If you own a business, your priority is keeping it up and running at all costs. To succeed as an entrepreneur, you must be prepared for potential disasters that may strike your company.
Fortunately, numerous insurance policies available to business owners can help mitigate financial risks associated with starting and operating your company. As a business owner, it can be challenging to determine what insurance to carry. Having the correct protection is key to protecting your company.
1. Do Know Your Needs Upfront
Before shopping for insurance policies, sit down and list all potential threats to your business. It will help you determine what types of insurance you should be prioritizing. Your list should include natural disasters, such as fires and floods, and artificial threats, such as cyberattacks.
Take the time to understand how each threat could affect your business. It will help you determine what insurance you should seek to protect yourself. For example, Long Haul trucking insurance provides coverage for property damage or injuries incurred in case of a truck accident.
2. Do Ask for Recommendations When Shopping for Insurance
If you are starting a new business and are shopping around for insurance, reach out to other business owners in your industry who have insurance to see if they can recommend any good agents.
You may also be able to get a recommendation from a business networking group or your local Chamber of Commerce. Consider asking for a referral if you are switching to a new insurance policy.
Your current insurance agent may be able to recommend another company with similar coverage that may be able to give you a better rate.
3. Review Your Current Policy Annually
It's important to check with your insurance agent once a year to ensure your coverage is up to date and that you're not paying too much for it. Insurance policies may change yearly as your company grows, your employees' needs change, or new technologies are developed.
By reviewing your policy annually, you can make sure you're still getting the best coverage possible. If you notice something needs to change, you can often switch to a new policy before your old coverage expires.
4. Don’t Only Buy Insurance Based on a Single Quote
One of the biggest mistakes business owners make when shopping for insurance is basing their decision entirely on a single quote. While a single quote can be helpful when comparing policies from different insurers, it shouldn't be the sole factor in your decision-making process.
Instead, you should speak with a representative from each insurer you're considering to get a better feel for their customer service practices and how their policies work. It will help you get a more accurate picture of which insurer is right for your business.
5. Don’t Assume All Insurance is the Same
While many people view insurance as a one size fits all type of investment, the truth is that each type of insurance policy provides a different level of protection for the business owner. For example, property insurance covers any damages your business’s physical assets may incur.
On the other hand, liability insurance covers any financial damages your company may be responsible for as a result of injuries or damages occurring due to faulty products or services. Understanding the different types of insurance can help you better decide what protection is right for your business.
6. Don’t Rely Solely on Online Reviews When Choosing an Insurer
While online reviews can be helpful in terms of getting a general idea of how other customers feel about a specific insurer, it's important not to put too much stock in what you read. After all, anyone can go online and write a review about any company they've ever used.
It can sometimes skew the results of online reviews, making them less reliable than they appear. Instead of relying solely on online reviews, speak with friends, colleagues and family members who have used specific insurance providers in the past. It can help you get a more accurate picture of each insurer's strengths and weaknesses.
While there are certainly some things you should do when insuring your business, this list of don’ts is equally important. Avoiding these common mistakes will help you get the right insurance to protect yourself and your company against financial losses.