Owning a business is not an easy task. It requires a lot of hard work, dedication, sacrifice, and passion.
Business owners are tasked with huge responsibilities and heavy financial investments and commitments that must be protected with commercial insurance.
Why is Commercial Insurance so Important?
Commercial insurance is necessary for all businesses. With commercial insurance, business owners are protected from losses that are commonly experienced such as property damage, equipment breakdown, liability, and theft. Business owners may be able to recover from these losses easier and faster if they have the right commercial insurance.
What Type of Commercial Insurance Do Business Owners Need?
General Liability Insurance
General liability insurance may help to protect your business from liability claims resulting from any bodily or personal injuries to third parties caused by your business. It also provides coverage for property damage to third parties that result from your business operations or products, or that happen at the location of your business. General liability insurance may also help protect against slander, libel, and advertising liability claims.
Commercial Property Insurance
Many situations could occur that affect a business's inventory or expensive equipment, including storms, fire, lightning, and vandalism. Commercial property insurance may help to cover any damaged or lost equipment, inventory, and damage to the building itself.
Business Interruption Insurance
Sometimes referred to as business income coverage, business interruption insurance helps to protect business owners by helping to cover the cost of lost income and extra expenses if the business is temporarily not able to operate due to a covered peril. Lost income typically refers to damaged or destroyed merchandise. Extra expenses may cover moving expenses if the business must be temporarily moved to a new location. A covered peril typically refers to fire, theft, wind, lightning, or falling objects.
Business Owners Policy (BOP)
A Business Owners Policy is an insurance plan that includes each of the previously listed elements of your commercial insurance policy (liability, business interruption, peril, property damage). A business owner's policy is often more affordable than adding each of these coverages to your policy individually. Also known as BOP, it exists for convenience and to help business owners save on these extra but very important add-ons. A BOP can even include crime insurance and a few other specialty policies. Be sure to discuss your insurance options with your Ontario insurance broker and exactly what your business needs so they can offer you the best insurance policy possible.
Additional Add-On Coverages Business Owners May Want to Consider
Commercial Auto Insurance
Sometimes referred to as business auto insurance or commercial vehicle insurance, this insurance helps to cover any vehicles used for business or if business owners use their personal car for work.
Commercial Umbrella Insurance
Commercial umbrella insurance will increase a business's commercial liability coverage, as liability coverage often has limits.
Spoilage & Temperature Change Insurance
If your business experiences a power outage, the cost of replacing perishable stock stored at the business may be covered with spoilage and temperature change insurance.
Errors and Omission Insurance
Errors and omission insurance may help pay for legal fees if a business receives claims of negligent actions or inadequate work. This coverage is most commonly used by retailers who offer repair services or if their business offering requires specialized knowledge.
Many commercial insurance policies will only cover burst pipes, sewer problems, or gradual leaks. Flood insurance may help to cover damage from flooding due to extreme weather or overland flooding.
Builder's Risk Insurance, also known as Course of Construction Insurance
Builder’s risk insurance, also known as course of construction insurance may help protect a business that is having its building built or renovated. This type of insurance can help to cover the replacement or repair costs of the building, construction materials, lighting fixtures, and equipment if those materials sustain damage or a loss from things like theft, lightning, hail, vandalism, or explosions during the building or renovation. It is recommended that the property owner, architects, contractors, and subcontractors are all covered under the builder's risk insurance policy.
Cyber Liability Insurance
In this increasingly digital age, the threat of having a cyber liability breach to a business is very possible and increasing in frequency. Any privacy breach, be it theft, loss, or unauthorized access to confidential digital files can have devastating repercussions for your business. Having cyber liability insurance will provide business owners with peace of mind knowing that if their business is targeted they have coverage in place to help recover any losses sustained including business interruption.
The above types of commercial insurance policies are just some of the many commercial insurance options that are available to business owners. It will be important to speak with your Ontario insurance broker to fully understand all the coverage options available, and what your specific business needs.
Youngs Insurance Brokers can customize a commercial insurance policy to meet all of your commercial insurance needs as we offer insurance for retail stores, small businesses, sports, pet services, fitness and yoga studios, special events, vacant properties, salons, spas, wholesalers, wineries, and more! Contact us today to find the best commercial insurance policy for your business.