Debunking the 5 Most Common Business Insurance Myths
Dan Levenson September 22, 2015
If you run a business of any type, regardless of its size or your industry, you probably need to have at least some form of business insurance. Unfortunately, there are many common myths about business insurance floating around out there that have left business owners misunderstanding the amount of coverage they need.
By understanding the truth behind these myths, you can ensure that your business is covered.
Myth 1: It’s All About Finding the Lowest Premium
When it comes to business insurance, of course no business owner wants to pay more than they need to for coverage. At the same time, however, simply going with a policy because it’s the cheapest option isn’t going to do you much good.
Often times, a policy that seems too good to be true is exactly that; it will be missing important aspects of coverage, so be sure to read through a quote for coverage thoroughly.
Myth 2: Liability Insurance is a Waste of Money
You wouldn’t hire an employee if you didn’t trust him or her, right? So why should you need to pay for liability insurance?
Unfortunately, you can just never be too safe in today’s business environment, especially considering employee practices liability is becoming one of the most common areas for litigation among all businesses. Spending a little bit on the extra coverage will give you a lot of additional peace of mind.
Myth 3: An Umbrella Policy Will Cover Everything
Umbrella business insurance policies exist to save you the hassle of having to go out and buy multiple insurance policies that meet your needs. However, if you’re going to rely on a personal umbrella policy to protect your business, make sure you read through your coverage declaration thoroughly; specifically, take a look at your limits and exclusions page. You might be surprised by what you find isn’t covered.
Myth 4: A Contract Can Protect You From Being Sued
You might think that you don’t need business insurance because you work with your clients on a contract basis. Therefore, you can simply write your contract tactfully to ensure that there’s a clause forbidding your client from bringing forth a lawsuit in the event of a disagreement.
Unfortunately, contracts are only enforceable or legally binding when the contract itself hasn’t been breached. Therefore, if your client believes you have failed to deliver on any of the agreements or promises made within the contract itself, you could very well end up being sued as a result. By having a business insurance policy in place, however, you can receive the legal assistance you need for the best chances of a favorable outcome on your part.
Myth 5: You Don’t Need Insurance If You Work From Home
If your business involves you working from home the majority or all of the time, you might be under the assumption that you don’t need business insurance because your home insurance policy will cover you. Unfortunately, this simply isn’t how things work; your home insurance policy won’t protect you in the event that you’re sued.
In fact, it may not even protect the equipment in your home office in the event of a theft or fire. To ensure you’re covered, you really should spend the money on purchasing a sound business insurance policy for added peace of mind.
As you can see, there are many myths floating around out there when it comes to business insurance and the need for it in today’s business world. Essentially, if you’re running a business, it’s safe to say that you should have business insurance. For more information or assistance on protecting your business, feel free contact us.