There’s a lot of planning that goes into launching and managing a business. Like any business owner, you want your business to continue growing and experience long-term success. To accomplish that, you need to sufficiently protect your assets. Purchasing the right business insurance in Arlington or anywhere else in Texas is the best way to ensure the longevity of your business and cover all of your bases.
But in this often unpredictable and ever-changing economic climate, it can be difficult to know with certainty which business insurance policies are most suitable for your organization’s needs at any given time. With all of the different policy options and packages currently available, it’s easy to choose the wrong one. Working with an experienced independent Farmers insurance agent in Arlington can help you avoid making some of the most common mistakes business owners make when purchasing coverage.
Buying the Cheapest Policy
Understandably, one of your top priorities as a business owner is to find ways to cut down costs. But purchasing a cheap insurance policy just because it fits within your budget could actually end up costing you more money in the long run and it could hurt your business.
Rather than focusing solely on dollar signs when making a business insurance decision, you should also consider the specific coverage needs of your organization and industry as a whole. Without sufficient or industry standard coverage, you could end up in a lot of legal and financial hot water later on. As the saying goes, it’s better to be safe than sorry.
Messing Up the Business Description
Most business owners tend to purchase their insurance online. While there’s nothing wrong with this practice, it can lead to a few mistakes if you’re not careful. One of the biggest mistakes you can make while purchasing online insurance is to get the business description wrong.
Online insurance companies will typically offer a variety of generic business descriptions that you can select from a dropdown menu. It’s important to choose the one that not only best describes your business but also completely encompasses the services and products that you offer. The business description you select will ultimately help determine the best policy and coverage options available to you.
If you’re not sure which business description best matches your organization, then it may be a better idea to consult with a professional insurance agent near Arlington, Texas in person or over the phone.
Skipping Out on Workers’ Compensation
Unlike other states, Texas doesn’t mandate that all businesses provide workers’ compensation insurance. However, it’s still in your best interest to provide this type of coverage. In the event that an employee suffers an on-the-job injury, workers’ compensation can help cover some of their injury-related expenses including loss of income, medical bills, and necessary ongoing treatments as a result of the injury.
Another bonus is that knowing they have coverage and support from their employer during their time of need can help boost employee morale and contribute to a positive company culture and working environment.
Overspending on Business Insurance
Believe it or not, it is possible to purchase too much business insurance. While you should certainly focus on protecting your commercial assets in the event of an unexpected catastrophe, be weary of overzealous insurance agents who may try to sell you more than what you actually need.
Take the time to consider the needs of your business based on location, industry standards, and the size of your organization and choose a comprehensive policy that aligns closely with those needs. Don’t let anyone pressure or intimidate you into purchasing additional coverage that’ll just end up being a waste of money for your business.
Neglecting to Update Your Policy Regularly
Your business isn’t stagnant and your insurance policy or policies shouldn’t be either. As your business continues to expand and break into new markets, your insurance policies should also adapt to accommodate those changes. Otherwise, you’ll be stuck with ineffective, outdated policies that don’t serve your business at all—and that’s a major waste of money.
You should be evaluating your assets and financial growth on a regular basis. Every time you update your portfolio or business plan, make sure to contact your insurance provider and discuss your changing coverage needs with them. Your insurance provider or independent business insurance agent can make informed suggestions based on your new business trajectory.
Failing to Account for Potential Income Losses
Life is unpredictable and sometimes certain unexpected events can occur that can lead to periods of income loss. Whether a natural disaster wreaked havoc on your brick-and-mortar business, you were robbed, or you’re undergoing construction/renovations and need to close down for a while, you need to make sure that you’re adequately prepared and covered for these types of financial losses.
Any time your business experiences downtime, no matter how brief it is, you’re losing money and you need to make up for it. After all, your employees still need to get paid and you still need to cover other finances during that time.
Not Reading Through and Understanding Your Policy
Failing or simply not taking the time to carefully peruse and understand your insurance policy isn’t just a mistake—it’s also incredibly irresponsible. Before you sign on the dotted line and commit to paying monthly premiums, you should take the time to thoroughly understand what it is you’re actually signing up for. Otherwise, you’re not only jeopardizing your business and your own career, but you’re also jeopardizing the careers and financial stability of your employees.
Make sure to go through your prospective insurance policies with a fine-toothed comb. If there’s anything you’re not sure about or if you have some questions or concerns, then you might even want to have a lawyer take a look at the policy before you agree to it as well.
Assuming Personal Assets Are Also Covered
Never assume your home or other personal assets are included in your business insurance policy. Unless you specifically draw up a joint business and personal assets policy with your insurance provider, then you’ll most likely need to purchase separate insurance packages for both.
Farmers Insurance – Crystal Schuder Agency is committed to helping business owners in Arlington, Texas and the surrounding areas find custom, comprehensive insurance coverage that suits their needs. Contact us today to book a consultation.