We at Risk Averse recently ran a survey asking respondents to answer a variety of true/false questions about the insurance industry in order to gauge the general public’s familiarity with certain insurance policies. With the results from over 700 respondents, we created a brief video clarifying these common misconceptions about insurance… and some of the results may surprise you!
Workers Compensation Insurance
Our first question was whether workers’ compensation insurance is required when you have one or more employees. The majority of respondents answered this correctly; workers’ compensation is required if you have at least one employee. Even if you’re paying your employee on a 1099 tax form, you still need coverage.
Red Cars and Insurance Rates
The next question was: true or false? Having a red car increases your insurance rates. The responses were 50/50, but the color of your car actually has no bearing on how much you pay for car insurance. Driving history, credit, age, and a number of other factors affect your premiums, but you can feel free to get any color vehicle you’d like as it will not raise your rates!
Another question on our survey asked whether flood insurance is covered on a standard homeowner’s insurance policy. It is not covered, but the majority of respondents believed that it was. If you live in a flood zone, it is essential that you purchase a separate flood insurance policy in the event that your home is flooded in order to receive compensation for lost or damaged property.
Professional Liability vs. General Liability
When asked if general liability offers the same coverages as professional liability, most respondents incorrectly voted that it does. Professional liability covers professional services while general liability does not. A general liability policy provides legal representation and pays for covered damages caused by you or an employee. If you’re providing professional advice in some way, it’s important to get a professional liability insurance policy as general liability will not cover any claims that fall under these services.
Driving Without Insurance
Our next question asked respondents: true or false? It is illegal to drive a car in the U.S. without car insurance. Thankfully, most of the survey participants got this correct by selecting that it is true. However, this does not mean that there aren’t people on the road driving without coverage, so make sure you are protected with a car insurance policy.
Workers’ Compensation and General Liability
The last question in our survey asked whether workers’ compensation is covered under a general liability policy and most people got this correct as well. Employee injury is not one of the coverages included on a general liability policy, so it is essential that you purchase a separate workers’ comp policy if you have at least one employee.
Call Risk Averse Insurance in Media, PA to discuss your business or personal insurance.
Risk Averse Insurance is an insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.