When protecting your business, misconceptions about business insurance can lead to costly mistakes. Many Oregon business owners assume they don’t need coverage, believe their general liability policy protects against all risks, or underestimate the importance of specialized insurance. However, these myths can leave businesses vulnerable to financial loss, legal issues, and operational setbacks. Elliott, Powell, Baden, and Baker has a dedicated business insurance team to guide businesses in making informed decisions and finding the proper coverage and protection. Here are five common commercial insurance myths in Oregon to consider—and the truth behind them.
1. Small Businesses Don’t Need Insurance
Myth: Only large corporations need commercial insurance.
Truth: All businesses, regardless of size, face risks such as property damage, lawsuits, cyberattacks, and employee injuries. A sole proprietorship or home-based business can also suffer financial losses without proper coverage. Oregon law requires Workers’ Compensation coverage for most Oregon companies with employees.
2. General Liability Covers Everything
Myth: Your business is fully protected if you have General Liability insurance.
Truth: General liability insurance covers some third-party claims involving bodily injury or property damage but not everything that could happen to a business is covered. For example, General Liability insurance doesn’t cover damage to your auto (Business Auto) workplace injuries to employees (Workers’ Comp), cyberattacks (Cyber Liability), or professional mistakes (E&O insurance). Businesses often need multiple policies to be fully protected.
3. Commercial Auto Insurance Isn’t Necessary for Personal Vehicles
Myth: If you or your employees use personal vehicles for work, your personal auto policy will not cover accidents.
Maybe: Depending upon your business, your personal auto insurance policy may exclude business use. If you or your employees drive for business purposes (deliveries, transporting goods, etc.), you may need commercial auto insurance to avoid denied claims.
4. Cyber Insurance is Only for Tech Companies
Myth: Only large tech companies need cyber liability insurance.
Truth: Every business that stores customer data, accepts credit card payments, or uses digital systems is at risk. Small and medium-sized businesses are often prime targets for cybercriminals. Cyber insurance helps cover data breaches, ransomware attacks, and regulatory fines.
5. Workers’ Compensation is Only for Dangerous Jobs
Myth: Only construction and manufacturing companies need workers’ compensation insurance.
Truth: Oregon law requires almost all businesses (even if you only have one employee) to have Workers’ compensation insurance, regardless of industry. Office jobs, retail, and hospitality workers can still suffer injuries like repetitive strain, slips, or falls. Without coverage, businesses may face fines and liability for medical costs.
Understanding the truth behind these myths can help Oregon business owners avoid financial losses, legal issues, and operational disruptions. Professional guidance on the right commercial insurance is essential for your business. Contact EPB&B, and we can help you find the right insurance for your business.