As a business owner, you need to understand your business insurance as well as your product or service.
One mistake we often see business owners make time and time again is not reading or understanding the coverage they have in place. It’s critical to know the ins and outs — also often referred to as exclusions — of how your policies work and what is covered.
Your business insurance, also known as your commercial insurance is more expensive as a rule, and much more complicated than your personal insurance. More important, is having an understanding how your business coverage works.
Not understanding your insurance and how it works in the event of a catastrophe can lead to financial ruin for a business. Many business owners assume that if the building they own or lease floods, it is covered. The same is true of a tornado or wind storm.
The fact is that it is very possible none of these may be covered by the current property insurance you have in place. Many policies will cover rebuilding, but what about debris removal. In the event of a catastrophe, the debris removal could run into tens of thousands of dollars, even more. You need to understand what is covered and what’s not long before the potential for a disaster is eminent.
A big mistake business owners make is not about the insurance, but the down time involved in the event of a disaster. Especially if other locations may have the similar damage and issues, rebuilding could take months or even a year or more.