17 Apr Top Business Insurance Mistakes to Avoid
Choosing business insurance isn’t something that you do on a whim and a prayer. You shouldn’t hop online or go to your nearest insurance agency and buy the first policy that you come across. This can lead to issues, such as not having adequate coverage or even the right types of coverage. There are many other mistakes that you can make while purchasing business insurance as well.
Wondering what knowledge you’ll need before you start insurance shopping? Here are some of the top mistakes that you’ll definitely want to avoid.
Not Adhering to Legal Regulations
Many states have legal regulations that need to be adhered to when it comes to operating a business. If you don’t have the correct insurance plans in place, you might be operating illegally. This can lead to fines, having to shut down your business, and more. Instead of risking it, take the time to check the regulations in your area to make sure that you have everything covered.
Picking an Inexpensive Policy
Price matters when it comes to insurance policies. You may be tempted to buy the least expensive policy that you can find in order to free up some funds to use elsewhere. This can be a huge mistake though because those cheap policies might not have all of the coverage that you need. There’s nothing worse than having to call in a claim and finding that your equipment or vehicle isn’t covered because your policy has a lot of restrictions.
Not Buying Enough Insurance
There are many things to consider when buying business insurance, such as how much you need your policy to cover. Look at it this way: if a tornado takes out your company’s main building and much of its fleet, how much will it cost to replace or repair all of those things so that you can get up and running again? This is the starting point when it comes to how much insurance you need to have.
Failing to Read Over Your Policy
Always take the time to read over your insurance policy before you sign on the dotted line and make that first payment. There might be terms in there that you don’t understand or legal wording that may prevent your policy from covering what you need it to. By checking your policy first, you’ll be able to ensure that you have the right coverage.
Not Making Any Adjustments as Your Business Grows
It’s very important to adjust the coverage on your insured vehicles, buildings, warehouse stock, and more as things change. After all, your business more than likely started out at one size and then quickly (or through lots of hard work) expanded to another. As it grows, your need for insurance coverage does as well.
Not Asking Questions While Choosing Your Insurance
Never be afraid to ask questions, especially when buying business insurance. It’s important to have all of the facts, and your insurance agent should be willing to go over everything with you in depth. If you’re unsure about something, such as a type of policy, coverage amounts, or even deductibles, just ask. This way, you’re fully informed about everything.
Wondering if you’re currently carrying adequate business insurance? Our knowledgeable team at Spivey Insurance can help review your current coverage or help you set up a new policy. Contact us today.