Buying business insurance can be very confusing. Thanks in no small part to various myths flying around, which could stand in your way of making the right insurance decision.
Thankfully, insurance isn’t that complex once you have experienced independent representatives to guide you in getting the right coverage. Here are some of the top business insurance myths and the truth about them.
Myth #1. Only big companies need business insurance
This couldn’t be farther from the truth. Our society is very litigious, and people take businesses, small or big, to court. In fact, plaintiffs find small businesses easier to sue. That’s because big companies have the resources to hire an army of lawyers that use legal maneuvers to tie up a case in court for many years.
Also, stats show that about 36 - 53 percent of all small businesses are involved in litigation yearly. So size shouldn’t be a factor when getting business insurance. Instead, consider your risk exposure and get the right insurance.
Myth #2. Your homeowners’ insurance covers your in-home business
Business insurance is necessary for every business owner, even if you are a one-person business operating from home. Your homeowners’ insurance is not meant for and, therefore, inadequate to cover business risks.
Some homeowners’ insurance contains clauses that restrict the use of your home for business activities. While some have a $2500 limit for business equipment coverage. You’ll typically need a businessowners policy, in-home business policy, and endorsement to protect your in-home business. So if you rely on your homeowners’ insurance, you’ll likely have financial losses when incidents and lawsuits occur.
#Myth 3. Business insurance is costly
Far from it. Although business insurance isn’t free, you’ll marvel at how affordable it can be. Depending on several factors, including location, safety training, business value, what you do or sell, amount of coverage you need, deductible, etc., the cost of business insurance may be low or high.
Moreover, business insurance is an extremely small price to pay to protect the company you’ve put your heart and money into building.
#Myth 4. A basic policy is enough to protect you
This may be true for some business owners. However, business risks vary from one business to the other. A policy that’s just right for company A may be grossly inadequate for your company, leaving you exposed to financial losses.
An independent insurance agent can discuss with you to understand your business peculiarities and risk and guide you in choosing a business coverage that works for you at the most competitive pricing.
#Myth 5: You don’t need an insurance agent
You think you know all your needs, and you’ve done all the necessary research to buy the right business insurance policy. Wrong.
Insurance is a highly specialized field. As you’re an expert in your field, so are insurance agents.
Independent insurance agents can spot risks you’re not seeing, protecting you from what may be a huge liability. They can also leverage their solid relationships with top insurance companies to help you compare quotes and even package your policies to help you save money.
Request a quote or call us at 614-789-1891 to find out how best we can protect your business against losses.