You’ve started a new business, congratulations! Now comes the task of getting business insurance to protect your new venture. There are plenty of insurance companies out there today, and every business owner should have the right policies to protect their business interests. However, due to the sheer number of choices available and the often-confusing technicalities that come with each policy, many business owners end up getting the wrong one.
When the time comes to make a claim, these business owners’ poor judgment makes it impossible for them to get what they need. If you want to avoid this problem, you need to be certain of your decision and avoid a few all-too-common mistakes when getting business insurance.
Here’s a list of some common business insurance mistakes to help you make the best choice:
1. Going for the cheapest policy
When running a business, it’s natural for you to do what you can to save money. While that’s perfectly fine in many cases, there are certain things that you shouldn’t skimp on; one perfect example is your insurance policy.
When you purchase the cheapest policy, that only means one thing—it’s unlikely that you’ll have enough coverage for your business. If you want to get the right business insurance policy, you can reach out to an independent insurance agent to help you find the right policy that provides adequate protection for your business.
2. Not reading the policy
Every insurance policy has important information about coverage limits, deductibles, and policies in terms of reimbursements. That is why it is crucial to read through the fine print before you sign the deal. Skimming the document will not suffice, and it will likely set you up for costly surprises in the future when you need to file a claim.
3. Not getting coverage for potential income losses
What happens to your business when it is closed for repairs or routine maintenance? You won’t be able to operate for a few days, weeks, or even months, leading to a significant loss of steady income. That’s why it pays to have business income coverage when getting business insurance. It will cover such scenarios and will ensure that you’ll have the necessary funds to keep your business afloat until it’s ready to reopen.
4. Not changing insurance companies
Loyalty is a great thing, but if your insurance company is making changes to their terms that you don’t like, there’s nothing wrong with leaving. The same goes if the provider is not meeting your growing needs. If your needs are no longer being satisfied, it’s a good idea to explore other insurance companies to find the policy that will keep your business covered.
5. Getting business insurance that doesn’t meet your customers’ needs
A generic business insurance policy will not give you the coverage that your clients expect. Keep in mind that when it comes to business insurance, it’s more than just the amount you pay for. It’s about the events that the policy can cover. If you lack in coverage, your clients may seek help somewhere else.
Before you get a policy, clarify with the agent the services that you provide to your clients so he or she can give you professional advice on the right type of policy that will suit your needs.
6. Not getting workers’ compensation
Workers’ compensation is valuable to your business, particularly to your employees. You could face serious financial setbacks if you don’t have workers’ compensation should your employees get injured while on the job.
Conclusion
Getting business insurance is vital to your business’s growth and success. Therefore, you need to ensure that your business has enough coverage should unexpected events happen.
If you need help making sure that you choose the best policy for your needs, work with a broker who can guide you through the many insurance policy options available. They will be able to identify the best ways to keep your business protected and clarify any of your concerns.
Find the right insurance broker that will help you in getting business insurance policy that fits with Semel Risk Consultants. Get in touch today to see how we can help.
