Mistakes To Avoid While Purchasing Business Insurance

1
Mistakes to Avoid While Purchasing
Business Insurance
Insurance covers the loss of revenue and rules
out the risks involved with the business, be it a
small, medium or a large business. However, here
are certain mistakes to avoid when purchasing
one.t
2
1. Choosing insurance that does not go
with the nature of your business
Every business, regardless of its size, is likely
to face either man-made or natural risks at
some point in time.
Natural Floods, Heavy Rains, Violent Winds,
Hurricanes, Storms Man-Made Vandalism, Theft,
Workplace Accidents, Data Loss, Inadvertent Data
Leakage
3
Taking into account the nature of your
business is vital to choose suitable insurance.
The products/services you offer Customer
base Availability of raw materials If the product
needs a new design/method
4
2. Falling for low priced policies
Low-priced policies are not necessarily cost-effec
tive.
The low premium might cover lower risks, which
could be a matter of concern in the event when
the compensation exceeds your policy cover.
Instead, opt for an insurance cover that is
sufficiently larger than the probable claim for
compensation.
Cover for the building (where the business is
located) Employers Liability Insurance (as per
government rules) Hazardous nature of the business
5
2. Buying from brokers/agents with lower
credibility
Conduct thorough research before choosing your
insurance provider and go for the one that
specializes in business insurance.
Ensure he/she has a good track record in claims
settlement and customer servicing with great
experience and repute.
6
4. Under/over insuring
Conduct thorough research before choosing your
insurance provider and go for the one that
specializes in business insurance.
Ensure he/she has a good track record in claims
settlement and customer servicing with great
experience and repute.