Roughly 60% of Americans have a type of life insurance. Even so, business insurance is equally important. Owning a business in the 21st century can be like a minefield filled with explosive mistakes and missteps. You might not realize when overlooking important obligations or overspending in given areas. Purchasing the correct insurance type is a must-have for any business owner. However, pinpointing the best business insurance Venice FL has to offer can be an uphill task due to the many options available. Sadly, many business owners end up regretting after rushing into signing up for commercial insurance. Discussed below are common mistakes that business owners make.
1. Opting for the Cheapest Policy
Be it auto insurance or business insurance, we all want to save an extra dime in today’s harsh economy. However, choosing the cheapest insurance for businesses could cost you more down the line. A cheap policy comes with the risk of not having enough coverage should the need to file a claim arise.
The best way to save money is by working with an independent insurance agent. Independent agents are in a position to get several quotes as well as offer professional guidance on local requirements. Therefore, discussing your unique business insurance needs with an independent agent will help know the best option.
2. Failure to Read and Understand the Policy
From the life insurance to auto insurance Venice FL offers, all insurance policies contain crucial information. These include refund policies, deductibles, and coverage limits. Although the policy might seem an expansive document, reading it gives you a clear picture of what you’re getting yourself into. Skimming through the policy might shock you when filing a claim.
Reading the policy means that the insurance agent will answer any question(s) you might have. You might even note that the policy doesn’t cover certain losses. Therefore, you will ask for additional coverage to fill any gaps.
3. Not Insuring Potential Income Losses
Business owners view disaster as a situation whereby physical assets are at risk. Your business will most likely suffer income loss due to downtime after sustaining damages. Income loss can be a big setback should you have to close doors for repair purposes. Without business insurance coverage, getting back on your feet might be arduous or perhaps impossible.
To prevent this, talk to your preferred insurance firm about business income coverage. Having this coverage means that the insurance company will reimburse lost income should damage force you to close down. There is also the possibility of expenses such as electricity bills and rent getting paid. With such cushioning, you’ll be back in business soon enough as though nothing happened.
4. Sticking to One Insurer for Many Years
Working with an insurance agent who has always offered quality services for years should be your priority. However, there are times when business owners stick to one insurer even when at a disadvantage. Making a change is wise in case your insurance firm starts changing in a manner that does not meet your business needs.
Asking yourself a few questions will help assess if your current insurance company is the best. They include:
- Is quality reducing as monthly premiums increase?
- Is your insurer somewhat not interested in your type of business?
- Are their services outdated
If your answer to these questions is yes, now is the best time to shop for a new insurance company ready to address your needs.
5. Failure to Make Insurance Adjustments despite Business Growth
Now that business insurance keeps losses at bay, your policy is something that needs reviewing from time to time. Your business’s value is likely not where it was a few years ago, right? Your insurance needs to reflect the change.
In order to have your business at par with its insurance needs, always keep your insurer updated about your company. For instance, inform the insurance agent whenever you buy new vehicles, hire new employees, or expand your business. Don’t hesitate to adjust your policy should such changes arise.
6. Overlooking Employees’ Compensation
Employees are an integral part of your business and overlooking their safety is a step in the wrong direction. Thanks to business insurance, it’s possible to even cover leased employees or contractors today. The lack of workers’ insurance cover can dent your business after compensating injured employees.