You may be wondering: who has time to understand all the subtleties of business insurance? We do. That's our job.
We find that a number of our consumers have misconceptions about what insurance covers and what it does not. That's why we've made a list of 6 Costly Business Protection Myths that our customers often have. Here they are…
- Myth 1: Small businesses are less likely to get sued.
- Myth 2: Property Insurance covers you against all natural disasters.
- Myth 3: I won't make any mistakes and won't get sued.
- Myth 4: I know my clients and employees personally, so they won't sue me.
- Myth 5: I work from home and don't need Property Insurance and other commercial business insurance.
- Myth 6: I have to take the policy insurance companies give me.
Truth: Small Businesses Are Sued More Often Than Big Businesses
Most lawsuits occur against businesses in your situation. In fact, 57% of all lawsuits are against businesses with less than $1 million in revenue. Small businesses are more at risk than large ones.
In the newspaper, you might read about McDonald's being sued for a hot cup of coffee spilled in someone's lap or other lawsuits that target large corporations. But the truth is that there are thousands of smaller lawsuits filed every year that never make the news. Many large companies have policies of taking anyone to court because they know they can defend themselves. This, in turn, can cause fewer lawsuits to be filed against them. People don't want to mess with the big guys.
Your business, on the other hand, is susceptible to the same amount of threats, but has fewer resources to defend itself. And you probably can't afford to keep a dream team of corporate lawyers at the ready.
Truth: Property Insurance Only Covers Some Natural Disasters
Insurance policies always include some exclusions—if they covered everything, they'd be far too cumbersome to manage. Certain types of natural disasters are often included in that list of exclusions. Not all weather events are covered by commercial Property Insurance. A lot depends on where you live. Typically, the more likely a natural disaster is to affect your area, the less likely it is to be included in standard Property Insurance policies.
If you work in California, you may have to buy separate insurance for earthquake coverage. If your business is in Florida, you may need to buy a separate hurricane policy.
With that said, Property Insurance usually covers fire damage, theft, vandalism, and some natural disasters. Talk with one of our agents to find a policy that makes sense for your property.
Truth: Even if You Do Everything Right, You Can Get Sued
Liability insurance is not just about protecting you when you make a mistake. Business insurance protects when you've done everything right and still end up in a lawsuit.
You might wonder how can you get sued if you're doing everything right. But it happens. A lot.
Businesses are often sued when they are in the right. A customer can claim you didn't perform the duties you said you were going to complete. Someone can claim that your trucking company failed to deliver on time, even if you did. A customer may claim your travel agency booked them for the wrong time, when in reality they misunderstood the itinerary.
Even when you're right, lawsuits happen and they can drag on, becoming expensive and unnecessary endeavors. Without proper insurance, you'd have to pay for all the associated costs of a lawsuit, including…
- Legal fees.
- Court costs such as evidence and witness fees.
- Any settlement or judgment awarded by the court.
Even if you're not found liable, the court may not require the other side to pay your bill. When these costs add up, you can end up paying a bill that's more than your first salary out of college. Luckily, if you've got appropriate insurance in place, your policy will take care of those costs.
Truth: No Matter How Close You Are to Clients and Employees, You Can Get Sued
Even if many of your employees and clients are friends and family members, you can still get sued. In the first place, you'll still have to interact with numerous people outside your social circle. Every day your business will interact with deliverymen, repairmen, mail carriers, and other professionals who injure themselves on your property.
Back to your family and friends. Even if it seems unlikely, you want to make sure that if a lawsuit does happen between you and your friends and family, you've got the funds to finance the defense that protects your business.
Insurance can also protect your family. If a member of your family is injured on the job, Worker's Compensation Insurance can pay their medical bills.
Truth: Homeowner's Insurance Probably Doesn't Protect Your Business if You Work From Home
Many personal Homeowner's Insurance policies do not offer you commercial protection, and will not cover…
- Damaged commercial property (including supplies, equipment, inventory, etc.).
- Injuries to third parties such as customers and service professionals.
- Stolen commercial property.
- Lost data.
- Injured employees.
If you have a sole proprietorship law firm that you run out of your house, your homeowner's insurance probably does not protect you when a FedEx deliveryman slips walking up your driveway on a winter morning. You'd need General Liability Insurance to cover your business if there is a lawsuit.
Check out this infographic that explains the added protection business insurance offers your home-based business.
Truth: You Can Get Insurance Policies That Fit Your Legal, Travel, Employment, Medical Billing, or Other Specialty Business
We understand that insurance can be pretty overwhelming. You need to purchase it, but are not sure exactly what kind or how much. You're afraid that insurance companies will make you pay big bucks for a policy, then when it comes time to make a claim, you'll find out that you're not covered in that particular area.
At insureon, we do insurance differently. We work exclusively with small businesses. We learned quickly that small-business owners like you can't afford to pay for unnecessary and non-useful coverage.
That's why we train our agents to work in specific industries. When you contact insureon, you'll get an agent who works with other small-business in your industry. They'll have insured any number of other small law firms, service agencies, medical billers, or other specialty service companies.
That means when we talk to insurance companies, we'll be able to solicit plans that actually fit the issues you face with your employees, property, and other liabilities.
It's this careful service that leads 98 percent of our customers to say that our service is "excellent."
Get Insurance that Makes Sense for Your Law Firm, Employment Agency, Travel Agency, Notary Public, Or Other Professional and Specialty Service Company
Fill out our simple online insurance form, and usually within minutes you'll be contacted by an insureon agent who specializes in your field.