What Makes A Business Hard to Insure
As an intelligent business owner, you are always looking to minimize your risk. Likewise, insurance companies are doing the same when evaluating whether to insure your business. So, when they come across certain red flags, they may be inclined to decline coverage making your business hard to insure.
Here are four things that may make your Business Hard to Insure:
1. Property in Disrepair
Suppose your business facility has broken steps, leaking pipes, outdated mechanical systems or overstuffed inventory shelves that could tip over and cause a severe accident to you, your employees, or your customers. In that case, you will want to address those issues to avoid paying higher insurance premiums or getting denied for coverage altogether.
2. Bad Location
You got a great deal on a retail space for your new business, but it is in an area with high crime rates. Let’s say that insurers will let you know how they feel about your choice of location with less than desirable premium quotes.
3. Lack of Security
It may be cost-prohibitive for you to have a state-of-the-art security system if you are starting. But, no security at all is a big red flag for insurers, especially if your business keeps large amounts of valuable stock on site. Taking simple, affordable steps like reinforcing door and window locks and installing an alarm system will go a long way in showing insurers that you are doing your part to minimize your theft risk.
4. Poor Quality Control Processes
If you manufacture and sell products without having a formal quality control process, you could violate a host of laws and regulations that come with doing business. Insurers know that one faulty product could expose you to a significant lawsuit and put you out of business for good.
If your business falls into a couple of these categories, don’t fret. Our advisors can address all of these risks with you. Talk to your advisor today about steps you can take to turn things around and make your business more secure and insurable.