Business insurance is fundamental for any business owner as it can help protect your company from any expensive loss that may happen in the future. As there are many different types of insurance, we will discuss what might be needed for your business to
protect your buildings, assets and employees.
What is business insurance?
If you have owned a car or house, you likely know about the insurance you would receive to protect your property. It’s kind of the same thing with your business. The difference is that there are many different types of business insurance, which include:
- Property insurance
- Liability insurance
- Errors and omissions insurance
- Vehicle insurance
- Contents insurance
- Business interruption insurance
- Insurance specific to your specific industry
There are also specific insurance plans out there that are unique to the needs of every small business.
Why do you need business insurance?
Every business owner has a responsibility to be accountable for the actions their business takes. Even if everything is running smoothly, it is necessary to take every precaution to lessen the risk if something unexpected happens.
For example, there might be a situation where the client or employee believes the business is in the wrong, inventory might be lost, or assets may be damaged. Depending on the situation, if someone chose to take action for a possible mistake, business insurance would be there to protect the company. Minimizing the risk by protecting yourself and your business means getting the right insurance to provide safety and security, and protection from certain financial costs.
What are some common types of business insurance?
Property Insurance
Commercial Property Insurance: This coverage includes protecting business property which includes equipment, inventory, supplies etc.
Commercial Auto Insurance: If your business includes driving, this insurance is important for any damage that might be caused by an auto accident, though this might not fully protect your vehicle for commercial use.
Home-Based Business Insurance: This may be needed for running a business from home, as general home insurance may not cover your business assets. Coverage may include stolen inventory, or customer accidents on home property.
Liability Insurance
This is essential for all types of small businesses as it helps protect the business if found responsible for an injury to a third party.
Errors and Omissions Insurance
Errors and Omissions Insurance, or E&O Insurance, is an important supplement to your general liability coverage. It protects you and your business from loss if a customer sues you for mistakes or omissions in your services. E&O Insurance is applicable to any small business that provides a professional service, like web developers, beauticians, business consultants, engineers, IT professionals – and many more.
Vehicle Insurance
If you or your employees drive vehicles as part of your small business operations, you’ll need to have commercial auto insurance.
Commercial car insurance – also called commercial vehicle insurance or business auto insurance – is insurance protection for commercial motor vehicles, or vehicles used for business purposes. Any vehicle used to transport materials, goods, tools, equipment or clients typically will require commercial coverage.
Personal auto insurance may not cover any injuries caused while using your commercial vehicle, that is one of the reasons why it is important that the correct insurance is in effect for your vehicle.
If you are unsure whether you require commercial car insurance, it’s best to speak with your insurer.
Contents Insurance
This type of insurance will provide coverage for the loss or damage of company belongings on business property. If your business has been broken into and possessions such as computers, copiers or printers or have been stolen, this type of insurance will offer coverage for what was taken on business property.
Business Interruption Insurance
Preparing for any sort of natural disturbance can be tough. Business interruption insurance will help cover costs of anything from an earthquake to a fire. These types of disruptions cannot be predicted, therefore it is important to take every precaution in order to save your small business if something like this happens.
This type of insurance can also help coverage of ongoing business needs if disaster strikes. This would include:
- Rent
- Hydro
- Electricity
- Payroll provided to employees
- Property taxes
What would happen without business insurance?
If there were to be a business disruption, such as an earthquake, fire, or theft, the cost of damage would be significantly less compared to a business without the right insurance. Having multiple safety measures in place to protect any sort of unpredictable circumstance will save you the stress of potentially losing your business.
Want to know more about how we can help your small business? Contact us to answer any questions you might have.