Business owners know that there are a variety of obstacles to overcome in order to achieve success and growth in their business. In addition, businesses must avoid common pitfalls and mistakes that have doomed other businesses, such as hiring the wrong people, buying poor quality equipment, or choosing the wrong location for their office or storefront. In today's blog post, we'll look at three insurance mistakes that all new businesses should avoid, to ultimately help their businesses achieve future success.
Not Enough General Liability Coverage
General liability coverage provides financial protection for businesses in the event of a lawsuit stemming from property damage, bodily injury, or other damages. A single lawsuit can be detrimental to a business owner, especially without adequate General Liability coverage. Too often, new business owners opt for the bare minimum amount of coverage, not realizing that businesses are sued at a much higher rate than ever before. The financial losses incurred from a lawsuit will often bankrupt a business, or significantly impair their ability to remain in business and generate revenue.
Skipping Workers Compensation Coverage
Workers Compensation Insurance is business coverage that compensates covered employees for work-related injuries or illness. In Texas, most businesses are not required by state law to carry Workers Compensation Insurance. However, it is important for business owners to have the financial protection that comes with Workers Compensation insurance, especially in certain industries where employees have a higher risk of falls, electrocution, vehicle accidents, or major injuries. Choosing to skip Workers Compensation coverage can be a huge mistake for new business owners as one simple fall or injury can result in major medical expenses and even lawsuits from injured workers.
Not Getting Insurance Tailored to Industry
Many new business owners assume that all business insurance coverage is the same, when in reality there are a wide variety of business insurance options available. Business owners now have the ability to choose business insurance coverage that is specifically tailored to their industry so they are only paying for policy coverage that is relevant to their business. The commercial insurance needs for a Houston restaurant will be vastly different than the insurance needs of a Galveston auto repair shop or a Katy farmer. It is important to have coverage that meets the unique needs of the business owner, the employees, and the company property.
Aegis is pleased to offer Houston area businesses exceptional commercial insurance solutions that provide top-level financial security and protection for whatever obstacles may lie ahead. The friendly and knowledgeable agents of Aegis can work to create a tailored insurance solution that meets the unique business needs of clients from among a wide variety of industries. Whether you are a restaurant owner, contractor, farmer or rancher, or retail owner, Aegis has reliable, quality, and affordable insurance coverage you can count on. Contact Aegis at 713-850-7622 for more information, or go online to request a free quote today.