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Employers of all sizes continue to face attraction and retention challenges. Successful efforts to win over workers can require significant time and carry high costs, but failing to attract talent or losing existing employees is particularly costly for small businesses. Unfortunately, small businesses often don’t have the excess resources to invest in attraction and retention efforts in today’s labor market, making it difficult to compete with larger organizations. Along with the costs associated with recruiting, hiring and training, attraction and retention struggles can significantly impact workplace operations and culture, especially in a smaller environment. For these reasons, small businesses cannot afford to ignore their attraction and retention efforts.

This article outlines talent challenges faced by small businesses and practical strategies to overcome them.

Attraction and Retention Tips

Economic pressures continue to make it challenging for small businesses to hold on to their best talent and appeal to other top-tier workers. Regardless of size, employers are straining to keep up with workers’ compensation expectations and demands. Furthermore, rising healthcare costs are stressing employees and employers alike. Workers are looking for robust healthcare coverage and affordable and quality care options from their employers, while employers consider ways to move away from cost-shifting to employees. Aside from expense concerns, employers are also experiencing a growing skill gap as many workers join organizations without all the desired skills.

However, there are ways that small businesses can overcome these hurdles in the race for talent. Consider the following attraction and retention strategies:

• Select the right benefits. Health insurance is valued highly by workers. Simply offering health insurance can give small businesses a competitive edge against those that don’t. However, health insurance is just one component to consider as part of a benefits package; small businesses should tailor their benefits offerings to meet the specific demands of current and prospective employees. The best benefits vary for each organization, but they can be used to attract and retain employees. In general, some popular benefits include competitive health insurance, leave benefits, performance benefits, retirement planning and professional development opportunities.
• Embrace technology and generative artificial intelligence (AI) tools. Small businesses often have limited resources for recruiting, hiring, and onboarding practices, so it’s important to be as efficient as possible. Leveraging cost-effective technology, such as applicant tracking systems and digital tools, can help small businesses improve these practices. Generative AI can also help workers spend less time on tedious tasks, such as manual data entry. In turn, employers’ costs may be reduced, and they can focus on finding new employees rather than dealing with time-consuming and tiresome tasks.
• Expand recruitment reach. If an employers isn’t receiving the number of quality candidates they desire, it’s worth strategizing to grow their talent pool. Expanding an organization’s online presence is a good start. This may include creating and maintaining multiple online profiles, posting content regularly and informing prospective workers of job opportunities.
• Focus on developing employees. Attraction and retention challenges aren’t always about bringing enough employees through the doors; today, many small businesses face skills gaps. Recruiting specific skills may close these gaps, but this solution overlooks existing employees. As such, small businesses should consider how they can bridge skills gaps in-house. Some strategies may include providing career pathing plans, creating mentorship programs, offering microlearning workshops to focus on specific skills, or paying for employees to attain certifications or further their education outside the workplace.
• Offer a flexible work environment. Flexible work arrangements, such as work-from-home arrangements and hybrid or flexible schedules (including flex time or days), can help small businesses maintain a competitive edge over employers who don’t offer such flexibility.
• Create a strong workplace culture. Small businesses should aim to foster a desirable workplace. A healthy company culture can help retain employees and, in turn, create an environment that’s attractive to applicants. Many small businesses are currently focusing on creating a strong workplace culture by training managers to identify employee burnout, designate fair workloads and support workers’ needs.

Summary

Like many organizations, small businesses face several challenges with attracting and retaining the employees they need. Fortunately, small businesses can leverage these strategies to help them compete in today’s talent market.

Contact us today for more small business guidance.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

The past few years have seen rapid expansion in artificial intelligence (AI), with many businesses leveraging this technology to automate workflows and administrative tasks, analyze vast amounts of corporate data, and enhance customer service offerings. However, as more businesses integrate AI-powered tool into their operations, this technology is also posing unique exposures.

Complicating matters, many standard commercial insurance policies were written before the widespread adoption of AI. In response, a growing number of insurers have begun updating policy language and, in some cases, introducing certain coverage exclusions for AI-related risks. Consequently, businesses that neglect to review these policy changes could face considerable coverage gaps and unanticipated out-of-pocket losses when claims arise.

This article provides more information on common AI-related exclusions in the commercial insurance landscape and offers associated guidelines for policyholders to keep in mind for renewal.

Common AI-related Exclusions

Exclusions for AI-related risks have emerged across several lines of coverage in the commercial insurance space, including the following:

• Commercial general liability (CGL) – In recent years, many liability policies were largely “silent” on AI-related exposures, making the extent and scope of coverage for such losses relatively ambiguous. Effective January, 2026, the Insurance Services Office (ISO) introduced multiple generative AI exclusion endorsements for its CGL coverage forms. Since most insurers utilize ISO-based forms, carrier adoption is expected to increase steadily throughout the CGL segment. In practice, these endorsements may exclude coverage for third-party bodily injury, property damage, and personal and advertising injury losses stemming from generative AI outputs.
• Professional liability/errors and omissions (E&O) – Alongside the rising prevalence of exclusion endorsements for AI-related risks in the CGL space, the E&O segments has demonstrated some of the most aggressive exclusion activity toward these exposures. In particular, some insurers have introduced broad exclusions that eliminate or significantly restrict coverage for losses tied to AI-powered professional services or advice. This is especially concerning for businesses that leverage AI tools (e.g., chatbots) in client-facing operations.
• Director and officers liability (D&O) – In the D&O space, some insurers have started implementing exclusions for certain AI-related exposures and using more restrictive policy language regarding AI governance risks. One of the top concerns in this segment is claims stemming from AI-washing, in which companies are accused of overstating or otherwise misrepresenting their AI usage or the capabilities of this technology to investors and the general public. As a result, insurers are placing greater scrutiny on AI-related disclosures during the underwriting process, and policy language may continue to evolve to address these risks.
• Fidelity and crime – Standard fidelity and crime policies generally exclude coverage for cyber fraud, particularly for social engineering attacks that involve honest employees being manipulated by cybercriminals into transferring company funds to external accounts. This exclusion also applies to AI-enabled fraud, namely deep-fake plots and business email compromise scams, as these incidents usually don’t qualify as “direct theft” under traditional policy terms. To combat these exposures in the fidelity and crime space, businesses may need to purchase social engineering to fraudulent instruction endorsements. Even then, specific coverage capabilities will depend on the nature of the incident and the type of fraud involved, with some insurers implementing strict sublimits and security requirements.
• Cyber – Unlike other lines of coverage, insurers in the cyber segment are largely affirming rather than excluding claims stemming from AI-driven losses. While businesses may still need to secure endorsements for certain events (e.g., social engineering schemes), standard cyber policies typically cover losses resulting from cybercriminals using malicious AI programs to penetrate corporate networks, expose confidential data or deploy automated ransomware attacks. Nevertheless, cyber insurance does not apply to bodily injury and property damage losses, which could leave businesses with ongoing coverage gaps if their other policies fully exclude AI-related risks.

Guidelines for Policyholders

In light of those evolving exclusions, it’s critical for policyholders to review their coverage before renewal and take steps to prevent potential gaps. Here are some key guidelines to consider:

• Document and disclose AI usage. Businesses should conduct a detailed inventory of their AI usage across their operations, including standalone tools and those embedded within third-party software platforms. This inventory should be well-documented and shared with insurers during the underwriting process. Failure to disclose the full extent of AI usage could give insurers grounds to deny associated claims or rescind coverage moving forward.
• Review policy definitions and limitations. Rather than focusing solely on the declarations page of their policies, businesses should carefully review these documents in full, especially the exclusions section, for AI-related restrictions that might otherwise be missed. Businesses should also note how AI is defined in their policies to determine whether this language is broad enough to cover losses stemming from routine or incidental AI use. When applicable, businesses should request copies of any AI-related endorsements for their CGL, E&O, D&O and other liability policies, thereby ensuring full comprehension of what is and isn’t covered.
• Explore additional coverage options. Businesses should never assume they have sufficient coverage for AI-related exposures just because their cyber policies affirm these losses. Cyber insurance rarely fills other liability coverage gaps, especially for businesses with significant E&O exposures. Businesses struggling to secure adequate protection against AI-related risks under standard commercial policies should consider purchasing specialized AI liability coverage. Yet, it’s worth noting that these offerings are still evolving and remain somewhat limited. In any case, businesses can consult trusted insurance professional to discuss their unique coverage needs.

Conclusion

As AI continues reshaping business operation, its insurance implications grow increasingly complex. Policyholders must proactively review their coverage, disclose AI usage and work with insurance experts to remedy ongoing gaps before they become costly surprises. Staying informed and adaptive is the best defense against future AI-related claims. Contact us today for additional insurance guidance.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

For small business owners, insurance is often treated as an afterthought – a box to check during the early stages of operation and rarely revisited. This mindset, while understandable given the many competing priorities of running a business, can leave companies with significant financial and legal risks. The reality is that an inadequate or poorly structured insurance program can be almost as damaging as having no coverage at all.

As businesses evolve, so do their risks. New employees, expanded services, additional locations and shifting market conditions all have direct implications for the type and level of coverage a business requires. Yet many small business owners continue to operate under the same insurance arrangements year after year, unaware of coverage gaps that may have developed over time.

Insurance is not a static product; it is a dynamic tool that must be actively managed to remain effective. Business owners who take a passive approach to their coverage often find themselves with limited protection precisely when they need their policies to perform. Understanding common insurance mistakes can help small business owners take a more informed and proactive approach to managing their risks.

Here are five of the most common insurance mistakes small businesses make, along with ways to address them.

Mistake #1: Underinsuring Business Assets and Revenue

One of the most prevalent errors small businesses make is insuring their property and equipment for less than its true replacement value. Many business owners base their coverage limits on original purchase prices, failing to account for inflation, asset appreciation or the true cost of replacement in today’s market. Similarly, business interruption insurance is frequently underestimated, leaving companies without adequate income replacement should operations be forced to halt following a covered event. A thorough, regularly updated valuation of all business assets is essential to ensuring coverage reflects actual exposure and that a loss event does not cause major financial fallout.

Mistake #2: Overlooking Liability Risks

General liability insurance provides broad protection, but it is not a comprehensive solution for every business. Many small business owners assume a standard policy covers all liability scenarios, unaware that certain industries carry unique risks that require specialized coverage.

Professional liability (also called errors and omissions), product liability, cyber liability and employment practices liability coverage are just a few examples of policies that may be critical depending on the mature of the business. Each of these represents a distinct category of risk that a general liability policy is typically not designed to address. Failing to identify and secure appropriate coverage can result in denied claim and, in turn, substantial financial and reputational losses.

Mistake #3: Failing to Review and Update Coverage Annually

Business circumstances change, and insurance programs must keep pace. A policy that was appropriate at the time of inception may be wholly inadequate two or three years later. Common triggers for coverage gaps include hiring additional staff, launching new products or services, acquiring new equipment, entering into leases or contracts and expanding into new markets or jurisdictions. Each of these developments has potential implications for the adequacy of existing coverage.

An annual insurance review with a qualified broker ensures that coverage accurately reflects the current state of the business, that policy limits remain appropriate and that no significant exposures have done unaddressed due to changes in operations or growth.

Mistake #4: Prioritizing Price Over Protection

In an effort to manage operations costs, many small business owners default to selecting the lowest-priced insurance option available. While premium affordability is a legitimate consideration for any business, purchasing coverage based on cost alone often means accepting higher deductibles, lower limits or broader policy exclusions. When a claim arises, these trade-offs can result in our-of-pocket costs that far exceed the savings realized on premiums over the policy period.

A well-structured insurance program should be evaluated on the basis of value and comprehensive protection rather than price alone. The true cost of insurance is fully understood only at the time of a claim, which is why it is important to ensure coverage is adequate well before a loss event.

Mistake #5: Not understanding Policy Exclusions

Insurance policies are detailed contracts, and their exclusions are just as important as the coverage they provide. Many business owners are unaware of what their policies do not cover until a claim is denied. Common exclusions related to intentional acts, contractual liability or certain natural disasters can leave businesses in a vulnerable position if not properly understood and, where necessary, supplemented with additional coverage.

It is not sufficient to know that policy exists; business owners have a responsibility to understand its scope and limitations. Reviewing policy terms in detail, with guidance from a knowledgeable broker, is a critical step in building a resilient and well-rounded insurance program.

Key Takeaways

Insurance is not simply a legal or financial formality: it is a foundational component of responsible business management. By recognizing and addressing these common mistakes, small business owners can better protect their operations, their employees and their long-term financial stability. The consequences of inadequate coverage can be severe and, in many cases, irreversible. Partnering with an experienced insurance professional to conduct a comprehensive coverage review is the most effective way to ensure your business is adequately protected against the risks it faces today and those it may encounter in the future.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

Springfield, IL – 6/1/2026 – Dimond Bros. Insurance is pleased to announce that Lee O’Keefe Insurance Agency of Springfield, Illinois, has officially joined Dimond Bros. Insurance, effective June 1, 2026.

This partnership reflects Dimond Bros.’ continued commitment to aligning with agencies that share a strong client-focused philosophy, deep community roots, and a dedication to service excellence.

Lee O’Keefe Insurance Agency brings with it a remarkable legacy spanning more than 90 years. The agency’s history began in 1934 when Kenneth Lee founded the Lee Insurance Agency, focusing primarily on personal insurance products. In the late 1960s, Kenneth’s son, Ron Lee, expanded the agency into commercial lines, establishing a foundation for continued growth and diversification.

The agency continued to evolve with the addition of D. William Collins in 1977 and the acquisition of the locally owned O’Keefe Insurance Agency in 1979. The milestone resulted in the formation of the Lee O’Keefe name, which as become a trusted presence in the Springfield community for decades.

Leadership of the agency transitioned over the years from Ron Lee and Bill Collins to Glenda Richards and Brian Blough, who assumed full ownership and continued the agency’s tradition of excellence, stability, and personalized client service.

Dimond Bros. is proud to welcome the Lee O’Keefe team, including:

• Glenda Richards – Sales Executive
• Brian Blough – Sales Executive
• Mandi Rogers – Sales Executive, Benefits
• Quinn Allen – Sales Executive
• Tammy Lay – Account Executive, Commercial Lines
• Karen Ramsey – Account Executive, Personal Lines

As part of the Dimond Bros. organization, Lee O’Keefe clients will benefit from:

• Access to a broader network of top-rated national and regional insurance carriers
• Expanded resources and enhanced coverage solutions
• Advanced technology and operational support
• Continued personalized service backed by a larger, growth-focused organization

For more information visit: https://dimondbros.client-review.com/lee-okeefe/

About Lee O’Keefe Insurance Agency

Lee O’Keefe Insurance Agency has served the Springfield, Illinois community since 1934. With expertise spanning personal insurance, commercial insurance, and employee benefits, the agency has built a longstanding reputation for trusted guidance, strong client relationships, and exceptional service.

About Dimond Bros. Insurance

Dimond Bros. Insurance is one of the Midwest’s leading independent insurance agencies, providing customized insurance and risk management solutions for individuals, businesses, and communities since 1867. Headquartered in Paris, Illinois, Dimond Bros. has grown to more than 40 locations across Illinois, Indiana, Wisconsin, and South Carolina, with continued expansion into new markets. The company is committed to delivering trusted guidance and exceptional service while maintaining strong local relationships.

Agriculture is evolving rapidly, and drones are one of the main drivers of this change. What once was a novelty – a fun way to take pictures of your fields – has now become a vital business tool. Today’s drones can map fields, scout crops, apply chemicals, monitor livestock, and document storm damage in minutes instead of hours.

However, as drones shift from hobby devices to commercial equipment, the insurance requirements also change. Many farmers unintentionally create coverage gaps without realizing it.

Below is a clear and practical overview of what farmers need to know before flying a drone for business or farm purposes.

Why Drones are Becoming Essential in Agriculture

Farmers are adopting drones because they assist with:

• Crop scouting – detecting stress, disease, and nutrient issues early
• Acreage mapping – quick, accurate measurements for planting and insurance
• Livestock monitoring – checking remote pastures without wasting fuel
• Chemical application – targeted spraying and spreading with precision
• Storm documentation – fast aerial photos for claims and adjusters

These tools save time, cut labor, and enhance decision-making. But they also introduce new liability risks that traditional farm policies don’t automatically cover.

The Three Key Types of Drone Insurance Every Farmer Should Know

When a drone is used for business or farm operations, it’s no longer considered a hobby aircraft. That means you require specialized insurance, not just standard farm liability policy.

Here are the three main coverages every agricultural drone operator should consider.

Physical Damage Coverage (Hull Coverage)

This covers the drone itself – aircraft, batteries, sensors, cameras, and payload systems.

Why it’s important:

• Drones in agriculture often cost $5,000-$40,000+
• They operate in high-risk environments: trees, power lines, wind, dust, chemicals
• A crash is more a question of when than if

Physical damage coverage pays for repairs or replacement, whether the damage results from pilot error, mechanical failure, or environmental factors.

Chemical Liability Coverage

This is crucial for spraying drone (spreading, seeding, or liquid application).

Chemical liability covers:

• Drift
• Misapplication
• Wrong chemical or incorrect rate
• Damage to neighboring crops
• Bodily injury or property damage caused by chemical exposure

Most standard farm policies exclude chemical drift from unmanned aircraft.

Most commercial general liability policies exclude aviation exposures altogether.

So, if a drone applies product incorrectly or drift damages a neighbor’s crops, you need a specific chemical liability endorsement tied to drone operations.

General Liability (Aviation Liability)

This covers bodily injury or property damage caused directly by the drone – not the chemicals.

Examples:

• Drone hits a vehicle
• Drone injures a bystander
• Drone damages a roof during mapping
• Drone causes a fire by hitting power lines

Regular farm liability does not automatically extend to drones.

You need aviation-specific liability coverage to protect your farm.

Don’t Forget: You Need FAA Part 137 for Spray Operations

If you’re applying chemicals with a drone, you must have:

FAA Part 107

• Required for all commercial drone operations.

FAA Part 137

• Required for aerial applications including spraying, spreading, and seeding.

Operating a spray drone without Part 137 can:

• Void insurance coverage
• Lead to FAA fines
• Create legal liability if there’s a drift claim

Insurance providers will ask for:

• Part 107 certificate
• Part 137 operating certificate
• Pilot training documents
• Maintenance logs
• Aircraft registration

If you spray without these, you’re leaving yourself unprotected.

Why This Matters for Farmers

Drones are becoming as common as tractors, but the insurance industry hasn’t fully caught up. Many farmers assume their farm policy covers drones – but most policies exclude:

• Aircraft liability
• Chemical drift
• Aviation operations
• Unmanned aerial systems

A single uncovered claim could cost tens of thousands of dollars.

A Simple Rule for Farmers

If the drone is used for anything related to the farm, treat it like farm equipment with aviation exposure, not a toy.

This article is intended for informational purposes only and is not intended to be exhaustive, nor should any discussion or opinions be construed as professional advice.

By implementing workplace health initiatives, many companies are taking proactive measures to help with decreasing health issues affecting their employees. This is particularly important because of the following:

• The working population is aging, with the national average around 42 years old.
• There is a decreasing number of skilled workers, increasing the number of on-the-job injuries.
• Obesity rates are astronomical and continue to rise.
• There is a steady increase of inactivity among Americans.
• Medical care costs continue to rise.
• There is an increase in stress-related illnesses.
• Approximately 10% of Americans are living with major limitations from chronic conditions, such as diabetes, asthma or thyroid disorders.

Most importantly for risk managers, non-work-related health issues directly increase the risk of work-related injuries.

Getting Employees Healthy

To assist your employees in getting healthy, staying healthy and consequently reduce their risk of a workplace injury or illness:

• Create an employee safety education committee devoted strictly to health problems that correlate with injuries.
• Teach employees how to properly investigate accidents and determine ways in which they could be prevented. This may include the following:
  • Ergonomics evaluations
  • Lift equipment evaluations
• Offer personal health profile screenings for employees to identify their risk factors. This should include screenings for cholesterol, bone density, glucose, body mass index and other essential tests.
• Provide personalized health coaching and self-help materials.
• Offer quarterly corporate challenges to promote weight loss and activity.
• Offer quarterly educational safety and health seminars.
• Consider implementing a cross-promotional safety and health program with your health care provider.
• Provide incentives to employees who fulfill health-related goals, or remain free from injuries for an established amount of time.
• Refer all employees who suffer a work-related injury to the wellness program coordinator for a consultation.
• Incorporate a safety presentation in your wellness seminars.
• Workers’ compensation managers and risk managers should provide health and wellness referrals to injured employees.
• Distribute monthly safety, health and nutrition tips to employees.

For more information and resources on how you can create an effective safety and health program, contact Dimond Bros. Insurance today. This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.