Don’t Get Spooked! Avoid These Frightening Business Insurance Mistakes This October
Ray Cogan
The scariest business insurance mistakes—and how to avoid them.
October’s cooler weather, changing leaves, and the Halloween spirit make it a month of transitions. But for business owners in Annapolis, Frederick, and throughout Maryland, this month can also uncover some truly frightening surprises—especially when it comes to business insurance.
Whether you’re running a small café downtown, managing a growing construction company, or leading a professional services firm, the last thing you want is to discover a coverage gap right when you need protection most. Unfortunately, many Maryland businesses fall into the same insurance traps—mistakes that could haunt their operations long after October is over.
Before those ghosts of bad coverage come knocking, let’s shine a flashlight on some of the most common and scariest business insurance mistakes—and how to avoid them.
Mistake #1: Assuming Basic Coverage Is Enough
One of the most haunting errors a business owner can make is assuming that a general liability policy is all you need. While liability coverage is essential, it doesn’t protect your business from every risk.
For example, general liability won’t cover:
- Property damage to your own building or equipment
- Employee injuries (you’ll need workers’ compensation insurance for that)
- Cyberattacks or data breaches
- Professional errors or omissions
Each business is unique, and your insurance should reflect that. A restaurant in Annapolis faces different risks than a tech startup in Frederick. The best way to make sure you’re not underinsured is to schedule a coverage review with your insurance agent at least once a year—especially before the new year begins. ***
Mistake #2: Forgetting to Update Your Policy After Business Changes
Your business isn’t static—it evolves. Maybe you’ve expanded your office, added new employees, or purchased new equipment. Each of these changes can affect your insurance coverage.
Failing to update your policy could mean you’re not fully covered in the event of an unexpected occurrence. For example:
- You moved locations, but your policy still lists your old address.
- You added a company vehicle but didn’t inform your insurer.
- You increased inventory but haven’t raised your property coverage limits.
Don’t let outdated information come back to bite you! Keep your insurance provider updated about any significant business changes that occur throughout the year.
Mistake #3: Overlooking Cyber Liability Insurance
In today’s digital age, cyber threats are lurking around every corner. Small businesses—especially local ones—are prime targets for hackers, because they often have less robust digital defenses than large corporations.
A single phishing email or ransomware attack can cost thousands in recovery fees, lost business, and reputational damage.
Cyber liability insurance helps cover the costs of:
- Data breaches
- Customer notification requirements
- IT recovery and system repair
- Legal expenses
If your business stores sensitive customer information such as credit card details, personal data, or health records, you can’t afford to skip this coverage. Cyber liability protection is one of the smartest investments you can make to keep your business safe.
Mistake #4: Neglecting Workers’ Compensation Coverage
Even in seemingly “safe” workplaces, accidents can happen. In Maryland, most businesses with one or more employees are required by law to carry workers’ compensation insurance.
Failing to have proper coverage can lead to:
- Costly fines and penalties
- Lawsuits from injured employees
- Damage to your business reputation
Beyond compliance, having workers’ comp shows your employees that you value their safety and well-being. It provides peace of mind for both sides—covering medical expenses, rehabilitation costs, and lost wages if someone gets hurt on the job.
Mistake #5: Choosing the Cheapest Policy
We all love a good deal, but when it comes to business insurance, cheapest rarely means best.
Some business owners fall for policies with lower premiums without realizing they come with higher deductibles or limited coverage. Others choose online-only providers without the benefit of a dedicated, local agent who understands Maryland business laws and industry risks.
When comparing quotes, make sure you’re evaluating:
- Coverage limits
- Deductible amounts
- Exclusions and add-ons
- Customer service reputation
Working with a local, independent insurance agent—like Lindquist Insurance—means you’ll get expert guidance and custom-tailored options, not one-size-fits-all coverage.
Mistake #6: Skipping a Business Insurance Review
Just like you wouldn’t skip your annual health check-up, your business insurance deserves regular attention, too. A yearly policy review helps identify outdated limits, expired endorsements, or gaps in protection.
October is a perfect time to review your coverage—right before the end-of-year rush and while seasonal risks (like winter weather) are top of mind.
A quick meeting with your insurance agent could uncover ways to:
- Lower your premiums
- Add valuable coverage
- Adjust deductibles to fit your budget
- Stay compliant with Maryland’s latest business insurance laws
Running a business in Annapolis, Frederick, or anywhere in Central Maryland means facing a unique set of risks from weather damage to regulatory changes to the occasional cybersecurity scare. But with the right business insurance coverage, you don’t have to fear the unknown.
Don’t let your business get spooked by unexpected risks this October! At Lindquist Insurance, our team proudly serves business owners across Annapolis, Frederick, and the greater Maryland region. We specialize in custom business insurance policies that protect your company—inside and out.
Contact Lindquist Insurance today to schedule your free business insurance review before year’s end. Let’s make sure your business is fully protected—so you can focus on growth, not ghosts. Visit our website www.lindquistinsurance.com
to get started!
We serve the Frederick and Annapolis, MD area.
** For more information on Maryland business general liability limits, visit the State Regs Today website.
At Lindquist Insurance, we’re proud to serve families and businesses in Frederick, MD., Annapolis, MD., and the Washington, D.C. area. Our local expertise means we understand the risks you face and the coverage you need. Call us at (301) 694-0008.
At Lindquist Insurance, we specialize in helping Maryland and D.C. drivers get the right car insurance at the right price. We’ll explain your protections in plain language, and make sure your policy fits your needs—not just during fall, but year-round. Serves Annapolis and Frederick, MD.
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