When it comes to business insurance, balance is everything. Being under-insured leaves your company vulnerable to devastating losses, while being over-insured means you’re paying for coverage you don’t actually need.

At Baldon Insurance Group, we don’t believe in one-size-fits-all policies. Instead, we work with you to customize your insurance portfolio, ensuring you have the right protection—nothing more, nothing less.

Understanding the Risks of Being Under-Insured

If you’re under-insured, your business is exposed to financial risks that could be catastrophic. Many business owners don’t realize they have gaps in their coverage until it’s too late. Here are some common signs:

1. Your Coverage Limits Are Too Low

• If a major loss occurs—like a fire, flood, or lawsuit—you could be responsible for costs beyond your policy limits.
• Example: A restaurant with a $500,000 property policy suffers a fire that causes $1 million in damage. The owner is forced to cover the remaining $500,000 out of pocket.

2. Your Policy Doesn’t Cover All Your Risks

• Standard policies don’t always include specialized coverage like cyber liability, employment practices liability, or business interruption—leaving businesses vulnerable.
• Example: A construction company without equipment breakdown insurance has to pay for repairs after a crane failure.

3. Your Deductibles Are Too High

• A high deductible may lower your premiums, but if an incident occurs, you might struggle to pay the upfront costs before coverage kicks in.

4. You Haven’t Reassessed Your Coverage in Years

• If your business has grown—added locations, employees, or revenue—but your coverage hasn’t kept up, you’re likely under-insured.

The Costly Problem of Being Over-Insured

On the other hand, some businesses pay for coverage they don’t need, leading to wasted money every year. Here’s how:

1. You’re Paying for Unnecessary Coverages

• Some businesses carry coverages that don’t apply to their operations, leading to higher premiums without added value.
• Example: A small consulting firm with no physical office paying for commercial property coverage they don’t need.

2. Excessive Coverage Limits

• While high coverage limits sound good, they may be exceeding the actual value of your assets.
• Example: A retail store with $3 million in business property coverage—but their inventory and building are only valued at $1.5 million.

3. Overlapping Policies

• If you have multiple policies covering the same risk, you may be doubling up on protection without realizing it.
• Example: A business owner with cyber insurance included in their general liability policy and a standalone cyber policy—paying twice for the same coverage.

How to Get It Just Right: The Baldon Approach

At Baldon Insurance Group, we take a customized approach to ensure you’re properly insured—without overpaying. Here’s how:

1. Comprehensive Risk Assessment

We take the time to understand your business, identifying key exposures and eliminating unnecessary coverage.

2. Coverage Optimization

We ensure you have the right policies at the right limits by analyzing:

 ✔ Your business operations and risks
✔ Industry-specific exposures
✔ Contractual obligations from landlords or vendors
✔ Your claims history

3. Shopping the Market for the Best Fit

As an independent insurance agency, we compare multiple carriers to find you the best value—ensuring top-tier coverage at the most competitive price.

4. Annual Policy Reviews

Business changes, and your insurance should too. We regularly review your coverage to make sure you’re not under or over-insured as your business evolves.

Is Your Insurance Coverage Just Right? Find Out Today

The best way to ensure you’re not overpaying or under-protected is to work with an experienced, independent insurance agency that puts your needs first.

At Baldon Insurance Group, we take a strategic, consultative approach—helping businesses eliminate waste, close coverage gaps, and secure tailored insurance solutions.

Schedule a free 7-minute consultation today and let’s get your coverage just right.