Business Insurance | General Liability | Professional Liability | Workers Compensation | Business Auto
If you run a business, you likely know how powerful marketing can be to grow the reach of your business. And no, I’m not just saying that as a member of Berry Insurance’s very own marketing department. Alright maybe a little, but it’s still important!
From keeping up your social media presence, putting out ads for your services, and sharing client testimonials - utilizing marketing tools may be just what your business needs to succeed. However, you may not be aware of the potential insurance ramifications of having out-of-date or falsified marketing materials for your business.
At Berry Insurance we often speak to business owners about how their services and operations are advertised/listed online and in marketing material, as listing the wrong thing could result in you paying more for your insurance coverage.
Table of contents:
- How could my website increase the cost of my insurance?
- How can I avoid being overcharged or denied coverage?
- What else determines the cost of business insurance policies?
How could my website increase the cost of my insurance?
A lot goes into determining the cost of your business insurance policies. And as a business owner, you’re likely to want to keep costs down wherever you can.
When it comes to marketing your business, it’s extremely important to pay attention to and be careful about what you say online regarding your business and its operations. Having falsified, misleading, or simply out-of-date information on your website, social media pages, or other marketing material could actually result in your business being overcharged for your insurance or denied coverage altogether.
This is because insurance carriers will actually look at your website or listings of your business's services to determine what exposures you should be charged for. So, if your website or marketing is out-of-date or incorrect, you could find yourself being overcharged on your business insurance policy and paying for exposures you don’t actually have.
For example, if an artisan contractor tells their insurance carrier that they only perform handyman jobs, but on their website they also advertise home additions and roof repairs, the carrier may not want to insure them - since these additional types of work open the business up to added risks.
Or if said handyman states they do not perform work above two stories, but a carrier’s underwriter sees evidence to the contrary in photos of past jobs posted on their website. Having accurate information is crucial for carriers so they can make sure a business is being rated correctly.
How can I avoid being overcharged or denied coverage?
In this scenario it’s important to update your website and marketing to properly reflect your current business operations. So if you make any changes to your business, like removing a service you used to offer, be sure to have your website and marketing reflect this change.
Additionally, sometimes businesses will add related services and operations for their business in keywords so their website performs better on search engines or so they’ll appear more experienced as a business. However, if your business is coming up for services you do not provide, insurance carriers may charge you for them nonetheless or more likely deny coverage entirely.
What else determines the cost of business insurance policies?
Since each business is so unique, there are multiple variables that go into determining the cost of a business’s insurance policies. This includes the types of insurance coverage your company requires, the size of the company, the amount of unique exposures and much more.
For a breakdown of everything that contributes to the cost of business insurance policies (including general liability, business auto, workers’ compensation, and more) check out this handy guide: How Much Does Business Insurance Cost?
Marketing your business right
Ensuring your business is represented properly in your company’s marketing and website is not only important for your relationships with your clients, but may be the key to not being overcharged by your insurance company.
Thinking about updating your business insurance policy? If you believe you’re being overcharged or need to add new coverage onto your policy, now is the perfect time to speak with your insurance agent or provider on updating your insurance policy.
Download our checklist below to learn when the best times to update your policy are and what changes you’ll need to make:
