by Marie King
The price of cheap insurance is the magnet that attracts many buyers. Remember the old saying you get what you pay for. This is especially true in the case of cheap insurance. You must focus on other factors than just the cost. Most business owners are on a limited budget. You need to respect your financial limitations. However, you need to keep in mind that insurance is one of your major risk management strategies. Insurance can save you thousands even millions in liability costs.
Customer service usually cones in the form of an insurance agent. You rely on your agent to answer the myriad of questions that you have about your policy. Those questions revolve around your unique business risks. A number of cheap insurance agents don’t have the experience or expertise to answer the questions that you must have addressed to make a sound decision. Furthermore, these agents may not be available when you have follow-questions or want to file a claim.
Coverage is an area, where cheap insurance companies can shortchange you. These companies make their profits by selling you minimal coverage at a cheap price. That’s why you need to study the exclusions listed in your policy. You also want to examine closely the inclusions in your insurance. Inclusions sometimes include language, where something is covered only under special circumstances. Ask your cheap insurance agent to clarify any verbiage that you do not completely understand because this information may contain loop holes that the cheap insurance company can use to decrease your pay-out on a claim.
Deductibles are the money that you have to shell out before your insurance kicks in. With cheap insurance, you can pay a hefty price for deductibles, which can devour the money that you initially saved on your cheap insurance. Limits are another way a cheap insurance company can rook you. Limits are the maximum cost an insurance will pay for a specified situation. In some cases, cheap insurance will offer a much lower limit than other companies. That means you’ll have to pay for the uncovered amount,which could add up to thousands of dollars.
Claims are the acid test of how well covered you are by your insurance company. Cheap insurance may take much longer to respond to your claim, citing that you have reported the claim incorrectly.You’ll understand first hand what the loop holes are in your coverage when you discover that items you thought were covered aren’t. You may also find that the pay-out may be slow in coming, which may force you to foot some of the bill until you receive your insurance money.