As a smart business owner, you’re always looking to minimize your risk. Likewise, insurance companies are doing the same when evaluating whether or not to insure your business. So, when they come across certain red flags, they may be inclined to decline coverage.
1.
Property in Disrepair.
If your business facility has broken steps, leaking pipes, or overstuffed inventory shelves that could tip over and cause a serious accident to you or your employees, you’ll want to address those issues to avoid paying higher insurance premiums or getting denied for coverage altogether.
2.
Bad Location.
You got a great deal on a retail space for your new business, but it’s in an area with high crime rates. Let’s just say that insurers will let you know how they feel about your choice of location with less than desirable premium quotes.
4.
Poor Quality Control Processes.
If you sell products to the U.S. market in particular without having a formal quality control process, you could be in violation of a host of laws and regulations that come with doing business south of the border. Insurers know that one faulty product could expose you to a major lawsuit and put you out of business for good.
Risks can be minimized
If your business falls into a couple of these categories, don’t fret. All of these risks can be addressed. Talk to your insurance broker about steps you can take to turn things around and make your business more secure and insurable.
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