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    NEED COVERAGE, LIKE YESTERDAY?

    Whether you just closed a huge new account or if you are moving into that sweet new office; chances are you need proof of insurance - and you need it fast!

    Here @ Insurance4Technology, we utilize the best insurance tech available to turn around customized quotes catered to your exact needs in hours, not days.

     
    Monday
    Dec022013

    5 Business Insurance Myths Busted

    It sometimes amazes me to hear some of the reasons business owners provide about why they don't have insurance. Technology related business owners are some of the brightest people I've ever met, yet they too can fall victim to believing some of the common myths about why insurance is not necessary. Here are five of those myths followed by facts that may help expel the misconceptions:
    1. Insurance is TOO EXPENSIVE... While no one enjoys paying for insurance the cost to protect your business (likely your most valuable asset) is relatively small compared to your overall expenses. If fact, we have done the math... Between the hundreds of small businesses we insure, the average premium equals approximately 1.5% of gross revenue. That means that if your business generates $200,000 in revenue, your premium is likely $3,000 per year. Keep in mind that most of our clients have more than one policy, The premium typically includes general liability, professional liability and workers' compensation insurance if there are employees. For most about the different types of business insurance click here
    2. I don't need insurance because carriers deny most claims anyway... I'll admit that insurance polices can be painful to read and do have many exclusions. However, many exclusions are are added simply because coverage is afforded on alternate policies. For example a general liability policy will exclude workers' compensation related losses while a workers' compensation policy will have a general liability exclusion. A good insurance company and broker will help you look for coverage, not look to deny coverage. A professional insurance brokerage will guide you on what coverage you should consider so that when you have a claim you hopefully will have selected the appropriate coverage. 
    3. A loss will never happen to me... You got this far in business because you are smart, not frugal. No one is immune to a loss whether it's a professional liability claim or your laptop gets stolen from your car, chances are that you will have a loss. Whether you have coverage or not is up to you. You could do nothing wrong and still get sued. The cost to defend yourself alone could put you out of business. Protecting your business, your employees and everyone else that depends on you is just being smart. Remember, like mentioned above, your premium could be less that 1.5% of your revenue. 
    4. Insurance brokers will gouge me with fees... It's common thought that insurance brokers add exorbitant fees. There is a misconception about brokers vs. agents. Brokers work on their client's behalf while agents work on their carrier's behalf. Most brokers (like us) have access to several standard insurance carriers. We are appointed as agents and cannot charge a fee when we are directly appointed and paid by that carrier. 90% of the time we do not charge a broker fee. The only time we do is when we have to go to a non-standard market that pays reduced commissions or no commissions at all. By working with an independent insurance brokerage/agency like us, you benefit by gaining access to our many markets and expertise and probably not getting that mythical fee. 
    5. I don't need insurance because I can negotiate out of contract requirements... Good for you! We often encourage our clients to try to negotiate insurance requirements down that may be too high for their business. If you want to work with a major company they may not be willing to lower their requirements even if your contract is of small value (for them). However, even if you are able to get out of insurance requirements that does not mean the exposure is not there. If you have enough leverage to get insurance requirements waived, you probably provide a unique product or service. If you provide a unique service it means you are a professional. This means that your professional liability is probably higher than others that provide a common service... 

    Now that these myths are busted, please share them with your colleagues that may be at risk of losing their business because they believe some or all of the above myths. If you are starting a business or have already own a business and need insurance guidance, please contact us anytime. Maybe there are other myths of there that we can help bust...

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      5 Business Insurance Myths Busted - Technology Insurance Blogs - Insurance 4 Technology
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      5 Business Insurance Myths Busted - Technology Insurance Blogs - Insurance 4 Technology
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      5 Business Insurance Myths Busted - Technology Insurance Blogs - Insurance 4 Technology
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      5 Business Insurance Myths Busted - Technology Insurance Blogs - Insurance 4 Technology
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      5 Business Insurance Myths Busted - Technology Insurance Blogs - Insurance 4 Technology

    Reader Comments (1)

    I live in NJ and see business owners all the time pass on getting proper insurance. There a couple different providers that offer Haddonfield NJ Business Insurance but you need to work with one that you trust and you can talk with. This way they understand your risks and provide you with proper coverages.

    May 23, 2014 | Unregistered CommenterJohn

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