Navigating risks and choosing coverage for business insurance this summer
The right insurance for ice cream and food trucks, camps and special events.
With summer in full swing, businesses like camps, ice cream trucks and special events are at their peak, offering an array of seasonal services and products.
However, summer activities come with unique risks and liabilities that require careful planning and comprehensive insurance coverage. Without the right planning, these businesses risk significant financial repercussions—from accidents to property damage and beyond.
Ice cream and food trucks need protection against vehicle accidents and product liability issues; summer camps face risks like injuries during recreational activities, property damage and liability issues related to campers or camp staff, and festivals and concerts need help with complex logistics and crowd-related risks.
Helping clients find the right insurance coverage mitigates these risks and provides peace of mind, allowing business owners to operate smoothly and safely throughout the summer.
“Despite industry challenges, we can still find markets for these businesses. By understanding clients’ needs and educating them on solutions, we can provide comprehensive coverage and highlight options they may not have considered. Whether they decide to move forward or not, it’s important they never find themselves saying, ‘I wish I knew this existed,’” said Joe Cooney, Trusted Choice independent agent and senior insurance advisor at Coverlink.
Here are three summer businesses that need help navigating challenges this summer:
Ice cream and food trucks
Policies for ice cream and food trucks are designed to provide protection without unnecessary coverage. Insuring ice cream and food trucks can be tricky due to the high risk of accidents, health and safety concerns, and specialized coverage needs.
In addition to standard general liability and commercial property coverage, clients should consider the following:
- Commercial auto insurance: Many states require commercial auto insurance to register a truck for use on the road. It covers accidents, damages and liability related to the vehicle.
- Equipment breakdown insurance: Ice cream and food trucks rely on freezers and other equipment. This insurance helps cover the costs of repairing or replacing broken equipment, minimizing downtime.
- Driver eligibility: Ensuring that drivers meet age and driving record requirements set by insurers can prevent coverage issues and reduce the risk of accidents.
Summer camps
Sports and sleepaway camps often feature high-risk activities. Common claims include heat-related illnesses, injuries from sports activities and property damage from severe weather.
Important coverages to consider include:
- Accident insurance: This provides medical coverage for injuries, such as concussions, sustained by campers during activities.
- Sexual abuse coverage and prevention: The unfortunate reality is that this coverage has to exist and serves an important purpose for when allegations and claims occur. It is usually excluded in a commercial general liability policy, and must be added via endorsement. Further, prevention measures, such as background checks, smart hiring practices and proper staff supervision, are crucial in averting these types of incidents and protecting children.
- Directors & officers insurance: Protects camp leaders from claims related to their managerial decisions, which can include allegations of mismanagement or wrongful doing.
Special events
Concerts, festivals and other events involving multiple vendors, temporary setups, various performers and large crowds present significant risk exposures.
Protections to discuss with your clients include:
- Weather insurance: For any special event, weather insurance is crucial, but can be overlooked. It can cover financial losses due to bad weather, even rain, ensuring that events aren’t financially vulnerable if attendance drops.
- Workplace violence: This is another insurance type that unfortunately has to exist, and serves an important purpose. This coverage should be mentioned to clients as a consideration for events and large gatherings.
- Additional insureds: Ensuring proper documentation and additional insured status for vendors and subcontractors can provide extra protection and streamline the claims process should anything occur.
Key Considerations
Across insurance types, here are key points to address with each client:
- Risk evaluation: Understand the specific risks associated with your client’s business.
- Policy bundling: Inform clients of business owner’s policies (BOP) when appropriate, providing comprehensive general liability and property insurance coverage while saving on premiums.
- Coverage reexamination: As your client’s business grows or changes, ensure their insurance coverage adapts to new risks and higher values of equipment and inventory.
- Rewriting versus canceling: Explain to clients that maintaining continuous coverage is more cost-effective and beneficial in the long term. Seasonal businesses might be tempted to cancel annual policies during the off-season, but these policies cover the full annual exposure. Canceling mid-year can create coverage gaps and complicate future insurance needs.
The power of a knowledgeable and empathetic agent
Agents can be most effective when they comprehend all aspects of the summer business their client is seeking coverage for. By understanding the specific coverages needed for ice cream and food trucks, summer camps and events, business owners can ensure they are protected against potential liabilities, allowing them to focus on delivering enjoyable experiences for their customers.
“A lot of times, small business owners juggle many hats,” added Cooney. “This often leads to neglected areas. It’s crucial to educate them on important insurance aspects, including rates and how oversights can backfire on their business, even with coverage in place.”
As you guide your clients, also crucial is communicating with empathy, as well as going the extra mile in message preparation — which are measures that go a long way in strengthening your client relationships and ultimately helping clients make smart coverage decisions.
By offering such guidance, agents can provide invaluable insights and customized coverage options to ensure businesses are adequately protected during the summer and months ahead.
Carla McGee is AVP of Big “I” Alliance Blue, a Big I member-only market access program. Licensed in property & casualty for over two decades, Carla specializes in commercial lines with concentrations in professional liability, executive risks, cyber liability, and surplus lines. Insurance designations include RPLU and ACSR. Carla.McGee@iiaba.net
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