Let’s Be Honest: Most Business Owners Don’t Know What Their Insurance Covers

Let me say this upfront, with love: most business owners don’t actually know what their insurance covers.

And no, that’s not an insult. It’s a reality I see every single week.

I’ll ask a client what coverage they currently have, and the answer is usually something like, “I have general liability… I think?” Or “Whatever my last agent told me to get.” And honestly? That makes sense.

Insurance isn’t explained well. It’s full of jargon, long documents, and vague terms that sound important but don’t mean much in real life.

So if you’ve ever felt unsure about your coverage, that's completely normal.

Why This Happens (And Why It’s Not Your Fault)

Most entrepreneurs start their businesses focused on what actually makes money — clients, products, marketing, and growth. Insurance usually enters the picture because someone requires it, not because it was clearly explained.

A landlord needs proof of coverage.

A client asks for a certificate.

A contract won’t move forward without it.

So you get a policy, check the box, and keep it moving.

The problem is that checking the box doesn’t mean you’re protected.

What You Should Actually Understand About Your Insurance

You don’t need to memorize your policy. You do need to understand a few key things.

At a minimum, you should know:

• What risks are covered and what are not

• How much coverage you actually have

• What your deductible is

• Which scenarios would require a separate policy

  
  

For example, general liability is great, but it doesn’t cover everything.

It doesn’t automatically protect your income. It doesn’t cover professional mistakes. And it doesn’t replace tools, equipment, or property unless it’s designed to.

That’s where confusion turns into exposure.

The Problem With “Set It and Forget It” Insurance

One of the biggest mistakes I see is treating insurance like a one-time task.

Businesses evolve. You add services. You take on bigger clients. You hire help. You sign contracts with more risk attached to them. But the policy stays the same.

That gap is where claims get denied.

Not because someone did something wrong, but because the coverage never kept up.

How I Approach Insurance Differently

Before I ever quote a policy, I ask questions. A lot of them.

Not to be nosy. Not to slow things down. But because coverage only works when it matches real life.

I want to know:

• What you actually do day to day

• How you get paid

• Who relies on your business income

• Where your biggest risks live

  
  

My job isn’t to sell you “something.” My job is to make sure you’re not finding out what you don’t have when it’s too late.

The Bottom Line

If you can’t clearly explain what your insurance does for you, that’s a sign.

Insurance should make you feel more secure, not more confused.

And if you’re reading this thinking, “Yeah… I probably need to look at mine,” you’re already ahead of the game.

That conversation is an easy one to start and I'm happy to have it with you. Go to the "Get A Quote" page to start your journey to better coverage now.