Industry business claims: how your business should prepare

A successful business is the result of several factors, such as hiring the right employees, sourcing product and establishing effective marketing. Another factor for success is preparing for the unexpected, which is where the right insurance coverage is important. We outline common scenarios (such as theft) which can occur in the contracting, retail, services and food and drink industries and how insurance can help.

Contractors: loss of tools

For many contractors, including trades workers, landscapers or even independent cleaners, their tools are essential to their business operations. Oftentimes, tools can become lost or stolen. As a result, it’s important to ensure their tools are protected.

A Tool Floater, which is coverage added to an existing insurance policy, can provide protection for contractor’s tools. This coverage can cover tool losses whether from a vehicle theft, property or job site. There is an often an assumption vehicle or property insurance will extend and protect a contractor’s tools, but this is not the case. However, if tools leave the property and are used at other locations, the tools are not covered under property insurance and most vehicle coverage. A Tool Floater is coverage to protect tools during transportation and on the job site.

Retail: stolen product from employee theft

According to the Research Council of Canada, it’s estimated employee theft costs Canadian businesses $1.4 billion a year.

Employee theft can fall under employee dishonesty and businesses can take preventative measures such as regular inventory checks and reviews of invoices and cash floats to reduce the risk of employee theft. Learn more about employee dishonesty and tips for a business to reduce their risk.

In addition to preventative measures, business owners purchase two specific types of coverage. A Blanket Position Bond will cover a loss from employee dishonesty up to a maximum limit per employee. A Commercial Blanket Bond protects the business up to a maximum limit per loss, regardless of the number of employees.

Services: lawsuits from guidance provided

Business owners in the service industry, such as a consultant, often provide advice or guidance to their customers as part of the service they provide. Should a customer incur a financial loss because of a service provided by consultant, the customer could sue.

Professional liability, also referred to as errors and omissions coverage, can provide businesses owners protection from a lawsuit.

Food and drink: slip and fall incidents

Restaurants and food services face a multitude of risks during normal business operations. Typically, claims for this industry fall under business general liability insurance. This coverage protects businesses against claims from property damage or injury to a third party.

In respect to the food and drink industry, business owners are at risk of a customer slipping or falling, becoming ill or injured as a result of food and/or drink preparation. Should these incidents occur, a customer could seek legal action. Business general liability insurance can help protect the business owner by covering financial costs from a filed lawsuit.

Insurance Assessment

While it’s difficult to anticipate a loss, a business owner can minimize the impact with preventative measures and proper business insurance coverage. A good place to start is completing an insurance assessment of your business to ensure you have the right coverage. A BrokerLink broker will take the time to understand your business needs and complete an assessment to identify the unique risks your business could face. Learn more about the different types of business insurance coverage available.