10 Common Business Insurance Myths Debunked

Running a business takes courage, grit, and no small amount of planning. But one area that still trips up many business owners - especially in fast-growing regions like St. Petersburg, Florida - is insurance. Too many believe myths that lead to big gaps in coverage, unnecessary risks, or overpaying for protection they don’t need.

At Pelican Shield Insurance Group , we’ve worked with business owners across Florida and Virginia to clear up the confusion around commercial coverage. We’re straight-shooters who break things down without the fluff. If you want to get a sense of our approach, start with our story or check out our commercial insurance offerings to see the kind of protection we help build.

Let’s bust some common myths that are still floating around in 2025.

Myth 1: “I’m a small business - I don’t need insurance.”

Truth: Small businesses are often more vulnerable than large ones.

One lawsuit, flood, or theft can seriously damage a small operation. Whether you run a coffee shop, a consulting firm, or a contractor crew, business insurance gives you a financial safety net that could be the difference between surviving a crisis or shutting down.

If you have a location, customers, inventory, or even a website, you need to be covered. Pelican Shield works with businesses of all sizes to tailor affordable coverage that actually fits.

Myth 2: “My landlord’s insurance covers my business property.”

Truth: It covers the building - not your stuff.

If you're leasing space, your landlord’s policy typically only protects the structure. Your equipment, signage, computers, inventory, or furniture? That’s on you. A commercial property policy protects everything you own inside that space.

Business owners in shared spaces across St. Pete and Tampa Bay have learned this the hard way - often after a storm or break-in. We help clients get ahead of these surprises.

Myth 3: “General liability insurance covers everything.”

Truth: It covers a lot - but not everything.

General liability protects you from third-party claims like bodily injury and property damage. But it won’t help you if:

An employee gets hurt (that’s workers’ comp)
Your data gets stolen (that’s cyber liability)
Your equipment is damaged in a fire (that’s property coverage)

The best protection comes from the right mix of policies - not relying on one catch-all plan.

Myth 4: “Business insurance is too expensive.”

Truth: It's more affordable than you think - and a lot cheaper than a lawsuit.

Business insurance is often surprisingly budget-friendly, especially when you consider what it covers. A slip-and-fall lawsuit could cost thousands. Replacing a stolen laptop fleet? Same story. Losing income during a closure? That adds up fast.

Pelican Shield helps businesses in Florida and Virginia get the protection they need without breaking the bank. We’re not here to upsell. We’re here to help you avoid paying the price of being unprotected.

Myth 5: “My business is home-based, so my homeowner’s insurance covers it.”

Truth: Most homeowners policies exclude business activities.

If you’re running your business from home - whether it’s a design studio, online store, or accounting service—your homeowner’s policy likely won’t cover:

Business inventory
Liability related to clients visiting your home
Business-related equipment or tech

Commercial insurance for home-based businesses is simple and cost-effective. One conversation can make sure you’re not assuming coverage that doesn’t exist.

Myth 6: “Cyber insurance is only for big tech companies.”

Truth: Any business that uses email, stores data, or processes payments is a target.

Small and mid-sized businesses are prime targets for hackers - precisely because many don’t have strong cybersecurity systems. Cyber liability insurance can cover:

Data breach response costs
Customer notifications
Lost income
Legal fees

In 2025, this isn’t optional. It’s a necessity.

Myth 7: “Once I buy insurance, I don’t need to look at it again.”

Truth: Your policy should evolve with your business.

Hiring more employees? Expanding into a second location? Changing your services? These can all affect your risk - and your coverage.

It’s smart to review your policy at least once a year, or any time your business shifts direction. At Pelican Shield, we walk clients through these changes in plain English so they stay protected without overpaying.

Myth 8: “Independent contractors don’t need coverage.”

Truth: You still face liability - especially if you’re client-facing or using tools, vehicles, or equipment.

Many independent contractors assume they’re flying under the radar, but courts and clients often treat them like businesses. If you’re operating on a jobsite, driving for work, or providing any service that could go wrong, you need to protect yourself.

Contractors across St. Petersburg, from HVAC to landscaping to IT, come to us to make sure their insurance covers the real risks - not just the paperwork.

Myth 9: “Umbrella insurance is only for large corporations.”

Truth: Umbrella coverage is useful for anyone with big exposure or high-value claims.

Commercial umbrella insurance kicks in when your base policies max out. For example, if a general liability claim exceeds its limits, umbrella coverage helps cover the rest.

Restaurants, landlords, and event venues often carry umbrella policies to protect against high-dollar lawsuits. But so do small businesses that work with the public or own property.

Myth 10: “Filing a claim will automatically raise my rates.”

Truth: Not necessarily.

While claim history can affect your premiums over time, many business owners avoid filing legitimate claims out of fear. That can lead to bigger losses down the road, especially on policies such as cyber liability and workers compensation.

It’s better to file when necessary - and to have an insurance partner who helps you through the process. At Pelican Shield, we don’t leave clients to navigate claims alone. We help them get answers, resolve issues, and move forward fast.

Final Thoughts

Misunderstanding your business insurance can cost you more than just money - it can leave you vulnerable when you need help most. These myths have led too many business owners to assume they're covered when they're not.

At Pelican Shield Insurance Group, we help you cut through the confusion. We’ll answer your questions, flag the gaps, and build a policy that fits your business and your budget. You don’t need to guess. You just need someone who will actually listen.

To get started, visit pelicanshield.com , read more tips on the blog , or get in touch with us. Or just call 727-369-9077 and let’s talk through what you need to keep your business protected in the real world.

DATE

Mar 20 2025 16:00

AUTHOR

David Jenkins