If you’re a business owner looking to safeguard and protect your investment, getting commercial insurance should be at the top of your list. However, shopping for insurance can sometimes be tedious, time-consuming, and confusing, particularly for first-time business owners.
While people are trying to juggle their personal life, managing a business, and finding a good insurance provider, they sometimes end up making mistakes that could bite them in the future. To avoid all that, here are some common insurance mistakes that small business owners should be cautious about.
Failing to Read the Terms and Conditions
Reading through the terms and conditions—no matter how long and confusing—is crucial when getting business insurance. Yes, it’s easier to listen to the sales pitch of the insurance marketer, but they don’t always disclose everything pertaining to the insurance products they’re selling. If you’re serious about protecting your business, you need to take time to read the fine print so you know exactly what you’re getting.
Judging Insurance Policies Based on the Price
Since the sole aim of every business is to cut down expenses and maximize profits, most people find cheap insurance policies very enticing. Who wouldn’t want to pay less on their insurance as long as they’re sure of the benefits? Unfortunately, that’s rarely the case.
As much as price is a concern, it is vital that you research the efficiency of the insurance carrier first. Look at their security rating and how effective their claim service is. You should also try asking around and looking for reviews and recommendations from other people about their experience working with a particular insurance carrier.
Withholding Important Information from Your Agent
Insurance agents and underwriters are tasked with finding crucial information about you and your business. They do this to assess the risks associated with your business. Not being forthcoming with essential information can delay the information-gathering process or, worse, leave you with a policy that doesn’t cover all your needs. It’s always best to be honest with details about your business like payroll, your office setup, or the type of products and services you offer.
Paying for Policies That the Business Can Do Without
It’s in the interest of your insurance broker or agent that you get insurance for just about everything. That means you pay more, and they get a bigger cut from you. However, you need to look at the policy you’re getting and make sure you’re only getting what’s necessary for your business. Don’t let insurance policies eat all your profits because you’re putting too much money on small business insurance. Get a reliable broker who can advise you on what’s the best policy to get that’s just enough to cover all your business needs.
Not Reviewing Your Business Insurance
As a responsible business owner, you need to review your policy and see if you need to make any adjustments as your business grows. For instance, moving your business to a new location or acquiring new assets influence the kind of coverage you need. Make sure you meet with your insurance agent on an annual basis to review all the changes.
Conclusion
Small business insurance is another way to safeguard your investment—the one you’ve poured time, energy, and passion into. Ensuring you get insurance with the coverage and terms you need is crucial when the worst case scenario occurs. Fortunately, working with a reliable broker will help you narrow down your choices and help you truly know the ins and outs of a policy before you make a commitment.
Quesurance Group is unlike other insurance companies. Our insurance agency is in the business of helping people more than just having them take out a policy. We help individuals and companies save money and preserve their financial future. Take advantage of our insurance products designed to protect everything that is precious to you. Schedule a free consultation with our agents whenever you need personal or commercial insurance.
