Insurance professionals rely on business insurance to raft their companies through times of upheaval and uncertainty. And it's their policies that can be the difference between a small brokerage firm filing for bankruptcy due to a costly lawsuit or coming out of court relatively unscathed. But as you search for the appropriate insurance policies to combat your industry's common risks, you may inadvertently come to believe the misinformation you encounter.
If you don't want to leave your insurance firm vulnerable to risks, it's time to learn the facts about business insurance so you can make wise purchasing decisions. Read on to discover the most pervasive business insurance myths in your industry, and the information that debunks them.
Insurance Business Insurance Myths Busted
As an insurance agent, you built your business around helping others make wiser investments. So isn't it time you gave yourself the same tools and information you need to protect your own business and assets? After all, it only takes a single liability lawsuit to devastate an uninsured business. And even if you have one policy, you may be missing the financial protection you need in other areas of your business.
Ready to give your business the security it needs to grow with peace of mind? Read on to learn the myths and facts about business insurance so you can ensure your protection plan is built on accurate information.
Business Insurance Myth #1
Insurance Agency Business Insurance Myth #1: "I can just close my business if I'm ever sued."
While this is the most pervasive business insurance myth across the industries, know that closing your business will not protect you from judgment liens. If your agency is sued and found liable for wrongdoing, shutting your doors won't make the fine disappear. And if you don't have the funds to pay the judgment or settlement, your personal assets can be collected to make up the difference.
It's also worth noting that your business doesn't need exuberant assets to require adequate protection planning. Having the proper policies in place means your business has the funds to pay court-awarded settlements, attorney's fees, and more without dipping into your business's bank account.
Business Insurance Myth #2
Insurance Agency Business Insurance Myth #2: "My clients and I have a good relationship. I've never been sued, and don't think it's a worry I should prioritize."
A good relationship with your clients is essential to running a lucrative business. However, no matter how open the lines of communication may be between you and your clients, it may not be enough to keep them from reacting poorly if something goes awry in your dealings, especially when their money is on the line. Typically, professional liability-related lawsuits are less a reflection of the work you've performed than they are an indication of your client's expectations or desire for a scapegoat. In these situations, your Professional Liability policy can step in to cover court costs. Similarly, if your agency is truly at fault for a loss your client suffered, your policy will still protect you by funding the requisite court costs and settlement fees.
Business Insurance Myth #3
Insurance Agency Business Insurance Myth #3: "My insurance business is too small for its own insurance policy."
There's no such thing as a business being too small or large to take the necessary measures for its success. Whether you are a one-person operation, or you have thirty employees on staff, you benefit from business protection planning, down to the last detail. After all, you never know when a client may decide you were professionally negligent and sue your firm. You can also never be certain that a fire or tornado won't strike your offices and destroy hundreds of thousands of dollars in assets and equipment. But you can be certain that if a natural disaster compromises your business essentials, an adequate Property Insurance policy will make sure you have the funds to replace or repair your items.
Business Insurance Myth #4
Insurance Agency Business Insurance Myth #4: "Business insurance doesn't fully cover your business, so it's not worth the investment."
Managing risks and preparing your business for the possibility of lawsuits is always a good decision. After all, if you don't have any coverage and someone sues your business, the cost of a drawn-out court battle will fall squarely on your shoulders. Why risk it? Today, protecting your small insurance business with adequate insurance is more affordable than ever. And when you work with an insurance agent, you can find the policies that address your business's most common risks so you don't experience gaps in your protection. Plus, the agents at insureon have experience working with insurance agencies, meaning we already know the coverages you need to safely grown your business and advise your clients.
Business Insurance Myth #5
Insurance Agency Business Insurance Myth #5: "My employees don't face the risks to require Workers' Compensation coverage."
Though insurance agents and claims adjusters enjoy the comfort of a relatively low-risk industry, it's important to appreciate that accidents can happen to anyone, anywhere. And in an office setting, your employees still face the risk of developing repetitive motion injuries, if nothing else! And if they do develop carpal tunnel syndrome, your business could be financially responsible for any medical expenses related to their work injuries if you don't have Workers' Compensation Insurance. Without this coverage, you also run the risk of violating state laws, as most states require businesses with employees to have Workman's Comp coverage. This coverage protects your business by covering the cost of an employee's immediate medical attention if an accident occurs, as well as their foregone income while they're recovering. Your policy can also provide for settlement costs, attorney's fees, and more (depending on your policy) if your employee sues your business for their injury or illness.
Protect Your Insurance Business
Protect Your Insurance Business
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