Studies show that Canadian homes and businesses are underinsured by about Can$11 billion. This means that many of these businesses will not be financially prepared to cover unexpected life events.
Getting the right insurance coverage is essential when you are starting a business. It can help prepare you for accidents or other emergencies. Do you want to learn how to get business insurance for your small business?
Keep reading this article for the top business insurance steps to take to get small business insurance in Canada.
Know the Common Types of Business Insurance
Before you get commercial insurance for your small business, you need to learn more about the common types of business insurance. The types of business insurance you need will vary, depending on your industry, your business assets, and more.
There are a few types of coverage that every business owner should have. Here are some of the most common types of business insurance.
- General Liability: This insurance coverage covers liability in lawsuits. It can help you regarding injuries, property damage, or even defamation.
- Commercial Property Insurance: This type of policy covers your business structure and property. It will pay to repair or replace damaged property. This includes anything in your office space, including equipment, inventory, and more.
- Business Owner’s Policy: A business owner’s policy combines a few different types of coverage. This includes general liability insurance with commercial property insurance. By bundling these types of coverage, you can get them at a lower cost.
- Cyber Liability Insurance: You should also have cyber liability insurance coverage. Cyber insurance is especially important if you deal with sensitive client data. This insurance covers the cost of data loss, a data breach, and lawsuits that come from a data breach.
- Workers’ Compensation Insurance: It is also essential to have workers’ compensation insurance. This will pay for your employees’ medical expenses if they get injured at work. This will also pay for their lost wages and will protect you from employee lawsuits.
What Types of Insurance Are Legally Required?
Often, business owners must have different types of insurance. This will depend on your local regulations, your business lenders, and even the industry that you work in. Many banks and mortgage lenders will also require you to get business property insurance to protect them in the event of a disaster.
Carrying auto insurance in Ontario is mandatory and if you use vehicles for work it’s essential to have them rated correctly under a commercial auto policy.
Most businesses are also required to have workers’ compensation insurance. It is necessary to protect employees and to ensure safe working conditions.
If you want to learn more about your local regulations and legally required insurance coverage, it is best to meet with an insurance expert! James Inwood can help you find the right type of coverage to stay legally compliant.
Understand Your Risks
Every industry has different risks associated with them. Because of this, each industry will require different types of insurance and different amounts of coverage.
For example, a company that accepts sensitive data from clients, like credit card information, phone numbers, or even social insurance numbers, will need to have cyber insurance. If something happens to this data or if your business gets hacked, this loss of private information can result in many lawsuits.
On the other hand, a business that sells products may need to invest in product liability insurance. This way, your business will be protected if you have defective products that get recalled or cause damage to the user.
Not only will these risks differ based on your industry, but they can even vary depending on your location.
Know What Your Policy Includes
When you are looking for insurance coverage, you also need to make sure you know what your policy includes. While it can be difficult to understand some of the legal jargon used in an insurance policy, you must know exactly what is covered.
Otherwise, you may not have enough coverage to protect your business. When you meet with James Inwood, he can help you understand your policy to make sure you have everything covered that you need.
Meet With an Expert
When you are looking for business insurance policies, it is also important that you meet with an expert. This way, you can be confident that you find the right type of coverage, the best prices, and the best advice for your insurance needs.
You should also make sure your insurance company offers in-person help. While it is often convenient to apply for insurance online, many people prefer to have a human touch. This way, your insurance broker will be completely aware of your insurance needs and will be able to better help you find the right type of coverage.
If you are looking for an insurance broker to talk about your insurance needs, James Inwood is the expert you need!
Re-Assess Your Insurance Coverage Regularly
You must also be sure to re-assess your insurance coverage regularly. It is typically recommended that you go over your insurance coverage at least once a year.
This way, your policies will be up-to-date and you will not have to worry about gaps in your coverage.
As your business grows and changes, your assets, liabilities, and insurance needs will change. For example, if you purchase new vehicles or equipment for your company, these may not be covered by your existing policy.
Make sure you meet with your insurance agent regularly to discuss changes to your business and your coverage needs.
Prioritize Coverage Over Cost
Often, business owners try to cut costs wherever they can to increase their profit. While it is important to be frugal and smart with your money, business insurance is more of an investment than an added expense.
It can protect your company from financial damage, reputation issues, and more. While it can be tempting to choose the policy with the cheapest premiums to save money, this may cause you to lose money in the long run.
Instead, it is important to prioritize your insurance coverage over the cost of your insurance. This way, you will not have any gaps in your coverage and you will be fully protected! By finding a reputable insurance carrier, you can find high-quality insurance that still fits your budget.
When you choose James Inwood for your insurance coverage, we will help you find the best insurance solution at the best price! We are committed to helping businesses and individuals find the best insurance resources that fit their budgets.
Know What Affects Your Insurance Rates
You shouldn’t choose your insurance coverage primarily based on business insurance cost. However, you should still be familiar with what is affecting your insurance rates. This can make it easier to save costs without jeopardizing your insurance coverage.
There are many things that can affect your rates outside of your industry’s risks. This includes everything from the size of your company, how many assets you have, your claim history, and even your location!
While some of these factors may be outside of your control, there are still ways that you can lower your insurance rates and save money on your coverage.
For example, taking preventative safety measures can help you save money. This includes things like security alarms, fire suppression systems, and more.
It is also important that you find ways to create a safer work environment. This will lower the risk of employee injuries on the job and will result in fewer claims. When you have fewer insurance claims over the years, you will often be able to qualify for lower rates!
Overestimate Your Needs
Finally, it is important that you overestimate your insurance needs. Often, businesses don’t realize that they are not fully covered or that there are gaps in their commercial insurance policies.
If you have a gap in your policies and are faced with a lawsuit, this can be devastating to your business reputation, your finances, and more.
Rather than choosing the least amount of coverage to save money, it is best to have too much coverage than too little coverage. There are also commercial umbrella policies that can help you supplement your existing coverage to offer you more protection.
By overestimating your insurance needs, you can be confident that your company will be protected in any situation.
Business Insurance Steps: Learn How to Get Business Insurance Today
When you are learning how to get business insurance, it is always important to do your research for your small business. This way, you will be prepared for emergencies and your business will be protected financially in every situation.
By understanding these business insurance steps, you can find the best small business insurance in Canada. If you need coverage, James Inwood can help! Our insurance experts will meet with you and discuss your insurance needs.
Contact us today at 647-966-7093 to book an appointment with our team!
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.