What Do You Know about Business Insurance Myths?
You’re a Victoria business owner. You may be underinsured or you may not have business insurance at all. Are the myths about business insurance affecting your decision to get commercial insurance?
When you’ve done your research, you can better understand the common myths about business insurance. Then you should feel more comfortable about what kind of commercial insurance your Victoria small business needs.
Your Western Financial Group business insurance expert will give you top-notch commercial insurance advice for your Victoria business at the right value for you.
Here are the top myths and misunderstandings about business insurance:
My business insurance covers everything
No business insurance policy covers absolutely everything for your Victoria business. For example, terrorism, nuclear war, tidal waves, and landslides aren’t covered.
You’ll need to get add-on coverage to your commercial insurance for earthquakes, sewer backup, and overland flooding for your business.
Basic business insurance includes named perils, which are specific types of damage or cause of loss, which are listed specifically by name on your business insurance policy, such as a fire or windstorm.
Compensation for damages caused by named perils is limited by your policy coverage and deductible. Only damage that is caused by a named peril on your policy will be covered.
Coverage exclusions may still apply. It’s important to understand the details of your business insurance policy.
My Victoria business is small and I don’t need business insurance
Don’t assume that your Victoria business doesn’t need commercial insurance to protect it because it’s a small operation. A small business does not mean that you don’t need any insurance.
No matter the size of your business, every business faces risks. Are you prepared for any financial consequences should your business face a fire, vandalism, or sewer water damage without insurance or not enough insurance?
Your business insurance coverage should be based on your exposure to risk.
Business insurance is too expensive
The size of your Victoria business, what it does, and its location help determine the amount of coverage you need and how much you will pay for your commercial insurance policy.
You may think that you can’t afford commercial insurance for your Victoria business, but can you afford to pay for a lawsuit or extensive repairs for damages out of your own pocket?
Get coverage that’s tailored to your specific business at a value that’s right for you.
Shop around and get different insurance quotes. Ask questions and get the information you need. Don’t be intimidated by insurance and the process to get it. It’s the job of business insurance experts to help you get the right insurance for your Victoria business.
Don’t underestimate the value of your Victoria business and its equipment and inventory to save money on the cost of your insurance. That’s a money-losing proposition should you need to make an insurance claim.
Commercial general liability (CGL) insurance covers everything
When you see the word “general” in commercial general liability insurance, you may think that’s wide-ranging coverage to protect your Victoria business.
There is no such thing as an insurance policy that protects against everything.
The word “general” in this case refers to your liability, not to all possible risks.
CGL insurance is essential coverage for your Victoria small business because a third-party, which refers to a supplier, customer, or member of the public, could get injured or their property damaged at your business.
If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your Victoria business in court, as well as costs to cover damages to compensate third parties.
What kind of risks does commercial general liability insurance cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Leegal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
My personal car insurance will cover cars for business use
When you or your employees are on the road travelling, commercial vehicle insurance may cover your vehicles in the case of an accident.
Your personal vehicle insurance will not cover you in the case of an accident if the work is related to your Victoria small business.
My business is too small for a cyber attack
Many small businesses are underestimating their cyber risk level and think they are too small for an attack. These days, any business, no matter its size, can be the victim of a cyber-attack.
Do you keep client information online and take online payments? If so, your Victoria business could be hacked by cyberthieves. Cyber liability insurance will help protect you financially from a cyber-attack.
Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your computer system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform your customers affected by a breach.
My business is online so I don’t need insurance
An e-commerce insurance package provides financial protection against the risks your Victoria-based online business can face.
Product liability insurance is particularly important for online sellers and in-store retailers. It’s recommended for anyone who sells, manufactures, or distributes a product, including food products.
Cyber liability insurance is also essential for your online business to protect it from hackers.
My Victoria business is at home so I don’t need commercial insurance
Home-based business owners may assume that their home insurance also covers their home-based business activities. Not so. Your home insurance covers your home.
A homeowner’s policy may offer a small amount of coverage for books, tools, and instruments necessary for a business, profession, or occupation – but you should check your policy carefully.
If you run your business from home or have a home office, commercial insurance provides financial protection in the case of a fire or break-in, for example.
You are working hard to build your Victoria business. Now that we have debunked common myths about business insurance, you can start thinking about how business insurance can protect your business.
Here’s an insurance checklist for your small business:
- Do you have the best business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
What do I do if my Victoria business has an insurance claim?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your Victoria small business the right commercial insurance package. Our experts are available now to help you navigate the commercial insurance journey to protect your Victoria business.
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