Business Insurance Myths

5 Business Insurance Myths That Might Blow Your Mind

If you are searching for several business insurance myths that might blow your mind, you’ve come to the right place. Learn more here!

Are you wondering if business insurance is a necessity for your business? Have you heard different (and contradicting) facts about business insurance and are unsure of which ones to believe? If so, then you need to learn about different small business insurance for yourself.

Doing so can help you debunk the myths that you hear. There are a ton of misconceptions when it comes to insurance policies, so be sure to inform yourself as the leader of your company.

See below for several business insurance myths that you may have heard as well as the whether or not there’s any truth behind them.

1. Myth: I’m Not a Large Company, So I Don’t Need Workers’ Compensation

One of the biggest misconceptions about workers’ compensation is that only the large companies have it or are able to provide it for their staff.

What you might not know is that workers’ compensation is legally required for any company that has more than one employee. Even if you have one employee, you will want to stock up on workers’ compensation.

Granted, there are some jobs in which you’re less likely to need it (such as any desk job), but you don’t want to take that chance. Even a slip and fall in the break room can turn into you paying for all of your worker’s medical bills.

Workers’ compensation is a necessary policy for your business, regardless of your company’s size. It protects your company, your workers, and your clients.

Having workers’ comp also removes you from the equation if an injury occurs. Your employee will settle with your insurance provider, saving the relationship between you and your top-tier in-house talent.

2. Myth: My Employees Are Driving Their Cars, So Business Car Insurance is Unnecessary

If only it were that simple. Generally, the fact is that commercial car insurance covers a lot more than personal car insurance will cover in the event of a loss.

Commercial car insurance can cover things like gap coverages on your car lease or car loan, the loss of GPS tools, rental vehicles, and (of course) company vehicles.

Personal car insurance won’t cover as much. Your employees might not even realize that their auto insurance doesn’t cover anything that happened for business reasons. Don’t leave them out to dry with their personal vehicles.

If they damage their car while performing business duties, your employee might turn their head to you and expect you to cover the damage. That will easily set your company back several thousands of dollars.

Don’t leave any of this to chance. Reach out to a commercial auto insurance provider to get everything situated.

The more employees you send out on the road, the more likely it is that one of them gets in a crash. Give them the necessary safety training and invest in business auto insurance. You’ll be glad you did.

3. Myth: Business Insurance Is Expensive

This couldn’t be further from the truth. In fact, in a case of emergency, business insurance is actually going to save you money down the line.

What if you get a legal claim against your company? Are you prepared to fork over thousands of dollars to cover it? If one of your workers gets injured, can you financially afford to pay their medical bills and ensure their finances aren’t affected by it?

Odds are that you can’t. Not many businesses can. That’s why business insurance coverage is so vital to have. It gives your company safe in the event of an emergency.

A reputable commercial insurance provider will be happy to help set your business up for success. You can walk them through your business model and they’ll make recommendations on which policies your company can benefit from.

If you purchase multiple commercial insurance policies with the same provider, you can bundle your insurance to save more off your monthly premiums.

4. Myth: I Work From Home, So I Don’t Need Business Insurance

Unfortunately, many self-powered businesses are overtaken by financial distress because of this business insurance myth. People often associate business insurance with brick-and-mortar stores, thinking that home-based companies don’t need it.

Your home insurance or renters’ insurance won’t cover any losses that have to do with your business. That means any supplies, devices, or documentation that’s lost from an emergency situation at home won’t be paid for. You’ll have to absorb the loss.

Don’t put yourself in a situation where you’ll be forced to start all over again. Get business insurance for your home-based business to protect all your assets.

5. Myth: Since I’m a Small Business, My Company Doesn’t Need Cyber Liability

Here’s a shocking statistic for you: 76-percent of US businesses experienced a cyberattack last year. Not 76% of large businesses, 76% of all businesses. You better believe that number is going to continue to grow.

Don’t turn your head to cyber liability insurance, it can be the saving grace if your company experiences a tremendous financial loss or private information has been stolen.

Remember, as a business, you aren’t just protecting your private information. Your employees and clients trust you with their private information as well. Don’t let them down!

Invest With the Right Business Insurance Provider Today

Now that you’ve seen all of these common business insurance myths debunked, it’s time for you to invest in all the proper policies for your company.

Be sure to read this article for more information on business auto insurance and what it does and does not cover.

For all other inquiries, please feel free to reach out to us either by phone at (800)-467-3254 or by email at info@hertvik.com and we will be happy to assist you further.