Common Insurance Pitfalls and How an Agent Can Help Avoid Them

Every business comes with inherent risks. There are unfortunate incidents like theft, fire, and natural disasters that disrupt operations and cause different types of damage. Commercial insurance provides the crucial protection you need to help mitigate your business risks. However, it’s easy for owners to fall into common coverage pitfalls unknowingly. When you have gaps in your coverage, you may face costly claims, legal battles, or financial instability. The best way to avoid falling into these traps is by working with an experienced insurance agent in Madison, MS who can identify risks and create comprehensive policies.

5 Pitfalls Your Insurance Agent Helps Your Business Avoid

Working with an insurance agent ensures you don’t make mistakes that could cost you money and peace of mind. They will help you avoid these insurance pitfalls:

  1. Underinsuring property and equipment: One of the easiest mistakes a business might make is underestimating its assets’ value. You may face significant out-of-pocket costs after a loss if you don’t insure your office space, heavy machinery, or inventory for its full replacement value. Your agent will conduct thorough evaluations to appraise every business property appropriately. Because they’re proactive, it minimizes the chance of being underinsured.
  2. Overlooking liability coverage gaps: Standard liability policies might not cover all the risks associated with your company. For example, many businesses lack coverage for cyberattacks, environmental damage, or professional errors. An agent can recommend supplemental coverage such as cyber liability insurance, professional liability, and pollution liability.
  3. Ignoring business interruption insurance: Many business owners insure their physical property but overlook coverage that protects against operational downtime. For example, the cost of disrupted operations can exceed physical damage in a fire, flood, or natural disaster. Your agent can recommend business interruption insurance to cover lost income, employee wages, and ongoing expenses during a shutdown.
  4. Misclassifying employees: Worker’s compensation premiums are calculated based on employee’s roles and risk levels. If an employee is misclassified, it can lead to inflated premiums or denied claims. Insurance agents help you correctly classify your employees by reviewing job descriptions and responsibilities.
  5. Failing to update policies as the business grows: As your business grows, you may add services, expand locations, or hire more staff. You risk having inadequate coverage without updating your insurance policies to include these changes. Your insurance agent in Madison, MS can ensure you have updated policies aligned with your company’s growth.

Consult an Experienced Insurance Agent in Madison, MS

Partnering with a qualified insurance agent like one of our insurance brokers at Hawsey Insurance is a step in the right direction. We’re more than salespeople. We are risk managers and advocates, working with you to understand your unique needs. We can tailor policies, anticipate risks, and ensure ongoing protection. We help you avoid costly mistakes that can hinder your company’s growth and stability. Take advantage of our decades of experience helping business owners like you.

Call Hawsey Insurance at 601-856-7707 to request a quote from a qualified insurance agent. Feel free to contact us online or make an appointment to stop by our Madison, Jackson, and Southaven, MS offices.