5 Essential Business Coverages for EntrepreneursNov 6th, 2023
When opening a business, it’s important to get insurance that will cover the unique risks you now face. Business coverage takes several forms, each meant to protect you from financial loss in specific situations. Here are some of the top coverages and the kinds of risks they protect against:
Commercial General Liability Insurance
One of the biggest fears affecting business owners is getting sued an astronomical amount of money. Such suits typically involve allegations that the business is legally responsible for bodily injury, personal injury, or property damage to the plaintiff’s belongings. These suits can happen no matter the industry.
CGL insurance provides coverage against such lawsuits. It can pay for expenses like the cost of lawyers, investigation of claims made in lawsuits, any judgment or settlement made as a result of the suit, premiums for bonds required by the suit and other such expenses.
This insurance does not absolve you of your responsibility to maintain a safe environment for your workers, customers, and others who come onto your property, but provides peace of mind that you won’t get wiped out in case of an accident or other mishap. Almost all businesses have a general liability insurance policy because nothing is entirely preventable, even when all precautions are taken.
Business Property Coverage
Ontario business insurance packages typically include coverage on the tangible items owned by your company. Your inventory, other stock, equipment, and the contents of your building are covered by this type of policy. If these things are damaged or destroyed, you can file a claim and recover the financial value of the items.
Business Interruption Insurance
When a situation arises that prevents you from being able to do business, it can cost you thousands of dollars per day or more depending on the business. Getting coverage for such events will not only give you peace of mind but can put that money back in your pocket.
Many unexpected events can stop your business from being able to operate for an extended period. Power outages, blizzards, water main breaks, strikes, and more can force companies to close temporarily. While other types of insurance may cover physical damages from these events, business interruption insurance covers the financial cost of the business closure. This coverage is important for companies whose income depends on meeting demands quickly.
Nobody wants to think about being robbed, defrauded, or embezzled, but as we all know, not everyone is honest. Crime coverage protects your company against losses caused by a variety of criminal acts ranging from the mundane to scenarios as rare as a member of your organization being held for ransom. Forgery, embezzlement, shoplifting, and similar acts are more common and are covered.
Commercial crime coverage works whether the wrongdoer is an employee or someone who walks in off the street. It is an excellent way to protect yourself and your company from the risks of doing business in an imperfect world.
The costs of a successful cyber attack can be massive. As a profound example, MGM Grand of Las Vegas recently lost 100 million USD in a few days due to a successful hacking event. Canadian companies face these same risks.
Cyber crimes take many forms like hackers encrypting your computer systems so employees can’t access company data to the release of your customer’s personal information or even fraudulent use of company credit accounts. Even the defacement of your company website can cost you thousands of dollars in lost business and cause your customers to lose faith in your ability to protect their credit card data especially if your business relies on e-commerce.
With all of these risks, protect your business against these modern threats with cyber coverage.
Coverage that Depends on Your Industry
While the previous types of coverage are important for all businesses, some industries require more. If your business requires employees to be on the road, commercial auto coverage is essential. Even though all drivers already have personal auto insurance policies, a commercial policy protects your business in case of accidents and resulting lawsuits.
Professional liability insurance is for companies that perform services like carpentry, plumbing, electrical work, beauty services, house cleaning or anything else that involves working with customers’ homes, cars, or bodies. Even with the best of staff and the utmost care, mistakes happen. Instead of convincing yourself that your workers are superhuman, secure professional liability coverage to protect yourself from costly errors.
Get Covered Today
The best way for small business owners to get the specific coverages needed is to work with a broker on our Farm and Commercial team. Our team at Duliban Insurance takes the time to understand your business and recommends appropriate policies and coverage levels.
We know that the risks facing your business vary depending on not only your industry but your location. For personalized advice for you and your business, reach out to our Farm and Commercial team to learn more.
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