This collection sorts the ten most common company insurance myths into myth–reality pairs – briefly, shareably. Printed out, it looks good on the finance team's desk; the detailed discussion is in the linked articles. The longer analysis: common myths.
In brief:
- Ten myths, ten realities – each in one sentence, with a link to dig deeper.
- Half the myths give false confidence, the other half scare people off needlessly – both cost money.
- The remedy is always the same: knowing the conditions and knowing your own portfolio.
The false-confidence myths
- 1. "Business interruption insurance replaces lost revenue." – Reality: it does not replace lost profit, as many hope – following property damage, it covers the fixed costs that keep running and a limited wage burden: details.
- 2. "We have insurance, so everything is covered." – Reality: a policy applies to precisely defined events, with limits and exclusions: what it covers and what it doesn't.
- 3. "Home contents insurance also protects the home office." – Reality: equipment used for business purposes typically falls outside it: the home-office boundary.
- 4. "We took out cover once, so it's been fine ever since." – Reality: an unreported change puts the payout at risk; the portfolio needs upkeep: notifying changes.
- 5. "A leased premises is the landlord's problem." – Reality: the fixtures, the stock and the tenant's fit-out belong to the tenant – and so does tenant liability: leased-premises rules.
The needlessly discouraging myths
- 6. "The insurer rejects everything anyway." – Reality: most routine claims are paid without issue; rejections stem from identifiable, largely preventable causes: the six causes.
- 7. "It's not worth insuring for a small company." – Reality: the smaller the company, the less it can absorb a major loss – the question is the right minimum: the minimum portfolio.
- 8. "A broker is just an extra cost." – Reality: the client pays no fee for the advice – the intermediary remuneration is paid by the insurer: what a broker does.
- 9. "The cheapest quote is the best buy." – Reality: a premium gap usually reflects a cover gap – the question is whether it matters to you: the cheap-premium trap.
- 10. "Insurance is just paperwork anyway." – Reality: an organised portfolio is also tender-readiness, bank compliance and negotiating power: why it pays off to keep it in one hand – and once there's a claim, the paperwork does the work.
Missing a myth you've run into? Let me know – the collection keeps growing: info@tukacs.com.
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This article is for information purposes only and contains general information; it does not constitute an offer, or insurance, legal or tax advice. The specific covers, exclusions and pricing are set by the insurers' terms and conditions in force at any given time – it is worth going through these item by item when you request a quote. Updated: August 2026.
