Odds are, you landed on this page because you’re ready to cut out the middleman and take full control of insuring your business. Many business owners do this by opting to buy commercial insurance online, which allows them greater autonomy and flexibility as opposed to contracting with a brokerage.
But to reap the full benefits of buying commercial insurance online, you must have a laser focus on your policy coverages as well as how your business prepares for and handles risk. In the event of an employee injury, a cyber-attack, property damage, or other types of losses, the last thing you want is to be surprised by hidden costs that could end up driving down your revenue even further.
Digging a little deeper on risk transfer of buying insurance online
You may take solace in knowing your commercial insurance policies will simply pay you out following an incident. The truth is that it is often not that simple, especially if you’ve independently purchased your coverage online without the help of an insurance broker.
Let’s say an employee is injured at your business property. Many business owners assume their fixed premium costs cover the costs of that incident, but what happens when only a portion of the risk is transferred to the employee? While your Workers’ Compensation policy will likely pay for the employee’s medical costs and some of their lost wages, your business will still be responsible for other secondary costs that arise as a result of the claim.
The unprecedented cost of online commercial insurance transactions
In the long run, you may see disruptions to your loss history and experience modification which may make your policy renewals significantly more costly in the future. This can also directly impact your employer costs for your employee benefits offerings once the injured employee files their own health insurance claims over the course of treatment.
Then, of course, there is the cost of paying wages to other staff members in the event of the incident leading to a business interruption. Time is money, and this downtime and associated administrative needs can quickly become a larger expense to your business than you anticipated.
Claims made to your Auto or Cyber Liability carriers may likely lead to similar outcomes as the Workers’ Comp example above. From the massive cost of incident investigation to the need for replacing or fixing expensive equipment, having a policy you purchased online for cost-saving purposes can quickly become counterproductive when the hidden costs of those claims catch up with you.
So, what can you do to protect yourself when buying commercial insurance?
A diligent and holistic approach to risk management is a critical component of business continuity, and it’s even more important if you’ve opted to purchase commercial insurance online. You may still find it beneficial to partner with an insurance expert that understands and addresses the multidimensional nature of mitigating risk at your business. Look for a brokerage that empowers you to take the reins on keeping your business protected while still providing the guidance needed to ensure you are not surprised by any hidden costs in the event of an incident.
Looking to better protect your commercial assets? Contact BlueStone Advisors today for a free consultation on how to switch commercial insurance providers for better coverage and transparent policies.