Three common mistakes when purchasing commercial insurance
Three common mistakes when purchasing commercial insurance. The key to commercial insurance is to protect the business from potential threats that may jeopardize it. However, 44% of small businesses lack sufficient coverage, and the first setback, whether it’s a fire, a lawsuit, or a hurricane closure, could lead to bankruptcy.
To prevent this from happening, we will tell you what, in our opinion, are the most common mistakes that business owners make when purchasing commercial insurance.
- Insufficient coverage
When acquiring commercial insurance, it is crucial to evaluate the business and identify the various risks that can affect it, whether they are commercial, legal, or natural. A smart way to do this is to work with a specialized commercial insurance agent who, with their experience, can help design a policy that aligns with the specific risks of the company.
- Failure to understand the insurance policy
For individuals unfamiliar with the language used in an insurance contract, terms like deductible, reimbursement, coverage, compensation, liability, and others may sound like Chinese. Despite that, you should strive to understand your policy. If you find it difficult, ask the insurance agent to explain the document in simple terms. Ask questions, envision the worst-case scenario for your business, and inquire if you’re covered. It is essential to be aware of what your commercial insurance contract does not cover.
- Opting for the cheapest commercial insurance
As you have seen so far, the price is not the most important aspect of commercial insurance. The key is that every cent you invest in your insurance results in efficient coverage. The smart approach is to study different insurances and see which one best suits the needs of your business. Inquire about different coverages, the claims process, customer service, the reputation of the insurer, and also consider the premium prices.
At Univista Insurance, you can obtain affordable and efficient commercial insurance tailored to your business needs. Three common mistakes when purchasing commercial insurance.