When it comes to purchasing business insurance, there are many specific risks at play. It's hard to know what to cover and what not to worry about as much. More importantly, there's a very complex task involved in finding the right balance of coverage and cost. To ensure you purchase a worthwhile policy, avoid these very common mistakes.

#1: Your Policy Doesn't Fit Your Company

Whether you are a retail business owner or a dentist, your company has very specific types of business insurance needs. These differ from one company to the next. If your policy is not customized to meet your business' unique needs, it's costing you. Your policy should be customized for:

• Value of assets
• Industry-specific risks
• Limitations or exclusions
• Employee risks
• Professional liability

#2: Your Business Insurance Doesn't Cover the Value of Your Assets

A common mistake business owners make is having a plan that does not provide ample protection for all assets. Look beyond the actual building. Is your coverage limit high enough to cover business contents, inventory, equipment, computer systems, outbuildings and signage?

#3: You’re Overpaying Because You Don't Have a BOP Package

To cut your costs, invest in BOP insurance (also known as a business owner’s policy). This bundles some of the most common property and liability plans into one package, reducing the overall cost. If you have not asked your agent about the benefits it can offer to you, now is the time to do so.

#4: You Didn't Choose the Right Carrier

It is essential to look for an A-rated insurer. This rating ensures that the insurance company is financially stable enough to meet your needs. What happens when a company has dozens of claims due to the same instance? Will you be able to get the coverage you need? The key is to ensure the company is financially stable.

#5: You Haven't Considered Extra Coverage

Don't assume a basic policy is enough. Build onto it to ensure you have ample layers of protection in place. For example, flood insurance is necessary in many areas since property insurance in flood zones will limit access. Terrorism, earthquake and business interruption plans are also necessary add-ons in many cases.

A comprehensive plan meets your needs and helps keep your business operational under a variety of unwelcome circumstances. If you are making these mistakes, talk to your agent today about better options to get optimal coverage.

We’ll help guide you toward the right policy. Call Hart Insurance Center at 760-344-1400 for more information on Brawley business insurance.