Rathbun Insurance Blog

Learning, Leading, and Connecting at the Big I Michigan Women in Insurance Conference

Thu, 07 May 2026 14:17:00 GMT

At Rathbun Insurance, we believe one of the best investments we can make is in the continued growth and development of our team. That’s why we were thrilled to send four staff members to the Big I Michigan Women in Insurance Conference this week.

The conference brought together insurance professionals from across the state for a day focused on leadership, learning, networking, and professional development. Attendees participated in sessions designed for agents, carriers, and rising leaders, while also walking away with actionable ideas they could immediately bring back to their agencies and teams.

One of the things we value most at Rathbun Insurance is encouraging our staff to continue their education and remain actively engaged in the insurance industry. Opportunities like this allow our team to step outside of their day-to-day routines, connect with other insurance professionals, exchange ideas, and learn from different perspectives and experiences across the independent agency system. We are proud to support our staff in these opportunities because we know they ultimately strengthen the service and expertise we provide to our clients and community.

A highlight of the conference was the keynote presentation from Robin Shear titled “Messy Joy: Finding Joy Even When Life Isn’t Perfect.” Robin’s message focused on resilience, burnout prevention, meaningful connection, and rediscovering purpose even during challenging seasons. Her energy and authenticity created an inspiring and uplifting experience for attendees.

We also loved seeing a familiar topic reinforced during a session led by Susan Combs, who facilitated a conversation and activity around DiSC® Workstyle Assessments by Wiley. Susan, a professional coach and trainer with more than 25 years of experience, specializes in leadership development, communication, workplace effectiveness, and team dynamics. Her session closely aligned with the DiSC conversations and activities we regularly engage in at Rathbun Insurance as part of our commitment to helping staff better understand themselves and one another.

We are grateful for the opportunity to support our team through experiences like this and proud of the dedicated individuals representing Rathbun Insurance throughout the industry. Conferences like the Women in Insurance Conference remind us how important it is to continue learning, growing, and building relationships that ultimately help us better serve our clients and community.

Welcoming Jessica Hua: Rathbun Insurance Summer Intern 2026

Wed, 06 May 2026 17:18:10 GMT

At Rathbun Insurance, we believe the future of our industry depends on investing in the next generation of leaders. That’s why we’re excited to welcome Jessica Hua as one of our Summer 2026 interns.

Jessica joins us from the University of Michigan’s Stephen M. Ross School of Business, where she is pursuing her Bachelor of Business Administration with a focus on finance. From the moment we reviewed her application, it was clear that Jessica brings a strong combination of leadership, initiative, and a genuine passion for learning.

Throughout her experiences, Jessica has consistently stepped into impactful leadership roles. As President of her high school DECA chapter, she led an organization of more than 80 members, increasing engagement guiding her chapter to record levels of success. Her work as an Event Operations Intern with the Vietnamese Student Association at Michigan highlights her ability to manage logistics, collaborate, and bring creative ideas to life.

We were especially drawn to Jessica’s thoughtful approach to leadership and inclusion. In her role as DEI Chair for Phi Gamma Nu professional business fraternity, she has demonstrated commitment to building environments where people feel welcomed and valued, something that aligns closely with our culture at Rathbun.

This summer, Jessica will participate in our Internship Passport Program, a structured and immersive experience designed to provide a well-rounded understanding of the insurance industry and our agency.

Through the Passport Program, Jessica will rotate through key areas of our business including sales, service, operations, marketing, and carrier relationships. She will participate in real-world learning experiences like client conversations, coverage meetings, and community events, while also gaining exposure to our technology platforms, workflows, and day-to-day operations. Along the way, she will build professional skills through mentorship, networking, and team collaboration, while contributing to meaningful projects that support our business and community initiatives.

The goal of the program is simple. We give interns a “passport” to every corner of our agency so they leave with both knowledge and confidence in how the industry works and where they might fit within it.

We are thrilled to have Jessica join our team this summer. Her energy, leadership experience, and curiosity will be a great addition to our office, and we are excited to support her growth as she begins her professional journey.

Please join us in welcoming Jessica to Rathbun Insurance.

What Is a Fidelity Bond?

Mon, 04 May 2026 12:47:30 GMT

A fidelity bond protects employers from financial loss due to employee dishonesty, fraud and other wrongful acts. It can be used to:

Protect company assets against employee theft
Compensate a customer if an employee steals their property
Reimburse employees if a benefit manager mismanages their retirement funds or other benefits

Although they are a form of insurance, fidelity bonds are written by surety companies. A surety company is different from an insurance company. Insurance agents and brokers place the bonds for their clients, usually for a one-year term that can be renewed annually.

Many businesses have crime insurance for burglary and theft. But crime insurance may not meet legal requirements or provide enough protection if an employee steals from the company. Financial brokerages, cash carriers, security firms, banks and insurance companies are among the industries legally required to have fidelity bonds. Other firms may be required to carry fidelity bonds under contractual agreements with clients.

Types of fidelity bonds

Fidelity bonds usually fall into three main types of coverage:

Standard fidelity or employee dishonesty bonds are designed to cover crimes committed by employees directly against the employer’s business. These policies insure against employee theft and other dishonest acts, including embezzlement, counterfeiting, illegal fund transfers, and computer fraud.
Business services or third-party fidelity bonds cover businesses where employees work at customers' properties. If an employee is convicted of stealing from a customer, a business services bond would cover the loss, subject to the policy's limits. Janitorial services bonds and home health care bonds are good examples.
ERISA bonds are required by the Employee Retirement Income Security Act (ERISA). They cover employers that provide 401(k) and health benefit plans to their workers. Employers must have coverage equal to 10% of the assets they manage, up to $500,000.

Two other types of fidelity bonds are worth noting:

Condo and homeowners association bonds cover an association from dishonest actions by employees, officers, board members or anyone who has access to the association’s funds.
Nonprofit organization bonds cover actions by dishonest employees who gain access to the nonprofit’s funds.

Premiums and coverage

Fidelity bond premiums are based on the type of business you operate, the amount of coverage you plan to buy and how many employees you have. A typical fidelity bond might provide $1 million in coverage, but you can purchase a bond for more or less. For industries and occupations that require fidelity bonds, state or local regulation will dictate the minimum coverage amount.

Coverage is sold on either a blanket or a schedule basis.

A blanket fidelity bond offers the same amount of coverage for all of your employees. A single per-loss limit that applies to all claims.
A schedule fidelity bond lets you choose which employees or types of positions to cover and their level of coverage.

Fidelity bonds also have ductibles. The amount depends on the size of the bond and how much you are willing to self-insure before the surety company pays a claim. A bond may also have a conviction clause, meaning an employee must be convicted in a court of law before the bond will pay a claim.

When you purchase a business services bond, you can advertise that you’re “bonded.” This may be a competitive advantage for your company since it assures your customers that they are protected if one of your employees steals from them.

ERISA bonds

As noted, ERISA requires employers with 401(k) retirement plans to have fidelity bonds. This protects against fraud by employees who administer the plan or handle its funds.

For most ERISA plans, you won’t need more than $500,000 in bond coverage. However, there are two exceptions:

Plans that have employer stock must carry $1 million in coverage.
Plans that hold nonqualifying assets, such as real estate, must be bonded for the greater of either:
- 10% of all plan assets or
- 100% of the value of the nonqualifying assets

ERISA bonds also differ from other fidelity bonds in that they cannot have a deductible.

Preventing employee fraud and dishonesty

You can help prevent fraud and embezzlement by following accounting best practices and instituting security measures. Here are some steps you can take to reduce losses:

Check job applicants' credentials, employment histories and references before hiring them. Conduct background checks for employees who will have access to cash, electronic funds, inventory or high-security information.
Institute dual financial controls. Don’t allow one person to deposit money, write checks and reconcile bank statements. Make sure checks are countersigned.
Limit who can handle cash or has access to secure areas.
Take inventory regularly.
Keep storage areas locked.
Change passwords and building keys whenever an employee leaves. Limit who has access to passwords and periodically change them. Do not leave passwords in the open for anyone to see.
Include written policies against dishonesty and fraud in your employee handbook and enforce those policies.

Instituting some basic controls goes a long way toward reducing the high cost of employee theft and fraud. A fidelity bond can provide an added measure of financial protection if your business falls victim to employee dishonesty. Talk to us about adding a fidelity bond to your business insurance program.

A Stinky Situation: You're Probably Not Covered for Sewer Backups

Mon, 04 May 2026 12:30:23 GMT

Unlike flooding caused by a storm, sewer backups are caused by the obstruction or malfunction of pipes in your home. Standard homeowners policies don't cover sewer backups unless you’ve asked to add sewer backups by endorsement. This coverage isn't as expensive as flood insurance, and it’s valuable if find yourself in a stinky situation.

Tree roots, flash floods and pipe blockages can all contribute to sewage backups. While floods and sewer backups are insured separately, the factors that cause a flood could also cause a sewer backup in your home.

How backups occur

When a flash rain causes the public sewer system to overflow, water has nowhere to go. It may push back into your home and reverse-flow through your sinks, bathtubs, toilets and other pipes. Or tree roots can obstruct the pipes leading away from your house and cause a backup. You’re responsible for the pipes running from your home until they meet the main sewer line. This can be a costly way to find out you have no sewer backup insurance.

What’s the cost of a backup? More than you think

The Federal Emergency Management Agency estimates that just 1 inch of water can cause about $25,000 of damage to your home. If the expense seems overblown, think about the contents of your basement or first floor and how much it would cost to replace them. Then consider how much it would cost to have a professional repair the damage. When the sewer water rushes in, what will you lose?

If you don't act fast, it can cost you

Once sewage is in your home, you have two immediate problems: standing water destroying your home and belongings, and contaminated sewer water creating a toxic environment. You’ll need to clean and dry the area as quickly as possible, before mold sets in. This requires swift action and professional assistance.

Insurance can help reimburse the cost of hiring a professional for cleanup.

A professional is well worth it. You'll have peace of mind that the cleanup is being done properly. It’s also necessary if there’s a clause in your policy requiring you to act swiftly to remediate the issue. If you don’t act fast, your insurance may not pay up.

Everything in your basement adds up

Even if your basement is unfinished and you think the items you store there aren't worth much, consider the value of the basement equipment that makes your house run properly:

Washer and dryer
Water heater
HVAC system and boiler
Water softener

The cost to replace and install these items can easily amount to thousands of dollars.

If you have a finished basement, the cost of a flood could be much higher. You need to add flood coverage by endorsement with limits high enough to cover the cost to rebuild the entire basement, including drywall, paint, flooring and furnishings. That cost is in addition to the usual household equipment mentioned above.

Don’t assume you’re safe because you have flood insurance

Any water that enters your home from the outside is normally considered a flood. If an adjuster determines the water came from inside your home through a backup, your claim under flood insurance will likely be denied.

Contact us

Call us for a rundown of your homeowners coverage. Consider adding sewer backup coverage if you don’t already have it.

Ask about your coverage for cleanup and remediation, and what actions you must take after a flood. Also, make sure your limits are high enough to protect your valuables and rebuild in a worst-case scenario.

Celebrating Impact: Rathbun Insurance Attends 2026 “Shoot for the Stars” Leadership in Education Dinner

Mon, 04 May 2026 12:18:37 GMT

At Rathbun Insurance, we believe that strong communities are built through education, opportunity, and support. That’s why we were proud to have our CEO, Ben Rathbun, and Commercial Account Executive, Cheryl Grimes, attend the 2026 Shoot for the Stars: Leadership in Education Dinner hosted by Communities In Schools of Michigan.

The evening brought together educators, community leaders, and advocates from across the state to celebrate the individuals and organizations making a meaningful difference in students’ lives. The event began with a cocktail hour and networking reception, creating space for connection and collaboration among those committed to educational equity. This was followed by a powerful dinner program that highlighted stories of impact, student success, and the strength of community partnerships.

Communities In Schools of Michigan plays a critical role in ensuring that students have the tools and support they need to succeed. As part of the national Communities In Schools network, the organization works directly inside 62 schools across Michigan. Their model focuses on connecting students with caring adults, educational resources, and community support systems; helping them overcome barriers that may stand in the way of their success.

Through their Integrated Student Supports approach, Student Support Coordinators work alongside volunteers, partners, and school staff to meet the unique needs of each student. This individualized and holistic support allows them to serve entire school communities while focusing additional attention on those facing the greatest challenges.

Funds raised during the evening directly support these vital programs, helping ensure that more students across Michigan can thrive in school and beyond. The need has never been greater, and the impact of coming together as a community has never been more powerful.

We are grateful to be part of a community that shows up, gives back, and invests in the next generation. Together, we are helping build brighter futures for students across Michigan, because at Rathbun Insurance, Being There Matters Most.

What Is Commercial Crime Insurance?

Mon, 04 May 2026 04:00:00 GMT

If you want to protect your business from losses associated with employee crime, you’ll have to go outside your standard commercial property policy.

While theft of items from your business is usually covered under commercial property insurance, employee dishonesty and illicit removal of money and securities aren’t. To insure against these potentially staggering losses, you need commercial crime insurance.

Commercial crime insurance is a broad term. It refers to insurance or bonds that protect companies against dishonest employee actions, computer and fund transfer fraud, forgery and alterations, theft and destruction of money and securities, and employee theft of client property.

Computer fraud is a growing problem

Computer fraud is particularly important for small and midsize companies because criminals are heavily targeting this sector with phishing emails. These social engineering efforts include impersonation of financial managers and other attempts to fool employees into transferring funds to unauthorized people. Standard commercial property insurance does not cover financial losses stemming from these types of attacks.

Commercial crime policy versus fidelity bond

Though the terms “commercial crime policy” and “fidelity bond” are used interchangeably, there may be important differences. A commercial crime policy can help if someone outside of your company steals from you. This could be an embezzler, a burglar, a hacker or a counterfeiter passing bogus currency.

A fidelity bond focuses primarily on your employees. There are multiple types of fidelity bonds that make up commercial crime coverage, and some depend on the type of business you run. For example, financial institutions should obtain bonds designed for the banking or investment sector.

Companies outside the financial sector might be interested in a business services fidelity bond. This type of bond insures against employee theft of customer property. A company that has employees who go to client worksites or handle client assets can benefit from a fidelity bond that covers those workers. Imagine a case where a home therapist is accused of stealing jewelry or an accountant is charged with embezzling client funds.

If your employees stay on your business premises, you might want an employee dishonesty bond. This covers internal employee malfeasance.

Fidelity bonds can be written to cover all your employees. This is called blanket coverage. Or they can be written to cover just those with access to your financial accounts. Talk to us about the number of personnel you wish to cover, because this will affect your cost. It might not be necessary to cover all, or even many, employees. Note that owners, partners, directors and officers of a company are generally prohibited from being insured under a fidelity bond.

A fidelity bond is normally written to cover a set of named perils, such as embezzlement, forgery, etc. You will typically be given a choice of how your coverage is triggered: when the loss is discovered or when the loss is sustained. If your policy is triggered when the loss is discovered, it must be in force at the time of the discovery. If your policy is triggered when the loss is sustained, it must have been in force when the loss occurred.

When to report a loss

Understanding the term “discovery” is important. You don’t need to have all the facts or be able to prove a crime to trigger your coverage. If you become aware of facts that reasonably suggest a loss has happened, that is the time to report it. If legal action is taken against your company or a named insured for actions included in your policy, that also triggers your coverage. If you delay reporting and further crimes are committed, you could forfeit protection.

Understand that a conviction is usually necessary to validate a claim against a crime bond. Without that, the loss might not be covered since the perpetrator won’t have been proven to be a person insured by the bond or policy. Under a commercial crime policy, you may be able to secure coverage to help pay for a forensic expert. They can build a body of proof supporting the loss you are claiming. That is a beneficial component of a policy.

How do you get commercial crime insurance?

Your company can purchase a commercial crime policy or fidelity bond as a stand-alone product or as an addition to a commercial insurance package. Some business owners policies include crime insurance, while others allow you to add it as an option.

We can help you decide which insurer or surety company can best meet your needs. We can also help you secure the right product from a reliable institution.

You will need to consider how a new policy will dovetail with your other commercial coverages. For instance, you may also need an Employee Retirement Income Security Act (ERISA) bond or a fiduciary bond. These protect your company against failures in benefits administration or the handling of financial accounts. You will also want to see how much coverage your commercial property insurance provides for lost, stolen, or destroyed financial instruments, such as cash, checks, or other securities. It is usually minimal, so building that protection out may be advisable.

In the end, successfully protecting your assets will depend on having high-quality insurance and monitoring your financial accounts. While you can't always prevent crime, you can train your employees and institute custody protocols to avoid internal dishonesty.

Celebrating Leadership in Our Community: Ben Rathbun Nominated for Lansing Community’s Choice Awards

Fri, 01 May 2026 12:54:40 GMT

Our CEO, Ben Rathbun, has been nominated for the Lansing Community’s Choice Awards by the Lansing State Journal.

Ben has been nominated in the category of:
• Best Insurance Agent

This nomination is a reflection of Ben’s commitment to serving our clients, supporting our community, and leading with purpose under our guiding belief that “Being There Matters Most.”

What Happens Next:
The next phase is in the hands of the community, and we would be incredibly grateful for your support.

Key Dates and Information:
• Voting Period: May 8 to May 22 (you can vote daily)
• Top Finalists Announced: June 4
• Vote Here: https://yourchoiceawards.com/lansing/

Thank You for Being Part of Our Story!

We are honored to serve a community that continues to support and uplift one another. Whether you have worked directly with Ben, partnered with our team, or simply believe in the power of local businesses making a difference, we thank you.

If you feel called to support, we would love your vote.

Here’s to continuing to show up, serve well, and make an impact together.

Celebrating Culture, Community, and Connection at the Spartan Chinese School Picnic

Wed, 29 Apr 2026 14:20:23 GMT

This past weekend, Rathbun Insurance was proud to be part of something truly special in our community. Our very own Producer, Yuxuan Gao, represented our team by hosting a booth at the annual Michigan State University Spartan Chinese School Picnic, an event we were honored to sponsor this year.

The Spartan Chinese School, also known as the Great Lakes Chinese Center, is a registered 501(c)(3) nonprofit organization with both the IRS and the State of Michigan. What makes this organization especially meaningful is that it is entirely volunteer-led, operated by a dedicated Executive Committee and guided by a Board of Directors who are deeply committed to its mission.

Their vision is powerful and inspiring: to help youth in our local community thrive through high-quality Chinese language education paired with meaningful cultural enrichment experiences.

Their mission brings that vision to life by supporting children from kindergarten through 12th grade, especially heritage language learners, in developing Chinese language skills. Beyond the classroom, they collaborate with Michigan State University and other Greater Lansing organizations to promote cultural understanding and celebrate Chinese heritage.

Yuxuan’s presence at the picnic created a wonderful opportunity for connection. From engaging with families to sharing information about what we do at Rathbun Insurance, it was a chance to build relationships and support an organization that aligns so closely with our values.

At Rathbun Insurance, we believe that being present in our community matters. Supporting events like the Spartan Chinese School Picnic allows us to celebrate the diverse cultures that make Greater Lansing such a vibrant place to live and work.

We’re grateful to Yuxuan for representing our team and to the Spartan Chinese School for the incredible work they do to educate, connect, and uplift our community.

Here’s to continuing to learn from one another and to showing up—because Being There Matters Most.

What Is Ordinance or Law Coverage?

Tue, 28 Apr 2026 20:05:18 GMT

Ordinance or law coverage is a critical addition to your commercial property policy. Today’s municipalities often enact statutes that require building upgrades when making repairs after property damage. Many states with hurricanes or high wind risks have enacted stricter laws or building codes that affect the cost of reconstructing damaged commercial buildings.

You may also have to make changes to comply with the Americans with Disabilities Act (ADA) and “green” building laws. Green building laws require you to upgrade materials and structural systems to new environmental standards.

Building codes change over time, usually making rebuilding more complex and expensive. When a windstorm or fire damages your building, local ordinances can make it more expensive to repair, demolish, or rebuild.

Here are some examples where ordinance or law coverage can help protect you from unexpected rebuilding costs:

After damage to a roof where stricter bracing standards may apply (for example, in Florida or other Southern states)
Where a partial loss occurs but local ordinances require a full roof replacement
When local ordinances require updated accessibility standards under the ADA or the installation of fire suppression systems

Without an ordinance or law endorsement, any of the examples described above could leave you with a large out-of-pocket cost.

How an ordinance or law endorsement protects you

An ordinance or law endorsement has three parts. You can choose one or all three.

Coverage A: undamaged portion of the building

After a partial loss, some municipalities require you to replace the entire roof. But if you don’t have ordinance or law coverage, your insurer will only pay for the damaged portion, and you will have to pay for the rest to comply with the ordinance. For example, if your roof is 25% damaged, the insurer will only pay for that 25%. You’ll have to pay the remaining 75%. This may force you to borrow money or take money from profits that you could have reinvested in your business.

Coverage B: demolition

After a partial loss, your municipality may require you to demolish the entire structure or roof. Your insurance may pay for the covered loss. But you, not your insurer, must pay to demolish the remaining roof or structure. Taking the above example, you’d have to pay to demolish the portion of the roof that was undamaged (75%).

Coverage C: increased costs of construction

After a property loss, building owners often face updated municipal requirements, such as making bathrooms accessible to those with disabilities. Coverage C can help with the cost of adding safety or accessibility items when required by building codes. These might include things like sprinklers, ramps or handrails.

Most commercial property policies exclude the costs of complying with ordinances or laws. Under a common commercial property form, it is the first exclusion on your policy.

Why building codes keep changing

Love them or hate them, building codes incorporate new ways to make properties safer, more accessible and more environmentally friendly. For example, a property built in 1990 before the ADA or one without a sprinkler system would likely be subject to ordinance or law improvements if a loss occurred. Simply repairing the damaged portion of the structure to preloss condition is not an option.

Ordinance or law coverage helps, whether a covered loss destroys your building or only partially damages it. This coverage is not expensive, but it may save you a great deal of money should a covered loss occur.

The best time to learn about coverage restrictions and available adjustments to your insurance is before a loss. We can offer a more in-depth explanation of ordinance or law coverage. In today’s time of rising construction costs, an ordinance or law endorsement is critical for commercial policyholders.

Celebrating the Team Behind the Experience: Administrative Professionals Day at Rathbun Insurance

Tue, 28 Apr 2026 20:03:28 GMT

At Rathbun Insurance, we know that exceptional service doesn’t happen by accident—it’s driven by people who show up every day ready to support our clients and each other. That’s why Administrative Professionals Day is one of our favorite traditions to celebrate.

This year, we continued our annual tradition of recognizing the incredible individuals who keep our agency running smoothly. Our Account Managers, Commercial Account Executives, and our Office Manager/Executive Assistant each arrived to find flowers waiting for them on their desks—a small gesture to start the day with appreciation and gratitude.

From there, the team stepped away from their desks to enjoy lunch together, giving them a well-deserved opportunity to connect, recharge, and celebrate one another.

While they were out, Rathbun Insurance owners and producers stepped in to answer phones and greet walk-in clients, roles our service team fills every single day with consistency, professionalism, and care. It was a meaningful reminder of just how essential their work is to the overall client experience.

Administrative Professionals Day is more than a celebration; it’s a reflection of our core belief that Being There Matters Most. We are grateful for the dedication, attention to detail, and heart our service team brings to Rathbun Insurance each and every day.

To our administrative professionals: thank you for being the backbone of our agency.