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Is Your Business Under-Insured? 4 Areas That Might Not Be Covered in Your Current Policy

Is Your Business Under-Insured? 4 Areas That Might Not Be Covered in Your Current Policy

Business insurance is unlike any other form of coverage, and your current policy could have some major gaps. A single lapse in your insurance policy might end up costing your company thousands in medical bills, repairs, and legal expenses. If you haven’t reviewed your policy in the last few months, then it might be time to reevaluate your risks.

Injuries on Vacant Lots

Commercial property insurance is a legal requirement in many states, but you need to be very specific about which property is covered. Even vacant and unused lots need to be included in the policy if they are owned by the business. Your company could be financially liable for any accidents or injuries that take place on your vacant lots. Luckily, insurance for unused land is generally very affordable, and it can easily be added to your current policy.

Reputational Harm

Most general liability policies cover some reputational harm, but it isn’t always enough. Many owners don’t realize that a single lie on social media or false news story could end up costing them thousands of dollars in business. Reputational harm coverage will give you the ability to fight back if your company is unfairly being attacked. It might also provide you with some financial assistance if your business has taken a hit due to slander.

This is something to take very seriously, because one dent in your reputation can be manageable. However, many dents can lead to you possibly needing to close your business eventually, as your reputation may have become so tarnished that it’s impossible to fix.

Using Private Vehicles for Deliveries

According to Northeast Insurance Agency, getting commercial automobile insurance is one form of insurance that some businesses should consider if its employees are using their private vehicles for business purposes.

The laws regarding private and commercial vehicles are very complex, and you want to be absolutely sure that you have the correct coverage. Private vehicles need to be covered by a company policy if employees are using them to transport goods or meet with clients. The vehicles also need commercial coverage if clients are being transported for any reason.

Business Interruptions

Just because your business policy covers repairs and medical expenses doesn’t mean that your company won’t take a serious hit after a fire, flood, or other natural disaster. This particular type of coverage will provide you with some income if your business can’t operate after a disaster. It can be customized to address natural disasters that are common in your area, and that means you won’t have to overpay for coverage you don’t need. Many companies add business interruption coverage to their policies before expanding to new states or countries.

The only way to be sure that your business is fully covered is to work with an experienced agent once or twice a year. As your business continues to expand, you must be absolutely sure that you aren’t overlooking any new employees, assets, or risks. With the proper coverage, you can continue to invest all of your energy into your products and services without worrying about unfortunate accidents.

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by Hannah Whittenly // Hannah Whittenly is a freelance writer and mother of two from Sacramento, CA. She enjoys kayaking and reading books by the lake.

Opinions expressed by contributors are their own.