Even small home-based businesses are exposed to a range of risks, from liability lawsuits to floods and extreme weather. Although insurers structure business insurance policies to protect the value of business enterprises, some common misconceptions may cause entrepreneurs to go without the coverage they need. Understanding the truth behind these myths will help keep your company safe from the unexpected.
3 Common Business Insurance Myths
1. Homeowners Insurance Covers a Home-Based Business
Although homeowners insurance will compensate you for personal possessions damaged or destroyed by a covered event, it usually excludes business property. If you keep inventory or work-related equipment in your home, acquire a separate policy to protect it from fire, theft, extreme weather, and other natural disasters.
2. You Don’t Need Commercial Auto Insurance
Typically, private auto insurance policies exclude accidents that occur while you’re using a personal vehicle for work. Any business owner who uses personal transportation to deliver products, pick up customers, or drive to a client’s location, should purchase an additional commercial auto insurance policy.
3. General Liability Insurance Protects a Business From AnyLawsuit
Although general liability insurance will pay for damages in a wide range of situations, some could still result in a lawsuit. For instance, most standard policies don’t cover customers’ losses caused by data breaches or employee mistakes and errors. Depending on the industry you’re in, you may need error and omission coverage or a cyber liability policy to protect your business from lawsuits.
Since 1939, Wilmoth Insurance Agency Inc. in Cookeville, TN, has helped business owners throughout the Upper Cumberland region protect themselves from the unexpected. They work with the industry’s leading carriers and will collaborate with you to find a business insurance policy tailored to your needs. Visit their website to learn more about their coverage options, or call (931) 526-6181 to request a free quote today.