As a small business owner, you have to wear many hats to make sure your business runs smoothly and efficiently. And that includes ensuring that your business is properly insured against damages. Many business owners find that myths about coverage cloud their judgment when making important decisions. Today we’re dispelling some of the most common myths about commercial business insurance in Lisbon.
Knowledge is power, and when it comes to insurance coverage, knowledge means making informed decisions to make sure that your business is properly protected.
5 Common Myths About Commercial Business Insurance in Lisbon
Myth #1: If you’re named in a lawsuit, you can simply close your business.
In the end, shutting down your business doesn’t automatically protect you against a lawsuit. Our judicial system often proceeds even if your business is no longer operating. Also, if you were found responsible and ordered to pay a settlement or judgment, you could be found personally financially liable. Having a commercial general liability policy can protect you against lawsuits.
Myth #2: Homeowners insurance covers claims for home-based businesses.
If you run your business out of your home or work from home, you may be surprised to know that your homeowner’s policy doesn’t protect you against business-related damages. It’s imperative that you safeguard your business equipment, computers, inventory, and other property, which requires a separate policy for commercial business insurance in Lisbon. The good news is that you have different coverage options to choose from that guarantee that your business is covered.
Myth #3: If you only offer advice, you don’t need errors & omissions insurance.
If you offer advice and your clients consider you to be an expert, you are essentially exposed to possible lawsuits if your client feels that your advice impacted them in a negative way. In an Errors & Omissions (E&O) lawsuit, legal defense expenses are usually the most expensive element which is why having an E&O insurance policy is particularly important.
Myth #4: Commercial business insurance in Lisbon provides coverage for privacy breach/hacks.
Your general business insurance doesn’t automatically guarantee that you are covered for expenses related to a data/privacy breach/hack. To properly protect your business from cyber risk, it’s important that you purchase cyber insurance.
Myth #5: Personal auto insurance covers the cost of claims during business activities.
The truth is that a personal auto insurance policy doesn’t provide coverage for business use. So if you are using your personal vehicle for business reasons and get into an accident, your claim could possibly be rejected. This depends on how you mainly use your vehicle, so you need to be honest with your insurance broker so they can explain the possible risks to you.
It’s crucial that you are aware of both the importance of commercial business insurance in Lisbon and that your particular coverage is suitable for your business needs. We don’t want you to feel overwhelmed when buying your business insurance, so contact us today to discuss your unique needs.