By Kathy Lamm
Let’s face it, times are tough and no matter where your business is financially, you’re probably trying to watch your expenses. Labor, material and supply costs have all increased significantly while many businesses are still trying to make up revenue lost during the pandemic. When reviewing expenses, it’s only natural to look at your insurance costs as well.
But…what if you made the wrong choice and inadvertently cut an important coverage? What if that decision saved you $50 a month but ended up causing a catastrophic financial loss to your business?
Billions of dollars are spent each year on insurance advertising. Yes, the commercials are entertaining but they tend to focus on one thing – price. We are so bombarded with the “price” message that it’s easy to lose sight of the fact that insurance is intended to save YOUR money, not necessarily save YOU money.
Depending on your industry, your insurance doesn’t need to be a budget buster to do its job effectively. However, it is critical to balance price AND protection when considering any changes. For example, if you ask an employee to run a business-related errand using their own car and they cause an at-fault accident, your business may be liable for that loss. If there are injuries, you could potentially be on the hook for a very large amount. Adding a non-owned auto endorsement to your policy, which costs on average about $100-$200 a year, would allow you to file that claim against your insurance rather than pay out of pocket. Incidents like this happen frequently and with the recent increase in personal injury attorney advertising, lawsuits are getting larger and more common.
A good insurance agent should help you make decisions when times are good AND when times are tough. They should take the time to learn about your business operation and future goals. They will recognize your need to work within a budget but will help you make a smart decision, not a costly one. Your insurance agent should be a critical member of your strategic and financial team.
Be smart about your insurance and get some solid advice before jumping on the “cheap” insurance bandwagon. Protect what matters most.