Business or commercial insurance is needed for every business. It protects business owners and employees from a wide-variety of scenarios. From protecting general contractors against injuries on the job, to protecting companies from law suits, there is a commercial insurance product to fit almost any scenario. We wanted to refute some common myths about business/commercial insurance.
Myth 1 – “It should not take long to receive a quote.”
In many industries it is the norm to receive a quote within a few days of requesting it, but this is a common misconception for commercial insurance. A reputable insurance agent will not be able to give you an estimate while on the phone with them. A business has a much larger range of risks than someone who simply owns a home or a car. A commercial insurance agent has to spend a substantial amount of time researching in order to get the correct coverage for your business.
Myth 2 – “I have enough coverage.”
We see this all the time. A busy business owner assumes that they have the coverage they need. They don’t have the time to review their policy, but then something happens, and they find out they were not covered enough. The simplest way to avoid this issue is to have a good relationship with your insurance agent, and to communicate with your agent on a yearly basis (at the least).
Myth 3 – “I have a small business, so I don’t need to worry about being sued.”
Many people think that only companies with huge amounts of money get sued, but anyone can be sued if they are found to have done something unlawful. It does not matter how small your company is, you can have lawsuits brought against you. Commercial insurance will protect you against the cost of potential lawsuits.
Myth 4 – “Errors & Omissions insurance is only for attorneys and doctors.”
Many people know that certain industries such as doctors, accountants, and lawyers need to have Errors and Omissions (E&O) insurance. However, even if you aren’t in one of the above industries, it is still important to have this type of insurance. If you provide your clients a service for a fee, then you should have E&O insurance. If you give any advice that potentially hurt the probability of clients business, you could have to worry about a lawsuit.
Myth 5 – “You don’t need business insurance if you work from home.”
This is incorrect. Most homeowners insurance policies do not cover business-related damages. Many business owners find this out only when they have to file a claim. Even if you only have a small amount of equipment or material to protect for your home business, there are small basic business policies that will provide protection. Also, if you travel for your business in any way, your homeowners insurance policy won’t cover you.
Many of these myths are common, but cause a lot of problems for your business if you don’t take the necessary precautions. Having a good commercial insurance agent will properly protect your company from the worst case-scenarios.