The 5 Most Common Mistakes People Make When Purchasing Business Insurance
Admittedly, finding the correct type of insurance for your business may not be the
single most important decision you ever make, but it certainly is one of the most important decisions you'll be faced with as a business owner. Failure to have adequate cover in place could lead to consequences you'd rather not want to think about right now.
1. Failing to Realise the Importance of Having the Correct Type of Cover:
Unfortunately this is a very common mistake between business owners, and one which is often unintentional. For example, if you run your business from home, you may well be under the impression that your existing building and contents insurance is good enough. To the contrary, the premises are being used for commercial reasons, and therefore they need to be insured as such.
2. Not Understanding the Basic Issues:
Many business owners simply lack a basic understanding regarding the complexities of business insurance. While certain aspects are relatively simple to understand, others are extremely complex, and unless you have an in-depth understanding of the subject, you'd probably be better off leaving it to a professional to deal with. Yes, buildings and contents insurance will cover your premises and assets against loss or damage, but this is only the tip of the iceberg.
3. Leaving It Too Late:
There are two things which can go wrong if you keep putting it off. For example, your premises and assets could get severely damaged because of a natural disaster, in which case you'll need to pay for all the damages out of your own pocket. The other risk is that you will not have been able to budget for the correct type of cover, and as a result, you could end up being stuck with a policy which is essentially useless to you.
4. Choosing the Wrong Insurance Company:
Many people and particularly those who start their own small business tend to believe it's best if they use the same insurance company they use to insure their home and their car. While there may not be anything wrong with this in some cases, not all insurance companies are capable of providing rock solid commercial insurance. In fact, you need to try and establish whether or not you're insisting provider is experienced in the field of business insurance.
5. Taking out the Incorrect Type of Cover:
This often happens when a business owner chooses to purchase insurance from the wrong provider, because if an insurance company is not experienced in this environment, they will lack the ability to advise you with regards to the correct type of cover in relation to the type of business you run.
One could virtually write an entire book on this subject, and even if you went ahead and read every page, the chances are you would still feel confused. Unless you're absolutely certain that you know what you doing, you may want to get in touch with a professional commercial business insurance provider to ensure your business in properly insured.
by: Tom Jones
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