Common Business Insurance Blind Spots Most industries face similar challenges, but not all risks are created equal.A slight headache can easily escalate into a costly blind spot.Below are three of the most common insurance blind spots to watch out for.

Blind Spot #1: Misunderstanding the Scope of Coverage Policy terms vary widely and many months can pass between the day you purchase coverage and the day you actually experience a claim.As a result, there are always surprises.Here are a few to avoid: Lower limits than expected.

This surprise is particularly common now because of the surge in building costs and the high price of building.The co-insurance clause applies.If you are underinsured and your policy has a coinsurance clause, it may pay only a percentage of what you expected.

The cause of loss isn’t covered.This is especially common with water damage and flood-related losses.The policy has claims-made coverage rather than occurrence-based coverage.

If a claim is filed long after the policy was in force, this coverage provision determines which policy pays and which coverage terms apply – your current insurer or your old insurer.The coverage is for difference exposures than assumed.For example, you’ve purchased third-party cyber coverage instead of first-party cyber coverage – meaning that you have protection if your actions cause cyber losses for others but there is no protection for cyber losses incurred by your own company.

It’s critical to know the details of each insurance policy to protect your company effectively.   Blind Spot #2: Underestimating Exposures Created by Business Change   Growing businesses frequently change.Perhaps you made a significant change, such as adding a building or launching a new product.Or, you’ve made a smaller change, such as hiring a new subcontractor or upgrading your software.

Sometimes the exposure comes from a simple HR mandate, like requiring masks or vaccines.Each of these changes creates new exposures that may need to be addressed with an adjustment in your insurance or risk management practices.For example: These are just a handful of examples out of thousands of possibilities.

That’s why it’s important to review your coverage with an agent at least once a year and before making any significant changes in your business model.Blind Spot #3: Mismatching Risk and Policies  Business leaders must know what each policy covers and ensure they have appropriate coverage for each exposure.Common mistakes include: Don’t make these mistakes! We invite you to review your coverage with a seasoned business insurance broker at BNC.

With a long track record of success, our BNC Insurance & Risk Advisors team looks forward to helping you!