Small business health insurance comes in many shapes and sizes these days, especially since the insurance sales industry is now flooded with agencies and representatives eager to close another deal or to turn you away from your existing policy. Read on to find out if you are making any of the mistakes so common in this area of your business.
#1 – Not Reading the Policy
Yes, it’s true. Many business owners and self employed professionals never even read their policy papers. And by read, I mean every single word. There’s tons of information in there, I know. It can be very complicated and boring to boot! Still, you have a responsibility to know what your policy says in case of an emergency. You may be very surprised by what you discover.
#2 – Assuming You Have Proper Coverage
Here’s a very common mistake. Since you don’t know what your small business insurance coverage really is, you assume it contains certain clauses and provides for all the necessary coverage at the right place and right time. This is what I like to call the “expecting a miracle in a time of need” mistake. Don’t wait until it’s too late – start planning for the worst today by running scenarios to find out what kind of a loss you might have.
#3 – Buying from the Wrong Person or Company
Let’s face it – sales people are very effective. You may know exactly what I’m talking about, since most actually purchase their small business health insurance from a local guy or gal with a sharp grin and a penchant for verbal and social performance. What do you know about your small business insurer anyway? Is it a reputable company? Did your agent sell you a policy for a big firm or some small insurance company you have never heard of? These are great questions to ask, especially since most business owners don’t know.