Insurable Risks Derived From Growing Businesses

A business insurance review

Recently, small business owners were surveyed to help identify some of the top risks they faced when growing their businesses1.  Many small business owners are unaware of the new, and increased, risks that come with growth.  For example, many business owners erroneously think that a claim is not covered, so they fail to file the claim.  A leading commercial insurer has identified the top five most costly business insurance claims.

Leading losses for small businesses and the average claim cost

Reputational harm: $50,000

Vehicle accident: $45,000

Fire damage: $35,000

Product liability: $35,000

Customer injury or property damage: $30,000

New and growing risks faced by expanding businesses

As your business grows, your risks change.  It is beneficial for business owners to have an understanding of how risks change because of growth.

Contract disputes increase. Growing businesses often develop relationships without written agreements, resulting in disputes.

Increased employee litigation. When businesses hire new people, often they overlook proper hiring practices. This often leads to litigation.  Make sure your business has an employment practices liability policy.

Increase in worker injuries. A greater workload leads to increased hours and the possibility of employee injury.  Your workers’ compensation policy will cover work related injuries.

Building damage. Often, growing businesses fail to pay attention to building maintenance, which can lead to all kinds of damage. Read your property policy to make sure you do not void your coverage through lack of attention to safety issues.

 

1Source for article: PC360.com

Don’t Make These Mistakes

Personal and business insurance buyers–don’t make these mistakes

Everyone who buys insurance often runs into what we call the 7 deadly sins of buying insurance. These apply to both personal insurance and business insurance. Read these to see if you can relate to any of them.

Your deductibles are too low. The lower the deductible the higher the premium. Consider increase auto physical damage deductible on older vehicles.

You have more than one agent. Having two agents it not wise. Select one agent whom you believe will be best for you. Two agents can trip over each other, and you could end up un-insured.

You don’t consider the insurance cost when buying a car. The make and model of the car you purchase will have an impact on the insurance costs.

Your replacement cost value is not correct. It is very important to keep your replacement cost up to date. Replacement cost coverage will replace or rebuild your property with like kind and quality of materials.

Failure to develop a property inventory. Having an accurate inventory of your personal property can reduce stress at the time of a loss and help insure you receive 100% of what you lost.

You have coverage you do not need. There are many different types of insurance you can buy but not all are needed. For example, travel insurance, pet insurance, extended warranties and mortgage life insurance is not always needed. We have other options and recommendations, call us today.

Cancer insurance. Marketed by specialty-insurance companies, these plans supplement health insurance for cancer-care costs. Annual premiums range between $400 to $2,000 dollars. Despite their high cost, the policies may not cover outpatient care. Chances are that your existing health insurance already covers cancer expenses.