5 Insurance Mistakes Maine Small Business Owners Make

Running a small business in Maine takes grit, long hours, and constant problem-solving. The last thing you want is an insurance gap that turns a manageable incident into a business-ending catastrophe. Yet we see the same costly mistakes over and over again. Here are five that Maine small business owners need to avoid.

1. Skipping Workers Compensation

Maine law requires workers compensation insurance for nearly all employers, even those with just one employee. Yet some small business owners skip it to save money, not realizing that a single workplace injury without coverage could result in massive personal liability. Workers comp covers medical expenses and lost wages for injured employees, and protects you from lawsuits. The cost is modest compared to the risk.

2. Underinsuring Your Business Property

Many business owners insure their property for what they paid for equipment and inventory rather than what it would cost to replace everything today. Inflation, supply chain issues, and rising construction costs mean your equipment and build-out may cost significantly more to replace than you think. Review your property limits annually.

3. Not Carrying Enough Liability Coverage

A general liability policy with minimum limits might seem adequate until you face a serious claim. One slip-and-fall, one product liability claim, or one negligence lawsuit can exceed a basic policy's limits quickly. Consider higher limits and an umbrella policy to protect your business and personal assets.

4. Ignoring Professional Liability

If your business provides any kind of professional advice, consulting, or specialized services, you need professional liability insurance, also known as errors and omissions coverage. General liability does not cover claims arising from your professional work. This includes consultants, real estate agents, accountants, engineers, and many other service providers.

5. Treating Insurance as a Set-It-and-Forget-It Expense

Your business changes every year. You add employees, buy equipment, take on new types of work, or expand to new locations. Your insurance needs to keep pace. Reviewing your coverage annually with an experienced agent ensures you are protected as your business grows. At Quirk Insurance, we specialize in Maine commercial coverage and work with business owners to build policies that evolve with their needs. Call us at (207) 299-1800 for a free business insurance review.