Honesty’s The Best Insurance Policy. : ThyBlackMan

Tuesday, May 22, 2018

Honesty’s The Best Insurance Policy.

April 13, 2017 by  
Filed under Business, Money, Opinion, Weekly Columns

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(ThyBlackMan.comThe reality is simple: businesses need insurance. And, they need a lot of policies to ensure they are safe. What they don’t need to do is lie on their application. Lots of companies decide to tell white lies because it’s a money-saver. There is no doubt that insurance is steep and businesses need to cut costs. But, an insurance policy is the most dangerous of corners to cut. For anyone that doesn’t believe that, take a look at the following. These are the reasons why honesty is the best policy.

Lying Is Expensive

Lying doesn’t seem like a bad idea because you never think it will backfire. In fact, you believe you’re playing the system and you’re ahead. That might be true in the short-term, but it can all change in an instant. All it takes is a mistake for your policy to come under scrutiny. If there is one detail that doesn’t add up, the insurance company will find and exploit it for their gain. So what? Why does this matter? Well, it matters because you need them to pay the bill. Business insurance covers everything from ground ambulance services to operations. These are expensive, and most firms can’t afford them alone.

It’s Unnecessary

How much do you save by telling a few white lies? $500? $750? The point is that companies don’t tend to save much money. It certainly isn’t enough to make a huge difference and transform you into a market leader. The truth is that lying on an application is a bad move because it’s pointless. Any SME can afford to fork out $500 in the year if they think about it rationally. There are other areas of the business that you can cut which aren’t as risky. Don’t take the chance for the sake of what amounts to loose change.

And Fraudulent

Not being honest is a crime. Okay, it isn’t always a felony, but it is in this case because it’s a blatant attempt at dishonesty. That’s fraud in anyone’s book, and it carries a long jail sentence. The penalty, if you get caught, can range from a fine to a cell in H Block. But, even a fine is going to cause a lot of damage. The authorities aren’t forgiving to fraudsters, and they like to make an example. The amount they charge you will be far higher than what you save on a dishonest plan. Plus, let’s face it – no one wants to go to prison.

More Suits

The government isn’t the only danger. Because you’re a business, your policy covers the employees. If their coverage fails, they will come after you and the firm. Workers will line the corridors for the chance to stick the knife in and get paid. From a professional standpoint, it accrues to suicide as no one will ever work for you again. From an individual perspective, a private suit might obliterate your finances.

Hindsight is 20/20, but, in this case, it’s easy to see clearly.

Staff Writer; John Snow

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