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The Most Overlooked Business Insurance Vulnerabilities

Business owners need all the coverage they can get, even if they are small businesses. Most businesses don’t know, however, that their coverage might not be enough. Here are several areas where business owners often lack coverage.

1. Cyber Protection

Make sure your business is covered on the computer and online. Most business owners don’t realize that a lot of insurance policies have a limit on the amount paid out for any one claim. So if a lawsuit results in a $500,000 judgment against you, the most your insurance will pay is $500,000. Likewise, if there is a breach of security and all the data is erased from your computer, there won’t be anywhere near enough coverage to replace all the losses.

2. Property Insurance

Business owners need to look at their insurance policies to make sure they’re covered against every type of property loss. There is often a limit to how much the insurance company will pay for any one claim, and there can also be limits for loss in a single year. Make sure both these amounts are large enough to cover your business losses. For example, if you’re in a flood zone and get 3 inches of water in your shop or warehouse, you could easily look at a loss exceeding $200,000.

3. Extreme Weather Protection

A lot of business owners are surprised to learn that they’re not covered in the event of extreme weather. For example, if a tornado or hurricane damages your property, you will not be covered unless you have special weather insurance. The same is true of fires caused by lightning and floods caused by a tidal wave, hurricane, or tsunami. You’ll want to look into extra protection for each of these events.

4. Product Liability Coverage

If you sell products in your business, you need coverage for any liability for the products you sell. This includes not only the product but any additional items that are sold along with the product. For example, if you sell a bicycle, you’ll want to make sure that you’re covered if someone is injured while riding it. You’ll also want to ensure that you will be covered if there is a defect in the product and it causes a fire in the customer’s home.

5. Hired Help Coverage

Many business owners have employees. However, if you’re not paying their benefits, medical insurance, and Social Security, you aren’t responsible for them. So if they get hurt on the job, there isn’t any coverage from your insurance company. You’re only covered if you make these payments. Many business owners are surprised to find that they get sued when an employee is injured, and there is no coverage from their insurance.

6. Equipment Coverage

Lack of equipment coverage is another area where business owners are often unprotected. If you own expensive equipment, you’ll want to ensure that it’s covered against fire, theft, flood, and any other damage. Many insurance companies won’t pay to replace your equipment if it is lost without a physical inventory.

If there is a disaster and your inventory is destroyed, you’ll need to provide an inventory of everything lost in order to get a payout. If you don’t have a written inventory, you’ll get far less, if anything at all.

Conclusion

There are lots of little things that business owners don’t realize about insurance. A great insurance policy is a lot like the police have to “protect and serve.” If you are a business owner, you need to make sure you have at least the standard insurance to protect your business.

You also need to take advantage of all the different types of coverage available so that your business is not susceptible to any kind of loss.

If you are looking for a company that provides business insurance in Conyers, GA, look no further than our services here at The Tabb Insurance Agency. We provide different insurance plans and high-quality service in Conyers, GA, for all your personal and business needs. Call us today for more information about our insurance and their featured coverages.