Many business owners believe that once they get one insurance policy, they are fully covered for every possible instance that they will encounter. However, nothing could be further from the truth. Some businesses need specialized coverage, or, as insurance policies continue over time, business owners don’t adjust their coverage to account for growth or new circumstances. Below are seven business insurance mistakes that you should avoid or immediately correct.
You don’t have the insurance you need. For some business owners, a general liability policy is all they think they need. For insurance to be truly effective, you should ensure that you are covered up to the amount you need and probable events are not excluded from coverage.
You don’t tell your agent the whole story. Some people believe that by withholding crucial information, they will get a lower price on insurance coverage. The only thing this will do is ensure you get a policy that doesn’t fit your needs. You must tell your agent everything so they can help provide the most appropriate coverage for you.
You don’t keep records and rely on memory instead. When it comes to filing an insurance claim, records are everything. If you don’t keep the necessary records, your claim may turn out to be for less than you need or may be denied. Keeping records will help substantiate your claim of losses and make life easier when you need cash the most.
You don’t read the fine print. Business owners are fastidious about everything related to their businesses, but they sometimes do not read the fine print of insurance contracts. Make sure that you know your coverages limits, insurance exclusions, and everything else. If you see a hole in potential coverage, the best time to address it is before you sign the agreement.
You don’t shop around for the best price. While you never want to sacrifice coverage for price, there’s nothing wrong with trying to get the best coverage for the least expensive price. Losing money for the same coverage only diverts funds that could be used to grow your business.
You don’t look at the value, only at the price. Some insurance quotes will always be the lowest price, but that’s because they are providing less coverage than the competitors. Sometimes, paying even a marginal amount more will guarantee more comprehensive coverage and value, which will benefit your business in the long term.
You renew the same policy every year and aren’t proactive. As your business changes, you might need more coverage for a larger operation. The best plan of action is to reevaluate your insurance needs every year to help ensure that you and your business are protected no matter the incidences that befall you.
Insurance coverage is a vital part of owning a business, and ensuring you’re protected should be a top priority. It is a top priority for me when taking care of my clients. Call me today for an assessment of your current insurance situation and for a review of your current and potential future needs.