Taking calculated risks is part of a good business strategy for millions of small business owners. However, taking a gamble on business insurance can be potentially devastating. For many inexperienced small business owners struggling to juggle their own day-to-day worries, mistakes abound when considering and making decisions on insurance coverage. Some of these mistakes even include going without insurance coverage in the hopes that the business can save money. This often proves to be much more costly in the end than simply having obtained a business insurance policy to begin with. Below are the three most common mistakes that are always losing gambles for your small business, no matter how you roll the dice.
“Let it ride.” Work closely with your insurance agent to determine the optimal coverage for your business no matter where it is based. For example, a home-based business is not covered under a typical homeowners insurance policy that did not take a business into account when it was created, and if you do contract work, any insurance a client may have on their own business will not cover your business. If your security blanket rests on the hope that your business is covered without verifying the specifics of the insurance policy, you may well find out none of your losses are covered, and you will be on the hook for a significant amount of money.
“All in.” Businesses need certain tried-and-true basic policies that they can rely on and refer to. These necessary policies include property insurance, liability insurance, business vehicle insurance and workers’ compensation insurance. However, viewing these basic policies as the only solution could leave your business at risk. A cookie-cutter approach will not help your business, as each business has its own industry-specific risks that may require specialized policies.
“Winning streak.” You may have been lucky and no disaster has befallen your business yet. However, this does not mean that disaster cannot hit your business and that you will continue to live without an accident or other occurrence. You are not invincible. Without sufficient coverage, your business, reputation and future profits are likely at risk. Unfortunately, many small businesses do not survive incidents that lead to large claims. You should ensure you have appropriate business insurance policies in place and, if you haven’t, consider business interruption insurance so you can maintain cash flow even during the most trying of times.
Rather than gamble with your business and fritter away its potential growth, ask our office for any counsel you may need. No question is too insignificant or too complicated. Our insurance experts will prevent you from gambling with your company and walk you through how you can select the best insurance policy for your business in both the short and long term. With extensive insurance knowledge and your best interests in mind, we are a sure bet. Call or email us today. We are always here to help.