Business insurance mistakes you are making

When it comes to your family, you are always keen to ensure everyone has a medical cover.  What about your business? Well, just like your family, it also needs to be protected including the employees, clients and your associates. However, purchasing an insurance cover often seem to be an uphill task and this at times results in mistakes that could permanently ruin your business. Regardless of the insurance costs, you can still choose a quote that meets your needs without making any mistakes. But how can you achieve that? Here are the errors that you should avoid.

Failing to read your policy details

When you purchase an insurance coverage, it only covers the intended needs and nothing extra. It’s crucial to read your policy details carefully to avoid future misunderstandings. If there is anything hard or one that you did not want to be included, ensure to ask a question. Failing to read the policy may result in you incurring additional costs in the future. It will cost you more, or it may be too late to request for changes if you do not read and check if it is the right policy.

Not insuring for liability

As a business owner, you are likely to face financial damage. If you skip liability coverage when purchasing your insurance cover, you are making the biggest mistake. Liability coverage protects you against any financial damages for which you are held responsible. Additionally, it includes court and attorney fees. Liability claims come as a result of the things your workers or you, do that can trigger harm to others. You should skip liability coverage if you only you can pay for claims from your pocket. However, this can be even more costly than insurance itself.

Paying too much for business insurance coverage

While a business insurance policy is necessary for business, it doesn’t mean you should pay more than you should. There is no compensation for extra expenditure. Taking the first quote you receive can mount to paying more money. Alternatively, you can join your coverage into a single business owner policy. This policy includes property insurance for contents and buildings, business interruption insurance, and liability coverage. This can help you to minimize the insurance costs for your business.

Purchasing the wrong insurance

Just like making a wrong decision can be costly, so it is with business insurance. If you buy a wrong insurance cover, then be ready to cover up for the costs not included in your insurance policy. You cannot be a business person, adviser, and consultant at the same time. Therefore you will need someone to advise you on what action to take when it comes to insurance. This is to ensure you purchase the right insurance. For example, it can be wrong to buy business interruption insurance instead of property insurance.

Bottom line

The right way for you to ensure you have the coverage and protection you need is by working with a professional insurance adviser. The adviser can evaluate your needs and then assist you in finding the best insurance package that meets your needs at the right budget.

Business insurance for startups

Once you start a business, you expose yourself to all risks, and this is where an insurance policy comes in. Business insurance is critical in protecting your business interests, workers, and business associates. Even before you make your first profit, your business may be already at risk. One unfortunate event or lawsuit could be enough to destroy your small business and keep you out business completely or for an extended period of time. Lucky you, we are going give you some information on the insurance types that all business startups must have in place as soon as possible.

Property insurance

This kind of insurance protects your business ‘physical assets such as equipment, inventory, buildings, computers, and furnishings from damage or loss in case of man-made disaster. Such disasters include fire, theft. It also covers hailstorm and vandalism. However, mass destruction incidents such as earthquakes and floods are usually not covered under common property insurance policies.

Flood insurance

Floods can take place any time. Heavy downpour often causes floods, but regional development may result in floods which cause loss of property worth millions. It is, therefore, safe to insure your business against floods regardless of where your business is located.  A recent study revealed that almost all small business startups that experience floods fail to reopen.

Business interruption insurance

Whenever a catastrophic event occurs, business operations get disrupted. Your business, in turn, suffers losses because your employees cannot work. Business disruption insurance is therefore ideal for on-location businesses like retail stores. This type of insurance will compensate you for the lost income during the disastrous period so as to help you meet your continuing financial responsibilities for example rent.

General liability insurance

It is mainly referred to as liability insurance, and it covers your business against claims that may come as a result of property damage, injuries, libel or slander. Depending on what your business does, you may want to consider coverage like data breach coverage if you deal with personal information. Liability insurance helps you to cover the legal defense costs.

Workers’ compensation insurance

Depending on where you do your business, most states have a requirement that companies should provide workers’ compensation insurance for their employees. This type of insurance comes in immediately you hire your first employee. It will cover disability and death in the event of such incident. It will also include medical treatment. Regardless of the worker’s performance, he or she should be insured. Claims for example carpal tunnel syndrome could cost you more.

Commercial umbrella insurance

It is sometimes called umbrella liability; its primary purpose is to offer your business additional financial protection from potentially harmful accidents and lawsuits. It serves as a last resort support to other policies completing the possible gaps when other coverages have reached their limits. It may also protect against added liabilities not protected by your other commercial covers.

Bottom line

By having a proper insurance in place, a business can evade financial loss due to a catastrophic event or a lawsuit. If you are a startup business, you should seek advice on the type of insurance for your business.

Business insurance: Why do you need it?

Whether your business is big or a small, it takes time and patience to establish a successful one. Businesses are different, but they are vulnerable to risks like fire and claims for compensation. Even if you have a flourishing business, disaster could strike at any time and force you to close it down. Business insurance may appear costly, but business experts suggest that you have one. Also, you may not see the importance because you think your business is secure; here is why you should consider having one.

Reasons to have business insurance

The insurance needs of every business vary from one company to another, but it offers a broad range of benefits to all sorts of business. If you are still in doubt, check this reasons why you should have business insurance.

The future is unpredictable

If we all knew what the future holds for us, perhaps the world could have been a better place. And so it is with business. The future is unpredictable, and no business owner has an idea of what will happen tomorrow. Natural disasters, lawsuits, and employee injuries strike at any time. It is thus imperative to protect your business against such incidents so you can have a smooth running.

Proves your credibility

No one would like to do business with another business company that is not credible. Having an insurance policy is a confirmation that you are a reputable company that takes safety and health with high regard. It shows that you completely understand your responsibility and you care. An insurance policy makes your clients, as well as employees, feel secure because they are sure of compensation in case something happens to them.

The law requires it

Different countries have different requirements for businesses including protecting your business. The type of insurance you should have depends on your country or state. If you are not aware, you could face fines, criminal or civil penalties for not insuring your business. All these legal penalties could cost you more than you would have spent to have an insurance policy.

Protects your business and employees

Business insurance does not only mean protecting your business, but it also implies protecting your most valuable asset, employees. It rewards when you invest on the protection of your employees. Protected employees have been proven to be more productive than the unsecured. This is another way of protecting your business against liability claims.

Keeps your business running

Disasters like flood and earthquake may strike any time. Does it mean you will close down your entire business? An insurance policy supports your business during such a rough and unpredictable time so you can come out of it successfully. It can compensate you and the employees depending on the type of insurance policy.


It is thus worth mentioning that with the right business insurance business owners can get a peace of mind and direct their concentration on what they do best; operating a useful, cost-effective and personally rewarding business for many years.