All Canadian-based businesses are required to obtain insurance coverage, before they open. This requirement ensures the government that consumers are protected from financial loss, in the event of an accident and fraudulent act. While most businesses will do whatever is necessary to win over consumers, others are just out there to make money. Business insurance is genuinely not that complicated to understand. However, with so many different types of policies to review, it can become a little complex. Below, you will discover several different types of business insurance policies to consider adding to your portfolio.
Professional Liability Insurance
In Ontario Canada, one of the most popular types of business insurance is professional liability. This type of insurance for business protects employees from lawsuits in the event they get sued for their own mistakes. In fact, nearly 100 percent of the companies operating in Canada are covered under this insurance, which is also known as errors and omissions. While some people are under the impression that E&O is a one-size-fits-all policy, it is not. If you seek out this type of insurance policy, it is highly likely that the broker will feel the need to explain the details regarding coverages and what liability limits will be covered under the policy. Pay very close attention, because you will want to make sure your are fully covered and protected from any potential financial loss related to negligence claims.
Business Property Insurance
Business property insurance is a necessity and is oftentimes combined with commercial insurance policy. This type of policy will cover your property, buildings, equipment, inventory, furniture, signage and other office accessories, in the event of a theft, fire or storm. Without property insurance, your company will not be fully protected from financial loss.
Workers’ Compensation Insurance
Workers’ compensation insurance is often ignored, as business owners put a lot of faith in their employees. Every business that hired workers should definitely be covered under a quality workers’ compensation policy, which covers employees’ death benefits, medical treatment and disability payments. Without this insurance policy, you will be at a high risk of financial loss. If just one of your employees slips and falls or dies as a result of his work with your business, you would have to pay out-of-pocket for these expenses. If you are lucky, the cost for insurance will only run about $1,000, if not you may end up needing to sell your business, just to cover the employee’s health care bills. For employers, government of Canada provides detailed information about where to start with this insurance.
Product Liability Insurance
Are you a manufacturing company or a small business that is offering a product or products to the public? If so, product liability insurance is going to be an absolute must for you. This type of policy will protect you and your company in the event that someone is injured due to a defective product. Keep in mind that product liability insurance policies can be tailor made to suit the type of product that you are offering.
Most business owners do not realize that life insurance should be associated with business insurance. Why is this the case? Well, in the event that you fall ill with some sort of sickness, a life insurance policy can ensure that your family will be able to live financially comfortable while you are recovering from the illness. This can come in extremely handy if your family’s sole means of income is dependent on your business earnings. Just make sure that you choose a provider that offers this type of life insurance policy, because not all of them do.
Commercial Auto Insurance
Ontario roads can be a tricky and dangerous place at times. In fact, in 2015 there were 161,902 reported vehicle accidents in the region alone. If you have a business that depends on company vehicles to get back and forth to customer’s homes, you are going to need commercial auto insurance. If you are a rather large company and have multiple employees that drive, you might want to consider fleet insurance, which could offer better rates.