Running a business comes with enough challenges — insurance coverage shouldn’t be one of them. But too many business owners wrestle with their own policies, especially after finding out that they weren’t fully covered to begin with.
That’s a scary thought, isn’t it? Imagine humming along, running your business as usual, and then boom! Something goes wrong, and your insurance doesn’t cover it. Too many business owners nowadays have experienced this, and they’ve faced the costly ramifications of being underinsured.
Could you be next? Well, let’s talk about it.
What Does Being “Underinsured” Even Mean?
Being underinsured doesn’t necessarily mean you don’t have insurance; it just means that the coverage you do have isn’t enough to cover the actual costs of a particular claim. Maybe your policy doesn’t account for recent growth, updated equipment, or increased liabilities. The result? You’re stuck paying out-of-pocket for the difference.
Why Does It Happen?
Underinsurance happens for a few reasons:
- Outdated Policies: Your business evolves, but your insurance doesn’t.
- Cost-Cutting: Choosing the cheapest policy may leave gaps in coverage.
- Misunderstanding Risks: You might not realize what your business actually needs.
The Risks of Being Underinsured
- Financial Loss
If a fire destroys your inventory or a cyberattack locks you out of your systems, inadequate coverage can mean paying thousands — or even millions — out of pocket. - Legal Trouble
General liability insurance might cover a slip-and-fall, but what about professional mistakes or customer data breaches? Without the right policies, you could face lawsuits and legal fees. - Business Closure
Worst-case scenario? A lack of funds to recover after a disaster could lead to shutting your doors for good.
How to Avoid Being Underinsured
- Assess Your Current Coverage
Review your policy regularly to ensure it reflects your current operations, equipment, and liabilities. - Tailor Your Policies
Work with an expert to customize coverage for your specific industry needs, whether that’s contractor’s insurance, cyber insurance, or a business owner’s policy (BOP). - Don’t Skimp on Coverage
A cheaper policy might save you money now, but it could cost you big later. Focus on value over price.
Upgrade Your Coverage Today
You deserve more than “good enough” coverage; you deserves peace of mind. At Avalue Insurance, we’re here to help you find comprehensive policies tailored to your unique business needs. From reviewing your current coverage to addressing gaps you didn’t even know existed, we’ve got your back.
Don’t wait until it’s too late. Contact Avalue Insurance today to ensure your business is fully protected. Give us a call at 303-773-3332, email us at info@avalueinsurance.com, or request a consultation right here online!
