8 Common Business Insurance Mistakes to Watch Out For

By James McAluney


Having adequate insurance is necessary for any business to protect it from accidents and mishaps. Before looking for the insurance coverage you need, it's always advisable to assess the possible risks and make sure that the insurance you buy covers them completely. Read ahead to find out what are the possible lapses that can cost your business substantial losses.


  1. Incomplete Information: Check and make sure that the policy clearly mentions all the legal entities of your company. Whether you're a sole owner or working with an LLC, or if your enterprise works through other entities, their names should be added. If you're buying property insurance, be sure to include the names of every property you own, even if it is not under use currently.
  2. Lack of Comprehensive Coverage: Create a complete list of all the property you and your company own and make sure every location and all personal belongings are covered in the limits of the policy. Compare their value against the insurance you're thinking of buying. Your agent can help you assess their value and guide you on the optimum amount of the coverage. While it should be enough to replace your property in the event of a mishap, you need not buy very expensive insurance. Aside from insurance against major accidents also, purchase coverage for vandalism, theft and minor accidents like a small fire.
  3. Missing Business Income Insurance: Most company owners, when buying coverage, neglect to insure the income they could lose in case of an accident. You need protection against the losses you’ll incur during the time when your company is not operational.
  4. Neglecting Liability Insurance: As a business owner, you’re probably aware of protecting your business against accidents happening to visitors, customers and employees on your premises. In addition, you also need insurance against the accidents your employees could cause when working for you. For instance, an accident they could cause when driving a company vehicle. Liability insurance also covers mishaps occurring when using your products.
  5. Misunderstanding Deductibles: Make sure you understand clearly, what the deductibles of the policy are. Also, be very clear about the copay and coinsurance plans that your plan includes. Doing this will prepare you for the expenses you'll have to cover before the insurance company takes over.
  6. Skipping Employment Practices Insurance: You need to protect your business from lawsuits that your employers might bring against you. These lawsuits can arise from issues like sexual harassment, discrimination in the workplace, and wrongful job termination, to name a few.
  7. Not Checking Exclusions and Endorsements: Your policy has sections called endorsements and exclusions. These are the instances and events that the insurance company does not protect you against. Read them very carefully and insist that they include possibilities that you think are important.
  8. Not Including Cyber Risks: Your business probably works with and relies on computers for a range of tasks. Exposure to cyberspace and technology makes you vulnerable to risks like viruses, identity thefts, systems crashing, leaking of sensitive customer information, cyber attacks, and many more. Make sure you get the necessary protection.

When buying insurance, keep these factors in mind and protect your business from them.

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About James McAluney

James McAluney has been a fixture in the Hawaii commercial insurance industry for years. His efforts to insure businesses in a variety of industries are appreciated by his customers, and he would enjoy nothing more than to put his expertise to work for you.

Raised in New England, southern California and south central Pennsylvania, Jim McAluney knows how to communicate with a variety of people. Couple his communication skills with his education in Business Administration from Pepperdine University, and you have an insurance broker who can craft policies and attain rates to help any business.

James McAluney can help your business attain the coverage it needs, no matter the industry. He has helped companies and organizations in industries such as:

  • Environmental
  • Healthcare
  • Small businesses and corporations
  • Real estate owners
  • Condominium and residential associations
  • Non-profit organizations
  • Commercial property owners

Jim McAluney uses his expertise and the relationships he has developed with insurance companies and can craft a program that your business can afford. And you won't get a cookie-cutter policy. He ensures that you get the coverage you need to keep your business viable. He understands that being under-insured is just as dangerous as not being insured at all. When James McAluney creates a policy for your businesses, you can be sure it is the best policy for your business.

But his dedication to businesses doesn't end with crafting good insurance programs. He is also dedicated to his community. He is active with charity and environmental organizations in Hawaii and has a passion for helping kids, from coaching basketball to refereeing soccer matches. He enjoys spending time with his family and friends and is proud of his Irish heritage. The passion he brings to his hobbies and pastimes is the same passion he will apply to your business. Contact Jim at McAloon@connorshawaii.com to see what he can do for your business.    

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