Why do business owners need insurance agents?
The business owner might be insured and think they have the right insurance. Do they?
You know plenty of business owners. Some are clients, others are not. Some you know socially, others professionally. Business owners have lots of needs. Where does insurance fit in?
Let’s talk business
Insurance is a complicated product area. The business owner might be insured and think they have the right insurance. Do they? Are they getting the best coverage at the best price?
- Retirement plans. This one’s obvious. You are in the benefits business. They want to offer a good plan to their employees. What do they have now? Are their employees happy with it? How do they know? When is their relationship with the plan provider up for review?
- Health insurance. This is another benefit. It’s so complicated. Employees are often asked to contribute to the cost. I had dinner with a business owner last week who explained he adopted a policy where no employee paid more than 4% of their salary for individual health insurance, 5% if they were buying family coverage. Yes, these subjects come up in casual conversation.
- Key person insurance. The business owner’s wealth is often tied up in the firm they and their partners have built over time. What happens when an owner dies? The heirs will want cash, not illiquid shares! They need a plan for this situation.
- Errors and Omissions. People sue for many reasons. When you join a nonprofit board, “Does the organization have E&O insurance?” is a standard question. It’s another level of protection for shielding board members from personal liability.
- Vehicle insurance. Your small business owner might run errands using their own car. If they are in an accident while returning from a client meeting, their personal insurance carrier is unlikely to say: “We understand. Everyone does it.” They need insurance covering their vehicle for business use.
- Rental property insurance. The business might own units they rent. Your client might not consider themselves “a business” yet own a home or apartment they rent out. This needs insurance coverage.
Let’s get personal
It’s often been said buying insurance is buying peace of mind.
- Life insurance. Whole life is protection while you are young, converting into a savings vehicle as you advance in life. It can even be rolled into an annuity to, produce income in retirement.
- Annuities. Tax deferred growth is generally preferable to growth through investments that are taxed outside that arena. Annuities are often referred to as “personal pensions.” People know Social Security is meant to be a component of retirement income, not the sole source.
- Vehicle insurance. It’s obvious drivers need auto insurance. People also have RVs, motorcycles and boats. These need insuring too.
- Home insurance. It’s often the prospect’s biggest asset. It needs to be protected. This can get complicated with limits of coverage, exclusions and deductibles. It’s worth getting a review.
- Liability insurance. This is peace of mind insurance. There’s always the risk someone might injure themselves of your property. You need protection beyond the limits of your basic policy.
- Mortgage insurance. There are circumstances when the bank might require it. Is this a need your client has?
- Hazard insurance. We hear about floods, wildfires, hurricanes and tornadoes on TV. Often a basic homeowner’s policy doesn’t include this coverage. The need must be identified and the coverage bought separately.
- Long term care insurance. We are getting older and living longer. Many people might find themselves in need of assisted living. It’s not covered my Medicare. LTC insurance is best to buy when you don’t need it, the younger the better.
Business owners have many needs for insurance. They understand about controlling risk and getting peace of mind. You can help.
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