A Guide to Small Business Commercial Insurance
Insurance is a must-need commodity for everyone who owns a car or home. It is a means of protection for those times when things don’t always go according to plan, and can save you from hefty financial loss.
Most Canadians can attest to the fact that insurance is necessary, but not all business owners feel the same way. In fact, for owners of small businesses or self-employed freelancers, insurance might be seen as an unnecessary expense. However, small business commercial insurance can provide your company with several assets that can benefit in the long run.
Unexpected events can happen in any industry you work in, and it pays to be prepared before they occur. Small business insurance can provide business owners with the peace of mind that comes with knowing their company would be safe in the event of a worst-case scenario. Should loss occur, the coverage that a reliable insurance company can provide helps to mitigate further loss and keep your business financially secure.
In this guide, we will explain the importance of investing in quality insurance as a small business owner, and the types of coverage that will help protect your company from problems that arise from legal issues and financial downturns.
Why get small business insurance?
Whether you own a golf course or a small family-owned restaurant, legal issues are often expected to arise at one point or another. From lawsuits to property damage, small business insurance can provide you with reliable coverage for common business-related issues such as liability, accidental product defects or damage, claims of malpractice, and more.
It’s hard to imagine that you would ever run into such major issues as the owner of an online handmade jewellery store, a freelance writer or graphic designer working from home. The truth however, is that liability and legal problems coincide with any business offering a product or service. For instance, a client may fail to pay you on time, or you may be sued for plagiarism. Without coverage from insurance, court and legal fees can pile up and you may find yourself paying out of pocket, which could cause severe financial loss for you and your company.
Being prepared to handle these issues is one of the smartest moves that a small business owner can make. Investing in small business insurance is an essential way for any business owner to ensure that should a loss arise, they have the capability of enduring financial loss without any major or long-term impact.
Types of Business Insurance for Your Small Company
1. Product liability insurance
For those running small businesses handling homemade goods and products, product liability insurance provides you with full coverage regarding any property damage or bodily harm that may have occurred from the use of your business’ products.
Investing in this type of insurance will protect you from claims or lawsuits made against the products you sell, and cover any legal fees that come forth. For instance, a customer may sue your company with the claim that your hygiene product gave them a severe allergic reaction and is producing long-term effects. If the claim is taken to court and the customer is successful, then product liability insurance will ensure that you don’t have to pay out of pocket for legal expenses, medical fees, and product recalls.
2. Professional liability insurance
Professional liability insurance covers any financial loss caused by malpractice or mistakes. This is most commonly used by service professionals such as doctors and accountants. However, freelancers may also find it useful, as they maintain and develop client relationships on an ongoing basis.
This type of insurance can help you in instances where a client alleges that they experienced financial loss due to a mistake you made regarding the services they purchased from you. For example, a client may accuse a freelance writer of handing them plagiarized work or sue for negligent services. To protect yourself from this risk and prevent any financial loss, professional liability insurance can cover major costs and fees.
3. Business interruption insurance
Designed to keep your company afloat after an unexpected event caused a change in business execution, business interruption insurance can spring your venture right back to the way it was before the event occured.
You may need this type of insurance when your business cannot carry on regular daily operations for any reason, or an event forces you to temporarily shut down the premises due to property damage covered by insurance. Without coverage, your business could suffer financial loss. Accordingly, the loss of income that ensues from this delay in operation would be supplemented back to your business by your trusted insurance company.
4. Commercial property insurance
If your small business resides on a piece of property or in a commercial building, you may want to invest in commercial property insurance. This covers any physical aspects of your business such as damage to buildings or land that your company operates on. For those working from home, commercial property insurance can also provide valuable coverage for any physical equipment in your home office that has suffered damage, such as electronics and business inventory.
Should your business fall prey to physical damage or loss in the event of a fire, theft, vandalism, or burst pipes, then having this type of insurance will help protect your company from financial loss that may occur due to extensive repairs. Moreover, investing in home insurance in Ontario is equally crucial, providing comprehensive coverage for your primary residence and personal assets. This ensures a well-rounded protection strategy, safeguarding your business and home from potential financial losses resulting from unforeseen events.
Which insurance company is right for your business?
As you encounter clients and deal with common mishaps on a daily basis, the right insurance company will ensure that your financial needs are protected in any event. Fortunately, our dedicated professionals can help you decide which insurance company can provide you with reliable small business insurance.
At James Campbell Insurance, our brokers will work with you and your business, offering you professional advice and competitive rates from Ontario’s leading insurance companies to help you in your time of need.
For all your commercial, personal, and lifestyle insurance needs in Ontario, contact James Campbell Insurance at 1-855-912-8420 or send us a message here.