Posted on: March 10, 2016 by titan-goodrich
Often, small business owners have their personal finances wrapped up in their business making them more skeptical about products and services that are offered to them. While you, as a small business owner, want to make sure you have the best Newport News Small Business Insurance available, you want to be sure that you know the facts about these common myths associated with your small business insurance.
MYTH 1: There is no need for Business Insurance if you work out of your home
The truth of the matter is that most homeowners’ insurance policies do not cover business-related damages that occur in a home office. While a few homeowners’ policies may cover some business property they do not cover you when traveling for work. A business owner’s policy can offer protection for both property as well as some damages such as slander that some of your clients may suffer.
MYTH 2: You don’t need business auto insurance if you use your personal car
Many Auto insurance policies exclude commercial coverage, meaning that if you were to get into an accident while driving anywhere for your business, you will not be covered. If your vehicle is being used mostly for business errands then it will likely need to have commercial coverage.
MYTH 3: You need an insurance policy for each client
Other than a few exceptions such as fidelity bonds, your business insurance should sufficiently cover you for multiple client contracts. While you should take the time to review the coverage for each contracted client that you have, chances are you will not need extra coverage unless the client involves complex risks.
MYTH 4: You can simply shut down your business if you get sued
Judges do not care if your business is currently operational when it comes to lawsuits. If you try to just shut down the business, there is a chance that you will have to pay any settlement out of your personal assets.
MYTH 5: Your client contract protects you so you don’t need insurance
While contracts are put into place to outline specific terms of agreements including the need for lawsuits, should you breach your contract in any way it may be voided. This breach of contract then opens you up to being part of a lawsuit.
At Goodrich & Watson Insurers Inc. we understand that the future of your business is your primary concern. Contact us today at 888.829.5004 for information on how our Newport News Small Business Insurance can help to protect you from an uncertain future.