There are many risks inherent in buying a business insurance policy. It’s difficult to know what should be covered and what can wait. Perhaps more importantly, there’s a delicate balance between cost and coverage. To ensure the purchase of an adequate policy, business owners should avoid these common insurance mistakes.
Buying a Policy That Doesn’t Fit the Company
Regardless of business type, all companies have specific needs for business Insurance in Hawley PA. Every business’ needs are different, and it can be costly to buy a one-size-fits-all policy. Insurance policies should be customized to reflect:
- The value of business assets
- Risks specific to the industry
- Exclusions and limitations
- Risks to employees
- Professional liability
Buying a Policy That Doesn’t Cover the Full Value of a Company’s Assets
Many business owners make the mistake of buying a plan that doesn’t protect all of the company’s assets. It’s important to consider more than the building when buying coverage. The limits should be high enough to cover building contents, equipment, inventory, signage, and outbuildings.
Overpaying by Not Buying a BOP Package
Investing in a BOP (business owner’s policy) package is a good way to cut costs. The BOP bundles some of the most important liability and property coverage into a single package, and it reduces the overall amount paid. Ask a local agent about the benefits of a BOP.
Not Choosing a Reliable Carrier
Business owners should look for an A-rated insurance carrier, as the high rating ensures the company has the financial stability necessary to meet a company’s needs. If a business owner goes with a smaller carrier, they may find themselves at a loss if the company cannot cover the cost of a large claim.
Not Considering Extra Coverage
It’s unsafe to assume that a basic insurance policy is adequate. Business owners should build onto their basic coverage to ensure proper protection. For instance, owners in many areas need flood insurance because the company is located in a flood zone. In other places, business interruption, earthquake, and terrorism insurance plans are necessary.
Comprehensive plans meet the owner’s needs and help keep a business operational under less-than-optimal circumstances. If a business owner makes any of the above mistakes, they should talk to an agent with website about getting better business Insurance in Hawley PA.
