Business owners need to protect their company from the risks present. Even simply opening their doors introduces risk to the business. Business insurance provides the financial protection most companies need.
Yet, there are many misconceptions that stem from obtaining these policies. Business insurance is a complex web of coverage. Many owners don’t take the time to really ensure they have the best possible policy to meet their company’s needs.
Consider these common misconceptions. Do you have the right coverage in place?
Myth 1: BOP is enough
A business owner policy, or BOP, is a basic form of commercial insurance designed to meet the needs of small to medium businesses. However, always customize these policies to meet the needs of your own business.
Think of a BOP only as a base. You and your agent can build upon this policy to minimize risks such liability or property value.
Myth 2: General liability is enough
General liability insurance is one form of financial protection. However, policies often cap this at a certain value.
Most companies today should consider more extensive liability coverage. This may include professional liability insurance or an umbrella plan to offer more advanced protections.
Myth 3: You don’t need interruption coverage
Business interruption insurance can become very important to any business owner that faces a significant downtime due to a covered claim. It can help you to retain employees (by being able to continue to pay them) and help keep vendors happy while you rebuild.
Myth 4: You don’t need commercial auto insurance
Some believe their personal auto insurance is good enough. However, it is possible for your insurer to reject claims if they learn that you used your vehicle for business. It’s best to carry a commercial auto insurance plan to cut risks if you use your vehicle on a routine basis for work.
Myth 5: You don’t need employee practice insurance
More companies need employee practice insurance today need than ever before. It has become more common for employees to file sexual harassment, discrimination, or other types of claims against their employers.
Work with your business insurance agent to ensure you have the right type and amount of coverage. This can make the biggest difference in protecting your company from potential risks. A customized plan keeps your company’s doors open.
Insurance Associates is here for you! We can help you get business insurance to meet your needs. Call us at 888-423-2488 for more information.