With so many steps in starting and operating a business, you may rush through some of them. One of these steps may be purchasing an insurance plan for your company.
However, this activity is crucial in safeguarding your earnings and reputation. Take the time to do research before you buy and to continually review your coverage to avoid these common mistakes.
1. Not having enough coverage
The biggest mistake you can make is getting a generic policy with the minimum amount of coverage. While this may save you money up front, it will cost you more in the long run. Accidents, disasters and litigation are high risks in running a business, and insurance protects you from the consequences. If you do not have coverage in all areas necessary for your company size and industry, then you will find yourself in financial trouble when a claim or lawsuit arises.
However, you do not have to have every policy, so talking to an agent can help you determine which ones are right for your business. Once you choose your plan, be sure you understand it completely to prevent assuming you have coverage for everything. There are always exclusions and limits.
2. Forgetting to update your policy
As you experience success and growth, your insurance needs will change. Be prompt in updating your policies to avoid insufficient or lack of coverage. Examples of changes include offering new services, hiring more employees or moving to a different location.
3. Accepting denials or low settlements
While insurance is essential and beneficial, providers do not always come through. They are businesses, too, and will do what they can to keep their profits high. If an insurer denies your claim or offers you less compensation than your policy qualifies you for, you do not have to accept it. You can contest the action and present your own evidence. If the problems keep occurring, you should either revise your policy or switch to another provider.