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What you choose in business insurance protection depends on the type of business you operate. Therefore, business insurance packages cover various types of business needs. The following information will help you make a more informed decision when choosing business-based insurance products and packages.
Many business owners ask, “Do I really need business insurance?” Business insurance protects owners from losses related to unanticipated events that may occur during their daily operations. The protection extends to third-party property damage, errors and omissions made on the job, and bodily injuries. To select an insurance, you need to consider your business’s size, industry and revenue.
As a general rule, you should use insurance to protect your business against lawsuits or damages, or events that you cannot pay for yourself. Therefore, the term, “business insurance,” represents an umbrella term that refers to a bundle of policies that apply to a business. The common types of business insurance include general liability insurance and professional errors and omissions coverage. When you select coverage for your Canadian business, you should start with commercial general liability and build from there.
General liability insurance, which should be used by all businesses, typically covers injury claims and property damage experienced by third parties. The other insurance products your company chooses will be based on its size and risks. To make sure you cover yourself well, you need to have a risk assessment done for your business first.
Let’s look how business insurance can provide protection for your specific business. We will begin by seeing what insurance coverage you should get for a small-sized business start-up to a medium enterprise. This protection should include –
When you choose insurance coverage, it should be designed to cover the specific needs for your business or industry. Insurance protection is designed to support the coverage needs of 7 primary sectors in Canada. These sectors include the following classifications.
Professional Errors and Omissions Insurance
Business insurance also includes errors and omissions insurance for professional people. This insurance covers you, for example, if you work as an attorney, accountant, or other professional, and get sued for making a mistake while performing your professional duties. This coverage is also called E&O insurance.
Commercial Auto Coverage
Business insurance is designed to cover your needs, as well, for commercial auto coverage. Whether you have a fleet of vehicles or one van, you should make sure you have the proper coverage. Commercial auto insurance covers the cost of accidents that involve a business-owned vehicle. You can also use the insurance to cover vehicle theft, certain types of vehicle damage, and vandalism.
You should get commercial auto insurance for vehicles used for your business, driver’s training, or public use, such as school buses or public buses. You also need the insurance if you run a taxi service. Buying commercial auto insurance is also required if you have employees who serve as couriers or delivery drivers.
Property damage insurance covers your inventory, building, equipment, and computers. You can avoid loss or damage to your business’s physical assets from fire, theft, and vandalism with the protection.
Casualty insurance covers bodily injury and property damage to people and their property who use your products or visit your facilities.
Besides getting property and casualty (P&C) business insurance, you should also make sure that your quality control process is comprehensive. The products you manufacture should also include warning labels, if necessary. By implementing these additional safety measures, you will also spend less on your insurance.
By insuring your equipment against breakdown, you can cover maintenance problems with your HVAC system, point-of-sale (POS) equipment, or pressurized machines, all which could interrupt your business operations if they stop working.
Business-related crimes can be covered by insurance under the following categories:
What you choose in insurance coverage, in this area, will be based on what you find out after having a risk assessment performed.
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