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Debunk common commercial insurance myths to reveal the truth



There are many misconceptions about commercial insurance, from what it covers to who needs to buy it. As a business owner, it is crucial to have a proper understanding of the policy in order to make an informed decision. Otherwise, you can claim for perils not covered by your insurance.

Here are some common commercial insurance myths debunked:

  1. Commercial insurance is expensive

    One of the main reasons so many business owners choose not to purchase commercial insurance is their perception of its cost. While commercial insurance costs money, it’s a small price to pay to protect your livelihood and a business you̵

    7;ve worked so hard to develop. In addition, the cost is affected by several factors that can be managed with the right cost reduction strategies. Several options can help lower your premiums without sacrificing your peace of mind. A well-rounded insurance policy will keep you safe and protect your business from multiple risks.

  2. Commercial insurance is not required for small businesses

    The notion that small businesses do not require insurance is unfounded. Small businesses require more protection because even one adverse incident can end their business. Similarly, with limited resources and a tight budget, an economic crisis is challenging for them to recover from.

    That’s why commercial insurance is required for every business owner, whether they’re running a team of 5 or 15 or simply a one-person business. For example, if you work as an independent contractor in a high-risk sector such as construction, you need specific insurance to protect you and your clients.

  3. Commercial insurance is all-encompassing

    That’s why commercial insurance is required for every business owner, whether they’re running a team of 5 or 15 or simply a one-person business. For example, if you work as an independent contractor in a high-risk sector such as construction, you need specific insurance to protect you and your clients.

    Given this fact, research your policy carefully to determine what is covered and what is not. It is mandatory to read the fine print!

  4. Home-based business does not require insurance

    Working from home doesn’t mean you can forgo insurance. Your home insurance doesn’t cover your home-based business needs. Home insurance covers the physical construction of your house and other parts of it, while commercial insurance is required to cover business-related risks. This means you need proper coverage if you conduct business at home, hold meetings, or store inventory and supplies there.

  5. You can skip commercial vehicle insurance

    It may seem like a smart idea to use your vehicle for business purposes, and you may think that your auto insurance will protect you in the event of an accident. However, you should be aware that there is no guarantee that you will receive compensation for any damages. To do so, you must notify your insurance company and change the terms of your policy. The insurer may suggest commercial vehicle insurance or extend your current coverage to be protected if an accident occurs while you are at work.

Let us help you get the right commercial insurance

Do you want to buy comprehensive business insurance? Contact our insurance professionals today at Abbate Insurance Associate Inc. We will assess your business-specific risk exposures and tailor coverage accordingly.


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