The ins and outs of insurance policies aren’t incredibly simple to the layperson. We usually have to rely on an agent to explain things to us, but what information is missing? Have we even chosen the right agent? We’ll explore that question and more as we take a look at five general liability mistakes that could end up hurting your business.
Opting out altogether.
Feeling frustrated by terms you don’t understand and premiums you don’t think you can afford to pay? If so, you might be tempted to join other contractors in skipping out on a general liability insurance policy.
But what you should be keeping in mind is that such contractors have a much slimmer chance of making it in their industry. Not only do clients and customers want to know you’re insured, but one slip-up can put you out of the game for good.
Choosing the wrong agent.
Getting the right coverage for your business means that you must choose a provider that knows your business. An insurance carrier that’s familiar with all your industry requires will be much better equipped to handle industry-specific problems that arise.
These days, it’s easy to find tailored coverage online. No matter who you choose, ask questions pertaining to that company’s expertise in covering people just like you.
Assuming general liability covers everything.
While general liability will keep you covered in many common scenarios, all of this will vary from provider to provider. What this means is that you must do complete research on risk potential for your business.
It’s simple; electricians and hairdressers don’t share all of the same risks. You must ask an agent specific questions surrounding hypothetical scenarios which have the potential to actually happen with your work.
Changing your mind.
It’s not a huge mistake to switch carriers when you decide you’re not getting the best deal on a policy, but you should think twice about doing it often. This is especially important if you’d like to see the cost of your premiums go down - and don’t we all?
Ask any insurance provider you’re interested in if there are any perks associated with staying on with them. It could be that you’ll eventually be paying less per month if you are loyal to that provider. That’s worth at least as much as a policy with a lower premium that doesn’t go down over time.
Stopping at liability.
The great thing about identifying your unique risks is that you now clearly see whether or not there are gaps in your coverage. A common example of this would be the risk of data breaches online.
You would also need auto insurance for company vehicles, worker’s compensation, and maybe even disability and loss of income insurance.
Even though there are things to watch out for, general liability is still easy enough to obtain. Commit to getting the policy, ask the questions that matter in your line of work, fill any holes in coverage, and get a policy you can be comfortable with for an extended period of time. After all, it’s the cornerstone of career longevity.