If you own a business in Canada, you’ll need business insurance. After all, you wouldn’t want to lose everything you worked so hard for in the blink of an eye. Not only does business insurance coverage protect your assets, but it can act as a safeguard for you and your employees in the event of an injury or lawsuit. You will need business insurance in Ontario and everywhere else. With that said, you might be wondering how you get business insurance.
You have to buy business insurance to operate legally, but there isn’t a single policy that can be considered one-size-fits-all. With that in mind, BrokerLink has prepared a guide breaking down the various types of business insurance available and how to get them. Without further ado, it’s time to dive into the exciting world of business insurance.
Understanding business insurance
Before we get into things, we should probably tell you what business insurance is. Business insurance is designed to protect your business from unexpected situations like business interruption. Business insurance coverage will assist you with employee, property, and legal liability risks.
Types of business insurance coverage available
When it comes to choosing the right insurance policy for your business, there are many factors to take into account. However, the most important one to remember is the type of business insurance coverage available. By understanding the options, you will be able to choose the one that’s most effective for you. There are various types tailored to different needs:
Commercial general liability insurance
Commercial general liability (CGL) will keep your business safe from legal action. It will cover expenses such as legal fees, injury claims from third parties, and property damage. You will find this under your business’s comprehensive commercial insurance policies.
Commercial auto insurance
Do you know how to insure business vehicles? You have to have commercial auto insurance. It will provide coverage for liabilities associated with accidents or incidents relating to using your vehicle for business purposes. The policy also offers liability insurance, which keeps you safe from financial losses that come from bodily injury or property damage. Remember to review fleet insurance requirements as well if you use more than one vehicle.
Professional services insurance
Having professional services insurance is essential if you are running your own business. The following types of coverage fall under this category:
Commercial Property
If you work in an office, this insurance policy compensates you if your office equipment, furniture or devices your company uses get stolen or damaged.
Cyber Insurance
If you use software or online tools to store client data, your business computer system is vulnerable. Cyber will assist your customers if this happens.
Business Interruption Insurance
When a fire or flood shuts down your business, business interruption insurance will replace the income you lose and the expenses associated with repairs.
General contractor insurance
If you work in the field of building, repair, and installation, there is a high risk involved. From the medical expenses associated with bodily injuries to legal fees, if you are facing a lawsuit, general contractor insurance covers you. Additionally, for businesses that use expensive equipment and tools, this type of insurance will compensate you if they get stolen or damaged.
Landlord insurance
There are many risks that come with being a landlord. Landlord insurance can compensate you if your rental unit gets damaged, your personal belongings get damaged, third-party injuries are claimed or when you lose rental income. Just know this type of property insurance is necessary to mitigate the risks that come with renting out a building.
As a business owner, the type of policy you will need varies depending on the industry you work in and if you have a physical office or storefront. Any type of property insurance can help you because, without it, your business risks suffering financial and physical losses. Now that we’ve established the types of business insurance available let’s find out how to get it.
Getting business insurance
To buy business insurance, you have to follow a couple of key steps. Whether you need small business insurance for your retail store or general contractor insurance for your construction business, this can help you out. Here’s what you need to know:
Find out your risks
The first step to buying business insurance is determining the risks that your business faces. The risks you face will help you choose the right insurance policy for your business. Since not all types of insurance coverage are mandatory, you only have to choose the ones that apply to you. Risk management is important because it’s what insurance companies use to determine your rates.
Reach out to an insurance broker or company
When looking for the right coverage for your business, you leave it to the professionals. An insurance broker can shop around for business insurance for you. On the other hand, you can reach out to insurance companies directly to get quotes and multiple opinions.
Compare rates
After getting professional advice, you should examine your findings. Review the rates, terms and benefits of each insurance provider before deciding on your business insurance provider. From there, you can make the choice that’s right for your big or small business.
Review your policy annually
When your business grows beyond being a startup, you’ll need more than small business insurance. As you scale, your amount of risk will increase. As a result, you may need a new business insurance policy. If not much has changed, consider keeping your current business insurance policy.
Growing your business is great, but be aware that it will cause your insurance premiums to increase. However, with an insurance professional by your side, you’ll be able to navigate the world of business insurance effectively. Having the right insurance policies will protect you if something happens to you, your business or your employees.
Contact BrokerLink to learn more about business insurance!
Whether you need professional liability insurance or commercial auto insurance, BrokerLink is here to help. Our team of brokers is knowledgeable about various types of business insurance and understands how to set you up with one that works for you. What are you waiting for? Reach out to us for a free quote today!
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