Don’t Let a Crisis Derail Your Legacy: A CEO’s Guide to Smart Insurance Coverage
Let's be real—insurance isn't exactly the sexiest topic. But if you're a woman juggling a business, a family, and a million other responsibilities, it's essential. Being underinsured might seem like something that happens to other people. Spoiler alert: It happens to a lot of people—especially busy women running their own businesses.
So, what does it really mean to be underinsured? It's when you don't have enough insurance to fully protect you if life throws a curveball—like a car accident, a house fire, or a major health crisis. It applies to everything from auto to health, homeowners, and life insurance.
But don't worry! We're breaking it down in a way that makes sense, with tips to make sure you're covered and can sleep better at night.
1. Auto Insurance: More Than Just a Legal Requirement
You might think, I've got car insurance. I'm good, right? Maybe not. Being underinsured with auto insurance can leave you in a sticky (and expensive) situation. Here's how:
Low Liability Limits:
Picture this: You're involved in a serious accident, and the damage and medical bills add up to more than your insurance covers. That's when you find out your liability limits are too low. Guess who's on the hook for the extra costs? You.
Pro Tip: Aim for liability coverage that's higher than the state minimum. It might cost a bit more upfront, but it could save you thousands in the long run.
No Coverage for Uninsured/Underinsured Drivers:
About 1 in 8 drivers on the road doesn't have insurance. If one of them hits you, and you don't have uninsured/underinsured motorist coverage, you could end up paying for repairs or medical expenses out of pocket.
Pro Tip: Add uninsured/underinsured motorist coverage to your policy. It's usually affordable and worth every penny.
2. Homeowners or Renters Insurance: Is Your Castle Fully Covered?
Whether you own a home or rent, your living space is your sanctuary. But what if a disaster strikes? Are you fully covered?
Inadequate Coverage for Rebuilding or Replacing:
Let's say a fire damages your home. You assume insurance will cover the cost to rebuild, but your policy only covers a portion of it. Suddenly, you're dipping into savings—or worse, going into debt.
Pro Tip: Review your policy every year. Make sure it reflects the current cost of construction and replacement for your area.
No Coverage for Specific Disasters:
Think floods, earthquakes, or hurricanes. These aren't typically covered by standard homeowners or renters insurance. If you live in a risk-prone area, you might need separate policies.
Pro Tip: If you're unsure, ask your insurance agent about disaster-specific coverage.
3. Life Insurance: Protecting Your Loved Ones
As a business owner, you've got people depending on you—whether it's your kids, your partner, or even employees. Life insurance is one of the best ways to ensure they're taken care of if something happens to you.
Not Enough Death Benefit:
Many women underestimate how much life insurance they need. If your policy wouldn't cover your family's living expenses, debts, or future education costs, you're underinsured.
Pro Tip: A good rule of thumb is to have coverage equal to 10-15 times your annual income. And don't forget to account for any business loans or obligations.
Skipping Life Insurance Altogether:
If you're thinking, I'm young and healthy—I’ll deal with it later, consider this: Life insurance is cheaper when you're younger. Plus, life happens.
Even a small policy is better than none. You can always increase your coverage as your income and responsibilities grow.
We get it—insurance can feel like just another expense. But think of it as an investment in your peace of mind. The right coverage means you can handle life's unexpected twists without derailing your finances or your business.
How to Make Sure You're Covered:
- Review your policies annually. Life changes, and so do your insurance needs. Make it a habit to check your coverage at least once a year.
- Work with an agent you trust. A good insurance agent can help you understand your options and find the right coverage for your needs.
- Don't be afraid to ask questions. Insurance jargon can be confusing. If something doesn't make sense, ask.
- Bundle your policies. Many insurers offer discounts if you bundle home, auto, and business insurance. It's a great way to save money and simplify your life.
As a woman business owner, you already wear a ton of hats—CEO, mom, partner, friend. The last thing you need is to worry about being underinsured. Take the time to review your coverage, make adjustments, and protect the life and business you've worked so hard to build.
Because when you're properly insured, you're not just protecting yourself—you’re protecting everything and everyone that matters most. And that, my friend, is worth every penny.
More about April
I own a Farmers Insurance Agency that I started in 2008. We can insure anything you "can stick a key in" when it comes to auto/home/business/life insurance. I also own a second company called DPX DUI Process Experts which I created in 2012. We offer a concierge free service for clients who have a DUI conviction providing step by step guidance to regain their drivers license. My company connects the client with the mandatory steps such as Alcohol Screening, Traffic Survival School, Ignition Interlock and SR22 needs so they can regain their license. I am passionate about continuing to grow both my Insurance Agency throughout Arizona as well as expand DPX DUI Process experts nationally.