Business Insurance Gambles to Avoid
You can afford to take risks on some things. But business insurance isn’t one of them. Too many small business owners make mistakes when setting up their business insurance. Here are three of the most common mistakes you don’t want to gamble on taking. Losing may cost too much.
“Let it ride”: Check with your agent to determine the proper coverage for your company. For example, a home-based business is not covered under homeowners insurance, and a client’s policy doesn’t offer coverage for your contracting business. If you are basing your security on false hopes of coverage, you could lose it all on one bet.
“All in”: It’s true that all businesses need certain basic policies. These include property insurance, liability insurance, business vehicle insurance and workers’ compensation insurance. But don’t view insurance as one-size-fits-all; each business has its own industry-specific risks that may require specialized policies.
“Winning streak”: You have avoided disaster so far. Don’t let this winning streak convince you that you’re invincible. Without proper coverage, your entire business is at risk. Many small businesses don’t recover after a disaster. Ensure you have proper policies in place, and consider business interruption insurance to provide income if your business closes temporarily.
Rather than gamble with your business, seek sound counsel from your insurance provider. Your agent will lead you safely away from gambling with your company, and walk you through the appropriate steps to provide adequate coverage for your business. With extensive insurance knowledge and your best interests in mind, your agent is a sure bet.