Are You Covered

June 2021

Is Your Business Underinsured?
Being Proactive with an Insurance Plan Will Protect Your Investment

How wonderful to once again meet clients face-to-face, attend Chamber of Commerce networking events in person, and make plans to be in the Rodeo Parade! Like so many other businesses, RPM Agency is grateful to fully engage in serving customers and the community.

For many small businesses that navigated the myriad of challenges in 2020, survival was their top priority with little time to consider much else, let alone their insurance coverage. In fact, 75 percent of businesses in the United States are underinsured by 40 percent or more, according to Marshall & Swift/Boeckh insurance analytics. In addition, the Insurance Information Institute reports that nearly 40 percent of small business owners have no insurance at all leaving them vulnerable to risk and perhaps financial ruin as the result of a major loss.

The primary reason so many businesses are uninsured or underinsured is a lack of good information regarding the cost of adequate coverage. If you are a business owner, now is the perfect time to make sure your commercial insurance is providing the coverage you need, especially as your business is poised for growth.

What Insurance Do I Need for My Business?

Small business insurance includes coverages for liability, property damage, commercial auto, worker’s compensation, employment practices liability and professional liability insurance often referred to as errors and omissions. Commercial insurance is designed to protect your company from everyday business operating risks such as personal injury to a visitor to your premises, and property damage due to vandalism, fire, theft, or a weather event.

While there are standard coverages recommended, and some required, for all businesses, there are variations on how commercial insurance policies are constructed. A Business Owner Policy, known as a BOP, is designed to meet the needs of most small businesses and is practical in terms of cost and coverage. A Commercial Policy Package (CPP) is a build-your-own menu of nearly unlimited options. CPPS are especially attractive to businesses that have risks unique to their industry which may necessitate extra protection.

While BOP and CPP packages provide essential coverages, they often do not include workers’ compensation and other crucial liability insurances. Smart business owners understand the importance of adding these policies to their insurance package to ensure they are safeguarded in the event of an unforeseen incident that could severely impact their financial viability.

Providing Coverage as Unique as Your Business Model

When it comes to insurance, one size does not fit all. That’s why RPM Agency works one-on-one with businesses to customize their coverages and to make sure they are protected while also being mindful of their bottom line.

“I really like Michele’s personalized approach,” said RPM client and Alpen Way Chalet owner Lisa Cordova. “She came to our property and walked through every room. She videotaped our belongings to create a record, which gave us peace of mind, especially right after the Elephant Butte fire.”

Having a sense of security is priceless for business owners like Cordova, whose family runs the operation and lives on property. Alpen Way Chalet managed the impact of COVID given that their accommodations are self-contained with full kitchens and living spaces along with private entrances. The Chalet also kept their rooms occupied with essential workers who were their guests during the pandemic. Times were challenging, however Cordova is most excited to see the property at full capacity.

“We are hosting family reunions, wedding guests and folks who want a local escape for a night or two,” said Cordova. “And we continue to be mindful of safe practices, offering check-ins outside on our front porch, using CDC recommended cleaning supplies and offering guests on demand service rather than entering their rooms on a daily basis. We’re adding to our housekeeping staff as well and would love to hire new team members to take on that important, detail-oriented role.”

Attention to detail is one of the reasons that Cordova appreciates working with RPM. “When it was time for us to renew our policy, Michele identified an otherwise easy-to-miss clause that needed to be updated to limit our exposure,” said Cordova. “I appreciate the sense of confidence that she gives me knowing she is looking out for us.”

Cordova also puts a premium on community involvement, quickly engaging in the Evergreen Chamber and Evergreen Downtown Business Association when she moved here from New York. “I also like the way that RPM is involved in the community, just as we strive to be. That’s another reason why RPM has been a good match for us.”

If you are looking for a partner to help you evaluate your business insurance, RPM can design a customized plan to best serve your interests. Remember, commercial insurance is vital for small businesses especially those with limited cash reserves necessary to cover a substantial incident without the assistance of insurance. RPM can be your advocate in navigating your policy choices while respecting your budget and giving you peace of mind so you can focus on growing your business. Learn more at www.rpmagencycom.