A comprehensive insurance plan is a must-have for business owners. Insurance is necessary to protect your company against injury lawsuits, natural disasters or property damage. Many business owners are aware of the necessity of commercial insurance, but aren’t sure where to start.
Making a mistake in the process could put your business at significant risk. If you own a business and are in the process of purchasing insurance, there are several dos and don’ts that you should know about.
What to do
Finding the right insurance policy for your business will be much simpler if you follow these helpful tips. When you are purchasing insurance, do:
- Research several insurance providers and policies. Shopping around may take a while, but putting in the time and effort to find the best policy will eventually pay off.
- Consult an attorney who specializes in business and insurance law. A lawyer can guide you through this legally thorny process and advocate for your best interests with your insurer.
- Read the paperwork! This may seem like a no-brainer, but you would be amazed at how many business owners rush to sign the dotted line without reading and understanding their policies.
What not to do
Conversely, there are several major mistakes regarding business insurance that you should avoid. Make sure that you do not:
- Immediately purchase the cheapest policy. The low premium may be tempting, but it will cost your business dearly if the policy doesn’t provide adequate coverage.
- Hide potential risks from your insurer. Though it may save you a bit of money, misrepresenting your business’s risks could come back to bite you.
- Go it alone. Some business owners try to purchase insurance without consulting an insurance lawyer and end up regretting it. An attorney can help you navigate the process of insuring your business, and could even save you money in the long run.