(Newswire.net — July 5, 2018) — Business insurance is like a sunscreen: most people don’t understand how important it is until they get burned. Many business owners ignore its importance, and those who have acquired the business insurance might not be fully covered. Giant corporations have employees whose primary responsibility is to make sure that the business is fully insured. However, most small businesses don’t have such employees, or they aren’t aware of the possible risks.
Here are the common insurance gambles that can put your business at risk.
1. Considering a one-size-fits-all business insurance policy
Think again; there are at least four major types of small business insurance that every startup or a giant corporation needs. Liability insurance protects the business owners against lawsuits. Unless your business is based in Texas, you must have employees’ compensation insurance in case a worker gets injured while executing his or her duty.
Your business also needs property insurance. It protects the premises and the inventory, computers and raw materials for your business. Business vehicle insurance covers all the vehicles your business owns. Besides, all industries have unique risks, and your company may need a specific policy depending on the industry. Therefore, you should get an agent who knows your industry very well for guidance when it comes to the acquisition of business insurance.
2. Thinking that your business is covered by another policy
One of the biggest mistakes you, the business owner, can make is assuming that you don’t need insurance coverage. According to Ted Devine, the Dallas-based Insureon’s CEO, most business owners falsely believe that their businesses are probably covered by their customers’ policy or aren’t at risk when a customer leaves. This isn’t true. A customer can show up and sue you months or years later after a transaction or an event.
Never assume that your homeowner’s insurance policy can bill you out. Even if you run a home-based business, the homeowner’s insurance cover can’t protect your business in case you get into legal issues with workers or business litigation. However, depending on the policy, homeowner’s insurance cover can protect your business property in your home.
If you already have an insurance cover for your business, it’s wise to find out if it’s enough. Of course, your company will continue to grow, and you will need more employees and probably larger stock. Besides, you may decide to relocate, invest in the commercial real estate, invest in expensive equipment, or even offer new services. Some of these changes seem insignificant but have a significant impact on your business. It’s always wise to plan a business insurance update for these changes in your business.
3. Thinking your business is invincible
Many entrepreneurs don’t understand the importance of business income or interruption insurance. When a natural disaster strikes, your business may be forced to cease operations for an unspecified amount of time. This will affect your business revenue and also threaten the life of your company.
Insurance isn’t a gamble; it’s an aspect of business protection that must be taken seriously. Before you acquire any small business insurance policy, ensure that it covers all the important elements of your business.