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Common Business Insurance Myths

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Financial protection is essential if you run a business. Taking out a business insurance policy is one way to achieve financial security.

As you search for the best business insurance policy, you may encounter a few myths that can negatively affect your decision. Therefore, we've debunked some of the common business myths below so you know the facts.

"Public Liability Insurance Isn't Necessary"

Public liability insurance is not a legal requirement for all businesses. However, if your business causes damage to property or causes injury to another person, your business may be liable.

In case a customer, supplier or member of the general public brings a claim against you for injuries or property damage resulting from your business activities, public liability insurance will protect you and your business.

Also, some companies or clients may require you to have the policy before you begin working with them. You may also need public liability insurance before you can register with some licensing authorities.

"Smaller Businesses Don't Need Insurance"

You should never assume that you don't need insurance.  The consequences of approaching a business without insurance can be far more serious and costly than insuring your business.

 Business disasters can take many forms and don't discriminate against big companies. For instance:

  • A fire destroys your inventory

  • Theft of a company car

  • A cyber attack

No business owner ever wants to experience a disaster. However, no business is exempt from accidents and unwanted challenges, whether small or large. Therefore, make sure you get your business insurance.

"You Don't Need Insurance If You're Working From Home"

In recent years, many business owners have been running their businesses remotely from their homes. If you run a business from home, home insurance may not serve as sufficient protection for your business.

A home insurance policy may not always cover the risks faced by home-based businesses. Or the policy may only cover the risks partially because it has exceptions or maximum claims limits. A separate business policy is therefore essential, whether you provide a service or a tangible product.

"Only When You Submit A Claim Should You Contact Your Insurer"

You shouldn't have to wait until you need to file a claim before talking to your insurer. Getting in touch with your insurer is an opportunity to get your policy in order, ensuring coverage is in place in case of a claim.

So, you should reassess your business insurance policies to ensure they meet your company's demands. Verify your policy is up-to-date if your business has grown with new staff, bought more stock or offers different products and services.

With the right business insurance in place, you have some protection to help you get through challenging times. Talk to an insurance specialist today to get help deciding what type of insurance policies are suitable for your risk profile.