5 Common Business Insurance Myths: Busted!

At Allsafe, we’ve helped countless business owners to find the right insurance. Throughout the years, we’ve heard various misconceptions from our customers, and some specific myths come up time and time again. We decided to put together an article that addresses these common misunderstandings and just make sure everyone’s on the right page. Read below about some of the most common myths related to business insurance.

General Liability Insurance Covers You For Everything

While it’s true that general liability insurance gives you decent overall coverage, the clue is not-so-subtly in the name: “general”. This provides you with general liability coverage against outside litigation but will not, for example, cover you against an employee who claims they’ve been injured at work or the more specific legal pitfalls of your industry. When it comes to insurance, there’s no such thing as a one-size-fits-all solution, so don’t let anyone fool you.

Using An Insurance Broker Will Increase Your Premium

There are many factors at play when it comes to calculating your premiums, but using an insurance broker is not one of them. Your premiums are based on the risk being insured and what the risk factors are associated with that risk. Insurance brokers may charge you a fee for their services; they may charge insurance providers a fee for their service or a mixture of both; these are the only ways insurance brokers and their business receive an income for their advice and expertise.

My Business Is Too Small To Be A Target

We have worked with various businesses and business owners over the years who have fallen into this trap. Approaching business insurance with this mindset can lead to extreme financial loss and devastating impacts that are far more expensive and long-lasting than the simple expense of insuring your business. Disaster can strike in many different ways and doesn’t only discriminate against big businesses, plus hackers and thieves often target smaller businesses because their security systems may be less robust. What’s worse, is that it’s often much harder for small businesses to recover from an attack or a disaster since they have smaller profit margins and safety nets.

Our Subcontractors Have Their Own Insurance So We’re Safe

Even if you only employ subcontractors, this isn’t true; you still need your own insurance. Often during matters of liability, you and your subcontractor will be found to have different degrees of liability. For example, you might be 55% liable, and your subcontractor is 45% liable. For any degree of responsibility, you should always have your own insurance. This also works the other way round as well. If you have staff and hire a contractor or have a mixture of both, often, your contractors are not insured under your insurance policy like your staff would be. Always make sure subcontractors or labour hire staff have their own public and products liability insurance before engaging them to perform work for you.

I’ve Been With The Same Insurance Company For Years, So They’re Definitely Giving Me The Best Price

Unfortunately, when it comes to the insurance industry, loyalty isn’t always necessarily rewarded. Too often, insurance companies get a bit too comfortable and focus more on attracting new customers than retaining their original ones. Enlisting an insurance broker’s advice and guidance will help you understand your options and see what else is on offer. No one likes paying over the odds for the same product or service they could find elsewhere at a better price!

At Allsafe Insurance Brokers, we’re experts at finding the right insurance policy for your needs and your business. If you have any questions about business insurance or you’re looking for an experienced broker who’s committed to finding the best solution for you, get in touch with us today!