Commercial insurance is meant for a business. It is one of the most important investments a business owner can make, as it can be instrumental in protecting a business from potential loss caused by unforeseen and unfortunate circumstances. Commercial insurance provide coverage against theft, property damage, and liability. It can also provide coverage for business interruption and employee injuries. A business that operates without insurance is at risk of losing money and property in the wake of an unfortunate event. In some situations, a business owner may even place personal money and property at risk by failing to secure adequate coverage. Businesses, like people, need insurance to protect themselves from unforeseen mishaps, but it is also important to understand your requirements as buying a wrong policy for your business could leave you with gaps in coverage. Before you buy a commercial policy, it’s important to determine what your risks are, then find a policy that provides adequate coverage at a competitive price.
Many insurance companies treat business insurance as a commodity which can be easily bought online and as a result many small businesses, especially start-ups, do just that. Although there is no harm with the policies being sold online, it needs to be remembered that commercial insurance can be a very complex area.
Here are 5 common commercial insurance mistakes:
1) Paying too much for business insurance coverage:
Having insurance to cover all the aspects of your business is good, but small business should not pay for more than they actually need. There is no substitute for comparison shopping and it is not advisable to take the first quote you receive. You can save money by combining your coverages into a single business owner’s policy. A business owner’s policy includes:
Property insurance for buildings and contents- this covers fire damage, theft and vandalism.
Business interruption insurance- this pays for the loss of income resulting from anything that disrupts your business. It can also provide money to temporarily relocate.
Liability coverage- this covers your business’s responsibility for any damage or injuries it may cause to others, up to policy limits.
2) Buying the cheapest policy you find:
Business insurance prices vary widely. It depends on the carrier and what coverage you need. You should always compare policy features carefully to make sure the least expensive policy you find doesn’t cut corners on coverage. Saving money on something as important as insurance doesn’t make sense if it leaves you unprotected.
3) Not insuring for liability:
Liability coverage helps you to pay for any financial damages for which you’re found to be legally responsible, up to your policy limits. It also will cover your attorney and court fees. Liability claims provide a support from the things that you or your employees do or fail to do that cause harm to others. Liability policies include coverage for defective products. Don’t skip liability coverage unless you have enough money to pay claims out of your own pocket.
4) Not having the right coverage for your online business:
If your business includes selling products or services over the internet, you face special property and liability risks. In such situation you need coverage for cyber attacks, interruption of service and the theft of customer information from your website database.
5) Not reading your policy details carefully:
Insurance policies cover you for the protection you’ve purchased and nothing more. Before you decide to buy a policy, it is important to read it carefully. It is always good to ask questions if there is anything you don’t understand.
In case you need Commercial Insurance, Condo Insurance, or Earthquake Insurance in California, the insurance experts and professionals can provide you with the right coverage at a price that fits your budget.
Source by Ron Morgan
