As a small business owner, you’re constantly on the lookout for ways to save money, stretch a dollar, and increase your profits. We’re all for cutting out unnecessary expenses, but your insurance isn’t an area that you should skimp on.
Take a look at a few common small business insurance myths and make sure you understand exactly what kind of insurance coverage you do and don’t have.
MYTH #1: YOUR PERSONAL AUTO INSURANCE WILL COVER YOU.
If you drive your personal vehicle for business purposes and you get into an accident, two things will likely happen. Your personal auto insurance won’t cover the claim, and they might just drop your policy because you weren’t accurate in your explanation of how your vehicle was being used. As a small business owner, even if you’re a business of one, you need a commercial auto policy if you use your car for business purposes.
MYTH #2: INSURANCE ISN’T NEEDED IF YOU’VE GOT A CONTRACT.
In most cases, a contract makes the terms of the agreement between you and the other party clear, including how disagreements will be handled. If you don’t meet the terms of the contract, whether due to a missed deadline or some other issue, your contract could be deemed void. Once that happens, you are definitely at risk of being sued.
MYTH #3: IF YOU GET SUED, YOU’LL SIMPLY CLOSE YOUR BUSINESS.
Closing your business is an unfortunate outcome of many lawsuits, but it won’t protect you from paying a settlement, court costs, and any other fees associated with the lawsuit. It’s much better to have business insurance, at minimum a general liability policy, to protect you if you get sued.
MYTH #4: E&O INSURANCE IS ONLY FOR BUSINESSES WHO PROVIDE SERVICES.
If you think E&O (errors and omissions) insurance is unnecessary because all you do is give advice, think again. If someone uses your advice in their own business and damage occurs – physical or otherwise – you could be the one they blame. Not all the advice we give is good advice for everyone who hears it. A lawsuit you can’t afford isn’t the time to find out how costly your advice may be.
Regardless of how small your business is or what kind of business you run, you need business insurance. Contact us here at Charlotte Insurance, and let’s sit down to talk about your business. We’ll be able to help you determine which coverage will best protect you and your business.