Friday, April 22, 2011

Common Business Insurance Mistakes

Do not make this common mistake with business insurance:

Business owners are busy people. If their business is growing, it seems like there are never enough hours in day. One common mistake business owners tend to make is forgetting to have their insurance coverage grow with the rest of their business.

Often, a new business start up may opt for a B.O.P (Business Owners Policy) which easily protects against the risk exposure of an initial start up company. It may be that you even raised coverage a bit as things went along. As you probably know, a BOP usually covers liability and property and may have other coverage added on to it. For most start ups and small business, it’s a great way to get coverage value from a lower premium than separate policies.

However, as your business grows, it is possible to outgrow the original coverage you put into place.

For example, are your general liability limits keeping place with your growth in revenue and business assets. How about your property limits? One area that is often missed is the technology growth and expenditures that can easily be missed or under insured. Suppose your business started with you a phone and a computer. Now, you have 2 offices, two phone systems, and a number of computers, faxes, office furnishings and much more. Have you checked to make sure your limits will meet the requirements should you need to replace some or all of this? Has your income grown as a result? Is the liability coverage enough?

Working together with your licensed insurance professional to insure you are protected as you grow your business is important. Make your insurance professional an advisor and keep them appraised. Even if you occasionally call in and talk to a support person, it is your licensed professional who best can advise you on your commercial insurance needs.

contact me at 1-855-GET-SELECT (438-7353) for advise on your Commercial Business

Steve Ludwig
President/CEO
Select Insurance Group
st. Peters, mo

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