There are many different types of business insurance available to protect your
company. The most common types are property insurance, liability insurance,
workers' compensation insurance, and business interruption insurance.
Property insurance protects your business's buildings and contents from damage
or theft. Liability insurance protects your business from lawsuits alleging
that your business caused someone else bodily injury or property damage.
Workers' compensation insurance provides benefits to employees who are injured
while working for your business. Business interruption insurance pays for lost
income and expenses incurred while your business is unable to operate due to a
covered event.
The type of business insurance you need depends on the type of business you
have and the risks associated with your business. You should consult with an
insurance broker or agent to determine the types of insurance coverage that
are right for your business.
Business Auto Insurance
This covers your vehicle if it's damaged or stolen while being used for
business purposes. It also provides coverage for liability, collision,
comprehensive and uninsured motorist coverage.
Commercial Property Insurance
This covers your building or other property that you use to carry out your
business activities, so that if it's damaged or destroyed during a fire or
other disaster, you won't be left financially crippled by the loss.
Employees' Compensation Coverage
This protects employees' wages, as well as medical benefits paid out by an
employer's health plan when employees are injured on the job--this can help
cover medical expenses not covered by your health insurance plan or another
employer's plan.
Employer's Liability Coverage
This helps pay for lawsuits filed against you by people who have been hurt due
to their injuries while working at your company, such as slip and fall
accidents; this type of insurance is typically required in order to operate a
business in Canada.
Business Succession Planning
It's the process of determining how your business will be transferred to
others and outlining the steps necessary to prepare for the transition. The
plan affects you, your family, employees, clients, suppliers, creditors and
others. A good succession plan helps ensure your wishes will be carried out if
you die suddenly or can no longer run your business due to illness or
disabling injury. It can also help you ease into retirement and provide a
retirement income.
Your advisor can help you create a business succession plan, and ensure you
have the appropriate life, disability and critical illness insurance coverage
to make it work.
Liability insurance
When a company's carelessness occurs on its property or involves one of its
employees, comprehensive general liability insurance offers coverage for
personal injuries and property damage. It also covers harm a consumer sustains
as a result of a subpar service or product produced by your company.
Errors and omissions (E&O) insurance is another name for professional
liability insurance. Some professionals have this insurance to shield them
from lawsuits brought about by errors made at work.
Insurance for business interruption
While business interruption insurance helps you replace lost revenue due to
theft, fire, vandalism, or other specified disasters, property insurance only
covers tangible items.
This kind of insurance could assist your company in providing:
- If you had to shift to a temporary location, operating costs
- Profits and earnings
- Rental revenue
- Paying back loans
What’s next?
Now that you understand more about business insurance, you may want to
contact your advisor.
An advisor can give you personalized advice about our products &
services and help you build a financial security plan. Our advisors take
meetings virtually and by phone for your convenience to :
- Determine or review your business insurance needs
- Discuss a buy/sell agreement
- Go over business succession planning
- Create a group benefits plan for your employees
