Business Insurance Definition
Business insurance, also known as commercial insurance, covers your business for liability concerns, loss of business, and asset loss in the event of a risk such as a fire. It can also ensure that your company can keep running should something happen. Business insurance changes with every business, and is something you should sit down and talk to a broker about so they can get to know your business and potential risks.
Liability and legal concerns are potentially the heaviest hitters to your bottom line. While insurance doesn’t necessarily cover all legal costs in the event of an injury on your premises or a lawsuit against your organization and employees, it helps to offset these costs and keep your business on track. While all business benefits from insurance, those providing retail services to the public should be particularly careful about getting the right business insurance package, as small businesses usually can’t afford to take on the costs for these kinds of lawsuits without assistance.
If you run a small store or office with employees, business insurance is a must.
As a small business owner, you have to make sure you are covered if anything happens to your stock, office or storefront.
Insurance for mid-size to large companies can get complex with all of the coverage that has to be in place, but luckily your broker is there to be your insurance partner. Commercial insurance can protect all angles of your business, from having a large number of employees servicing customers in the field to specialized corporate insurance to protect business continuity and manage risk.
Mrs. Willoughbunchy runs a web development firm with a small rented office space and about five employees. Mrs. Willoughbunchy’s broker recommends coverage for the firm’s computer equipment, tenant insurance for the rented office space, as well as liability coverage. For extra coverage, her broker recommends errors & omissions insurance, which she finds that she actually needs for contracts with larger clients.
Commercial Insurance Tips from First Foundation
Insurance for Non-Profits
If you’re running a charitable organization, chances are good that you have volunteers either in the office or in the field assisting in some potentially risky situations. While insurance for non-profits has traditionally been hard to come by in Canada, an experienced commercial insurance broker can help you find the right coverage to protect your organization and its volunteers.
Home-Based Businesses and Self-Employed Professionals
Many individuals with home-based and one-person businesses think their home insurance will cover them for business activities, but this is not necessarily the case. Stock travelling to and from crafts and trade shows, computers and other tools used for the business, and liability for clients visiting the home are all risks that home insurance may not cover. In some cases, you can purchase a rider for your home insurance that will cover a small home-based business, but it’s worth a conversation with your broker to find out.