Two: Purchase New Coverage Before Cancelling the Old
Avoid any gaps in coverage by ensuring your new policy is active before ending your current one.
Step Three: Notify Your Current Provider
Start the cancellation process. Ask about any penalties, refunds, or outstanding claims.
Step Four: Obtain Proof of Insurance
Ensure you have updated insurance documentation for clients, vendors, landlords, or other necessary parties.
Step Five: Enjoy Better Coverage
Move forward with business operations, knowing you’ve researched and now have the best insurance policy to fit your needs and budget.
Considering Switching Insurance Companies? It’s Worth the Effort.
Switching business insurance providers can seem like a hassle, but it’s worth the effort if you’re paying too much, receiving poor service, or not getting the coverage you need. Independent agencies can offer better pricing, personalized service, and flexible coverage options—making them an excellent alternative to large insurers. If you recognize any warning signs mentioned above, now might be the perfect time to explore new possibilities and secure better protection for your business. Our independent insurance agency prides itself on customer care and satisfaction. Call in to speak to one of our business insurance agents and see how we can improve your coverage today.
The Hidden Costs of Skipping Insurance
This April is the 22nd anniversary of Financial Literacy Month, a time that inspires us to secure our future with sound financial planning, budgeting, saving, and investing. It’s an excellent opportunity to improve your financial education and be more secure in your goals. For example, many people are unaware of the hidden costs of skipping insurance, making them financially vulnerable.
Why Consider the Cost of Insurance in My Financial Planning?
Insurance delivers financial security by providing support during significant loss or danger. The apparent “cost savings” you may think you achieve by going without is often sadly misguided. Without proper insurance, one runs a high risk of financial setbacks.
- High medical bills: Without health insurance, you’re responsible for the full cost of medical treatments, including emergencies, hospital stays, and prescriptions.
- Legal fees: If you’re involved in a car accident or lawsuit and lack proper coverage, you could face significant legal fees.
- Property damage: Without homeowners’ or renter’s insurance, you could pay for repairs or replacements after damage from weather disasters, theft, or accidents you have no way of predicting.
- Loss of income: In the event of an injury or illness, not having disability insurance could leave you without a source of income while you recover.
- Financial burden on family: Without life insurance, your family may struggle with expenses, including debt repayment, funeral costs, and day-to-day living expenses after your death.
- Penalties and fines: Some types of insurance are actually considered mandatory, like health insurance. They can carry penalties for non-compliance with state or federal regulations.
Encouraging Long-Term Financial Stability: Types of Insurance
Getting familiar with the different types of insurance is a good idea. These policies can help you in your time of financial need to ensure long-term economic stability.
Personal Insurance
Health insurance is vital for managing healthcare costs and ensuring access to necessary medical treatments. With the rising cost of medical care, health insurance helps cover doctor visits, hospital stays, prescriptions, and preventive care expenses. It also protects you from high medical bills, ensuring you receive the care you need without devastating financial strain.
Life Insurance
Life insurance offers financial protection for your loved ones in the event of your death. It ensures your family can maintain their lifestyle and cover essential expenses, such as mortgage payments, education, and daily living expenses, even after you’re gone. Life insurance can also help with funeral expenses, reducing the burden on those you leave behind. With various policy options available, life insurance is essential for safeguarding your family’s financial well-being.
Car Insurance: A Legal and Financial Necessity
Car insurance isn’t just a requirement in most states—it’s also a safeguard against costly accidents. Without it, you could be held personally responsible for damages, medical bills, and legal fees. Even if you’re a safe driver, unexpected events like theft or severe weather can leave you with repair costs that far outweigh the price of a monthly premium.
Homeowners and Renters Insurance: Protecting Your Property
A home is one of the biggest financial investments you’ll ever make. Homeowners insurance protects you from disasters like fires, floods, and theft, preventing financial devastation and even homelessness.
If you’re a college student or your child is heading to university for the first time this year, moving into an apartment or dorm carries risks that can be covered by renters insurance. The landlord’s policy does not cover the cost of replacing your personal belongings should they be lost due to theft, fire, or other disaster.
Pet Insurance: Avoiding Unexpected Vet Bills
Owning a pet comes with both love and responsibility. Veterinary care can be expensive, with emergency procedures costing thousands of dollars. A sudden illness or accident could force you to choose between financial hardship and your pet’s well-being without pet insurance. A monthly premium can help cover unexpected medical expenses, giving you peace of mind.
Travel Insurance: Essential for Summer Getaways
Planning a summer vacation in the next few months? Travel insurance can protect you from trip cancellations, lost baggage, and medical emergencies abroad. Without it, a sudden illness, flight cancellation, or lost passport could turn a dream trip into a financial disaster. Travel insurance costs are minimal compared to the potential losses you might face.
Insurance: A Smart Financial Decision
Going without insurance brings financial risks that far outweigh the savings. As we’ve covered today, insurance brings:
- Financial predictability – Helps protect against unexpected costs.
- Peace of mind – Ensures you’re covered in case of emergencies.
- Long-term stability – Prevents significant out-of-pocket expenses that could derail your financial goals.
This Financial Literacy Month, take the time to review your personal insurance policies and ensure you’re adequately covered. A little planning now can save you from major financial setbacks later.
If you want to enroll in new or expanded insurance coverage, contact one of our experienced personal insurance agents for a free consultation today.
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