Business Insurance Solutions for Small and Mid-Sized Businesses
Whatever the type and size of your business, you need the right business insurance solution to protect your assets. You have invested much time, effort, and money to build a business for your future and that of your loved ones. It is only right that you ensure that if something unforeseen happens, you have adequate coverage to protect you from losses.
Managing risks is essential function of a business, whether big or small. Many perils could endanger your operations and business insurance helps you to be prepared.
Why do you need business insurance?
Your business will have assets – equipment, inventory, vehicles, employees, and you. These material and human assets provide value to your business and are exposed to risks. For this reason, it is smart to get insurance coverage.
Every business has risks but it doesn’t make sense to expose your business to too many risks. What would happen if a business emergency arises and you don’t have adequate cash on hand? How can your business survive an expensive claim from a customer or third party?
With the right business insurance solution, you can sleep better at night in knowing that your business is covered from all the right angles.
Types of Business Insurance to Manage your Risks
There is a business insurance product to suit your needs. Below are different types of business insurance solutions that can provide you with the protection you need for your day-to-day operations.
Business insurance products are designed to protect 3 key areas – your assets and earnings, liability, and the business’ key employees.
Business Insurance Coverage for your Assets
Commercial Property Insurance
Do you own a building or store space? Property insurance covers the structure you own in case of perils like fire and flood.
Contents Insurance
Even if you are only leasing your store space, you have equipment, furniture, inventory, and other assets that you need to insure.
If you run a home business, you need to have a separate business insurance. Your homeowner’s insurance won’t provide coverage for business equipment or inventory you keep at home.
Find out how home-based business insurance for short-stay rentals in Quebec and Ontario can benefit you and protect you from losses.
Vehicle Insurance
Vehicles for your business need to be insured as commercial vehicles. Inform your insurer if you use a personal vehicle for business purposes.
Business Interruption
No business owner wants even a temporary shutdown. But in case of a fire or other event that causes your business to close temporarily, business interruption will provide coverage for your lost earnings until your business can resume. This means you have adequate resources to keep paying your obligations.
Accounts Receivable Insurance
This type of coverage protects your business from bad debts. If a client fails to pay an account due to bankruptcy or other reason, you can be placed in a difficult position. Lenders have more confidence in providing a business with credit on better terms with accounts receivable insurance.
Business Liability Insurance Coverage
Getting sued is an inherent risk to any business. You, an employee, or even your product can cause injury or damage to a customer or other people you transact with. Business liability insurance coverage can protect you from lawsuits to limit your financial losses.
General Liability
Provides protection in case someone gets injured within your business premises.
Product Liability
Protects you in case a product causes harm to individuals who used them.
Professional Liability Insurance (Errors or Omission)
If you provide professional services to clients, you can get sued for an error, omission, or negligence while performing a professional service.
Cyber Liability
Provides coverage in case a lawsuit is filed for electronic security breach that compromises client information and includes theft of devices with client or organizational data.
Insurance for Business Owners, Partners, and Key Employees
Your business and your family can be protected in case of the loss of a key person which can cause financial losses.
Life Insurance
Life insurance coverage gives protection to your family in case something bad happens to you. This is particularly important if you have significant financial obligations.
Disability Insurance
Protects your income in case of disability or critical illness.
Partnership Insurance
In case a partner dies, this coverage allows you to buy out his shares in order to continue business operations.
Key Person Insurance
If your business depends on a key person to run your business, you need protection in case a key employee is lost.
Critical Illness Insurance
Coverage that provides you with a lump sum benefit in the event of a critical illness.
Business insurance solutions cover every type of business:
- ✓ Manufacturing
- ✓ Retail and Wholesale
- ✓ Hospitality
- ✓ Logistics
- ✓ Warehousing and Transportation
- ✓ Education
- ✓ Professional Services
- ✓ Construction
Ensuring that your business has the proper business insurance will give you peace of mind and guarantees the survival of your business operations.
Key Factors to Consider for Business Insurance Needs
It is important for you to identify the potential risks you need to insure. One way to do this is to speak to an experienced insurance broker or agent. You can plan your insurance coverage by taking care of the significant threats – those that could cripple your business.
It is also important for you to take steps to prevent theft and loss. Install a good security system and surveillance cameras in the workplace. By doing this, you will also qualify for savings from lower insurance rates.
Further, consider the following key factors when shopping for your business insurance.
Amount of the Deductible
The amount of the deductible refers to the portion of a loss that the insured is expected to pay in case of a claim. This ensures that insurance pays only for substantial losses and not small ones. They help to keep insurance premiums low. Choose a deductible that is high enough to lower your premiums but remains affordable in case you suffer a loss.
When choosing your deductible, compare premiums for different options of deductibles. See if savings from varying prices is worth increasing the deductible amount.
Policy Coverage Limits
Your insurance policy must provide you with adequate coverage. You don’t want to spend money on unnecessary coverage or over-insurance.
Consider the following when reviewing policy coverage limits.
Property Value
Identify the accurate value of your property and how much it would cost if you need to rebuild and replace your assets.
Potential Liability Risks
Different businesses have different liability risks. An establishment with a high potential for lawsuits require higher liability limits.
Changing Business Insurance Needs
Business is expected to grow and with it, your needs change, too. Make it a habit to review your business insurance coverage periodically. This helps you to increase coverage as required or to discontinue coverage you no longer need.
Frequently Asked Questions About Business Insurance
We know you have questions, especially if you have just established a new business.
We have prepared a few frequently asked questions about business insurance to guide you in your search for the right insurance solutions for your business.
Why do I need Errors and Omissions Insurance?
If you provide a service or give professional advice to your clients, in case their business suffers a loss because of it, you can be sued. You will be at risk for financial losses incurred from legal expenses. Your home insurance policy won’t cover you for such liability.
Do I need business insurance if I manage a small business from home?
If you operate even a small business from home, it is important to speak to your insurer for your home insurance. A home insurance policy has limits which may not be sufficient for inventory and equipment you keep at home.
Further, if your business brings increased traffic to your home, your home insurance liability portion may not be adequate.
Where should I buy business insurance?
Buying business insurance is an investment on your part. It is critical that you know your options. You can buy insurance from an agent, a broker, or direct insurance.
A broker deals with different insurance providers. An agent may be exclusive to one insurer or several insurers. Direct insurance, on the other hand, sells insurance from an insurance company directly to consumers, usually from a website.
Compare the pros and cons of buying from a broker, agent, or direct insurer.
How do I choose an insurance representative?
When choosing an agent or broker, it is important that he or she is willing to listen to your needs and advise you on your options. He must be able to explain to you clearly and precisely a policy you intend to buy. Most importantly, he must be licensed to practice in your province.
Do I need to speak to an insurance broker?
An insurance broker can help you determine your specific business insurance needs through a thorough risk analysis. By understanding your business and what risks you are exposed to, he can recommend the right insurance coverage to help you manage your risks responsibly.
How can I save on business insurance?
Business insurance can be a hefty expense but there are ways to save on premiums. Demonstrate a risk management strategy by taking steps to mitigate losses with a professional security system. You can obtain your insurance coverage from one insurer for your home, auto, mortgage, and business to qualify for discounts. Maintain a claims-free insurance record to keep insurance premiums low. Lastly, always shop for lower insurance rates online by comparing free insurance quotes when renewing your insurance coverage.
Questions you should Ask your Agent or Broker
Are you ready to obtain business insurance quotes for your business? You need to ask questions from the agent or broker to help you decide on the best policy.
- Are you licensed in my province? You can verify a broker in Quebec by contacting The RCCAQ, an organization representing brokers and brokerages in the province.
- Is this the lowest possible price?
- Are there any discounts I can qualify for?
- Does the insurer have 24/7 customer support?
- What happens if I want to cancel this policy for any reason?
- Is coverage limits adequate for my needs?
- What is the best deductible amount for me?
These are just some of the questions you must ask your insurance representative. Feel free to ask more questions to fully understand your insurance options.
Get Lower Insurance Rates with a Free Online Insurance Quote
It’s really easy to connect with best brokers and agents for your business insurance needs in Quebec.
There’s no need to waste time in calling around to ask for quotes on the phone or from different websites. You can simply use our free short online form – just 1 request – to receive your quote from one of our partners (they are all insurance brokers and insurers).
This insurance quote is obligation free. You can verify if the coverage limits, cost of premiums, and other important criteria are to your liking.
Take 2 minutes today to fill out our form and request your free insurance quote for your business needs.
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