As a business owner, there may be hundreds of things to think about at the same time. So we want to avoid unforeseen inconveniences, right? We talked to Lana from LV agency about a common mistake entrepreneurs make when it comes to insurance; making assumptions. Find out why this can be very expensive.
Although taking out insurance for damages or potential problems seems like the solution right away, we still need to be careful. Not every insurance covers everything we think. And just assuming that may well cause more problems (and unforeseen costs). Take this example for instance:
Is a car wrap on your vehicle automatically insured in case of damage?
The answer is “no.” Rarely is the insured value of the purchased vehicle increased by price of the car wrap. And similarly, when settling an omnium claim, there will be no compensation for re-doing the wrap. Which means if you want your wrapping to be insured, you will have to get an insurance separate for your wrapping.
It is one of the many examples of things LV Agency does think about as an insurance broker. Regularly facing questions from business owners to proactively provide solutions for their clients.
Would you like some more examples?
– If you have a van and pay an assistance fee in your insurance policy, are you sure you will get a van as a replacement vehicle?
– If you have multiple companies, are you sure that internal billing is not counted as a basis for your insurance premium?
– If you work as a subcontractor, are you sure you don’t have to get 10-year liability insurance for that job site?
– If you think you have good fire insurance, do you know if revenue loss would be covered if your business burned down?
– If you depend on mail or website functioning properly, do you think your IT provider will pay for any hacking?
These are all issues that standard insurance is often thought to cover or reimburse in case of problems. But without checking off whether this is actually the case, you might be in for some unpleasant surprises.
Talk to your insurance broker
If you want to make sure your insurance covers what you think it covers, it’s best to discuss it with your broker. LV agency offers this approach by default, relieving you of much of the burden. They want to know you and your business personally and keep in touch very regularly. Your operations change, you install an electric charging station, …
Few think to inform their broker of every little change. But in the end even the slightest change can make a huge deal. Especially when it comes to insurance claims at times when money is tight. You don’t want to end up with a lot of extra costs when you don’t have to money for it.
Need more business tips? Be sure to check out these Business articles too.