This myth is one of the most typical misconceptions in business insurance is that having home insurance is already enough to protect home-based small businesses. The existing policy, as the name implies, only covers incidents at home, so it only provides a little coverage. Although you can get some add-ons to home insurance, it is still recommendable to purchase proper business insurance that suits the specific need of your home business.
Myth No. 2: General liability covers all possible risks
Although general liability insurance provides a one-size-fits-all comprehensive coverage, keep in mind that it is not invincible to every claim that your business may encounter. This insurance has a design made to protect you, a business owner, from lawsuits filed by someone who does not work for your business. You can be protected against instances of injuries, accidents, and other on-the-job mishaps within your business premises, including damages to property and reputation.
Myth No. 3: Workers’ compensation insurance is unnecessary if there are no employees.
If you are a self-employed person, you might be thinking of skipping worker’s compensation insurance as you don’t have beneficiaries (employees) in the first place. However, there are some states where they require workers’ compensation insurance due to their laws and regulations, even for sole proprietors. If your workers are working full-time or part-time employees, you need to purchase this type of insurance, but if they are contractual workers, you might be mandated to do otherwise. Remember to talk with your insurer to know the extent and terms of the coverage applicable to the particular location of your business.
In buying business insurance, you need to consider many factors to select the most suitable one for your business. Accidents can inevitably cause casualties, but being uninsured is worse, so know what you exactly need for your coverage and what misconceptions you should avoid.
At Brad Spurgeon Insurance Agency Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (409) 945-4746. You can also request a free quote by CLICKING HERE.