In recent years, insurance carriers have paid out more than $36 billion in Florida commercial insurance claims. That's the third-highest payout for any state in the US, which goes to show the importance of business insurance for Florida business owners.

Business insurance protects your office, inventory, employees, and everything else that helps your business operate, so you don't want to mess up on purchasing coverage. That's why a Florida independent insurance agent is a great place to start. An agent can help you avoid these common business insurance pitfalls.

#1 Not Purchasing Wind Coverage

Wind-charged weather events are among the most dangerous and likely patterns to strike Florida. Hurricanes and tornadoes can result in winds of over 100 mph, which will destroy everything in their path, including your business.

That's why it's critical to purchase additional wind coverage in your business insurance. It's likely that you'll receive some coverage against wind-related damage, but it's also common for there to be a wind exclusion in your policy. 

#2 Not Purchasing Flood Insurance

In Florida, when the wind comes, so does the rain. They go hand in hand as Florida's most common catastrophic events. Damage from natural floodwaters is excluded in business insurance. You must purchase this coverage separately from the National Flood Insurance Program NFIP).

 Flood insurance from the NFIP can only be purchased through a carrier or independent insurance agent. Some private insurance carriers carry flood insurance, but it's typically more cost-effective to go through the NFIP.

#3 Skipping Business Income Coverage

Many businesses either skip or do not purchase an adequate amount of business income insurance. Business income insurance, also known as business interruption insurance, is crucial coverage because it's the only type of policy that will pay your bills if you have to suddenly close your doors.

Whether it's damage from wind, hail, or vandalism, your doors may close but your bills still need to be paid. Business income insurance provides coverage for the following:

• Temporary location costs
• Lost earnings
• Employee payroll
• Mortgage, rent, loan, or lease payments
• Taxes
• Training new employees in order to reopen
• Relocation costs

Your independent agent can help determine the proper amount of business income insurance to purchase.

#4 Ignoring Cyber Insurance

Florida continues to be high on the list for the number of cybercrime victims in the US. In recent years, the state had the second-highest number of victims, with 53,793 reported cybercrimes. 

For businesses that collect large amounts of customer data, cybercrimes are a major risk. Recovery from a data leak can cost millions of dollars, and without insurance, it can lead you to bankruptcy. Ignoring or not purchasing cyber insurance is one mistake you don't want to make.

#5 Not Updating Your Policy

When you start a business, the idea is that it will grow over time. Some businesses change rapidly, while others grow over months or even years. Whatever the rate of your business growth, as it changes, so will your insurance needs. It's likely that you won't need the same coverage you purchased on day one, several years into your business.

Your business insurance policy should be reviewed annually. In addition, if your business experiences any major changes in employment, revenue, or general value, it's important to adjust your policy so it continues to grow with your business.

#6 Not Working with an Independent Insurance Agent

Independent insurance agents are your business partners for insurance. Just as you only want experts in your industry helping you run your business, you want an expert in insurance helping you protect your business.

A Florida independent insurance agent understands the risks associated with owning a business in the state. They know the different types of coverages you need and which carriers will specialize in the policies that will benefit you the most.

These agents are not tied to a single carrier, so their top interest is the insurance policy that's going to best protect your business. Agents will speak with you, free of charge, and pull multiple quotes to discuss. When it's time to renew or update your policy, they can assist with that as well. Don't make the mistake of trying to understand the ins and outs of business insurance yourself. Let an agent do the hard work for you so you can focus on running a successful business.