When it comes time to securing insurance for your company, it’s smart to shop around to see what options you have. Everyone wants to save money. But cheap insurance may cost you more than you think.
As is often the case, cheap doesn’t always mean a good deal. Going for the cheapest option without looking into what your plan covers can cost you a lot of money in the long run.
Here are some problems you need to be aware of if you purchase cheap insurance.
Gaps in Coverage
When you pay less, you’re generally covered for less. Compare the coverage from all your quotes to make sure you’ll be covered for all scenarios. You’ll most often find that budget insurance options don’t cover what you need.
If you’re paying a low amount per month for insurance, you might end up paying a lot if you ever need to use it. Make sure you pay attention to the details so you know what it’s really costing you. In a situation where you have to use your insurance, you don’t want to added stress of spending a lot of money to do so.
Some insurance companies have a low cap of what they are willing to pay out in a year. The worst of them are in the low thousands. If you end up in a situation where you need to pay $100,000, your insurance might only cover 1% of that.
Unhelpful Customer Service
If you’re only paying for budget insurance, you can expect cheap customer service. Insurance can be complicated, and having someone at your insurance company to help navigate your problems and answers questions can be a lifesaver.
Cheap insurance passes problems down to your employees. When your business’s health insurance coverage or workers comp doesn’t help your employees to the extent that it should, they are going to come complaining to you. Expect higher turnover and low satisfaction when you purchase cheap insurance.
Are you currently looking for insurance for your company? We’ve put together a guide on insuring your new business.