{"id":901,"date":"2021-06-22T12:07:41","date_gmt":"2021-06-22T06:37:41","guid":{"rendered":"https:\/\/www.plancover.com\/insurance\/?p=901"},"modified":"2021-07-07T18:15:51","modified_gmt":"2021-07-07T12:45:51","slug":"9-business-insurance-myths-you-believe-but-shouldnt","status":"publish","type":"post","link":"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/","title":{"rendered":"9 Business Insurance Myths You Believe (But Shouldn\u2019t)"},"content":{"rendered":"<p>Every business needs some kind of <strong>business insurance<\/strong> policy. And that\u2019s where the confusion starts, resulting in speculations and myths taking over a large part of the space.<\/p>\n<p>There exist many business insurance myths that mislead an organization\u2019s decisions.<\/p>\n<p>If you\u2019re planning to buy business insurance, or are thinking about certain policies, it\u2019s essential that you steer clear of these myths.<\/p>\n<ol>\n<li>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a06fed67665e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a06fed67665e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#Business_insurance_policies_are_expensive\" title=\"Business insurance policies are expensive\">Business insurance policies are expensive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#Small_businesses_dont_need_insurance\" title=\"Small businesses don\u2019t need insurance\">Small businesses don\u2019t need insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#CGL_insurance_is_all_one_needs\" title=\"CGL insurance is all one needs\">CGL insurance is all one needs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#Home-based_business_doesnt_require_insurance\" title=\"Home-based business doesn\u2019t require insurance \">Home-based business doesn\u2019t require insurance <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#Business_insurance_covers_everything\" title=\"Business insurance covers everything\">Business insurance covers everything<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#Insurance_doesnt_cover_lost_income\" title=\"Insurance doesn\u2019t cover lost income\">Insurance doesn\u2019t cover lost income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#Commercial_vehicle_insurance_isnt_needed\" title=\"Commercial vehicle insurance isn\u2019t needed\">Commercial vehicle insurance isn\u2019t needed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#%E2%80%9CTheres_no_need_for_that%E2%80%9D\" title=\"\u201cThere\u2019s no need for that\u201d\">\u201cThere\u2019s no need for that\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#Insurance_brokers_add_a_lot_to_the_cost\" title=\"Insurance brokers add a lot to the cost\">Insurance brokers add a lot to the cost<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#Be_an_Informed_Decision-Maker\" title=\"Be an Informed Decision-Maker\">Be an Informed Decision-Maker<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#How_to_buy_business_insurance\" title=\"How to buy business insurance? \">How to buy business insurance? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.plancover.com\/insurance\/9-business-insurance-myths-you-believe-but-shouldnt\/#Get_in_touch_with_PlanCover\" title=\"Get in touch with PlanCover\">Get in touch with PlanCover<\/a><\/li><\/ul><\/nav><\/div>\n<h4><span class=\"ez-toc-section\" id=\"Business_insurance_policies_are_expensive\"><\/span><strong>Business insurance policies are expensive<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>One of the biggest reasons why so many business owners refrain from investing in business insurance, aside from the lack of knowledge, is their cost assumption.<\/p>\n<p><a href=\"https:\/\/www.plancover.com\/insurance\/how-much-does-small-business-insurance-cost\/\"><em>Business insurance policies do cost money<\/em><\/a>. However, it\u2019s far from \u201cexpensive\u201d \u2013 especially if you consider their benefits that offset the impact of the initial cost.<\/p>\n<p>Moreover, the cost depends on so many different factors, which can be managed with proper cost mitigating strategies. So, there are practical ways to control and bring down the cost of business insurance policies.<\/p>\n<p>Depending on which policy you\u2019re buying, you can take proactive measures to minimize the premium rate.<\/p>\n<p>Remember, not getting business insurance coverage because of this assumption that it\u2019s expensive is a critical <a href=\"https:\/\/www.plancover.com\/insurance\/business-insurance%e2%80%8a-%e2%80%8aavoid-these-common-mistakes\/\"><em>mistake that can cost your business<\/em><\/a> in a big way.<\/p>\n<ol start=\"2\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Small_businesses_dont_need_insurance\"><\/span><strong>Small businesses don\u2019t need insurance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>This is another common myth.<\/p>\n<p>No matter the size of the business, it needs to have insurance coverage.<\/p>\n<p>Sadly, so many business owners don\u2019t go this way; especially the new businesses that have one or few employees.<\/p>\n<p>Whether it\u2019s a one-person business or a 10 person organization, you need to invest in the right type of insurance policies. Now what \u201ctype\u201d? This depends on different factors, including the type of business you run, the industry you\u2019re in, and more.<\/p>\n<p>So, don\u2019t get reluctant with business insurance based on the size of your business. No matter its size, you must buy fitting policies.<\/p>\n<ol start=\"3\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"CGL_insurance_is_all_one_needs\"><\/span><strong>CGL insurance is all one needs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>Commercial general liability insurance is one of the most important types of business insurance. It provides a wide range of coverage.<\/p>\n<p>But as the name suggests, its scope is \u201cgeneral\u201d.<\/p>\n<p>CGL insurance is not sufficient. It won\u2019t come to your aid every time and with everything.<\/p>\n<p>The insurance will provide coverage against legal claims made by a third party for the physical injury or loss of property they sustained as a result of engaging with your business on the premise. Outside this, if any other kind of legal claim is made, the CGL plan won\u2019t help you.<\/p>\n<p>This is why, while CGL policy is essential, you need other relevant types of business insurance as well that suit your overall risk exposures.<\/p>\n<ol start=\"4\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Home-based_business_doesnt_require_insurance\"><\/span><strong>Home-based business doesn\u2019t require insurance <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>This myth has become more prevalent in this pandemic as more and more people are launching their businesses from their homes.<\/p>\n<p>Your personal home insurance isn\u2019t made to cover your home-business requirements.<\/p>\n<p>This means, if you work from home, hold meetings at your home, or stock inventory and supplies at home \u2013 you need relevant coverage. Your existing policy may not cover this.<\/p>\n<p>So, ideally, you want to inform your insurance company about this. In such a case, they may modify your existing insurance plan or recommend you another policy.<\/p>\n<ol start=\"5\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Business_insurance_covers_everything\"><\/span><strong>Business insurance covers everything<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>Irrespective of its type, no business insurance is perfect. They won\u2019t protect you with everything. They have their own sets of limitations.<\/p>\n<p>For instance, commercial general liability insurance doesn\u2019t cover product guarantees and copyright infringement. Professional indemnity insurance doesn\u2019t cover bodily injury and penalties. Directors and Officers insurance doesn\u2019t cover breach of contract and slander.<\/p>\n<p>So, even if you have purchased a business insurance policy, understand that it won\u2019t provide you 100 percent protection. There would be certain exclusions.<\/p>\n<p>You can buy extensions to fill up certain exclusions.<\/p>\n<p>In any case, it\u2019s very important that you understand the terms and conditions of the business insurance you\u2019re buying. Be extremely clear of what it doesn\u2019t cover. You don\u2019t want to be in a place where you\u2019ve been sued and you then realize your insurance doesn\u2019t cover that.<\/p>\n<ol start=\"6\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Insurance_doesnt_cover_lost_income\"><\/span><strong>Insurance doesn\u2019t cover lost income<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>There\u2019s a lot of confusion around this. In reality, many business insurance policies do cover lost income. (Although, you want to check its terms to confirm this!)<\/p>\n<p>Take an example: If one of your customers sue you and that lawsuit results in interrupting your business operations, the relevant business insurance will cover the loss you sustain due to this interruption.<\/p>\n<p>Similarly, if the property is on fire, your business won\u2019t be able to operate for a few days to weeks. The income loss you sustain due to such disruptions would be covered by the relevant insurance policy.<\/p>\n<p>Note, however, that there are events that, if cause business disruption, won\u2019t be covered under the standard business insurance plan, like earthquakes, pandemics, and floods. So, be careful of the exclusions of the policy.<\/p>\n<ol start=\"7\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Commercial_vehicle_insurance_isnt_needed\"><\/span><strong>Commercial vehicle insurance isn\u2019t needed<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>So you use your personal vehicle for some business needs? Maybe you use your car to visit your clients for meetings; maybe you use your vehicle to make deliveries.<\/p>\n<p>You would think your car insurance policy would cover such trips. In reality, that\u2019s not the case.<\/p>\n<p>If you\u2019re traveling in your car for some commercial purpose and the car gets into an accident, the personal vehicle policy might not cover this.<\/p>\n<p>Your car cannot be used for some commercial use. If you do, you need to inform your insurance provider and redefine the terms of your car insurance policy. The insurer may either modify your existing plan through extensions or recommend you commercial vehicle insurance.<\/p>\n<p>In all, just because you have your car insurance, don\u2019t assume that you won\u2019t need commercial vehicle insurance.<\/p>\n<ol start=\"8\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"%E2%80%9CTheres_no_need_for_that%E2%80%9D\"><\/span><strong>\u201cThere\u2019s no need for that\u201d<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>Undermining the importance of business insurance is a big mistake. But then that is the case with many business owners.<\/p>\n<p>Your business is vulnerable to many threats. A lot could go wrong. Ideally, you want to ensure maximum protection. In that, this idea that there\u2019s no need for a particular insurance policy is a big myth.<\/p>\n<p>You cannot know which insurance is important for your business and which is not without doing a thorough analysis. That decision should be based on enough data points and facts.<\/p>\n<p>So, avoid going with your intuitions or limited understanding. Take your time to understand your business\u2019s distinct needs and requirements before determining which insurance you don\u2019t need.<\/p>\n<ol start=\"9\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Insurance_brokers_add_a_lot_to_the_cost\"><\/span><strong>Insurance brokers add a lot to the cost<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ol>\n<p>Hiring experts won\u2019t be free. But it doesn\u2019t have to cost you a fortune either.<\/p>\n<p>The fees of many good insurance brokers would only be marginal. Meaning, this belief that having them onboard would exponentially increase your cost is a myth.<\/p>\n<p>Do some research to find a good insurance broker that\u2019s licensed and has extensive experience. Based on the kind of service you\u2019re availing, you would be charged accordingly.<\/p>\n<p>If you want these experts to take care of the entire purchase process on your behalf and handle all the paperwork \u2013 as opposed to just taking their consultation \u2013 you would have to pay more.<\/p>\n<p>But again, as mentioned earlier, a good insurance broker won\u2019t burn your bank account. The right ones will charge affordably, ensuring maximum support and convenience for you.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Be_an_Informed_Decision-Maker\"><\/span><strong>Be an Informed Decision-Maker<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/www.plancover.com\/insurance\/a-simple-guide-to-buy-your-first-business-insurance-policy\/\"><em>Buying business insurance<\/em><\/a> is a big decision. The companies who are limited in budget really have to think things through before making this investment so to ensure optimum returns.<\/p>\n<p>Basing this decision on insufficient or flawed information is a big mistake that can cost your business big.<\/p>\n<p>This is why it\u2019s important to steer clear of the mentioned myths \u2013 along with other business insurance myths \u2013 to make an informed decision.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_to_buy_business_insurance\"><\/span><strong>How to buy business insurance? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Get in touch with a licensed insurance broker and work together to buy the right business insurance policies that map to your needs, requirements, and budget.<\/p>\n<p>Find out what type of insurance policies you need.<\/p>\n<p>Thereafter, determine the coverage requirement that would be adequate for you.<\/p>\n<p>Once you\u2019re clear on that, find out different insurance plans of different insurance companies. Compare these plans against each other to identify which ones are more fitting for your business.<\/p>\n<p>If needed \u2013 if the standard plans have gaps \u2013 you can customize them according to your needs.<\/p>\n<p>Now before purchasing any business insurance plan, thoroughly go through their terms and conditions. Go through the terms of the insurance companies. Consult insurance brokers if you have any questions; ask them for more insights.<\/p>\n<p>Once you have the right business insurance from a reliable insurer that you properly understand \u2013 purchase it.<\/p>\n<p>This is a simple and straightforward process to buy business insurance policies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Get_in_touch_with_PlanCover\"><\/span><strong>Get in touch with PlanCover<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>PlanCover is one of the most trusted insurance marketplaces in India. It is built by HII Insurance Broking Services Pvt. Ltd. (HIBS), a trusted IRDA-registered insurance broker.<\/p>\n<p>Since inception, we have helped thousands of business owners across different industries buy the right insurance policies.<\/p>\n<p>Our team makes up of highly experienced professionals who commit to deliver clients end-to-end support and an excellent experience.<\/p>\n<p>Get in touch with us today and get complete assistance in buying business insurance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every business needs some kind of business insurance policy. And that\u2019s where the confusion starts, resulting in speculations and myths taking over a large part of the space. There exist&#8230;<\/p>\n","protected":false},"author":6,"featured_media":902,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":"","footnotes":""},"categories":[10],"tags":[2],"_links":{"self":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/901"}],"collection":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/comments?post=901"}],"version-history":[{"count":3,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/901\/revisions"}],"predecessor-version":[{"id":907,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/901\/revisions\/907"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media\/902"}],"wp:attachment":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media?parent=901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/categories?post=901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/tags?post=901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}