If you own a business, having a commercial insurance policy in place is a must. Specifically, this type of coverage can protect you from a number of potentially devastating and expensive losses in the event of a disaster or legal dispute. Before you purchase a business insurance policy, however, there are some common mistakes you'll want to be aware of and avoid.
Assuming You Don't Need Coverage
One of the biggest mistakes business owners make regarding business insurance is assuming they don't need it! This is especially common among those who run strictly online business, such as eCommerce stores. Unfortunately, an online business could still be devastated in the event of business interruption, theft of product, or even litigation brought forth by a customer or competitor.
Foregoing Liability Coverage
There are three main coverage types available as part of a business insurance policy. These include property damage, business interruption, and liability. All too often, in an effort to pinch pennies, business owners will make the mistake of foregoing liability coverage. Unfortunately, this can lead to a world of hurt down the road. For example, if a customer slips on a puddle inside your store and decides to sue you for medical expenses, you might be left to fend for yourself without liability coverage.
Going With the Cheapest Policy
While nobody wants to pay more than they have to for the commercial coverage they need, going with the cheapest policy isn't always the best choice. Always take the time to carefully review your coverage, along with the fine print, before selecting a policy. Also make sure that you are covered for at least the total worth of your business (including any brick-and-mortar locations and inventory). Often times, a policy may only appear to be a great deal because the coverage amounts aren't adequate.
Failing to Shop Around Annually
Finally, even once you've chosen your ideal policy, it's a good idea to shop around for new quotes once a year. This will ensure that you're getting the best price for the coverage your business needs. It also doesn't hurt to call your insurance company and make sure you're taking advantage of any discounts or promotional savings for which you may be eligible.
Buying business insurance may not be the most exciting thing in the world, but it's something you'll be glad you did when you're able to enjoy added peace of mind.Share