Independent insurance agents are your best bet for finding true value for your insurance dollar. That’s one of the reasons that your friends here at TriState Business Insurance maintain this blog as a service to all of you. We believe that a well-educated business insurance consumer will ultimately seek out the advice of trusted independent insurance agents such as TriState serving all of VA, MD, and DC. Should you wish to talk to any of our independent agents about these five money saving topics, feel free to call.
Here are five small business Insurance Mistakes that Cost You Money.
- Not Having the Right Insurance for Online Sales
Online sales help boost many small businesses’ revenue. However, defective products can lead to expensive lawsuits. Business owners should have a product liability insurance to help protect them against these types of lawsuits. Also, a contingent business income (CBI) coverage can protect policyholders against economic losses caused by damage to property owners.
- Not Checking Your Business Credit Before Getting a Policy
Small business owners often don’t realize that the insurer may check their business credit profile as part of the underwriting process. A poor business credit history may make it difficult or more expensive to get the insurance they need. Before you apply for any kind of business insurance, consider checking your business credit profile to see where you stand.
- Not Taking Advantage of IRS Code Section 162
Section 162 allows for an Executive Bonus plan. An executive bonus plan is a fringe benefit, funded with life insurance, given to a select group of key employees and/or business owners. It provides protection to the executive’s family during their working years, and when it’s funded with permanent life insurance, it can also provide tax-advantaged supplemental retirement income.
- Not Having a Cyber Insurance Policy
Cyber insurance protects businesses and individual users from internet-based risks. It is designed to help an organization mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach. Unfortunately, only around 58% of small businesses have cyber insurance. There are businesses who incur losses due to cyber-security risks and having a cyber insurance can help you prevent such risks and losses.
- Buying a Policy Based on Price Rather than Value
Most small business owners treat insurance as a commodity and as a result, are buying based on price rather than value. When it comes to buying business insurance, one size does not fit all. It is critical that the insurance carriers understand your business and craft the coverage to meet your needs. Cheap policies are not always the best policies for your business.
If you have questions about any issue at all regarding securing insurance for your business, call us! We are independent insurance professionals serving all of Virginia, Maryland, and DC.