For business owners, having Commercial Insurance coverage is an important part of running a business since it offers financial protection and peace of mind in case disaster strikes. Unfortunately, not all business owners make wise decisions when it comes to what kind of policies are needed and how much coverage is needed. As a result, they could find themselves in a major financial bind when they do need to make a claim and discover they don't have the right kind of coverage needed.
In today's Aegis blog post, we look at some common mistakes business owners make when it comes to choosing insurance coverage, and how Aegis Insurance & Financial Services can help rectify those mistakes.
Underinsuring Assets and Business Equipment
In order to be successful, companies rely on a wide variety of tools, equipment, machinery, and assets to fulfill customer orders, manufacture products, or make service calls. When disaster strikes and their work assets and property are destroyed, stolen, or broken, it can bring their successful company to a screeching halt.
Having dependable, comprehensive Commercial Property Insurance can ensure that equipment, tools, machinery, inventory, raw materials, furniture, and computers can be quickly replaced or repaired so that companies can have a faster recovery and less downtime. Without comprehensive Commercial Property coverage that includes all company assets, companies could spend valuable time and money having to repair and replace key business assets out of pocket.
Not Having Workers Compensation Coverage
In Texas, companies are not required to carry Workers Compensation coverage, so some choose to forgo this coverage for the sake of saving money on premiums. The obvious downside is that by not having Workers Compensation coverage, this means companies can be subject to personal injury lawsuits from injured workers, where they could face nearly unlimited amounts of damages and attorney's fees.
Workers Compensation coverage protects companies by providing the financial resources needed to cover the cost of medical expenses related to injuries or illness that occur during the course and scope of their job. Injured workers can get the treatment and resources needed to focus on their full recovery while companies can continue to operate without worrying about the astronomical costs of a lengthy lawsuit.
Overlooking Key Risk Areas
Finally, companies can be smart about having comprehensive Commercial Property and Workers Compensation coverage but still might overlook key risk factors, specifically Flood Insurance and other key policies that offer quality protection. Flood Insurance can help companies recover from losses incurred by flood damage, which isn't considered a covered event under Commercial Property or General Liability coverage. In addition, businesses that rely on delivery drivers, such as restaurants or retailers, may need quality Commercial Auto coverage to ensure their workers and business are protected in the event of an accident or injury.
With companies focused on recovery and growth after the challenges of the pandemic, the last thing they should worry about is how they will pay to replace or repair key property after a theft, fire, flood, or other catastrophic event. In addition, a worker injury shouldn't spell the end of a company because of possible lawsuits.
Instead, companies can have financial protection and peace of mind through the quality, comprehensive Business Insurance policies from Aegis Insurance & Financial Services. Our team of Commercial Insurance experts can guide you through the business insurance process and create an insurance portfolio tailored to your unique industry and business needs. Contact Aegis today at 713-850-7622 for more information, or fill out our online form to request a free quote!