It takes hard work, dedication, creativity and persistence to successfully launch a small business, so it makes sense to have the right insurance coverage in place to protect it. In fact, buying business insurance can be one of the most important decisions you make. The right coverage can help prevent unforeseen events from destroying everything you’ve worked so hard to build.
Small business owners often make mistakes in the insurance area. To help you avoid them, some common insurance mistakes business owners make are listed below:
- Thinking that two insurance agents are better than one: It simply isn̵7;t. When you use more than one agent, you set your business up for lost discounts (higher premiums) and potential gaps in coverage. It is better to use an agent for all your business insurance needs.
- Buying Unnecessary Insurance: This is one of the most common mistakes small business owners make – paying for coverage they don’t need. Our insurance company can help you determine what insurance coverage you need and the most economical way to get it.
- Buying only general liability insurance: This can be a serious mistake. Although general liability insurance can protect you from many business risks, it doesn’t cover everything. Work with our knowledgeable insurance agent to evaluate your risks and determine what additional coverage you need.
- Not buying loss of income coverage: Also known as business interruption insurance, this covers the loss of business income in the event of a disaster. Property insurance only covers physical damage should a disaster require you to shut down your business. Loss of income coverage can be added as a rider to your business owner’s policy or business property insurance.
- Not keeping policies up to date: Successful small businesses are constantly expanding and evolving. It is important to review with your agent and update business insurance policies accordingly at least once a year, if not more often.
- Paying too much for business insurance: Always shop around for the insurance on offer to find the best rates available. Our agent will work hard to make sure you have the right business insurance for the lowest premiums available.
It is important to be thorough in drawing up business insurance policies and keep them up to date. Work with just one agent to avoid coverage gaps and take advantage of multi-policy discounts. Regularly, at least once a year, meet with your insurance agent and carefully review your business policies.
If your business is expanding, you may purchase equipment, install new facilities, hire employees, or expand your product or service lines. To protect everything you’ve invested in your business, it’s crucial that your insurance coverage keeps up with the changes. Our agency has the knowledge, experience and connections to advise you on the coverage you need, shop for the best rates and help you make the right business insurance decision.