As a small business owner, you don’t want to spend more money than required on insurance. Remember, business insurance mistakes can affect your premiums. We at Brashears are committed to providing you with the best insurance solutions for your business, and here are six business insurance mistakes to avoid to reduce risks and save money.
1. Not acquiring the Right Insurance for Online Sales
Online sales help increase the revenues of many small businesses. However, flawed products can drag you into costly lawsuits. As a business owner, you need product liability insurance to protect you against lawsuits. Also, having a contingent business income (CBI) insurance can protect you against economic losses caused by third-party business partners.
2. Neglecting to Check Your Business Credit Before Purchasing a Policy
Quite often small business owners don’t know that the insurer may examine their business credit profile during the underwriting process. Bad business credit history may make it more costly or difficult to get the policy you need. Thus, before signing up for any business insurance, check your credit profile to know the status.
3. Purchasing a Cheap Policy Online
Many insurance companies sell policies online, but they may not be the best deal for your company. A lower price may offer you less coverage, even if you think you got a great deal.
It is prudent to seek the help of independent insurance specialists at Brashears because they work for you. They understand insurance terms, limits, exceptions, and exclusions, and they can explain exactly what the policy offers. They can find the best policies for your business at an affordable price, and they are available if you need to file a claim or ask a question.
4. Not Having Loss of Income Coverage
In case your business is forced to shut down due to a natural disaster, you and your employees will be left without an income. So, to protect yourself and your business, get a business interruption or loss of income insurance, particularly if your business is situated in an area predisposed to natural disasters.
5. Not Having Liability Insurance
Many small business owners think that a Corp or LLC will shield them from litigation. However, unforeseen events can occur and may lead to lawsuits, and a lawsuit can be a costly affair that can shut down your business. It is crucial for you as a business owner to obtain the necessary liability insurance for your trade or industry.
6. Neglecting a Cyber Insurance Policy
Cyber insurance shields individual users and businesses from internet-based risks. Its aim is to help businesses alleviate risk exposure by compensating costs attributed to recovery after a cyber attack. Many businesses incur losses due to cyber attacks, and you can prevent your business from becoming a victim of such security breaches by having cyber insurance.
One of the greatest business insurance mistakes you can make as a business owner is denying your business the appropriate insurance cover. There are various types of business insurance out there, and you may not need all of them given the type of business you own. However, when scouting for insurance for your business, talk to knowledgeable insurance agents to determine which policies are appropriate for your business. So, contact us today to get a business insurance quote from our specialists.