Owning a business requires you to think of lots of details to protect yourself and your company. But there are a few factors you can’t forget about as you operate your company. One such detail is that no matter what kind of business you own, you need business insurance. This might sound obvious, but you’d be surprised how many business owners neglect to get insurance, or they get the wrong coverage when they do buy it. If you want to avoid making any mistakes when it comes to business insurance, check out the most common mistakes business owners make.
- They Don’t Buy Insurance
Some business owners either think they can’t afford insurance or assume they don’t need it. But this line of thinking can actually cause them to lose money in the long run, because they could get shut down or fined if they don’t have any required insurance. And if they don’t have the recommended business insurance, they could be facing bankruptcy after just one lawsuit against their company. After all, even when a business has done nothing wrong and can prove it, defending the company can cost thousands of dollars in legal fees. And if the company loses the lawsuit, the total expenses can add up to millions, which could bankrupt many businesses. Clearly, it’s much more affordable to buy business insurance from the get-go.
- They Don’t Get Business Income Insurance
Maybe you know you need to insure your property in case of a fire, and you know you need general liability insurance in case someone else’s property gets damaged at your business location. But what you might not have considered is how much it could cost you if your business is ever interrupted. For example, if a fire devastates your building and it has to be repaired or rebuilt, you’ll likely have to close for anywhere from weeks to months. If you would have trouble making ends meet during that time, you need business income coverage, which will give you financial support if you temporarily can’t conduct business as usual. Fortunately, you can add this coverage as a rider on any business policy.
- They Assume a Homeowner’s Policy Is Enough
Some business owners who have a home office think they don’t need business insurance because they already have a homeowner’s policy. But if something goes wrong, they might be surprised to find that their policy doesn’t cover them, because this type of insurance doesn’t apply to businesses. So, if a visitor gets hurt at your home, the homeowner’s policy will likely not cover the medical bills. Instead, you would be liable. That’s why you need general liability insurance as one of the types of coverage to have for your business.
- They Don’t Shop Around for Business Insurance
Now that you know you need business insurance, it’s time to do some research. Don’t simply reach out to the nearest insurance company and get a policy today. If you want to make sure you’re getting the coverage you need at the right price, get quotes from a few highly-rated companies, and then compare what you’ll be getting for the price you’ve been quoted. It is possible to get the coverage you need for a premium you can afford.
Knowing these common mistakes should help you avoid making them yourself, improving your chance of getting the right business insurance coverage. If you’re not sure which type of policy you need, contact a few different insurers near you to find out what they recommend and how competitive their pricing is. That way, you can get fully insured for a rate you’re comfortable with.
