Trying to cut costs? Scaling back on your insurance policy too far in the short term could leave your business struggling in the long run.
If you’re directly responsible for the bottom line of your business, you know that almost nothing is more difficult than growing revenue and cutting costs.
As organizations continually try to become leaner and more profitable, one of the first expenses that’s often put under a microscope is insurance. There are pitfalls, however, to scaling back on your policy. Cutting down too far in the short term could leave your business struggling in the long run.
Strike the right balance for your business by avoiding these common mistakes when purchasing insurance:
Reporting inaccurate inventory figures
Part of your premium is determined by the amount of inventory that you report to your insurance company. If your inventory doesn’t truly reflect what you have on hand—or doesn’t account for your peak inventory levels—you could be overinsuring or underinsuring your business.
Being underinsured is especially risky because a brazen crime like a smash-and-grab robbery or burglary could leave you with a severe financial setback.
Failing to cover exposures to certain risks
Protecting your inventory and property is relatively straightforward, but many jewelers don’t consider the costs of defending an employment practices lawsuit or other liability-related risks. These exposures could cost a business more than the coverages provided in its underlying business owners policy.
Whether in the jewelry industry or otherwise, those who fail to protect against the unexpected run the risk of bankruptcy and irreparable damage to their business when coverages are ignored for the sake of a marginal amount of insurance premium savings.
Working with an inexperienced agent, broker, or insurance company
The advantage of having an expert dedicated to the jewelry industry often isn’t realized until a claim is filed. Jewelers who do business with an agent, broker, or insurance company that lacks expertise (but offers an attractive price) can have negative claim experiences and find themselves at a disadvantage.
For over 100 years, only one insurance company has exclusively supported the jewelry industry. That tradition of excellence continues today with investments in leading industry organizations and the service of knowledgeable agents who can meet the needs of every jeweler.
Find an agent representing Jewelers Mutual Insurance Group and learn how you can continue to receive support for running a safe, secure, and successful business.