Every business should have commercial insurance. Unforeseen risks or lawsuits can cost thousands, if not millions, and ultimately bankrupt your business without proper protection. From natural disasters to liability claims, Sudbury business owners need to be prepared for a variety of scenarios. Thankfully, there is commercial insurance coverage available for just about every risk a business will face.
Selecting the correct insurance, though, is not as easy as it might appear. With so many insurance providers and coverage options to consider, mistakes are bound to happen. When purchasing commercial insurance, choosing the wrong insurance might mean you end up paying unnecessarily high premiums, or it might mean you miss some essential coverage.
Sudbury has a diverse economy, and each industry is going to have different needs for commercial insurance, adding another layer of complexity to the buying process. Working with an experienced insurance broker can help you understand the risks your business faces and select a policy that actually covers them.
At PAIB Insurance we are committed to helping Sudbury businesses find the right commercial insurance. Part of that commitment involves helping our clients avoid making mistakes when shopping for commercial insurance in Sudbury. Let’s break down some of the common mistakes to be aware of while you compare quotes.
Choosing the cheapest policy or the first quote is one of the most common mistakes when buying commercial insurance. It’s important to keep in mind that the cheapest policy may not provide the necessary coverage your business needs. Moreover, the first quote you receive may not be the most comprehensive one available.
To avoid this mistake:
Business owners may assume that certain risks are unlikely to occur or believe that they can handle the consequences on their own. However, this can leave them vulnerable to significant financial losses if an unexpected event does occur.
To avoid underestimating risk, it’s important to conduct a thorough risk assessment with the help of your insurance provider. This assessment can identify potential risks and hazards that the business may face and determine the appropriate insurance coverage needed to protect against them. The risks faced by a mining operation will be much different to the risks faced by a healthcare clinic or a restaurant, and pinpointing those risks should be one of the first steps in the buying process.
Part of properly estimating the risk your business faces involves understanding the upper limit of possible losses and your budget for covering smaller damages. Choosing the correct coverage is only part of the decision. Your deductibles and limits will influence your out of pocket costs just as much.
Selecting too high of a deductible or too low of a coverage limit can leave you financially exposed in the event of an accident. Selecting too low of a deductible or too high of a coverage limit can lead to higher premiums that may not be necessary. It’s important to find a balance that works for your budget, and to consider the needs of your business for each type of coverage.
General liability insurance covers third-party claims for bodily injury, property damage, and advertising injury. Without it, businesses can be held responsible for the costs associated with a lawsuit, including legal fees, settlements, and judgments. This coverage also offers protection against reputational harm and can help cover the costs of a crisis management response.
Don’t underestimate how large the liability claims can be, or under appreciate how often you might face one. Regardless of the size of your business, skipping out on general liability coverage could be a costly mistake if something goes wrong.
Often, people assume that their insurance policy covers everything they need without actually understanding what they are paying for. This can lead to gaps in coverage that leave businesses vulnerable to unexpected expenses. Be sure to carefully read through your insurance policy and ask questions to ensure that you know exactly what is and isn’t covered.
If something isn’t specifically listed as a peril, it likely won’t be covered. You might be surprised by the events that are included or omitted from your policy.
When you think of commercial insurance you probably think of insuring your buildings from storms, your vehicles from accidents, and hopefully liability coverage to protect against legal claims. What if your business can’t operate for a while because of major repairs? Or what if a small business owner gets injured and can no longer work?
In addition to property and liability insurance, Sudbury businesses need to cover loss of income. Business interruption insurance and business overhead insurance will cover overhead expenses if your business can’t operate for a while due to a named peril, and potentially save your business from closure.
As industries evolve and grow, so do its insurance needs. Failing to update your policy could lead to inadequate coverage or missed opportunities for savings. It’s recommended to review your policy annually and make adjustments as needed to ensure you have the appropriate coverage. Additionally, regularly shopping around for new policies can help you save money on premiums as you might find better deals and develop a better risk profile over time.
Choosing the right insurance policy for your business can be overwhelming, but it is crucial for protecting your financial future. Avoiding these common mistakes is a great start for finding the right policy, but working with an experienced broker will make the whole process much easier.
At PAIB Insurance, we understand the unique risks and challenges that businesses in Sudbury face, and we can help you find the best insurance coverage for your business. Contact us today to learn more and get started on protecting your business.
101 Pine Street South Timmins ON, P4N 2K1