Tulsa, Okla. (PRWEB) December 13, 2007
With insurance being as confusing and thorny as it is, many convenience store owners may not know how to make sure they're properly covered. Mick Cottom of RCI Insurance (http://www.rci-insurance.com) discusses some costly insurance mistakes - called the "Seven Deadly Sins" - that convenience store owners are making.
"One of the biggest mistakes I see is people not having a risk assessment done for their convenience store," said Cottom, who has 35 years of experience in convenience store insurance. "You need to have a risk assessment done to determine your exposures. Different businesses have different risks, and unless you have a professional analysis, you won't be properly prepared for yours."
According to Cottom, most convenience store owners also suffer from a lack of understanding when it comes to the finer points of their policies. They may not know their policy exclusions or how the insurance company determines their policy premiums.
Convenience store owners also make the mistake of not dealing with a convenience store insurance specialist or not dealing with an independent agent. Cottom says that these two deadly sins can cause a lot of problems for convenience stores when they have to file a claim.
"There are so many different types of insurance, and they all have their own little languages," Cottom said. "If you're not dealing with a convenience store insurance specialist, then it's like having a brain surgeon perform a heart operation. They may kind of know what they're doing, but you're not getting the best service that you could."
Another mistake convenience store owners make, Cottom says, is not carrying adequate limits of insurance. While they may have property, liability and business interruption insurance, it might not go as far as it should to ensure that their business is properly covered.
"When it comes to liability insurance, your minimum coverage should be $1 million," said Cottom. "It may seem extreme, but there are a number of accidents that could happen at a convenience store that you would be liable for. Don't think, 'It won't happen to me.' You never know what tomorrow will bring."
Finally, Cottom says, many convenience store owners make the simple mistake of renewing their coverage every year for exactly what it was the year before.
"Your business is fluid," Cottom said. "Your convenience store may be worth more this year than it was last year. If you have the same plan year to year, then if something happens, you might not be covered for the full worth of your business."
For more information about convenience store insurance, including free assistance in analyzing the risk for your business, visit RCI Insurance online at http://www.rci-insurance.com
About RCI Insurance
Mick Cottom is the owner of RCI Insurance, a convenience store insurance specialist in Tulsa, Okla. Cottom has been in the insurance industry for 35 years. To get his help in performing a risk assessment for your convenience store, visit him online at http://rci-insurance.com.
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