It is very important as a business owner that you are not falling victim to some of the myths out there about business insurance policies, as it could impact your business in a negative manner. Here are some of the myths that you want to avoid believing:
Myth: Your Automobile Insurance Will Automatically Cover You When You Use Your Personal Vehicle For Business
Instead of using your personal vehicle for anything related to your business, you will want to stick with the use of your company vehicle, even if you find it a little inconvenient at times. This is because your personal vehicle is not likely going to be covered when it is being used for commercial use, as stated in most auto insurance policies. If you need to use your vehicle for both personal and business needs, you will need to specifically state this to your insurance company, so they can give you the appropriate coverage, which may come with a higher yearly premium due to the amount of risk involved.
Myth: No One Will Ever Sue Me Because My Small Business Doesn't Make A Lot Of Money
It does not matter how much or how little your business earns. Anyone, at any time, has the ability to file a lawsuit against you. Without the proper business insurance protecting you, should the judge find that the plaintiff is entitled to money from you, a judgement can be filed against you. The judgement will not go away until it is paid in full, no matter how long that takes. In some cases, people have had to go out of business and sell off their equipment and more in order to pay the judgement that was filed against them, simply because they failed to have the proper business insurance policy in place.
Myth: I Don't Need Business Insurance Because It Is Now A Corporation
You need to remember that just because you have done the legwork to turn your business into a corporation, you still need to have the best possible business insurance. You are not protect under the terms of a corporation. Therefore, one small mistake or an error outside of your control could still cause you to be in court and without a solid business insurance policy, you could lose the entire company.
Make sure that you are searching for the best quality business insurance policy that you can afford for your company. Contact an insurance company, like Knepper Insurance Group, for more help.