Why Cutting Corners Could Cost You Everything
Insurance is one of those business expenses that feels heavy every month. Before I retired, I’d have to groom about five dogs just to cover my insurance bill. That’s not pocket change—and it makes me want to be certain that my coverage is actually doing what I think it is.
Because here’s the truth: insurance is not the place to save money blindly. A “cheaper” policy often comes with reduced coverage, exclusions, or fine print that you don’t discover until after a claim is denied. And by then, it’s too late.
So, how do we know if we’re really covered?
For most of us, our eyes glaze over after page five of that giant packet written in “insurance–ese.” But it’s critical to either read the policy carefully or pick up the phone and talk to an Insurance Specialist (not just your agent). This is the person at the insurance company—whether it’s Travelers, Hartford, Nationwide, etc.—who can walk you through exactly what they have on file for you. Remember: you are only covered based on what is documented in their system, not what you assume or what your agent casually promised.
If you’re mobile, this is even more important since you may have multiple policies (vehicle and business) that need to line up properly.
Key Questions to Ask Your Insurance Specialist
- What are the details of the animal floater? Does it cover injury as well as death? What’s the dollar limit per occurrence?
- Does your policy cover lost pets?
- How does your business interruption policy work? If you’re mobile, does it cover downtime when your vehicle is in the shop?
- What are your deductibles?
- Do you have full glass coverage (mobile and/or shop)?
- What are the limits on your equipment coverage? Are theft, fire, and natural disasters included?
- Shop renters: What does your lease say about responsibilities, and does your insurance cover them?
- Mobile groomers: Are you covered at the client’s home, or only when parked at your own residence? Who owns your grooming vehicle—you or the business?
- How do driving records (yours and employees’) affect premiums?
- If you teach classes, can you get a rider for teaching?
- Has your business structure changed (LLC → S corp)? If listed incorrectly, claims may be denied.
- For mobile groomers: Does your policy cover the full cost of vehicle replacement, including conversion?
- Are you covered for disasters?
This call usually takes me about 20 minutes—time well spent compared to being blindsided later.
Comparing Policies the Right Way
When comparing premiums, always compare like to like. A lower price doesn’t mean a better deal if coverage is stripped down. Rates also vary by state, so don’t assume you’re paying too much without checking details.
You’ll also want to look at an insurer’s solvency ratio, which reflects their ability to pay claims. It’s listed in their annual financial report (usually found on their website).
Types of Insurance to Consider
- Business Owner Insurance – property, interruption, theft, liability
- Commercial Auto Insurance – business vehicles: damage, theft, liability
- Disability Insurance – lost wages if you can’t work
- Health Insurance – medical, dental, surgical
- Inland Marine Insurance – tools/property off-site (events, shelters, trade shows)
- Life Insurance – payout upon death
- Professional Liability Insurance – errors in service
- Property Insurance – fire, flood, earthquake, etc.
- Umbrella Insurance – larger liability protection beyond normal limits
- Workers’ Comp Insurance – required if you have employees
These can often be bundled but make sure you’re not trading savings for gaps in coverage.
Final Thought
Those five dogs I groom each month to pay my insurance bill? They’re worth it. Because in return, I protect my assets, my livelihood, and my peace of mind.
For further reading, I recommend this resource from the National Association of Insurance Commissioners: NAIC Consumer Guide.
✂ Insurance may not be exciting, but losing your business over a denied claim would be far worse.