Many small business owners underestimate the importance of insurance – and put their property and earnings at risk.
Is Insurance High on Your Small Business Priority List?
As small business owner, you are likely wearing multiple hats and moving fast – and sometimes you might put important, but unglamorous tasks on the back burner. Investigating whether you need commercial insurance might be one of those things.
The unfortunate reality is that until a problem happens, many small business owners do not know exactly how not having insurance might impact their business. We believe that if you invest in finding a trusted advisor who can help with the right coverage as you grow your business, you’ll save yourself from potential legal headaches and unexpected costs down the road.
When Should a Small Business Consider Insurance?
This is a very good question – and there are lots of variables that impact the answer. However, from a 'high level' perspective, the answer is simple. You need insurance if there is anything at risk in your business that could be a liability, a barrier to growth, and/or lead to business failure.
Here are a few situations in which you should be considering commercial insurance.
- If you own inventory.
- If you store any important data – yours or the clients – on local servers or in the 'cloud'. MORE ON CYBER INSURANCE ›
- If you own equipment of any significant value.
- If you are signing a commercial lease for office space.
- If you use a vehicle for your business.
- If you are attending or participating in an event, such as a trade show, which requires a proof of insurance certificate.
- If you are signing a large client that requires proof of liability insurance.
- If you use subcontractors or suppliers that may impact your ability to deliver on commitments to clients.
- If group benefits insurance is part of your employee remuneration package.
- If there is any chance of business interruption or key employee disability issues.
- If you have significant contracts with large accounts receivables.
Types of Commercial Insurance Coverage
There is a range of coverage options that may be applicable to your commercial insurance policy. We invite you to talk to one of our commercial insurance brokers for guidance. In the meantime, here are a few options:
General Liability insurance will cover a range of potential risks in a business from small to large.
Property Insurance covers damage by theft, extreme weather, fire, etc. that may occur to a building your business owns.
Business Interruption Insurance
Business interruption insurance steps in to assist your company with any losses associated with being temporarily unable to operate normally.
Cyber Insurance is increasingly becoming one of the most important coverages for all Canadian businesses – and it offers protection against the effects of cyber-related crime against your organization. READ MORE ›
Contents Insurance will cover the furniture, computers, or other assets in your office space or other place of business. If you are leasing or renting space for your business, the property owner most likely has property insurance.
If your business owns any vehicles, they will need to be insured. Note that it is important to notify your broker if you currently use your personal vehicle for business.
Equipment Breakdown Coverage
Your property insurance will include breakdown from flood, fire or natural disaster, while the equipment breakdown insurance will coverage situations, such as a power surge, that may affect your equipment.
Comprehensive Crime Coverage
This provides coverage for all types of theft and employee dishonesty.
Sewer Backup Coverage
This insurance covers flooding and damage that may occur as the result of a flash rain, where sewers or sump pumps back up and flood.
Is Your Small Business Covered Properly?
If you don't know the answer to this question, it's probably a good idea to talk to an commercial insurance expert at our London or St. Thomas (Ontario) office. We can help you evaluate what coverage is right for your business now – and what you need to think about as your business grows.