Is Your Business Really Covered? (Avoid Costly Insurance Mistakes)

In this latest episode of Beyond Your Space Needs, I had the privilege of speaking with Jason Levine of Harry Levine Insurance, a family-owned and operated agency based in Dr. Phillips, Orlando. I’ve known Jason for over 10 years, and he’s been an incredible resource to not only my family but also countless business owners in the area. Today, we discussed the importance of insurance for businesses, how it intersects with commercial real estate, and what Florida-based entrepreneurs need to be mindful of in today’s ever-changing insurance landscape.
Understanding the Basics of Business Insurance
Jason kicked off our conversation by diving into the essential types of insurance every business owner should consider:
- General Liability (GL) Insurance: Covers basic risks like bodily injury or property damage on business premises.
- Workers’ Compensation Insurance: A must-have to protect employees who are injured on the job.
- Property Insurance: Protects your business’ physical assets.
While these are common coverages, Jason highlighted the growing need for more specialized policies, such as Data and Cyber Liability Insurance and Employment Practices Liability Insurance (EPLI), especially as businesses in Florida face increasing risks in these areas.
Why Cyber Liability Insurance is a Game-Changer
As businesses continue to digitize, cybersecurity has become a top concern. Jason shared some shocking stats: the average cost of a data breach can easily reach $250,000, even for small businesses with fewer than 10 employees. Despite this, many business owners mistakenly believe that being PCI-compliant (Payment Card Industry standards) is enough. However, most PCI policies only cover up to $50,000—far below what an actual breach could cost. Jason emphasized that comprehensive cyber liability policies can help mitigate the potentially catastrophic costs of breaches, including identity theft monitoring and public relations support.
The Importance of Employment Practices Liability (EPLI)
Another important area Jason discussed is Employment Practices Liability Insurance (EPLI), which is increasingly vital for Florida business owners. This coverage protects against accusations like wrongful termination, harassment, and discrimination. Jason recounted a story about a restaurant owner who faced a lawsuit from an employee claiming she was owed back wages. Despite being a good employer, this lawsuit led to tens of thousands in legal fees because the owner didn’t have EPLI coverage. With the rising number of employment-related lawsuits, EPLI is quickly becoming a must-have for businesses in every industry.
The Changing Landscape of Florida’s Insurance Market
As Jason pointed out, Florida’s insurance market has undergone significant changes, particularly with the recent tort reform legislation aimed at curbing abusive litigation in personal insurance. The result? We’re starting to see some stabilization in the personal insurance market, which has been prone to skyrocketing premiums. However, business insurance continues to face unique challenges, particularly in areas like commercial property coverage, which has become harder to obtain due to the rising number of claims and catastrophic losses.
Florida is still one of the most expensive states for home insurance, with premiums averaging about $3,500 annually—nearly twice the national average. For business owners, this cost escalation can have a significant impact on their bottom line, making it all the more important to partner with the right insurance advisor to ensure that all bases are covered.
How Soon Should You Secure Insurance When Leasing or Purchasing Property?
When it comes to leasing or purchasing commercial real estate, Jason stressed the importance of planning ahead for your insurance needs. For General Liability Insurance, it’s relatively straightforward and can be set up quickly. But when it comes to property insurance, especially for older buildings or commercial spaces in Florida, you’ll need extra time for inspections and underwriting. Jason recommends starting the insurance process at least 2 weeks in advance of any significant transactions, as some properties—especially those built before 2002—require more detailed scrutiny.
Conclusion: Your Trusted Insurance Team
As Jason so wisely advised, your insurance agent should be an integral part of your team of trusted advisors. Alongside your real estate agent, banker, attorney, and accountant, they should be involved early on in any major business decision, such as purchasing commercial real estate or expanding your business.
If you’re a business owner in Florida, now is the time to ensure your insurance is comprehensive and up-to-date. Protect your business from the unexpected, whether it’s a cyber breach, employee dispute, or property damage.
To learn more or to speak with Jason directly, you can visit Harry Levine Insurance or contact him at 407-855-1000.
Watch the full podcast here: https://youtu.be/SlJzs0UGSbI
Thanks for tuning in to Beyond Your Space Needs! We’ll be back with more valuable insights on commercial real estate, business, and everything in between.