This one goes out to business owners looking for insurance, so let’s start it simple. Getting the right insurance for your business might be the most important decision
you’ll make as a business owner. Having sufficient coverage, versus not having any at all could be disastrous. Perils come in all forms, shapes, and sizes and they could affect your business at any time. When they strike, you do not want to be caught unprotected without the right insurance. Smart business people get smart business insurance while avoiding mistakes. Here are the top 5 mistakes made when getting business insurance.
1. Discounting the importance of business insurance
Businesses large and small have their own reason for getting having, and not having insurance. Some think it might be too costly, while others believe it to be unnecessary. Some even swear that they’re covered by other insurance policies
that they have for their property or for themselves.
What they should take as truth is that having insurance specifically customized for your business is completely necessary. Think about this common scenario for instance: General liability insurance, the
kind of insurance that protects businesses from the costs of lawsuits
resulting from basic damages done to people or property that have even
the slightest contact with what you do. Not having this coverage when
someone decides to throw a lawsuit at you, not matter how small, could cost
you in terms of money and reputation.
2. Not knowing the basic issues
Knowledge is the building block of anything you do. Understanding the different types of coverages offered to you in a business insurance policy is key in protecting what is most important. Some coverages in a good policy will protect your
assets in case they get stolen. Another coverage could also protect you if bad weather
destroys your business property. But there are many more insurance issues that need to be protected for your business.
Again, going back to why having general liability insurance is a good idea: it’s the kind of insurance
those companies engaging in commercial activities get to protect
themselves because people hurt themselves on their premises or one of
their products did damage to someone’s property. Being knowledgeable
about these kinds of coverages will help you get the right
3. Not getting insurance early enough
You’re starting a business? You should already be on the phone with the us. Put it this way, if you don’t get
insurance for your business early enough, two things can happen. Either you’ll
need it before you get it, and you’ll be stuck with paying for the
damages from a storm or a lawsuit yourself, or you won’t have a budget for your start-up for the
proper insurance, leaving you with inadequate coverage. Try not to let either of those things happen. Start thinking about getting insurance very early in the business planning stage, to avoid costly mistakes.
4. Getting the wrong kind of insurance provider
When looking for business insurance, you are going to want to seek professionals who specialize in that field. Take American Insurance Services Agency for example, if general liability insurance is what your looking for, we have have experienced agents fully dedicated, to help provide and guide you with the proper insurance coverage to fit all your needs. We deal with all types of business on a daily basis, so getting you adequately covered for your particular
situation is our top priority.
5. Getting the wrong kind of coverage
Along the same lines of finding a specialized insurance provider, is making sure you get the right coverage you need. When it comes down to it,
you’re the person in charge of making the right business decisions for
your company. Who else knows your business’ best interests besides you? No one, that’s who! That’s why it’s extremely important for you to make
sure you’ve got the right coverage for you and your situation. In the end, it’s you who has to decide if you have the
right kind of coverage for your business.
With that said, avoiding these 5 mistakes will make you a smart business person looking to get smart business insurance – and that’s a smart decision!