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9 Common Mistakes Owners Make with Their Business Insurance

“Umbrella Insurance is a waste of money.”

Umbrella Liability insurance is an inexpensive way for businesses to increase their level of protection, above and beyond the amounts covered by their primary policies.

“I only see my insurance agent when my policy renews.”

Your insurance agent should be one of your trusted advisers, in touch with you throughout the year and not visible just once a year when your policies renew. He/she should work with you throughout the year, to help keep your policies and coverage current with the changing needs of your business (i.e., growth in both revenue and employees, equipment purchases, etc.).

“My insurance agent can only present one quote when my policy renews.”

An insurance broker typically represents multiple insurance companies and can therefore shop your business to determine which company or companies are the best fit for your business.

“I don't need EPLI coverage.”

Employment Practices Liability Insurance (EPLI) can protect your business from employment related claims, such as discrimination, wrongful termination, and sexual harassment..  This is a fast-growing area of litigation for businesses of all sizes.

“I like having several different insurance agents.’

Using multiple insurance agents can lead to an uncertainty of what is being covered by each agent, and perhaps create coverage gaps as a result. Instead, one agent can sit with you to fully understand your business, then design a comprehensive insurance program that  reflects the needs of  your business.

“I have a website and I also store client information, but I don’t have Cyber Liability coverage.”

Cyber Liability insurance can protect your company from a cyber attack or data breach.  If you are holding client information (i.e., client emails, addresses, credit card numbers, social security numbers, etc.), then you need cyber liability and data breach coverage.

“I didn’t know there were different class codes for Worker’s Compensation.”

There are over 500 different classifications for rating Worker’s Compensation premiums.  Some of these class codes have a lower premium and others have higher premiums.  Make sure you review and manage your Worker’s Compensation policy.

“I insure my building to Fair Market Value, that is sufficient right?”

Your building should be insured at its Replacement Cost, not at its market value. In fact, the replacement cost of a building can often be several times greater than its fair market value.

“My employees drive their personal cars for business sometimes, but I don’t have non-owned auto coverage.”

A non-owned auto is generally defined as one that is not legally owned by the business, but is used in conjunction with the business. If employees use their personally-owned vehicles in the course of business activities, non-owned auto liability coverage for the business is a must.

Contact Us

Tim Coleman
Gasperini Insurance
400 W. Lake Street Suite 312
Roselle, Illinois 60172

Office 630.523.5038 
Cell 630.841.0043

All coverage, limits and descriptions are both general and abbreviated.  You will need to refer to the actual policies for terms, limitations, conditions, values and exclusions.  All coverage applicability is and will be wholly dependent upon any and all claim detail and events.  If there is any conflict between any statement within this summary and the actual insurance policy, the policy provisions will prevail.