Common Business Insurance Mistakes (and How to Avoid Them)
Business insurance helps you cover risks and run your business with confidence. Yet, entrepreneurs often make mistakes: wrong choices, unnecessary expenses, or unexpected gaps in coverage. In this blog post, we'll outline the most common mistakes with business insurance and offer tips on how to avoid them.
1. Do not take out business insurance
Many new entrepreneurs think they don't need business insurance or that personal insurance offers sufficient coverage. The result? A claim can jeopardize the continuity of your business.
Prevent: Carefully consider the risks your business faces and which insurance policies are truly essential. A free business insurance check can help.
2. Only pay attention to the lowest premium
A low premium may seem attractive, but it could mean you have insufficient coverage or that important risks are not covered by the policy.
Prevent: Don't just compare the price, but also the coverage, terms, and service in case of damage. Cheap can ultimately prove expensive.
3. Over-insurance or double coverage
Some entrepreneurs take out multiple overlapping policies, meaning they pay unnecessarily twice for the same coverage.
Prevent: Have your policy reviewed regularly. This way, you avoid paying for insurance you don't need.
4. Not taking out business liability insurance
A liability claim can run into thousands of euros. Yet, many business owners underestimate this risk. Without insurance, you bear the full costs yourself.
Prevent: Always take out business liability insurance. Some professions even require professional liability insurance.
5. Not keeping insurance up to date
Your company grows, relocates, or changes its activities. But often, insurance policies aren't updated. This means you run the risk of your coverage no longer being appropriate for your situation.
Prevent: Evaluate your business insurance annually and adjust it as your business changes.
6. No attention to new risks such as cybercrime
Cyber risks, data breaches, and hacks are often underestimated. Without cyber insurance, the financial and legal consequences can be enormous.
Prevent: Also identify digital risks and consider cyber insurance, especially if you work with personal data or online systems.
Conclusion
Business insurance is there to protect your business. Yet, many mistakes are made that leave your company unnecessarily vulnerable. By choosing wisely, reviewing your insurance regularly, and seeking advice, you can prevent financial setbacks.
Do you want to know if your company is properly insured? Take the free business insurance check at Bouvy Advies and discover immediately where there are areas for improvement.