Business insurance is just as important as providing amazing services and products to your customers because it helps protect your business against all type of losses and incidents. However, buying insurance isn’t easy as buying a new filling cabinet or even laptop.
You have multiple factors to consider and choosing the wrong policy could leave your business protected. Ensure your business isn’t left regretting your business choices by avoiding these common mistakes.
OptingFor Low Deductibles
Low deductibles sound good in theory. But the lower your deductible, the more you pay for business insurance. It’s a trade-off to avoid paying more upfront in the event of a claim. Think back to how many claims you’ve had since starting your business. In most cases. Opting for a higher deductible helps save business money.
While the highestdeductibles mean lower overall premiums, ensure you’re prepared to pay the deductible should you have a claim. You never know what may happen or when. For best results, consider a medium range deductible as it offers you the best value for your money. It’s also more budget friendly. You get a lower premium, but it’seasy to put aside enough money to cover the deductible should the worst happen.
NotCovering Loss Of Income
Mostbusinesses cover their assets and even prepare for lawsuits. However, loss of income is often overlooked. General business policies don’t cover loss of income. They pay for property damage andequipment damage. However, what happens if your business has to shut down for repairs for a month? During that time, you lose thousands or more income.
Plus, you also miss out on potential new customers. It’s difficult to continue paying bills and loans when you have no money coming in. Ensure you buy a policy that covers loss of income if your business has to shut down temporarily. And this is easily done if you take it upon yourself to compare business insurance quotes online.
Carefully review your policy details before buying to ensure you’re getting the coverage you need. Consider working with an agent helps you understand all the fine print. Most importantly, avoid the mistakes above.