There are many business insurance myths floating around, and most of them have been around for years. We want to respond to these myths with clear information, so that you can make educated decisions about your business insurance purchases.
Business Insurance Myths
“Having two agents is better because they keep each other competitive.”
Having two agents duplicates effort and can create coverage gaps and/or duplications. For example, there is certain coverage that can be included under a liability policy as well as under an auto policy. If you have two agents, who will coordinate coverage? One agent is better able to manage your entire insurance program.
“I am covered under workers’ compensation; therefore I do not need medical insurance.”
Workers’ compensation only covers on the job injuries. It does not cover off duty accidents, illness or other things like cancer.
“Umbrella insurance is for only large firms.”
Every business should consider an umbrella policy. Claims can come from employees, clients and other third parties. Defense costs range from $250 to $750 per hour on more complicated claims.
“My claim was an act of God; therefore my deductible does not apply.”
All losses are subject to your policy terms including the stated deductible.
“Earthquakes are covered under my commercial insurance.”
Earthquakes and floods are specifically excluded under commercial insurance unless you have added it.
“I can’t control my commercial insurance costs.”
There are a number of actions you can take to control your insurance costs:
- Increase your deductible
- Follow all loss control recommendations
- Only report larger claims
- Develop a safety program
We believe our greatest asset is the relationships we build with our clients and we are dedicated to being the right choice for all of your insurance and financial needs. We take pride in our ability to tailor a comprehensive insurance package that maximizes your insurance protection while minimizing money out of your pocket.
At Leap / Carpenter / Kemps, Merced County’s largest locally-owned agency, we have an experienced staff of professionals who understand that each business is unique and that the one-size-fits-all approach just doesn’t work.