Common Commercial Insurance Myths

Business owners understand that protecting their companies is a top priority. Yet, when it comes to commercial insurance, myths and misconceptions can lead to costly mistakes. Separating fact from fiction may help you make confident, informed decisions about your coverage.

Debunking Common Commercial Insurance Myths

Understanding what your policy does and doesn’t cover is essential for effective risk management. The following are common commercial insurance myths.

Myth 1: General liability covers every risk my business faces.

While general liability insurance is a cornerstone of business protection, it doesn’t cover everything. For example, it typically won’t cover employee injuries (that’s what workers’ compensation is for) or damage to your own property. Depending on your operations, you may also need commercial auto, professional liability, or cyber liability coverage.

Myth 2: Small businesses don’t need much insurance.

No matter the size of your business, unexpected events can happen. Even small companies can face lawsuits, property damage, or data breaches. Certain coverages may be required by law or by your clients and partners. Having the right insurance helps ensure your business can recover from setbacks.

Myth 3: My homeowners policy covers my home-based business.

If you run your business from home, don’t assume your homeowners insurance will protect your business assets or liabilities. Most homeowners policies exclude business-related claims. A dedicated business insurance policy is often necessary to safeguard your equipment, inventory, and operations.

Myth 4: Insurance is too expensive for my business.

Many business owners overestimate the cost of coverage and underestimate the financial impact of a loss. Your insurance broker can help you find options that fit your budget and needs, so you’re less vulnerable to risks that could threaten your livelihood.

Contact Us

The team at Estradas Income Tax & Insurance in Houston, TX works closely with business owners to identify coverage gaps, explain policy details, and tailor solutions for your unique risks.

Contact us today to review your coverage and ask questions about your business insurance options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.