Many myths about business insurance can devastate your business if you fall into the trap. It’s essential to get the answers to your questions before you decide against buying a reliable business policy. When you have questions about business insurance, you need to talk to professionals who can answer your questions and develop a policy that works for you.
1. My Business Needs to Be Significant
Even small businesses face certain types of liability. Just because you are a sole proprietor, it doesn’t mean that you are immune to risk. Know what your risks are and identify ways you can mitigate those risks. This includes finding a business policy that works for you.
2. Business Insurance Is Expensive
Business insurance is affordable if you buy what you need and the appropriate coverage amounts. Budgeting for the cost of buying your business insurance will make it more reasonable when it comes to price. The cost will depend on several factors that revolve around your business’s risks and property values.
3. My Home Insurance Covers My Home-Based Business
Your homeowners insurance will only cover items you use on a personal basis. Any business-related items will need to be covered by a business insurance policy. You must keep an inventory for both your home and your business.
4. General Liability Insurance Covers Everything
General liability insurance only covers risks you may be liable for. It will not cover any property loss or revenue that may be lost due to an interruption of your business operations. The cap on your liability may also limit how much you are responsible for. This means you must pay the rest out of your pocket.
5. My Auto Policy Covers My Car When I Use It for Business
Your auto policy will not cover damages to your car if you use it for business purposes. If you have a business owner’s policy, you can include coverage for your vehicle when you are using it for business.
6. I Will Only Need Property Insurance If I Have a Physical Storefront
Just because you don’t have a brick-and-mortar location, it doesn’t mean your business is immune from property damage. If you own any equipment you use as part of your business is considered property and should be covered by business insurance.
7. Only Doctors Need Malpractice
Malpractice covers many things. Any time you offer advice or speak professionally, you put yourself at risk of providing inaccurate or misleading information. Understanding how someone could misinterpret something you say is essential. You may be charged with malpractice if it can be proven that you intentionally misled someone, which eventually resulted in some damage.
8. Cybercriminals Don’t Target Small Businesses
Just because you have a small business doesn’t mean your confidential information isn’t essential. Cybercriminals often go after small businesses because they don’t have the resources or knowledge to protect themselves from cyber-attacks.
9. You Only Need Workers Comp If You Work in a Factory
Work-related accidents can occur at any time and in any environment. Even as a sole proprietor, you should have insurance to protect yourself against work-related injuries. There is a risk of injury in almost every work environment, even if you work from home.
10. Lowering The Amount of Payroll or Revenue You Report Will Lower Your Premiums
Falsely reporting your payroll or the revenue you make each year is a crime punishable by law. There are other ways to lower your premiums legally. You must always be honest when applying for any business insurance.
Debunking myths may require a little research, but in the end, you will have the facts you need to purchase the right business policy to protect yourself. Contact the agents at Family Financial Insurance Group to learn more about quality business insurance policies. We have the answers you can rely upon!