As a business owner, you know the importance of maintaining business insurance. You know that without it, you are responsible for recovering from a loss. In fact, it’s your belief in insurance that compelled you to purchase insurance in the first place.
However, there are times when simply purchasing business insurance isn’t enough. You have to also ensure you don’t have insurance gaps in your coverage.
What Are Insurance Gaps?
An insurance gap refers to deficits in your insurance. If your business has commercial insurance, but doesn’t have enough coverage to recover from a loss, you have an insurance gap. When you have an insurance gap, you will have to pay the difference to ensure your business recovers.
You can also have a gap in your insurance if you don’t have a certain type of business insurance coverage. For instance, if you don’t have business interruption insurance, then you are responsible for the loss of wages and revenue if you have to shut down.
How Your Business Can Avoid Insurance Gaps
You can avoid gaps in your insurance by reviewing your policies. By doing so, you can protect your income and reduce the time it takes to get your business back operational.
The following are three easy ways you can avoid gaps in your coverage.
Get an Annual Review of Your Policy
One of the best ways to identify insurance gaps is to review your insurance policies each year. You will have a better idea about how much insurance you need to cover your business. You can also make any changes to your policy to take into account new business developments.
Mitigating risks is another measure you can take to avoid gaps in your insurance. When you mitigate risks, you reduce the chances of sustaining a severe loss from a business risk.
For instance, when it comes to your property insurance, security alarms and emergency response plans can help reduce the impact of risks, even risks severe weather presents.
Purchase Industry-Specific Business Insurance
Though you have common business insurance options, it’s possible your business is at risk. Industry-related risks can result in financial losses as well. If you operate a medical practice, consider getting malpractice business insurance. If you operate a dry cleaning business, consider dry cleaning business insurance.
With industry-specific insurance, you insulate your business from risks that are unique to your industry.
If you have insurance, you know how important it is to continual business operations. However, you shouldn’t stop at purchasing business insurance. You also need to ensure you have enough insurance to avoid business insurance gaps.
Get in touch with us today. We can make sure you have enough coverage for business insurance gaps. Start a free, online Michigan City business insurance quote today. Call us at (219) 879-4581 for more information.