If you’re like a lot of business owners, you might make mistakes when it comes to purchasing business insurance. Protect yourself from costly errors, review the details of your business and insurance to avoid making costly errors.
Common Mistakes to Avoid When You Buy Small Business Insurance
Here are some common mistakes you may be making:
1. You assess your business assets improperly.
Before making any policy decision you need to pinpoint assets like equipment, property and inventory.
2. You fail to compare insurance quotes.
Don’t take the first quote you receive for business insurance. Instead, compare several proposed policies to make sure you’re getting the right insurance at the right price.
3. You buy less coverage than you need.
If you are inadequately insured, you have a lot to lose. If you don’t personally have the money to cover losses, it’s wise to always cover what your assets are worth.
4. You get the wrong coverage.
Talk to an agent to make sure you’re properly covered. Some forgo business interruption coverage, for instance, and then can’t recover when an issue makes it impossible to operate. Find out what coverage is best for you.
5. You choose low deductibles to save money.
Business owners sometimes carry a low deductible because the monthly premiums are lower. However, high deductibles can end up reducing operating costs overall and protect you from catastrophic expenses.
6. You don’t use the right Workers’ Compensation classification codes.
With more than 700 codes for classifying employees for Workers’ Compensation insurance it’s tempting to give all employees the same code just to keep it simple. But with this approach you may end up overpaying for the insurance. Codes help differentiate between levels of physical risk.
7. You don’t update your insurance plans.
Every change in your company is likely to affect an insurance policy. If you move your business, fire an employee, purchase new equipment or expand your business, for instance, you should update the appropriate policies.
Review your insurance coverage to make sure you’re covered where you should be, at adequate levels of protection, and for the best price for your business. Einsurance provides quotes based on business industries so you can easily compare quotes.