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3 common insurance mistakes that businesses make

| Jun 3, 2021 | Firm News |

Insurance is a necessary cost for your business. You hope you will never need it, but if you do, you want to make sure your insurer takes care of you.

When filing a claim, you should avoid these three common mistakes that business owners make.

1. Failing to understand the policy

Insurance policies are often complicated, and many people make broad assumptions about what their plan covers. This can be a costly mistake if they encounter a problem that their policy does not cover.

You should always understand exactly what is in your policy to ensure you have coverage that will actually help you when you need it. You should never be afraid to ask your agent to explain your coverage if you have any questions. Doing so will allow you to identify any gaps that may leave you exposed to risk.

2. Not documenting the claims process

If you fail to properly document the claims process, you may find that you receive a lower payment than you deserve. You should photography damage as soon as it occurs and keep records of all communications you have with your insurer.

3. Admitting fault for damage

Whether or not you are sure of the cause of damage, you should never admit fault. This can make it difficult for you to receive an adequate payout from your provider.

Even when you avoid these common mistakes, your insurer may still deny your claim. If that happens, you may have options to pursue proper compensation from your insurance company.