You probably didn't see it coming: 3 common business insurance mistakes

3 common business insurance mistakes

Most entrepreneurs and business owners know the importance of having the right insurance, but unfortunately, many still fall victim to simple mistakes that could have been avoided. Although these might be minor, they could have disastrous consequences.

Failure to update

Once you have your business’s insurance in place, it’s easy to forget about it, and just assume it can be left to do its job. But, it’s absolutely crucial that you revisit and revise your business insurance policy regularly, and update it to account for any ways that your business’s circumstances may have changed. It is also advisable to pay special attention to correct sums insured, and remembering to add items as they acquired. In addition to this, make sure that once vehicle drivers change, that the information is relayed timeously to your insurer. This is particularly important for start-up businesses that are continually growing and changing. Failing to update your insurance policy could actually render it null and void, leaving your business at risk and vulnerable to loss.

Inaccurate cover

Many businesses actually have inaccurate cover in place, due to under- or over-insuring. This is often not intentional, as business owners may be confused as to what type of cover they actually need. With that said, sometimes under insuring is done deliberately, either in an attempt to lower insurance premiums or short-sighted thinking. Having inaccurate cover is incredibly dangerous to your business as one claim may cause irrevocable damage, and potentially even bankrupt your business entirely. One should also pay special attention to whether your insurer is covering you on a first-loss basis which could lead to only having partial cover in place.

Premium reduction

Costs are always at the forefront of any business owner’s mind, and insurance is an area often targeted in money-saving efforts. But, there are right ways and wrong ways to do this. You should never neglect to take out certain forms of cover in order to reduce premiums, as it can leave your business at risk, and leave you to fend for yourself at claiming stage. Instead, rather focus on trying improve your business’s safety and security measures, so that you present a lower risk to the insurer. Measures such as installing modern alarm systems or having a tracking device on your vehicles can help towards in reducing insurance premiums.

By avoiding making simple mistakes, you can make sure you’re getting the most out of your business insurance.  Always make sure you fully understand your business’s insurance needs, and don’t hesitate to ask your insurer if you have any questions or need explanations.

Contact MiWay Business Insurance today to discuss our flexible options with a knowledgeable call centre agent or with a field agent in the comfort of your office to make sure your business is covered for its correct value.

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