Reasons You Need to Invest in a Business Insurance in Canada
Is having insurance for your business necessary? If you’re a small business owner, do you even need one?
The answer is definitely, yes. The state of the world is not where it used to be, and there are more risks business owners face today than ever.
Starting a business costs money, especially at the start. It might seem like a burden to pay insurance premiums on top of all your other bills. However, any trusted insurance agent and the business-savvy will tell you that getting business insurance is merely good sense.
Risks are involved at the onset whenever a company does business with a customer. The same is true for service businesses. The right insurance could save your business when problems arise and ensure that you can keep operating once issues are averted or resolved.
4 Types of Business Insurance
Many business owners don’t know what liability insurance to get. Here’s an outline of four types of business insurance plan you should know about:
- Professional Liability Insurance: This insurance covers your legal fees, damage awards, and out-of-court settlements if you are sued for poor services or breach of contract.
- General Liability Insurance: This insurance pays for legal fees, damage awards, and settlements made outside court.
- Contents Insurance: If your tools or furniture are lost, stolen, damaged, or destroyed, contents insurance can help pay to replace or fix them. So, if a flood destroys the furniture and fixtures in your store, you won’t be out of money.
- Cybersecurity Insurance: This insurance protects your business from lawsuits that hackers or viruses might bring. As a kind of insurance for technology, cybersecurity insurance handles legal issues and pays people who have been hurt.
Some people buy insurance to cover business interruptions, loss of inventory, or damage to their buildings. Everything depends on your company’s operations and the risks you want to avoid.
4 Benefits of Having Business Insurance in Canada
Although company insurance is not required by law in Canada, it can protect owners from the dangers of their entrepreneurial endeavors, no matter how small.
In addition, you may work with clients, customers, landlords, and other stakeholders who require you to have the necessary business insurance to complete a transaction.
Let’s look at four reasons you need to insure your business in Canada:
- General Commercial Liability: Insurance is critical because you may be held liable if someone is injured or their property is damaged due to your work or a product you sell. Potential compensation in these cases can be more than enough to force you to close your doors, especially if you have to pay them out of your pocket.
- Equipment and Inventory Protection: Property coverage compensates for tools and equipment damaged or stolen by accident. You can also extend coverage to items and equipment you bring to the job site or other locations.
In addition, the same property coverage that applies to your equipment is also applicable to your company’s inventory. If an insured occurrence leads you to lose a stock that you rely on, you can file a claim and potentially avoid having to replace it yourself.
- Legal Liability of Tenants: This insurance covers you if you are legally liable for unintentional insured damage within your leased commercial property. Accidents can happen, and this coverage will help you avoid paying out of pocket for costly repairs required by your landlord.
- Business Interruption: In cases when you cannot operate due to unavoidable circumstances, you can file a claim for business interruption coverage to reduce the burden of lost income.
Being a business owner means you’re always making decisions, often with far less time to consider them than you’d want. Having company insurance takes one thing off your plate.
Once you’ve chosen and acquired the right insurance, you can focus on everything else, knowing that you’re covered for insured situations that you can’t always predict or control. This allows you to give energy to growing your business rather than worrying about what might happen.
So, talk to an insurance broker today so that they can guide you on market trends and the type of insurance your business needs.
If you need commercial insurance in Lethbridge, get in touch with an insurance agent from Kirkham Insurance today. We are the leading insurance company in Lethbridge, Canada, offering a wide range of insurance, such as life, car, home, and business insurance. At Kirkham Insurance, we ensure you get the right insurance at the right price. Call us at (403) 328 1228 today!