Does Your Mississippi Business Insurance Protect You Adequately? 5 Signs to Watch Out For

Most Mississippi business owners understand that insurance is essential but buying it and having adequate coverage aren’t the same thing. One of the most common problems companies encounter is being underinsured. This is when you have coverage but it isn’t adequate to fully protect your company against a serious loss. Unfortunately, underinsurance often doesn’t become apparent until disaster strikes. A fire, a lawsuit, or storm damage can quickly expose gaps in your existing coverage. That’s why it’s vital to regularly review your Mississippi business insurance and make sure it still meets your needs.

5 Signs Your Mississippi Company Might Be Underinsured

Underinsurance is a common pitfall that occurs when you don’t have enough coverage to fully protect your property, liability, or income in the event of a claim. It can also mean having the wrong policies for the types of risks your business faces. Many owners choose policies based primarily on price or they forget to update their insurance as the company grows. They make assumptions that their general liability policy will cover everything.

If it’s been a while since you reviewed your business insurance coverage in Mississippi, here are 5 red flags that could mean your company is underinsured:

1. You haven’t reviewed your policy in over a year: Businesses change over the course of a year. You may have added equipment, hired employees, or taken on larger jobs. If your policy hasn’t changed but your company has, your existing coverage might not be enough for your current risk level. A tailored policy with help from an expert matters more than a generic, one-size-fits-all business insurance plan.
2. You’ve added services, vehicles, or locations: Company growth and expansion are rewarding. It also means there are new risk exposures that need to be addressed. For example, if you’ve opened a second location, started offering new services, or added company vehicles, you will probably need additional coverage.
3. Your property limits don’t match today’s replacement costs: Prices for lumber, supplies, and equipment have gone up. Any policies based on old asset values can leave you out-of-pocket when replacing tools, rebuilding a damaged office, or recovering from a storm.
4. You assume your general liability insurance covers everything: A general liability policy is essential, but it doesn’t cover everything. You may need additional policies such as commercial auto, workers’ compensation, cyber liability, or professional liability, depending on the unique needs of your business.
5. You chose the cheapest policy without understanding its terms: It’s tempting to select coverage based on the premium price, but cheaper policies may have lower limits, more exclusions, or no coverage for your specific risks. Saving money now could cost you more later.

Consult with Business Insurance Mississippi Experts for Peace of Mind

Having business insurance is smart, especially when you know you have enough to cover you in an emergency. The team at Hawsey Insurance can help you determine the types of coverage that best fit your needs. We’ve served Mississippi businesses for decades and have the experience and know-how to help you get the coverage you need. We will help you with all your commercial coverage needs, including general liability insurance, business owners’ policies, umbrella insurance, and workers’ compensation policies. We can help create a policy that suits your business, budget, and future needs.

Call Hawsey Insurance at 601-856-7707 to discuss your Mississippi business insurance needs with a qualified agent. Feel free to contact us online or make an appointment to stop by our Madison, Jackson, and Southaven, MS, offices.