Running a business is like a engaging in an extreme adrenaline sport: often exhilarating and very rewarding but also something that could have potentially devastating consequences at any given moment. An appealing part of business is the thrill of the chase but there are certain areas you cannot afford to be blasé about and top of this list is taking out insurance.
Every business is different and choosing the wrong type of insurance for yours could cost you down the line in more ways than one. Being aware of the common mistakes made by business owners is one small step towards making the right decisions for your company. Put your best business foot forward and avoid falling into the following insurance traps.
Being unaware of the basics
Even an established business will struggle if they fail to have an understanding of the business insurance basics. Business insurance is business insurance with one policy no different from the next, right? Wrong, no two insurance policies fall under the same umbrella and if you are willing to settle for a basic form of insurance that may only cover a tenth of your unique requirements, then you may as well put your assets in the hands of a child.
Taking the time to consider your business from all angles in terms of potential threats to assets and property etc will help you choose the right form of insurance for your business.
Leaving it too late
It is a cruel irony – waiting until the unexpected happens before investing in an insurance solution. It’s easy to assume that you are untouchable, particularly if you are a start up company with a run of good fortune but an expensive lawsuit or company accident may be waiting in the wings. A second consequence of leaving it too late to get insurance is buying poor coverage as a result of playing it safe with a small start up budget. Insurance is something that must be considered in the earliest possible stage to ensure your business gets the cover it needs.
Getting the wrong coverage
You wouldn’t take out home insurance for your car or vice versa, would you? Yet many businesses are content to pay over the odds for an insurance coverage that does little or nothing for them. When all is said and done, it is only up to you as owner to tailor insurance cover to your needs – not what the competition has or whatever the easiest option is but what caters to the interests and progression of your company.
Insurance policies are personal to each business which is why no company should ever need to settle for a one-size-fits-all approach when it comes to relying upon insurance providers. Insurance experts such as Catlin USA pride themselves in providing specialist insurance solutions to clients; sharing their expertise within the banking industry to ensure clients can achieve winning business results.
