Mistakes to Avoid When Purchasing Insurance
When it comes to maximizing coverage and minimizing costs, find a balance by eluding these pitfalls.
If you’re directly responsible for the bottom line of your business, you know that almost nothing could be more difficult than growing revenue and cutting costs.
As organizations continually try to run leaner and be more profitable, one of the first expenses to be put under a microscope is insurance. While it’s essential for every business’s financial health, there are downfalls when it comes to skimping on your policy. Cutting down too far in the short-term could leave your business struggling in the long run.
Strike the right balance for your business by avoiding these common mistakes when purchasing insurance:
Reporting inaccurate inventory figures
Part of your premium is determined by the amount of inventory that you report to your insurance company. If your inventory doesn’t truly reflect the inventory you have on hand — or doesn’t account for your peak inventory levels — you could be overinsuring or underinsuring your business.
Being underinsured is especially risky because a brazen crime like a smash-and-grab robbery or burglary could leave you in the midst of a severe financial setback.
Failing to cover exposures to certain risks
Protecting your inventory and property is relatively straight forward, but many jewelers don’t consider the costs of defending an employment practices liability lawsuit or other liability-related risks that exceed their underlying business owner’s policy.
Whether in the jewelry industry or otherwise, those who fail to protect for the unexpected run the risk of bankruptcy and irreparable damages to their business when coverages are ignored for the sake of saving a marginal amount.
Working with an inexperienced agent, broker, or insurance company
The advantage of having an expert dedicated to the jewelry industry often isn’t realized until a claim is filed. Unfortunately, the experience for many jewelers often turns out to be how much of a disadvantage it was to do business with an agent, broker, or insurance company that lacks experience, but offers an attractive price.
For over 100 years, only one insurance company has solely supported the jewelry industry. That tradition of excellence continues today with investments in leading industry organizations and the service of knowledgeable agents who can meet the needs of every jeweler.