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Mistakes to Avoid When Purchasing Insurance

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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.

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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.

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Find an agent representing Jewelers Mutual Insurance Group and learn how you can continue to receive support for running a safe, secure, and successful business.

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Thinking of Liquidating? Think: Wilkerson

When Peter Reines, owner of Reines Jewelers in Charlottesville, VA, decided it was time to turn over the “reins” of his 45-year-old business to Jessica and Kevin Rogers, he chose Wilkerson to run his liquidation sale. It was, he says, the best way to maximize the return on his decades-long investment in fine jewelry. Now, with new owners at the helm, Reines can relax knowing that the sale was a success, and his new life is financially secure. And he’s glad he partnered with Wilkerson for this once-in-a-lifetime opportunity. “There’s just no way one person or company could run a sale the way we did,” he says.

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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.

Find an agent representing Jewelers Mutual Insurance Group and learn how you can continue to receive support for running a safe, secure, and successful business.