Updated: Jan 6, 2021
Insurance companies these days are making it seem like purchasing a good insurance plan is a very simple task. But the reality of the situation is entirely different. There are several mistakes that people tend to make when choosing an insurance plan.
We will try to explain some of the common mistakes that people tend to make when buying an insurance plan.
Not Buying The Right Insurance
Every type of business needs insurance for its proper functioning. But not every business owner knows the right type of insurance they need. Moreover it is very difficult to find the correct one you need from all the types of insurance provided by various companies in your country. If you don't have the proper insurance coverage the loss during an unpredictable event will be very expensive you anyone to handle.
If you don't have the right insurance then you're wasting your money on the wrong one. Another thing is that you will have a false sense of security that you are covered from all possible risks.
Small business owners should always seek advice from experts before buying an insurance plan. They should also do some research before directly contacting an insurance agent. The best place to get info is the official website of the Insurance Regulatory and Development Authority. There is also a consumer education website maintained by IRDAI which is very helpful to the public.
We also recommend that you speak to an insurance broker who has the experience to understand your business and the risks you face.
In this case you're not fully insured for all the damages that are likely to occur to your business. You may be paying a good amount on premium but you're not fully covered for all the risks related to your business. This will have a big impact on your overall financial stability. There are many reasons why small business owners find themselves underinsured. One reason is that they didn’t accurately estimate the coverage required for their business. Another reason is that the business owner has reduced the coverage amount to help lower their premiums.
There is also a chance that you're overinsured. This happens when you're paying a large amount on premiums for events that are really unlikely to happen. The insurance agent may try to make you pay high premiums for him to get more benefits from his company. The reality is that you're wasting your money on events are not likely to happen.
Not having Extensive Cover
There are several types of insurance a single company must have to operate properly. Even if you're paying the right amount of premiums you might not be getting all the types of you need. There's a very good chance that one single insurance company cannot provide you with all the insurance you need. So you need to buy insurance from different companies.
The easiest solution to avoid all these mistakes is to contact an insurance broker who can help you in more than one way. Only an expert insurance broker can accurately assess all your risks and help you get the best insurance coverage which will function as protective shield from all possible risks that might affect you and your business.
At Aegis Insurance Brokers we have an excellent team of qualified professionals who can help you with all your insurance needs. You can contact us at anytime through our website or email.