When asked, the vast majority of San Mateo business owners do not know whether or not they have the right level of business insurance coverage. That is common because far too many business owners are too busy trying to help their company thrive and succeed than to pay attention to what they may consider “minor” details.
Yet having the proper level of commercial insurance is more than just a minor detail. It could mean the difference between your business succeeding for the long term or having to shut down because of unforeseen circumstances.
Understanding Your Insurance Policy
Let us talk frankly for a quick moment: do you even have any type of business insurance? If your answer is no, then it is well past time to consider getting some type of business insurance for your company. There are several different options available to you, including general liability, basic business insurance, commercial property insurance, vehicle coverage, worker’s compensation, and E&O (otherwise known as errors and omissions insurance).
Each one will be suited to different businesses and some types of commercial insurance will not be required by all businesses.
If you do have some type of business insurance policy, the next question is whether or not you understand it properly. If you don’t really understand what it covers, then you can’t possibly know whether or not it is going to protect your business in the best way possible.
For example, you may have a general liability insurance policy, but you don’t have clients or customers coming to your home. You may have an online business operation where you sell products, and some of those products could potentially pose a risk of injury or damage to your customers, and that might be covered under the general liability insurance policy you have. You want to make sure, of course, that you have the proper level of coverage.
But what happens if your Internet Service Provider shuts down for a day or is attacked and is unable to get back up online for a week? That means that you might not be able to sell any products during that time. Depending on the type of business you operate, that can add up to a significant amount of money. Yet you still have to pay your bills and even your employees, if you have them.
That scenario would likely be covered if you had business interruption insurance.
What about if you hand the keys to your personal car to an employee and ask him or her to run to the store and pick something up for you? If they are involved in an accident, your personal automobile insurance policy will likely cover some of the damage, but in that event, your entire business operation could suddenly be exposed to a potential lawsuit, depending on the events that occurred as well as any injuries that could have been result of the accident.
For most business owners, profits are hard to come by. Especially during a sluggish economy, you may be looking for ways to trim your expenses. You may be holding back raises, cutting staff, and even focusing on the most minuscule things to help save a few pennies every month.
As a result, far too many business owners throughout San Mateo are cutting out their business insurance policies. Even if they are not cutting those policies out, they are likely minimizing them to the extent that they are placing their business and their entire operation at risk.
It is far too easy to cut out insurance when you don’t think that you are ever going to need it. You may even be considering skipping or dropping your insurance for several months or years and then picking it back up when the economy improves again. This is a situation where you are playing with fire, in a sense.
You need to consider the type of investment that you have made in building your business before you give up on business insurance altogether. It is not only a matter of money that you have put into this business operation. You have devoted your time and energy as well. Those are things that you can never get back. You could always earn more money in the future, even if you have to do other things to help support yourself. You can never get back the time that you put into building your business. If your business is successful, even if it is remotely so at the moment, that is reason enough to make sure that you have the proper level insurance coverage for it.
How Commercial Insurance Differs from Personal Coverage
Personal insurance could include medical, homeowner’s insurance, auto coverage, and more. It is easy to confuse commercial insurance with personal coverage and assume that they are very similar. They are significantly different.
If your business shuts down as a result of something that you cannot control, having proper business interruption coverage will help you keep paying the bills for your business during that period of time.
As a business with employees, as well as customers who may come to your office or your store, you are exposing yourself to far more risks than you are with regard to your personal life. Any time that you get up and walk around your house, get in the car and drive down the road, or just walked down the sidewalk you are exposed to potential accidents or injuries. Multiply that by all of the people that work for you or come to your store or call you for advice and you can see how important business insurance is.
Business insurance can also protect your personal assets. The vast majority of San Mateo business owners do not separate their personal assets from their business and that could cause them to lose everything, including their home, cars, and personal savings in the event that they are sued as a result of something that occurred on their property or from advice they offered.
If you want to check to find out whether you have the right level of business insurance for your San Mateo company, contact Agosta Insurance today. Don’t wait to follow through on this very important aspect of your business operations.