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-effective. 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.