University Insurance Group May 2025 Newsletter

When Business Costs Rise, So Does the Need for Protection:
Why Commercial Insurance Matters Now More Than Ever

Recent talk of rising tariffs has put many business owners on edge—and for good reason. When international trade policies shift, local businesses are often the first to feel the effects. Whether it's higher prices on imported goods, longer wait times for key supplies, or an unexpected hit to your bottom line, these economic ripples can disrupt even the most stable operations.

While you can’t control global policy, you can protect your business from the fallout. That’s where Commercial Insurance becomes more than just a checkbox—it becomes part of your business survival strategy.

Understanding the Tariff Effect

Tariffs are taxes placed on goods imported from other countries. While they’re designed to encourage domestic production, they often come with a cost, especially for small to mid-sized businesses that rely on international materials, components, or finished goods.

Here’s how they can impact your operations:

1. Increased Operating Costs

Imported raw materials, components, and finished products become more expensive. Businesses that depend on these items—such as manufacturers, retailers, or contractors—must either absorb those costs or pass them on to their customers.

Example: A home goods store that imports furniture parts may now pay 15% more on each shipment. That cost either cuts into their profit or leads to higher prices for customers.

2. Supply Chain Disruptions

Tariffs can spark delays in shipments as companies scramble to change suppliers or reroute logistics. These disruptions can slow down production and delivery, resulting in a domino effect that affects your entire operations.

Example: A contractor waiting on specialty materials from overseas may face delays that push back entire projects and potentially lead to client dissatisfaction.

3. Reduced Profit Margins

If businesses can’t raise their prices fast enough, or if customers start turning elsewhere, margins shrink quickly. Lower profit means less cushion for unexpected events.

Example: A small electronics company might struggle to compete with larger competitors who can absorb costs or negotiate bulk discounts with suppliers.

Where Commercial Insurance Comes In

While insurance can’t prevent tariffs, it can protect your business from the additional risks that come with economic pressure:

✅ Business Interruption Coverage

If supply delays bring operations to a halt, this coverage helps recoup lost income and fixed expenses, keeping you afloat while things get back on track.

✅ Property Insurance

As materials become more expensive, your inventory and equipment grow in value. Property coverage helps protect those assets from loss or damage, especially during volatile times.

✅ Liability Insurance

Suppose rising costs prompt you to switch vendors, suppliers, or product offerings. In that case, you may be exposed to new risks—liability insurance steps in to protect you if something goes wrong, like defective products or service delays.

✅ Commercial Auto Coverage

With transportation costs also on the rise, businesses may hold on to delivery or service vehicles longer. Comprehensive auto coverage ensures your vehicles—and your drivers—are protected against accidents, theft, or damage.

Plan Ahead—Even When the Future is Uncertain

Economic policy is beyond your control. But how you respond to it isn’t. Reviewing your Commercial Insurance plan now helps you:

• Identify gaps before they become problems.
  
• Adjust coverage limits to reflect changing costs.
  
• Add protections for new business strategies or expanded operations.
  
  

We’re Here to Help

At times like these, having a trusted insurance partner matters. Whether you’re adjusting to market shifts or simply reviewing your risk management plan, we’re here to make sure your coverage works as hard as you do.



Let’s talk strategy—not just policies.

Insurance Myths That Could Cost You This Summer

As we head into the summer season — filled with travel, graduations, outdoor projects, and more — it's a good time to clear up a few common insurance myths. Believing these could expose you to unexpected risks, just when trying to enjoy the warmer months.

Myth #1: “My Homeowners Insurance covers flood damage.”

Spring rains and early summer storms can lead to flash flooding, but standard homeowners policies don’t cover flood damage. A separate Flood Policy may be worth considering even if you're not in a high-risk zone.

Myth #2: “My Car Insurance covers rental cars everywhere.”

Many people rent vehicles for summer travel, but your auto policy may not extend to rentals outside of the U.S. or cover certain vehicle types. A quick review before your trip can prevent unexpected out-of-pocket expenses.

Myth #3: “My valuables are automatically covered.”

Graduation gifts like watches or jewelry often exceed the standard limits in a Homeowners Policy. If you're giving — or receiving — something valuable this season, ask about scheduling those items for full protection.

Myth #4: “If someone gets hurt at my home this summer, my insurance covers it.”

Backyard barbecues and pool parties are fun, but accidents happen. Your Liability Coverage may help, but it’s important to know what’s excluded, especially if you have items that increase your risk, like a trampoline, pool, or pets.

Summer should be a season of fun, not frustration. If you’re planning a trip, hosting an event, or making a big purchase, let’s connect to ensure your policies are ready for whatever summer brings.

May Article Round-Up

We’ve rounded up several articles from around the web that are particularly helpful this time of year. Enjoy! 

• 31 gifts for the high school grad
• The best bird feeders for your spring backyard
• Simple — and sweet — Mother’s Day ideas
• A spring checklist to help you save where you can

Welcome to Wise-Lee Shared!

Smart answers for your real insurance questions—because Wise-Lee’s always got your back.

For this month's question, Jamie asks: 

“Can commercial insurance really help if my business is affected by supply chain delays?”

Jamie owns a small kitchen cabinet business and imports most of her materials from overseas. When new tariffs hit, prices jumped and shipments slowed down. One large order arrived weeks late, causing her to miss a key installation deadline—and the client canceled the contract.

Thankfully, Jamie had Business Interruption Coverage as part of her commercial insurance. It helped cover her lost income during the delay and gave her breathing room to manage vendor changes and new timelines. Without it, she says, “I probably would’ve had to lay someone off.”

Mark Your Calendar!

May 2: National Life Insurance Day - While National Life Insurance Day might not scream “party,” like other celebrations in May, it’s the perfect time to ensure your coverage is firmly in place. As of January 2024, only about 52% of consumers reported owning life insurance — down from 63% in 2011. This May, review your policies — and reach out if you have questions or want to talk more. 

May 5: Cinco de Mayo - Time to fiesta like there’s no mañana! Want to go all in? Try Cochinita Pibil — a traditional Yucatán slow-roasted pork dish bursting with flavor. Pair it with a margarita, and you’ve got yourself a proper fiesta.

May 11: Mother’s Day - Show the remarkable woman in your life some love with a homemade brunch. Whip up her favorite dishes, add a fresh bouquet, and you’re good to go. (Just leave the kitchen cleaner than you found it.)

May 15: National Chocolate Chip Day - Celebrate with a warm batch of homemade cookies. For a twist, try Alton Brown’s “The Chewy” recipe, which uses bread flour for extra chewiness. 

May 26: Memorial Day - Whether you’re attending a local ceremony, spending time with family, or joining in the moment of remembrance at 3:00 p.m., Memorial Day is a time to honor those who served and deserve our deepest gratitude and respect. Remember, many businesses and offices will be closed in observance, so be sure to plan ahead.

That's all Folks!

Thanks for reading this month's newsletter.
If you have any insurance needs, questions, or concerns, please reach out.

We are here to help.