You may wonder if purchasing business insurance should be a priority as a business owner. With many decisions competing for your attention and resources, investing in the right coverage with the help of an experienced insurance professional can be one of the best ways to protect your professional interests.
Benefits of Having the Right Kind of Business Insurance
If you lack proper coverage, your business can experience losses in various ways, not just financially. Can you afford to lose valuable time, peace of mind, reputation, and efficiency? These losses can trigger a chain reaction that affects your entire operation.
Business insurance should be tailored to your specific needs since each business owner and the products or services they provide are different. Consulting with a professional insurance agent or broker is essential for selecting the appropriate coverage. A custom plan designed for your business will maximize your protection.
Some business insurance options available are property insurance, liability insurance, crime insurance, auto insurance (for business vehicles, not personal ones), workers' compensation, umbrella insurance, life insurance, and loss control.
You may even need specialized insurance you’ve never considered, such as cybercrime insurance.
A Cautionary Story
In the past, we experienced a fraud incident that cost us and our client tens of thousands of dollars. A hacker gained access to the records of a manufacturer and sent fraudulent invoices to their customers - including one of our clients. The invoice appeared legitimate and poor bookkeeping practices by the manufacturer led our client to believe it was related to a current project and okay to pay.
That vendor knew for two weeks that they had been hacked and that fraudulent requests for payment were being sent, and they made no attempt to notify their customers. The invoice was paid and the money was never recovered. The police could do nothing to the overseas actors, and no one’s insurance was willing to cover the loss. They all said we needed “cybercrime” insurance. Did you know that was a thing?
While all parties involved had various business insurances, sadly, this fraud event fell outside the scope of all coverages of the vendor, our client or I Love Your Money. Experience can be a valuable teacher, but it can also be painful and costly. You don’t want to learn about business risks through such mistakes when you can proactively choose insurance coverage to protect your greatest asset.
Even if you believe you have adequate coverage, it’s wise to double-check your policy or seek a second opinion. You could suffer a loss your insurance won’t cover, even when you think you’re protected. We are pleased with the policy and relationship we’ve built with Marcos Esparza at Farmer’s Insurance.