3 minute readBusiness
Underinsuring property and income, ignoring hired and non-owned auto, skipping cyber, letting certificates lapse, and buying limits that satisfy a landlord but not a lawsuit. The other big one: assuming an LLC protects personal assets that liability insurance was supposed to cover.
What you need to know
Guessing at values
Property and income limits should come from real numbers, not last year's estimate rounded down.
Contract mismatch
Agreeing to indemnify beyond what your policy covers leaves the difference on the business.
Treating insurance as a purchase, not a program
Exposures change quarterly in a growing business.
Common mistakes
- Setting property and income limits from rounded-down guesses instead of real numbers.
- Skipping hired and non-owned auto because the business owns no vehicles.
- Signing contracts that require limits or wording the policy does not provide.
- Letting subcontractor certificates lapse, which shows up at audit.
- Treating insurance as a one-time purchase while the business keeps changing.
When to talk to an agent
Talk to an agent before signing a lease or a major contract, when you hire your first employee, when revenue or payroll changes materially, and any time you add a service, location or vehicle.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.