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3 Business Insurance Coverage Mistakes That Could Cost You A Lot Of Money

You’ve invested a great deal of time, sweat equity and money into making your business a success. Don’t let costly insurance mistakes ruin your business.

You started your business to make a difference, fill a much-needed service gap, or simply to fulfill your dream of being your own boss. You’ve invested a great deal of time, sweat equity and money into making it a success. As an attorney specializing in insurance law, I’ve seen how costly insurance mistakes can almost ruin a profitable business. It’s one of the reasons we provide free insurance evaluations. We want to help small business owners, like you, make informed insurance coverage decisions to protect the South Florida business you’ve worked so hard own.

Let’s say you’re in the startup stage and haven’t gotten around to insuring your home-based business. If you were to experience a loss at this stage, would your home insurance cover your business equipment and inventory? Could you afford the financial consequences of the loss and still keep your business afloat?

Costly Business Insurance Mistake #1: If you run a business out of your home it’s important to know that your homeowners insurance won’t cover your business’ inventory or equipment. What’s more, should a client come to your home to see you and hurt him or herself, your homeowner’s insurance could deny your claim for coverage against those injuries. Home run businesses need business insurance coverage.

If you’ve ever been in a tropical storm or hurricane in South Florida, you know how common it is to experience power outages. That’s is exactly what happened to a client who owns a popular neighborhood restaurant in Broward. The power to his business was out for five days resulting in food spoilage, staff unable to work and significant income loss to himself.

Costly Business Insurance Mistake #2: Not investing in business interruption insurance. Florida is prone to natural disasters so, there are likely to be times when your business may be forced to shut down for reasons beyond your control. Investing in loss-of-income coverage can help protect you and your employees.

Not all businesses need the same kind of insurance coverage. However, if you have a business in Florida, particularly South Florida, then you know hurricane season means you may benefit from business insurance for natural disasters.

Costly Business Insurance Mistake #3: FEMA reports that 40% of small businesses close after a natural disaster strikes. A 2013 study from The American Sustainable Business Council found small businesses lost an average of $3000 dollars a day for every day they were closed after a natural disaster.

Conclusion

Performing a gap analysis to review your business insurance coverage is a great way to find out whether you are over insured or under-insured.

If you’d like some help understanding whether you have the right amount of coverage for your small business, then you might be interested in our free no-obligation consultation.

We’ve helped businesses just like yours get the money they need to rebuild, replace or repair what’s been damaged by any natural disasters.

The information provided here is intended for informational purposes and should not be considered legal advice.

About Desir Law Firm

Attorney Leonard Desir is the founder of Desir Law Firm, a boutique insurance law office representing only insurance policyholders. We work with homeowners, renters, homeowner associations (HOAs), condominium associations, small and mid-sized businesses, and commercial property investors throughout the State of Florida.

When damage happens to your home or business, you have enough to worry about without having to worry about whether your insurance company will act in your best interests. Learn how Desir Law Firm can help you with your insurance damage claim. Contact us for a free, no-obligation consultation.

Florida law allows for the recovery of attorney’s fees and costs from your insurance company, if you prevail in a lawsuit. At Desir Law Firm, even if we do not prevail, you will not owe money to an attorney since our cases are taken on a contingency basis. It is truly a win-win situation to hire an insurance attorney to dispute a partial or complete insurance denial or partial payments.