12 Types of Insurance Many People and Businesses Don’t Have (But Should)


We all know the saying “expect the unexpected”. When a crisis strikes, whether in personal or professional life, it can have devastating financial consequences for everyone affected. Having secure savings can help, but for individuals and business owners, having comprehensive insurance coverage is also important.

In many situations, whether it’s a business or a family struggling with the sudden illness of a member or a business hit by a cyberattack, having the right insurance in place can facilitate recovery and avoid serious financial hardship. Below, 12 members of Forbes Financial Advisor discuss some often overlooked insurance policies that can help protect your business and personal finances in times of crisis.

1. Professional liability insurance

Employment practices liability insurance is an underrated defensive tool in your arsenal. EPLI protects your business against employee claims such as discrimination, sexual harassment and wrongful dismissal. Most commercial liability policies exclude EPLI claims. Lawsuits against employees are on the rise, and you don’t have to be at fault to incur financial consequences. – David Kelly, Mailprotector

2. Credit insurance

Credit insurance is invaluable. Often, banks will increase their lending base advance rates for trade receivables backed by credit insurance. And in the event of receivables default, credit insurance covers your exposure (subject to policy limits). Credit insurance is invaluable in providing both early access to capital today and, on a rainy day, liquidity financing for potential bad debts. – Matthew Goldston, PKF Texas

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3. Supplementary health insurance

It is not uncommon for individuals and families to have health insurance deductibles and out-of-pocket expenses exceeding $5,000. Auxiliary health cover for events such as critical illness, hospital stays and accidents can provide a lump sum payment in the event of a catastrophic event, helping reduce high upfront costs and providing protection and peace of mind. mind when selecting a high deductible health plan. – Mehb Khoja, BCS Financial

4. Long-term care insurance

Wealth managers need to help their clients prepare for all future risks. We are all living longer. Health care costs are rising exponentially. Long-term care can destroy even a well-thought-out financial plan. To protect clients’ assets, I ask my clients to speak with a long-term care specialist to weigh the options and see what makes the most sense. Some life insurance can also be used for long-term care. – Aviva Pinto, Wealthspire Advisors

5. Personal umbrella insurance

For individuals, personal umbrella insurance is additional insurance that provides protection beyond the existing limits and coverages of other policies. Umbrella insurance extends beyond your home and auto insurance in case you are held liable for more than what your other insurance policies cover. An umbrella policy gives the ability to select a liability limit of over $1 million that protects your assets. – david samuel, DrFirst, Inc.

6. Business Owner Policies

Business owners insurance policies are essential for business owners because they combine three essential coverages: general liability, commercial property and business income. While every business is different and may have unique risk centers that require coverage, BOPs are a great starting point for businesses to protect against most general claims. – Sean Frank, Cloud Equity Group

7. Cyber ​​insurance

Cyber ​​insurance is often overlooked. As our lives move increasingly online, we become more vulnerable to cyberattacks. Cyber ​​insurance can help offset the costs of a data breach, including investigation, notification and credit monitoring services. It can also cover the cost of lawsuits and cyber extortion. Cyber ​​insurance protects businesses and individuals against cybercrime. – Angelo Ciaramello, The funded trader

8. Key Person Insurance

Small businesses often have several key people who are the pulse of the business. This could be the founder, C-suite staff, or even R&D staff. Key man insurance intervenes to cover the company’s losses in the event of death. This insurance gives leaders time to recover from the loss. When determining the value of the policy, remember to factor in the cost of recruiting and lost revenue. – Cynthia Hemingway, Fourlane, Inc.

9. Disability insurance

Disability insurance is important for business owners. You never know when an illness can take you out of your business and prevent you from generating income. Knowing that you have a disability insurance policy to subsidize your income while you’re sick will give you time to recover and possibly prevent you from making financial decisions that could harm your business. – Karla Dennis, Karla Dennis and Associates Inc.

10. Directors’ and Officers’ Liability Insurance

Directors and officers liability insurance is important for founders who also sit on their company’s board of directors. D&O insurance is designed to protect people who are directors or officers of a business against personal loss if they are sued by employees, suppliers, customers, investors or other parts of the organization. – Ben Jen, Ben Jen Holdings SLLC

11. Life insurance

Life insurance is one of the most common ways to protect your family’s finances. When used correctly, it is an excellent tool for mitigating risk and providing financial protection. In the event of an untimely death, your family has time to deal with the loss of a loved one instead of having to spend savings and sell assets (even homes) to cover basic expenses such as funerals. and taxes. – Letitia Berbaum, The Zandbergen Group

12. Business Continuity Insurance

Business continuation insurance protects the financial interests of a business in the event of the death or incapacity for work of an executive. Most small business owners aren’t aware of this, in my experience. Definitely worth considering, especially for those with young children. Individual entrepreneurs should carefully review the terms of these policies as they vary. – Todd Sixt, Strait & Sound Wealth Management LLC



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