Commercial Insurance: Myths and Misconceptions

Pulling back the veil on commercial insurance:

Myths and misconceptions.

As with any profession, there may be an appearance of complexity. In the insurance field, many consumers assume they know very little about their own policies because the policies are usually written in heavy legal jargon. What the insured needs to remember is that it is just “paper and a promise.” Let’s consider a few “myths” to insurance.

Myth #1:  Insurance covers everything

Not by a long shot. So many people rarely, if ever, read their policies. By reading the exclusion section of your policy, you will quickly and easily see what is not covered. This would be a good place to start reading.

Myth #2: Insurance is expensive

That depends. Right now, we are in the softest market (meaning prices are at an all time low) in the history of our business. (This does not apply to health insurance, but that is for another blog.) Consider seeking out options and second opinions from other agents and brokers to ensure your program stacks up from a price perspective, ensuring you are getting a good value. This is particularly true of commercial insurance risks.

Myth #3: not all businesses require insurance

Businesses may not be required to have insurance, but it should be part of their overall risk management plan. Insurance is intended to help a company or business get back on its feet following a loss. Without it, many businesses fail and never re-open their doors. By simply paying a small premium for a larger limit, insurance allows business owners the confidence and freedom to take calculated risks to grow and prosper.