It has taken you countless days and long nights to create to build your small business, so one extra step to protect your hard work shouldn’t be second-guessed. And of course, the easiest and most effective way to protect your business is to ensure you have the right business insurance policies in Lisbon.
Today we’re highlighting 5 insurance mistakes small business owners make.
1. Business Owners Relying on Their Homeowner’s Insurance Policy
This mistake is typically made by business owners who run some part of their business out of their home. Review your homeowner’s insurance policy, as traditional policies exclude any business operations, including structures and business equipment. Even worse, an injury sustained by a customer or vendor on your property is also excluded from coverage.
The following types of business insurance coverage are fairly important to carry as a small business owner working from home:
- Business Personal Property Insurance;
- On-Premise Liability and Off-Premise Liability;
- Errors and Omissions Coverage.
A significant amount of small businesses that work with other businesses are often required to carry certain insurance policies such as general liability insurance, workers compensation, commercial umbrella, etc. To verify, companies may ask you for a certificate of liability insurance, which is a single page outline of policy coverage and limits.
2. You Need Loss of Income Coverage in Your Business Insurance Policies in Lisbon
Loss of Income is what keeps your business operating after an unfortunate disaster occurs. Commonly, business owners believe that commercial insurance is meant to protect their valuable property, but Loss of Income coverage protects your bank account when disaster strikes and leaves your small business closed for weeks or sometimes months.
3. Life Insurance for Small Business Owners
A sensitive, but extremely important issue often ignored is life insurance. Generally speaking, small business owners have a skill set unique to their business and become the business themselves. Buying key person life insurance is essential in the event of misfortune to the business owner and should be taken very seriously by every successful small business owner.
4. Disability Business Insurance Policies in Lisbon
Besides the death of a small business owner, disability can be even more devastating. More people are financially devastated by disability than they are by death. Disability is one major reason people file for bankruptcy and/or home foreclosures. While Social Security may seem like an option in the case of disability, only 36% of those who apply for Social Security disability benefits actually receive them.
5. Owners Pay Too Much For Business Insurance Policies in Lisbon
A very common mistake that many small business owners make is buying insurance that may not be specific to their unique business model. It is vital for a small business owner to quote their small business insurance from an agent that focuses on commercial insurance.
Taking a few minutes of time to speak to an agent about your specific business operations, needs and maybe requirements will help to design a package for your specific small business. It’s also worth mentioning that as years go by, things change, and the same can be said about the insurance industry.
Need advice regarding your business insurance policies in Lisbon? To obtain an online quote, just click here to get started. The more information you fill out, the more accurate quote we can provide; however, if you’re in a hurry, you can also give us a call at 330-337-9557.