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  • Amanda Bird

Debunking 5 of the Most Common Myths about Insurance

Many business owners overlook the importance of insurance because there are so many persistent myths about them that seem discouraging. These myths are causing significant damage to businesses and should be debunked to prevent them from spreading further.


Choosing the right insurance policy for your business can be difficult in the beginning. This is why we compiled a list of common insurance myths you need to put out of your mind. Hopefully, this article can assist you in selecting the best insurance policies for your small business.


Myth #1: Insurance Is Unnecessary for Small Businesses


Even if you have just opened your micro or small business, not having insurance in place leaves you unprepared for any unforeseen events that may occur. You must have business contingency plans in place to assist you in recovering from any unfavourable incidents with your company. And business insurance can be one of those financial recovery solutions.


Myth #2: Personal Auto Insurance Covers Commercial Vehicles


On the road, accidents can happen at any time, which is why auto insurance is essential. But it’s important to parse the difference between personal and commercial auto insurance. Your insurer may refuse to pay if you use your personal vehicle for business purposes. It’s important to delineate clearly between the two and ensure your insurance policies cover each.


Myth #3: Hackers Won't Target My Small Business


Many people assume that hackers focus on large multinational companies to make the most money. But the truth is the opposite. Many hackers actually prefer to target small businesses because they lack data protection protocols. And 60 per cent of these businesses never recover from a cyberattack because they can't afford to do so.


Myth #4: General Liability Insurance Is Universal


Insurance is designed to protect you from third-party lawsuits due to accidents, injuries and property damage. General insurance may provide some protection, but it does not cover every situation you may find yourself in. For example, it does not guarantee protection from a data breach or liability due to workplace injuries.


Discuss all of your insurance coverage needs with professionals to ensure you are safe from liabilities.


Myth #5: Insurance Brokers Are Paid So Much That Premiums Rise


Insurance advisers and brokers are only paid a percentage of the cost for their efforts in negotiating the appropriate cover. However, their work does not stop there; in the event of a claim, your adviser is there to assist you and your business. Your expert adviser will always confirm their fees when doing business with you.


Furthermore, the cost of your premium is primarily determined by the amount of coverage you desire. It is completely independent of a broker's income—the higher your insurance premium, the broader your coverage.


Conclusion


Your business is more than a place where you spend eight hours or more each day. It is why you and your family have a roof over your heads and food on the table. It is an essential aspect of your life, and it needs to be protected. And the best way to protect it is to speak with an independent insurance agent and apply for the appropriate level of coverage for your risk profile.


Do you need dependable business insurance on the Gold Coast? New Wave Insurance can assist you in applying for cyber insurance policies that meet your requirements. Schedule a complimentary 15-minute consultation with us today!


Disclaimer: The information supplied is for informational purposes only. We recommend that you assess the applicability of this general advice in light of your objectives, financial condition, and needs before acting on it. You should receive and thoroughly consider the applicable product disclosure statement before purchasing this financial product.


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