According to a recent study, there are 3.5 million entrepreneurs in Canada. Small business drives the Canadian economy, employing over 10 million. It would stand to reason then that protecting your business is essential.
Yet, some details can go unnoticed with the excitement of starting a new business. One critical element for a startup’s survival is getting insured. You don’t want all that hard work to be for nothing if the unexpected occurs.
Whatever type of business you run, business insurance will safeguard your investment. But if you are wondering how does business insurance work, keep reading. This guide has everything you need to know.
What Is Business Insurance?
In the heat of operating a new business, you try your best to account for every possible event. Yet, there are times when circumstances can threaten your finances. Small business insurance coverage can protect you from differing incidents.
Business personal property insurance will cover you against loss or damage to the building you lease or own. Other types of business insurance are valuable in the event of a lawsuit against the company. Still, another kind of business insurance enhances your company’s relationship with employees.
Rather than coverage for individuals, business insurance has a broad range of protection. The purpose of small business insurance is to reduce your risk exposure. Each coverage type combines in a policy to fit your company’s needs.
Types of Small Business Insurance
Small business comes from a variety of industries. Each type of enterprise has inherent risks that threaten a company’s survival.
Owners choose from various coverages to buy the best business insurance for them. Those decisions often get made based on the type and location of the business.
This type of business insurance is a base coverage against legal action. Liability coverage protects you when a direct lawsuit arises against the business.
There are several ways to structure a business liability policy. But the coverage works in the event of disputes. Slip and fall, bodily injury, or property damage related lawsuits are primary examples.
Manufacturing companies buy this insurance in case of damages caused by the product.
There are times when consumers get harmed by a product from many different scenarios. This insurance is crucial for addressing legal actions taken against the business.
Protecting property is likely the best small business insurance for retailers and manufacturers. Natural disasters occur, and property damage is often devastating to small businesses.
Property insurance coverage will protect against losses due to fires and floods. Theft is also a significant part of this coverage.
Other Types of Insurance
Other coverages can get added to previous types of policies. For example, startup entrepreneurs may consider business interruption insurance.
Events beyond a retailer’s control could cause a temporary loss of income. The owner will have protection when the physical location gets forced to close for a period.
Many new business owners operate from their homes. It’s critical to understand the differences in coverage from a homeowners’ policy. Some assets of a business may not have coverage when working from home.
Also, if you use a vehicle for business, you will need commercial business insurance. Then, businesses with employees require insurance to cover workers. You might also consider business insurance against data breaches if your business keeps sensitive information. Consider adding cyber insurance for these scenarios.
How Does Business Insurance Work?
The main reason for getting the best business insurance possible is financial. Yet, many businesses with appropriate coverage have a marketing tool. Clients are more likely to use a service when they know the company has the best business insurance.
First, it’s critical to understand where your business may be most vulnerable. For example, several coverages are essential if you produce products from your basement. You will need to consider extra property coverage beyond the home policy.
Product liability coverage will add to your protection in case of lawsuits. If you deliver the product, you will need commercial insurance for your vehicle. The best small business insurance depends on a combination of coverages.
There is no one size to fit everyone’s needs for getting the best business insurance. Some businesses need to cover employees in case of injury on the job. Worker’s compensation coverage can also be an asset to your staff morale.
Think of business insurance as part of your operation’s success. Then, if you know your risk exposure, you can work with a broker to find the best business insurance possible.
Getting The Best Business Insurance
Once you know the risks that could expose your business, the amount of coverage is the next step. For example, size and location are critical factors with business personal property insurance. For product liability coverage, much depends on your comfort level.
Creating the best small business insurance coverage is best achieved with expert help. Insurance companies provide different packages for clients. Yet, a broker has the knowledge to tailor your policy to your specific needs.
Choose the best business insurance by prioritizing your needs. Cutting costs with business insurance may not be in your best interest when you need it most. Expert help can help you find seamless coverage for all facets of your business.
Another factor favouring seeking a broker’s help is that they work for you. So, when an unfortunate event does arise, you have an ally in your corner. The broker’s job doesn’t end when you sign up for small business insurance.
Find Your Best Business Insurance Broker
When you own a small business, you know the value of a personal approach. Peace of mind comes from working with people who value your time. Your broker should also be accessible when you need their help the most.
So now that you answered how does business insurance work, finding the best broker is less of a struggle. James Inwood has served his clients on a personal level for over a decade.
Take the next step to protecting your hard work and investment. Call us today to book a consultation.
James Inwood is a member of Canadian Insurance Brokers Inc. CIBI operates across Canada with more than 40 licensed brokers and is completely independent so our advice is always objective. Representing 14 insurance carriers on the personal side and over 20 insurance providers on the commercial side helps give my clients clear choice and competitive pricing.