DO’S AND DON’TS OF INSURANCE

ou need to understand what insurance is, the do’s and don’ts as well as the benefits of having it. Having insurance is important as it protects you from unexpected loss, damage, or even theft should you experience such unfortunate circumstances. Insurance is a method by which you can protect yourself and your loved ones from facing a financial crisis. You buy an insurance policy for the same, while the insurance company takes the risk involved and offers insurance cover at a specific premium.

DO’S

Bring an insurance agent into your start-up process and have policies in place.
Consider using an insurance agent who can handle all of your insurance requirements.
Include excess liability “Commercial Umbrella” coverage for your business.
Use a broad form of business property insurance.
Consider a health insurance policy to recruit and keep good employees.
If you have employees, consider carrying employment practices liability coverage.
Maintain a clean and safe environment in your workplace.
Include your tenant improvements in your property insurance policy.
Increase all your insurance coverage appropriately as your business grows.
Consider maintaining a buy-sell agreement with your partners, funded by life insurance, in the event of the death of a partner.

DON’TS

Consider self-insuring any part of your worker’s compensation risk.
Fail to recognize regular employees as employees and not contract workers.
Overlook ongoing employee training on maintaining workplace safety.
Feel that you can’t afford insurance. You can’t afford not to have it.
Deal with contractors who cannot furnish insurance certificates.
Permit your insurance policies to lapse for non-payment of premiums.
Deal with insurance providers with substandard ratings.
Withhold information from your insurance provider. Give the provider a complete picture of your risks.
Go “uncovered” (uninsured) in any category of insurable and significant risk.
Overlook flood or earthquake insurance if in an area of high risk.

Be sure to get your insurance covers in order.

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