Leilani Lopez: Championing Specialized Insurance Solutions for California Businesses
Written by Heather Anderson
Leilani Lopez, CEO of HIFS Inc., brings over 20 years of expertise to the Insurance and Financial Services industry in Walnut Creek, California. Passionate about empowering clients and supporting local businesses, including non-profits and commercial enterprises, Leilani specializes in personalized plans for families, businesses, and retirement. From humble beginnings in 2015 as a captive agency with Nationwide, she and her team transitioned to an independent boutique agency in 2017, unlocking the ability to offer customized insurance plans from various brokers. Leilani's commitment to community and family shines through her work.
Join us as Leilani Lopez shares her journey of transforming HIFS Inc. into a trusted partner for business owners navigating California's challenging insurance market. Discover how her dedication and expertise continue to empower businesses to thrive and safeguard their hard-earned success.
From your experience at Herrera, what foundational advice would you offer to new business owners exploring insurance coverage?
When it comes to new businesses, it can be overwhelming. You're starting this new venture, learning your market, understanding your clients, setting goals, managing employees, and budget—there's a lot on your plate. It's really important to find someone you trust for your risk management. You need to have open conversations about your business goals, concerns, and any potential risks. At Herrera, we work with many new businesses, even those in the idea phase, to identify and mitigate these risks. Find someone knowledgeable who you have good rapport with and who can help guide you through the process.
Are there common insurance checklist items that every business owner should consider, regardless of their industry?
It depends on the type of business, but there are some basics. Knowing your revenue stream, your expenses, and if you have employees are essential. For brick-and-mortar businesses, understanding the property details like the last roof replacement or plumbing update is crucial. For virtual businesses, even without physical interaction, there are liabilities such as advertising injury. It's about understanding where your potential risks lie and ensuring you have the right coverage.
What are some prevailing myths or misconceptions about business insurance that you often encounter?
One common misconception is that once you set up an insurance policy, you’re good indefinitely. Many business owners set up a basic policy when they start and never revisit it, even as their business grows. This can lead to being underinsured. Another myth is thinking certain types of coverage aren’t necessary, like business income coverage, which can be crucial if an unforeseen event halts your operations.
What are some typical coverage areas that businesses frequently miss or underestimate?
Businesses often underestimate the valuation of their building, personal property, and business income. For instance, if a fire destroys your building, having proper business income coverage can be the difference between recovering and going under. It’s also common to overlook the need for specific policies like inland marine for products in transit or non-owned auto coverage if the company uses hired vehicles for business personal vehicles for business.
Do you recall a situation where a business realized perhaps too late that they lacked a crucial coverage?
Another example is a client who opted out of insuring an additional structure on their property despite our advise to include it. When it burned down, they discovered it wasn’t covered, resulting in a significant financial loss. This structure was valued at $300,000, and because they hadn't listed it, there was no way to rebuild it. These situations highlight the importance of regular policy reviews and proper valuation.
“I’m always excited to help businesses protect what they’ve worked hard to build.”
How would you describe the typical client of HIFS, and what common challenges or concerns do they come to you with?
There isn’t a typical client at HIFS because we handle a wide range of businesses, from nonprofits to travel tour operators. Most of our clients are new businesses or specialized businesses that can’t get coverage through standard insurers. They come to us with unique needs and challenges, seeking tailored solutions they can’t find elsewhere.
Do you often find that clients approach you seeking one type of insurance but realize they need something entirely different?
Absolutely. Clients often think they need a simple policy, but as we discuss their business operations, we uncover additional needs. For example, someone might come in for general liability not realizing they actually need a package policy because they have building and personal property to include. Workers comp is another major insurance need in California especially after the recent law requirements. It’s about having thorough conversations to identify all potential risks and ensuring they have adequate comprehensive coverage.
How does HIFS ensure that solutions provided are tailored to their specific needs, not just generic packages?
We start with a detailed consultation where we discuss the client’s business, how they operate, and their future plans. This allows us to identify specific risks and coverage needs. We review their policies annually, typically 30 to 60 days before their policy renewal periods, to ensure they remain adequate as the business evolves. During these reviews, we update any changes in the business, such as new revenue streams, expansions, or changes in operations. By understanding each client's unique situation, we can offer customized solutions that provide the best protection. Additionally, this annual review process helps us maintain a close relationship with our clients, ensuring they feel supported and confident in their coverage.
How do you stay ahead to advise businesses on emerging risks and necessary coverages?
We invest in continuing education and attend industry events and webinars to stay updated on the latest trends and laws. Our team is proactive in reaching out to clients about changes that may affect them. Our client database is categorized by the types of insurance products they have and the industries they operate in, allowing us to provide tailored updates and advice.
For example, in California, the insurance landscape has been significantly impacted by wildfires in recent years. If a client is in a wildfire risk zone, they might be non-renewed by their standard lines insurance. We will request their declarations page, review their current coverages. As other options open up we can offer them a similar quote with a carrier willing to absorb a high wild fire risk, or an excess & surplus lines carrier or non-admitted. In such cases, we help them transition to a California FAIR Plan policy, which provides basic coverage for home replacement but requires an additional policy for liability coverage. This policy is a last resort, offering limited protection, but it’s crucial for those who have no other options.
What should business owners look for when selecting an insurance agency or advisor?
It depends on your business needs. For specialized or growing businesses, working with a boutique agency like HIFS can be beneficial. We offer personalized service and build long-term relationships with our clients. Look for an agency that understands your industry, has a track record of reliability, and provides transparent communication. Building trust and ensuring a good personal fit is essential.
Are most of your clients business owners, or do you take on regular people as well?
We do have a personal lines side of our company, which was our bread and butter when we started in 2015. Most individuals with standard insurance needs can used to get what they need from a 'captive' agency, which represents a single insurance carrier. However, most of our new clients now are business owners. For those who find themselves in these extraordinary circumstances are having to find coverages elsewhere and without a clear direction to go they are looking to networking groups, social media, local advertising pages to get a referral. Having access to a wider range of carrier options with the 50 years of collective experience riding the highs and lows of the industry sets us apart. They might be just starting their business, growing, or needing to fill insurance gaps as they expand. The personal insurance market is currently challenging in California due to recent wildfires, but we continue to support both personal and business clients.
You mentioned the challenges in the personal insurance market. Can you explain the difference between being a captive agent and an independent boutique agency?
Absolutely. When we started in 2015, we were captive agents with Nationwide, meaning we could only sell their products. This setup was great for standard insurance needs, but it limited our ability to offer customized solutions. In 2017, we transitioned to an independent agency. Now, we’re not tied to a single insurance carrier, which allows us to seek out the best policies from various brokers. This independence enables us to specialize and customize insurance plans to fit our clients' unique needs, providing them with the most comprehensive coverage options available.
Since California is experiencing insurance challenges, are your clients mainly in California?
Most of our clients, about 90%, are in California. We are licensed to sell insurance in various states, but the majority of our business is here. We also handle specialized insurances, like force-placed insurance in hurricane-prone states such as Louisiana, Florida, and Georgia, which only covers the property value, not replacement costs. Additionally, we still receive inquiries from across the country for nuanced insurance needs like travel tour operator insurance, thanks to a podcast episode recorded by the previous agency owner years ago. Our clients find us online or through referrals, especially for these specialized insurance needs.
How can businesses be more proactive than reactive when it comes to insurance and risk management?
Businesses should regularly review their insurance policies, update their risk assessments, and stay informed about changes in their industry. Working closely with an insurance advisor to anticipate potential risks and adjust coverage as needed is crucial. Proactive risk management can prevent significant financial losses and ensure business continuity.
How can interested business owners reach out to you for your services?
They can visit our website, herrerainsuranceagency.com, and fill out the contact form, or schedule a consultation through our Calendly link available on the websitee business owners to reach out, even if they’re just curious. We can discuss their needs and see how our services can support their business. Even if we are not a good fit, or their insurance is adequate I am happy to provide an analysis and provide an open honest conversation. I’m always excited to help businesses protect what they’ve worked hard to build.
Connect with Leilani Lopez on her Facebook, Instagram or LinkedIn.
You can also find her on The M List, The Mamahood’s searchable database of mom-recommended resources, or connect and collaborate with Leilani inside of The Club membership for women Founders.