Fatal mistakes people make selecting insurance

There are four fatal mistakes that people make when it comes time to selecting a insurance coverage. These fatal mistakes primarily center around the desire to control costs while failing to understand the complexities surrounding insurance policies, coverages, premiums, exclusions, and deductibles.


1Basing your decision solely on price

You get what you pay for. Choosing a policy and a provider that saves your business just a few dollars yearly in premiums may not provide the coverage, assistance, risk management, and claims mitigation processes you need when you need it. We have seen too many businesses fail due to lack of adequate insurance protection.


2Omitting “optional” coverages to save on cost

In many cases, optional coverages are the most important coverage you will ever need. A prime example would be business income insurance. If your facility was destroyed in a fire and you had a comprehensive property insurance together with a business income policy, then not only would you have the money to rebuild but also the income lost during the months it takes to rebuild.

3Failing to understand exclusions

The cannabis industry is full of insurance companies that offer so-called “comprehensive” insurance policies for your business. If you read the fine print, you will see that in most cases, the policy covers all aspects of your business operations except those that deal with cannabis. How can a comprehensive cannabis business insurance policy list cannabis as a specific exclusion?

4Failing to use a knowledgeable agent

Competent insurance agents should be able to answer your questions, help you assess which coverages you need and offer you insurance products to meet those needs. Ask  also how they deal with claims. Then, decide whether the agencies you contacted are likely to provide you with prompt, intelligent, quality service on an ongoing basis. Good agents can consult with you not only about the insurance you may need but also about ways to reduce the likelihood of theft, injuries to visitors and workers, and other business-related losses, which ultimately leads to keeping your costs down.