When looking for a business owner’s policy, there are sometimes many things that need to be corrected, along with misinformation. Everyone has their own opinion on how you should get things done. However, this is usually to the detriment of the business owner. We’ve decided to gather together the five biggest mistakes business owners make when looking for business owner’s policy insurance and how you can avoid them.
Going Cheap
As a business owner, you want the best deal possible to reap the most significant benefit for your financial growth. When you calculate the risk-loss of your business, it can be tempting to go for the cheapest insurance option. Then a customer slips on the floor and breaks their arm.
What You Should Do
Sometimes, a more considerable upfront cost can repay itself in critical moments. That does not mean you immediately buy the most expensive business owner’s policy. Your insurance policy should be customized for your company’s needs and accurately protect you and your business. If you want more accurate information, check out Fusco Orsini & Associates and structure a quote.
Forgetting Worker’s Compensation
As a law in several states, worker’s compensation is a requirement. It establishes trust and protection with your company’s most important asset: the employees. Suppose your employees get sick, hurt themselves, or suffer a long-term illness. In that case, worker’s compensation can alleviate their financial costs and your own by getting them back on their feet.
What You Should Do
Ensure your business owner’s policy covers worker’s compensation. Assess how likely your employees will be hurt or fall ill due to their job. You can then structure your policy from there—the better the settlement, the happier the employees.
Skipping Liability
General liability is a necessity. The legal liability and costs are enormous if something happens, whether accidentally or intentionally. Suppose a customer hurts themselves in your business or receives damage to their property. In that case, there can be disastrous consequences if you lack the necessary tools to provide compensation.
What You Should Do
Invest in liability coverage. It will ultimately pay dividends by protecting your assets from bad actors.
Keeping the Same Policy in Perpetuity
Keeping the same policy and provider for long periods can be tempting. A business owner’s policy insurance should change over time to reflect different challenges and protections as your company grows.
What You Should Do
Change your policy as your company grows. Business owner’s policy insurance can be customizable, making it practical and flexible for future or sudden growth.
Incorrectly Assessing Business Costs
Every business and industry has different costs, and wrongly assessing yours can be detrimental. Incorrectly estimating your business owner’s policy insurance protection costs can lead to disastrous financial outcomes.
What You Should Do
The experts at Fusco Orsini & Associates can help you accurately quote, estimate, and enact meaningful policy changes and purchases for your business, regardless of size.
Regarding a business owner’s policy, don’t get caught with your pants down. Your business is your livelihood, so protect it with everything you have!
