When you own a business, you’re subject to a lot of risk. Even if you operate a simple computer services company or a nail salon, you’re still liable for business-related negligence, accidents, and other risks. That’s why you need to protect your business with insurance. However, buying the right insurance can be tricky. Like any other financial decision, you need to weigh the pros and cons before making a final decision. With that in mind, we’ve rounded up seven common pitfalls that can leave you exposed to unnecessary costs with your insurance. Check out these tips to avoid common insurance claims pitfalls or get in touch with your Calgary business insurance broker
Don’t pay too much
When you start a business, you’re probably excited about the idea of making money. You might even be in denial about the hard work it takes to get a new business off the ground. Your enthusiasm can help you get a better deal on insurance, but you also need to consider your company’s needs. Like any other insurance, insurance for a business is a product. The provider has to produce a return on investment by charging customers a premium. Once you decide how much insurance to buy, you need to compare the actual cost to the amount you’re paying. One way to ensure that you’re getting the best deal on insurance is to compare quotes from different providers. You can use online services, like Insurancanada.com, or call a broker to help you navigate the process. Compare quotes from at least three insurance providers to ensure you’re getting the best price possible.
Talk to your agent
You probably have a general idea of the types of insurance you need for your business. However, it’s important to talk to your insurance agent to make sure you’re getting coverage that adequately protects your assets. You may need a slightly different set of policies depending on your industry and your location. You can also use the conversation to ask questions about your coverage. If you have any questions about the details of your policy, ask them now. You can also ask your agent to send you a copy of your policy to make sure you’re completely up-to-date. If you notice any gaps or inconsistencies, call your broker right away to let them know.
Think about liability insurance
Business owners are often tempted to buy general property insurance, like buildings coverage or contents coverage. The temptation is understandable—these policies can be relatively inexpensive. However, they’re not very helpful for protecting your assets. If a customer causes damage to your business facilities, you’re liable for that damage. That means you need to pay up—even if you were not at fault. This can be expensive and counterproductive, especially if you have limited resources for repairing damages. Instead, you should buy a policy that specifically protects your business assets, like inventory and equipment. It’s important to understand the coverage you have, including the value of the items and the amount of coverage you have.
Get coverage for your assets
If you have expensive equipment, like a generator or computers, you should make sure they’re covered by insurance. This may sound obvious, but it’s important to make sure you don’t lose everything if your business goes under. While most policies will cover your equipment for a certain period, such as one year, it’s good to have more. For example, if you lose your business for six months, you’d still be owed wages during that time. If you only have one year of coverage, you’d have to pay it yourself. If you have expensive inventory, like computers or kitchen equipment, make sure it’s covered by insurance. It may seem obvious, but you don’t want to lose everything if your business goes under. While most policies will cover the value of your inventory for a certain period, such as one year, it’s good to have more. For example, if you lose your business for six months, you’d still be owed wages during that time. If you only have one year of coverage, you’d have to pay it yourself. Visit this link to learn more about property & asset insurance.
Make sure your business is properly covered
In addition to insuring your tangible assets, it’s important to understand the ins and outs of your policy. For example, make sure your policy covers your business operations, employees, and repairs and replacements for your building. You should also make sure your business and employees are properly insured. This includes workers’ compensation insurance, which protects you from any financial loss that results from injuries or illnesses sustained by employees. The best way to understand and manage your insurance is to organize your policies and files by subject. That way, when a claim arises, you can easily find the information you need.
Don’t automatically exclude risk
One of the most common mistakes when it comes to insurance is automatically excluding risk. For example, many policies exclude damage caused by weather, such as flooding or hurricanes. While this may be a valid concern for your area, it’s irrelevant to your business. Your business should be able to weather any storm. Similarly, some policies have exclusions on certain types of businesses, like restaurants or massage parlors. While these types of businesses may pose a risk, this should be covered by insurance. You also need to make sure all of your policies are up-to-date. That way, if one policy excludes certain risks, your other policies are still current.
Stay up to date on payments
One of the biggest benefits of owning a business is the long-term freedom it offers. You can work whenever you have a salaried job, or when the work is available. However, as a business owner, you’re also a slave to the calendar. Contact your business insurance broker in Calgary so that you can operate your business without worrying about financial loss. However, many owners don’t pay their insurance premiums on time. This can be costly because insurance companies use non-negotiable terms. That means that, if you don’t pay your premium, your business is automatically canceled. The best way to stay up-to-date on payments is to create an automatic payment plan. Put the money aside in a separate account from your regular bills and set up an automatic payment from your credit card.