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6 Most Common Business Insurance Mistakes

24 May, 2019

When you are running your own business, you are exposing yourself to financial risk. That’s why it’s so essential that you protect your business in every way that you can. While many entrepreneurs take this to mean that they have to protect themselves from tech advances or their competitors, it also means having the right insurance policy. Insurance is a complex subject matter, making it very easy to make mistakes when looking at the right policy for your business venture. Make sure that you learn from the most common mistakes, and your business will be much more secure. Here are the mistakes that you need to avoid if you want your business to be fully protected.

Trading online

Online sales are more important than ever, and can be a massive boost to every business model. The problem many businesses encounter is failing to insure their online sales. If you accidentally send out a faulty product, this can end up being very costly. Product liability insurance is going to be useful to have included on your eventual policy.

Public liability

One of the most common forms of business insurance, this is going to be an essential. However, what most businesses aren’t aware of is how liability policies can be specifically tailored to your sector. Look at the range of options for UK public liability policy from Hiscox. They offer unique policies for industries as diverse as:

●     Tradesmen and construction contractors

●     Hairdressers

●     Cleaning professionals and home cleaners

●     Retail businesses and shop owners

No matter your sector, having a specifically tailored insurance policy will protect you far more than a basic and ineffective insurance plan.

Business credit

It is increasingly common for insurance providers to check your credit history as they carry out their underwriting process. Always check your business credit profile before you apply for insurance policies, as having a negative credit history can affect your interest rates and repayments.

Cyber insurance

Internet risks are more prevalent than ever, and every business needs to maximize its online safety. This is more than simple online product liability, and there are a wide range of online threats to any business. Cyber insurance is a useful way to reduce your exposure to risks. When phishing scams become ever more subtle and password thefts increasingly common, protecting yourself from online threats is a quick and easy process that will make your business far safer.

Information gaps

If you’re applying for an insurance policy, then you need to provide as much accurate information as possible. Giving the wrong information can cause delays or even a rejection of an insurance payout, and may nullify your insurance completely in a worst-case scenario.

Not updating

Businesses grow if they are managed well. Business growth should be the goal of any ambitious business owner, but your insurance is going to need to keep up with your evolving needs. Your requirements are going to change as your business becomes bigger, and you should review your existing policies on a regular basis to ensure that they are still suitable.

Not protecting your business is the fastest way to see it fail. Always talk to professionals who have experience with business policies. The wide variety of necessary protections available can be confusing, but failing to get your insurance right could severely limit the potential future of your business. Secure your business, and you are securing your future.

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