5 Common Insurance Mistakes of Business Owners

Business owners tend to look at every possible way to trim the budget without risking the value and safety of the businesses. Running a business might increase the reputational and financial risk of the company, so it’s necessary to protect the market and the employees. However, some mistakes cost business owners to pay a lot for their business insurance.

Thinking They Don’t Need Business Insurance
Business owners often believe that there’s no need for business insurance because either the local business is small, or an online shop that doesn’t have a physical store. Despite those, small business is not free from any liability and property damage. Also, without business insurance, small entrepreneurs might pay out-of-pocket legal claims and property damage cost.

Misidentifying the Workers
Business insurance mostly includes Workers’ Compensation Insurance, and the cost of it depends on the employee classification codes. Using the wrong classification for the workers results in using the same system for all of them, thus paying more than what you should. The logic of the classification of modes is some jobs are high on risk than others. 

Insurance Plans are Not Updated
Update the insurance plans whenever there are changes in the business, such as moving to a new location and hiring new employees. Policies that are not updated might cause either overpaying for coverage you no longer need or underinsured when things go askew.

Failing to Understand What Policy Covers
Understanding the policy coverage is essential to know what type of plan suits the business. It prevents you from getting the insurance that the company doesn’t need. Ask your insurance provider for a coverage necessary for the business.

Not Working With a Trustworthy Insurance Provider 
Nowadays, you can buy everything through the internet, including insurance policies. Not working with a top-rated insurance provider might result in getting scammed. Prevent it from happening by getting a plan from a trusted business insurance providers.

Disregarding Risk Management Measures
Maintaining and being strict with risk management measures lower the cost of the insurance premiums. The higher the risk, the higher the price the provider would charge you, or even worse, the harder you’ll find an agent that would be willing to ensure your business.

Conclusion
One of the biggest mistakes a business owner should avoid is failing to protect the business. The type of business insurance suitable for your company depends on your market industry. Be sure to avoid making mistakes in choosing the best business insurance by following the tips above.

At Desmond Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (859) 491-5100. You can also request a free quote by CLICKING HERE.