As an entrepreneur in Canada, you have to be a risk-taker. Knowing and mapping uncertainties and evaluating how different outcomes affect the company are the basis for being able to minimize risks and the probability of undesirable events in the long term.
However, as an entrepreneur, you take responsibility for managing the potential risks that the Canadian market brings. To protect your company’s finances and future, you should obtain the right insurance in case something unforeseen happens.
In this article, we’ll look at the different insurance coverage plans offered to business owners in Canada and help you choose the right one for your business.
Types of Business Insurances
It can get overwhelming when trying to decide what insurance is suitable for you and your business. No business owner wants to be left exposed and overextend themselves by paying a large sum in monthly premiums.
With the endless insurance options available to businesses in Canada, it can be draining trying to determine what type of insurance your business needs. Whatever you do, don’t waste time stalling on your decision and if you’re confused, take professional advice from experts in this field. For instance, if you live in Ontario, look up reputable insurance brokers in Ontario, explore all of your insurance options and protect your business.
Many companies sell business insurance products under different names so you should instead focus on what and how much the specific insurance policy covers.
Commercial General Liability Insurance. Most business owners choose to get this type of insurance as it protects against loss in the event of accidents, personal injury and negligence. This type of policy covers payments due to medical bills, legal fees, property damage, and legal judgments.
Professional Liability Insurance. If the nature of your business is to give advice or provide services, this type of insurance is the perfect solution as it protects against claims of negligence or failure to deliver a service that was promised. Professional liability insurance covers errors and omissions, subpar service, or undelivered service.
Property Damage Liability. If you’re worried that an employee might accidentally damage a client’s property, then one of the best solutions is to obtain property damage liability insurance. Depending on the extent of the damage caused, the amount of money for paying back your customers might surpass the price of the work you’re carrying out in the first place.
Product Liability Insurance. This insurance protects business owners against claims alleging property damage or any bodily injury due to an issue with the products you’re manufacturing, supplying, or selling. If you sell a mobile phone and it explodes in your customer’s hands due to a defect inside the phone, product liability insurance will offer you the best protection as recalls and lawsuits are sure to appear at your doorstep.
Commercial Property Insurance. This type of insurance will cover you in case of loss or damage to the physical assets of your business, including your property, stock, furniture, and equipment. If you happen to run your business from the comfort of your home, it’s still crucial to purchase business insurance since most home insurance policies do not cover business-related losses or damages.
Business Interruption Insurance. If you’re forced to put your operations on hold due to damages from an accident or disaster, business interruption insurance will give coverage for income that was lost during the time needed to restore your business. This refers to salary, overhead expenses, and any costs to repair the business.
Insurance for Home-Based Insurance
As the number of SMEs increases across Canada, many wonder whether they need home-based business insurance. Depending on the nature of the business and the risks associated, there are many protection policies that your home business may benefit from.
If you’re distributing a physical product, there might be a chance that something’s wrong with it or that a component is recalled by the manufacturer which directly puts your business in jeopardy. This is why you might want to look into product liability insurance and avoid any lawsuits coming your way and threatening your business.
If, on the other hand, you provide a service that might have major financial implications on a client, you might want to consider professional liability insurance.
To handle unwanted events in your business activities that make it impossible to deliver to the customers or to get your offer on the market, it may be wise to obtain the right insurance. How it should be designed and what it should contain depends, of course, on what business you run.
Luckily, the Canadian insurance market offers solutions to all types of situations so do your research and opt for a coverage option that matches your company’s needs.