5 common mistakes when purchasing commercial insurance. Lacking the appropriate commercial insurance can be devastating for a business, especially during its early stages when it is most vulnerable to unexpected financial pressures. Typical mistakes made by business owners are:
- Not purchasing the appropriate coverage
Commercial insurance packages, such as BOP, are designed to protect businesses in a standard way. Business owners must ensure that the insurance they are acquiring protects the specific needs of their business.
- Focusing only on the cost
Firstly, the owner should look for policies that protect them from all risks that their business may face. Then, choose one that they can afford, provides efficient coverage, offers more benefits, and promises better compensation and assistance. It is preferable to choose specialized insurance for their type of business.
- Automatically renewing the policy
The business owner needs to be aware of the changes that their company goes through to adapt the new contract to their new reality. They may have opened new locations, increased the warehouse, developed new products, have more employees, and there may be insurance companies that offer better contracts from an external point of view.
- Not acquiring commercial insurance for all vehicles associated with the business
Vehicles used for commercial purposes, whether rented, owned, or employee-owned, must be properly protected by commercial insurance. In case of an accident, private insurance will not be responsible for the damages, and it can mean the ruin of the responsible company.
- Not knowing what to expect from their policy
Many business owners acquire the first policy offered to them. They are unaware of the terms of the different coverages, their scope, and possible implications. This can create a very unpleasant surprise when they discover that they lack adequate protection in the event of an incident.
To avoid these mistakes, it is important to talk to Univista Insurance specialists about the characteristics and specific needs of the business, and have them explain what the policy should cover. 5 common mistakes when purchasing commercial insurance.