Buying commercial insurance for your business in Woodbury, MN, is one of the most critical factors for success. However, many inexperienced entrepreneurs make mistakes when determining what type of policies they need. Kriener Insurance can help guide you through the appropriate commercial lines to help protect your business.
Common Commercial Insurance Pitfalls
Simple oversights during the insurance-buying process can lead to severe financial gaps or denied claims. These are the most common mistakes that business owners make when buying insurance for their companies:
- Underinsuring property by basing it on market value instead of replacement cost
- Choosing policies solely on price
- Not paying attention to specialized risks
- Miscalculating or overlooking business interruption policies
- Never reviewing changing business needs
- Ignoring legal entity and named insured requirements
When you underinsure your business, you not only receive less than the replacement costs of items, but your insurer may also hit you with a co-insurance penalty, increasing your costs. Likewise, an inexpensive policy may not meet your needs. General liability doesn’t cover many risks. Consider errors and omissions, cyber-attack, and other specialized policies for full risk coverage. You may not think business interruption will happen to your company, but when it does, you may not recover from financial losses when you cannot operate.
A Checklist to Avoid Pitfalls
Regularly reviewing your insurance needs with an experienced agent is the best way to ensure you have all essential coverage. When considering policies, do the following:
- Request replacement cost valuations to match market rates
- Review policy sub-limits and exclusions regularly
- Add specialized policies to cover modern risks in your industry
Kriener Insurance will take the time to ensure you have the best commercial insurance coverage for your business. Contact our Woodbury, MN, office for questions and to get started on the policies your company should have.
