Every business owner understands the importance of protecting their hard work and assets. Insurance is your essential safety net, designed to shield your company from unforeseen personal and property damages. However, navigating the world of business insurance can be complex, and making common missteps could leave your business vulnerable to significant financial setbacks.
At Parkway Insurance Group, we believe caring makes the difference in helping you secure the right protection. Let’s explore three risky insurance moves that can harm a business and how to avoid them.
Risky Move #1: Believing “One-Size-Fits-All” Insurance Works for Your Business
It’s tempting to think that a standard, off-the-shelf insurance package will cover all your business needs, especially with so many online options. These “cookie-cutter” policies often provide popular coverage with common limits, but your business is unique! It has its own specific operations, risks, and assets.
Why this is risky: Business insurance is far from a one-size-fits-all product. If your policy isn’t tailored to your specific industry and operations, you could face costly gaps in coverage when you need it most.
How to avoid it: This is where an experienced, independent insurance agent becomes invaluable. We do the legwork for you, comparing different policies from various providers to find coverage that truly fits your business. An agent familiar with your industry understands the less obvious risks and can help you secure the best coverage at a competitive price.
Risky Move #2: Assuming Another Party’s Insurance Always Covers Your Risks
Imagine you hire a janitorial service to keep your business sparkling. They provide proof of their insurance, so you’re covered, right? Not necessarily! Consider this: a guest in your restroom cuts their arm on a defective paper towel dispenser. Whose liability is this – yours or the cleaning service’s?
Why this is risky: Assuming a contractor’s insurance will always protect you from a lawsuit can be a costly mistake. Factors like who owns the defective item, whether you were informed of the defect, or what steps you took (or didn’t take) to correct it can all determine liability. Unless your contract explicitly indemnifies you for all liability associated with their services, you could still be held responsible. Furthermore, if a serious injury or fatality occurs, the costs could easily exceed the contractor’s insurance limits, leaving you responsible for the remainder.
How to avoid it: Always review contracts with third-party vendors carefully. Understand the specifics of their insurance and how it interacts with yours. Discuss these scenarios with your insurance agent to ensure your own liability coverage is robust enough to act as a backstop.
Risky Move #3: Not Fully Understanding Your Business’s Unique Insurance Needs
Even experienced business owners can overlook certain risks. Beyond common concerns like slip-and-fall liability, theft, or fire, your business likely faces unique exposures specific to your industry. Are you aware of all the specialized insurance you might need?
Why this is risky: An incomplete understanding of your business’s full risk profile means you might be operating without crucial protections. This can lead to significant financial losses from unexpected events that your current policies don’t cover.
How to avoid it: Partner with an independent insurance agent who is not only experienced but also deeply familiar with your industry. They can help identify specific risks unique to your type of business – from professional errors and omissions to cyber threats or specialized equipment breakdowns – ensuring you have comprehensive coverage that truly protects what matters most.
Secure Your Business’s Future Today
A robust risk management plan is essential for any thriving business. It includes having the right insurance to reduce your exposure to unexpected losses. Don’t risk financial setbacks due to insufficient or mismatched coverage.
We’re here to help you understand your unique business risks and ensure you have the proper protection in place. Contact Parkway Insurance Group today to discuss your business insurance needs and compare policies to get an amazing insurance package tailored just for you.
