Pitfalls to Avoid When Buying Business Insurance

There are several pitfalls that you are going to want to avoid when buying killebrew business insurance.

Least Expensive

The first pitfall is buying the least expensive policy. This is one of the main reasons that you need to shop around when you plan on buying business insurance. This is the best way that you will be able to understand what the policy is going to do for you and what it does not cover. This is something that you are definitely going to want to do before you buy the business insurance.

Too little

The second pitfall is not buying enough business insurance for your company. When you have a small business, then you might be tempted to insure the personal property and buildings with just commercial property. But the type of insurance is probably going to be enough for your company. You will also need to be aware of policies that might have an agreed value provision or a coinsurance clause. This is because if you don’t maintain the minimum amount of insurance, then they are not going to pay the full amount of the loss so you are not going to be saving any money.

Low Liability

The third pitfall is when you decide to gamble on the low liability limits. This is going to be especially bad if you end up involved in a lawsuit. Therefore, if you are buying auto liability or general liability insurance, you want to make sure that you don’t skimp on the limits that you can have. This means that if you don’t know how much insurance that your company is going to need, then you are going to want to talk to your broker or insurance agent for the type of advice on the insurance that you need to get.

Low Deductible

The fourth pitfall is when you automatically choose a low deductible for your business insurance. This is because more than likely, you are buying more insurance than you actually need to take. You will need to think about how much of the premium that you are going to save by just raising the deductible by a hundred dollars. It is always a good idea to choose the highest deductible that your company is going to be able to comfortably absorb without having to make some major changes to the company’s budget.


The fifth pitfall is not adjusting your coverage based on any of the changes that happen to your business. If you are a small business, then there is a big chance that you are going to grow. This means that you are going to acquire new property and hire even more employees to work for the company. When the business changes, you are going to want to change your insurance needs too. Therefore, you should keep your insurance agent up to date on any type of changes that might be going on within the business


The sixth pitfall is when the company does not read the policy. You should read your policy so that you can understand what the policy is going to do for you and what is not going to cover. It is very important that you do this before you buy the policy because once a loss inside of the company occurs, it is going to be too late. This is because you are not going to have the ability to buy any extended coverage once the loss has already happened to you. If you don’t understand it, then ask your insurance agent to help you with all of the legal terms of the policy.