Insurance is one of the most important things that you can buy because it will protect your against the financial repercussions of a variety of threats. However, insurance policies can be notoriously complex, and most people lack the skills or experience needed to thoroughly understand these policies. In particular, there are a couple of common insurance myths that you may have heard about. Believing them can cause you to make mistakes when choosing a policy.
Myth: Commercial And Residential Insurance Policies Provide The Same Benefits
Most people understand the importance of having homeowner's or renter's insurance for their homes. However, when many individuals start a business, they do not realize that it is equally, if not more important, to insure the enterprise. Failing to have your business properly insured can result in major financial losses if you are ever sued or suffer major damage to the building.
While these are some of the most basic forms of insurance, you business may also be able to purchase a policy that will protect it from lost revenue due to forced closings. These policies will provide you business with the average daily revenue in the event it is forced to close for something beyond its control. Most often this is used when the power is out for prolonged periods, storms cause extensive disruptions or damages and other repairs that force closing for the day.
Myth: It Is Impossible To Lower Your Monthly Insurance Premiums
It is no secret that you will have to pay your monthly premiums to enjoy the protection of your insurance policy. However, many business owners do not realize that it is possible to lower the amount of these premiums. This can be done through a variety of upgrades and policy changes.
For example, there are many insurance carriers that offer premium discounts if the business will start drug testing employees. Also, it may be possible to lower premiums by upgrading your security system and fire suppression system. These upgrades will reduce the damage that is caused when a problem arises, and this will lower the risk of insuring your business. There may be other options available to you, but you will need to speak with your insurance agent for more information.
Keeping your business safe starts with purchasing a comprehensive insurance policy. Yet, some business owners may believe that all insurance policies are the same and it is impossible to reduce costs. However, learning the truth behind these myths will help you get the most from your insurance without overpaying for it. For more information, check out companies such as Cambridge Insurance Brokers (Preston) Ltd.