Seven Common Mistakes Businesses Owners Often Make

Business Owner Hanging a Closed Sign

You have worked hard to establish a business which provides for you and your family, so it makes sense to protect it by having the right insurances in place. But, not all businesses think about having insurance or more importantly, having the right type of insurance keep your business running smoothly.

Here are seven common mistakes business owners often make:

Mistake 1

Neglecting to secure insurance for your most valuable asset – your ability to earn an income. If you insure your vehicles, buildings, stock, and other valuable resources, why would you not protect the income of the person who generates the wealth? There are a few different ways to protect your income and your future earnings potential and one or more may be right for you.

Mistake 2

Avoiding succession issues and not having a Buy/Sell agreement in place with an appropriate funding mechanism. If your business partner died last week, who would you be in business with today? Their spouse? Their children? An accountant? A lawyer? A total stranger? If you don’t know, then you need to make a plan today.

Mistake 3

Overlooking the value of a key person and the impact the loss of one of them (or you) would have on your revenue and the profitability of your business. If a key person died or became disabled, would the future profitability of your business be as certain today as it was yesterday? If not, there are insurance options available to cover both you and key, revenue generating people in your business.

Mistake 4

Spending too much for insurance on the last and least likely event to occur before age 65 (death) but neglecting to cover the events that are three times more likely to impact your lifestyle. If you have just been diagnosed with cancer or had a heart attack, would you prefer a get-well card or a cheque for $500,000 dollars? While the answer may seem obvious, a large number of Kiwis are more covered for death than they are for major illnesses.

Mistake 5

Paying more than you need to for your health insurance. Competitive options are now available that provide affordable protection against the medical costs that really matter – specialists & testing fees, surgery and hospital expenses.

Mistake 6

Not reviewing your policies on a regular basis to ensure that they are still relevant and the best value for money. With Wright Financial, you can have a FREE, no obligation review of your existing insurance. With your review, you will receive a summary of all existing policies and marketplace comparisons, giving you options to make an informed decision.

Mistake 7

Failing to use the experience and services of a qualified, confidential, risk management & lifestyle protection specialist to provide you with marketplace options. Why would you risk your health and lifestyle to jargon, small print, out-dated policies and “wishful thinking”, when you can have a confidential risk management consultation absolutely free?

Most of these mistakes are easily avoided with a little bit of knowledge and education. Wright Financial is ready to help you understand all of the options available to you and to avoid costly mistakes.

Have you made one of these mistakes before? Or, is there another mistake you think should be added to the list? Let us know.