When it comes to starting a new business, there are a variety of misconceptions and incorrect theories regarding how best to begin and successfully operate a business. Some business owners might believe that location doesn't really matter, that quality isn't an important issue for customers, and that most business insurance isn't really necessary. In reality, location is a critical issue for new businesses, most customers insist on high quality, and business insurance is always necessary to have, especially for companies with higher risks and liability issues. Today's blog post looks at the three most common misconceptions of Business Insurance, and why business owners need this kind of financial protection to secure the future of their company.
It Costs Too Much
Although Business Insurance isn't free, the cost of insuring a business, equipment, property, and employees is a worthy and valuable investment, especially considering the cost of losing any of these to damages, disasters, accidents, or liability claims. The cost of repairing a business heavily damaged by fire, floodwaters, or other catastrophes can be financially devastating for a new business, and most would not be able to cover these expenses out of pocket. As a result, a one-time issue could lead to the permanent closure of a new business. In addition, Business Insurance can become much more cost-effective for owners when Commercial Insurance policies are bundled together to maximize premium savings.
Assets Aren't Worth Much
Another common misconception regarding commercial insurance policies is that company assets aren't worth covering with Business Insurance such as Commercial Property coverage. The truth is that although the individual cost of assets, property, inventory, tools, equipment, and materials might be low, their combined cost could be astronomical when you consider that they would all need to be replaced at once in order for the business to continue. In addition, some custom business-critical tools and equipment might take a long time to replace, and at a much higher cost than when first purchased. Commercial Property Insurance can help businesses with the high cost of unexpected repairs and replacing lost and damaged assets and vital company equipment.
Company Property Is Secure
Business owners might also skimp on Commercial Insurance believing that their business property is secure and can withstand damages or potential threats. The truth is that even the most secure and recently constructed company buildings, retail centers, restaurants, and office parks can suffer damages due to fire, floods, windstorms, and other severe issues. Additionally, a building that can withstand major issues such as flooding and windstorms can still be vulnerable and damaged by vandals and thieves, who can cause tremendous financial losses for companies.
Regardless of your business's size, location, industry, or years of operation, Business Insurance should be a critical piece of your company's financial portfolio to ensure that a disaster won't devastate the business you've worked so hard to build. Aegis offers companies a wide range of top quality Commercial Insurance policies, including Business Owners Policy, Commercial Property Insurance, Commercial Auto coverage, General Liability, Excess Liability, Workers Compensation, and Business Interruption Insurance. Contact our friendly and knowledgeable team of agents for more information at 713-850-7622, or go online to request a free quote!