3 Things to Know When Purchasing Insurance
Does your insurance policy give you proper coverage?
Did you know that just because you have a basic insurance policy, you are not necessarily covered? Often times, when people go shopping for insurance they think that all of the policies are in essence the same. This myth is very dangerous because insurance policies differ a lot by their exclusions and what they will and will not actually cover. Today we are going to teach you what to watch out for and what to know when buying an insurance policy so you do not run into the issue of not being adequately covered.
Also, when most people go shopping for insurance, they find themselves looking for the cheapest rate and the cheapest rate only. This may sound obvious, but it is important to remember the reason you are buying insurance: to be protected. This is not to say that the best insurance is the most expensive by any means, however, when looking at a policy it is vital to look past the price tag and to see what exactly you are paying for. In this article we are going to teach you what to consider when buying insurance best for you and your business while also not breaking your bank.
1. Meeting the State Requirements Is Not the Only Priority
Whether your business is construction, farming, cannabis / hemp, or something in between, the state that you operate in has requirements as to what coverages you need to have. In fact, each state has its own legal minimum insurance requirements depending on what type of business you own. And the sort of insurances required range from professional liability to auto to workers compensation. In other words, your insurance policy has to fit at least minimum criteria set by the state. However, what most people fail to realize is that the minimum requirements is not all that your business needs to be protected. When shopping for a policy you should look for policies that have more coverage than only what is required by the state because it is important for a successful business to have insurance that is comprehensive and inclusive.
At the end of the day, going to the extra mile with your insurance policy will pay off in that you will have peace of mind that your business is protected from a variety of claims, and not just the basics. Your business is important, and it should be treated like the asset that it is.
2. Read the Fine Print
Insurance policies can be difficult to navigate and understand at times. There is a lot of writing and legal terms that can be very overwhelming to customers. Insurance policies include a lot of information to read and comprehend, as well as important details to note. You might even find yourself skimming policies at times just to get the “jist” of it. This is a huge mistake that you need to stop making right now. The fine print is the most important area in your policy to understand and be aware of. Why you might ask? The fine print is where all of the exclusions or limitations of your policy are listed. It is important to understand what your policy excludes, because often times your policy will have exclusions that you actually need covered! Let us explain.
You own a contracting business, and you need to obtain Contractors Equipment Insurance. When shopping for a policy, you find one with a decent price and the basic necessities so you choose to buy. However, when you read the fine print, you find that the equipment insurance excludes your equipment being stolen, or it doesn’t cover equipment over a certain price point. Both of these exclusions are things that you would want an equipment insurance policy to cover. It would not make sense for your contracting business not have equipment insurance that covers your most expensive equipment, or in the case that it is possibly stolen. If you hadn’t read the fine print, you may not have seen these exclusions and you would have been bound to a policy that has you under protected.
Exclusions that go against the nature of the insurance policy are more common than you may think, and that is why it is so extremely important to read the fine print with an insurance specialist and to check that the exclusions on the policy don’t go against any of the coverages that you want. This goes for all types of insurance policies as well. We said it before and we will say it again, insurance is all about protection! So take extra precaution with the fine print.
3. Buy A Policy For Protection and Not Just Licensing Purposes
(This tip is similar to that of #1.) When owning a business, there are often licenses you may need or want, all depending on what field you are in. Obtaining insurance is generally one of the top requirements when in the process of trying to get a license. A lot of the time people that are looking to obtain a license as soon as possible are trying to get insurance for the sole purpose of satisfying the requirements that of the state. Use this requirement to your advantage, and put time into getting an insurance policy with all of your desired coverages for a price that you can afford. The Cannabis Coverage Company insurance specialists say that, “Insurance is for the protection of your business and yourself, so you should get a policy that offers adequate coverage in order to do so. With so many people in a hurry to get their licenses approved, they often skip getting the proper insurance just so they can move along the process faster. Take the time and slow down for this step. It is important.”
At the end of the day, when you do obtain your business license and you are operating, you will want to have a comprehensive insurance policy that protects your business from possible claims. If your business is to run into a legal issue and you don’t have the proper insurance coverage, you will regret it and your business will take the hit. Don’t let this happen to you! It always better to more protected than less.
Understanding Your Policy
Insurance is a tricky topic for some, and when it comes to commercial and business insurances it becomes increasingly harder to navigate. It is for this reason that it is so important to have an agency behind you that takes care of you and has YOUR best interests at heart. At Lions & Coventry Insurance Services, we understand that you want what is important to you to be protected. Our highly trained insurance specialists are able to help you go through your needs and pair you with a policy that has all of the coverages you need, without the unnecessary additions or those pesky exclusions. For more information on finding the right coverage for you and your business, call us today!