Risk management concept. Successful businessman at the light background.Common Mistakes Made When Purchasing Business Insurance Over the years, we have seen well-intentioned insurance and risk products buyers make decisions that, while they may appear to help the organization, actually hurt it in the end.  Here is a list of top mistakes that uninformed insurance buyers often make.  We provide it to you in the hope that you can learn from the errors of others. Top mistakes made by uninformed insurance buyers: “Bidding-Out My Insurance Is the Best Way to Get the Best Program.” False.  Most insurance buyers have the false belief that getting three bids from three different agents is the best way to make sure they are getting the best “deal.”  This is like asking a builder to provide a bid without seeing the building plans.  When talking to your agent about your insurance issues, give the agent the full set of “plans,” including losses and premiums, financial data, and policies.  Utilizing the services of one agent whom you can trust will lead to reducing short term and long-term costs.  Comparing multiple factors, including terms, conditions, and premiums is crucial, as even the best-priced policy can fall short in areas. “Two Agents Are Better Than One.” False.  Your agent can provide valuable services including educating you about what coverage you need and may not need.  Your agent can search the market for the best possible combination of coverage, price, and service.  Having two agents can create gaps or coverage issues.  It is best to allow one agent to understand your business thoroughly and then design a business insurance program specifically for you. “I Don’t Need to Have a Relationship With My Agent.” False.  Many buyers have a false belief that the agent’s only function is to place coverage and administer insurance.  Your broker/agent should be offering much more than that.  Your broker should be a trusted adviser who helps you identify risk factors, and develops solutions that help you to manage these issues. “My Policy Covers All Losses.” False.  Your business insurance policy is intended to cover unexpected losses and accidents subject to the policy terms.  There are limitations and exclusions in every policy. “I Don’t Need to Consider Different Kinds of Coverage.” Every business should consider the following kinds of business insurance products.
  • Business income
  • Employment practices liability
  • Cyber risk
  • Key man life
  • Commercial umbrella
  • Products liability
No matter how well your business might be doing, disaster can strike and turn your streak of good luck into quagmire of misery and frustration. J.S. Edwards & Sherlock Insurance Agency offers a variety of business insurance policies to protect your business as well as your peace of mind. No matter how small or large, new or longstanding your business is, you never know what the next day will bring or how much it might cost.