What Type of Small Business Insurance Do You Need?

Find out what type of small business insurance you need, photo Pexels 763934
Find out what type of small business insurance you need, photo Pexels 763934

Starting your own small business involves handling details that you never had to consider while working for someone else. One of those details concerns the type of small business insurance that you choose. Whether you select a comprehensive plan that seems to cover all the bases or opt for multiple plans that address specific needs, it is important to identify what type of small business insurance will provide an adequate level of protection. Since small business insurance Toronto should protect a company from a variety of potential events, make sure that whatever insurance you choose covers the following four essential areas.

Find out what type of small business insurance you need, photo Pexels 763934
Find out what type of small business insurance you need, photo Pexels 763934

Protection from Theft

As a small business owner, you have probably invested a lot of money in equipment, furnishings, raw materials, and finished goods. If any of these items are stolen, the loss to the company can be significant. The same is true if someone tries to steal your company’s intellectual property.

Choosing to secure business insurance that protects you from all types of theft is a practical way to minimize disruption to your business, as well as recover from the loss. Make sure that the provisions within the insurance policy cover the types of possible theft your operation could experience. If there’s any doubt about what is and is not covered, get documented confirmation from your insurance provider before signing anything.

Protection from Injury

Injuries can happen at your business location or at an offsite location if you offer services at the places of business operated by your clients. In any event, you want to ensure that you have insurance protection that will cover the medical expenses and any other obligations that relate to those injuries. That includes providing funds for settlements if lawsuits result from the events.

Protection from Acts of Nature and Other Property Damage

You have zero control over what a hurricane, tornado, or flood can do to your place of business. If the property does sustain damage, something must be done in order to keep the company operating. That may include obtaining funds that help you repair structural damage, equipment that has been ruined, and any other damage resulting from the event.

This type of business insurance may even help you set up at a temporary location while your usual shop or office is being restored. Think of what that means in terms of ensuring your employees can continue to work and keeping your customers happy.

Protection from Lost Business Income

What if your business cannot operate at full capacity while recovering from a natural disaster? Perhaps your company will not be able to operate at all for a long period of time. How will you manage to keep the business together until it’s possible to generate revenue again?

There are business insurance policies that include provisions for replacing lost income. That income can help you to continue to pay your employees and handle all the other usual business expenses while you work toward reopening your operation. Of significant relevance today is the fact that these types of business insurance policies typically referred to as business interruption policies will not cover lost income due to a pandemic.

Remember that it only takes one event to bankrupt a business. By choosing to invest in small business insurance that covers as many bases as possible, you help to insulate your company from this type of problem. Call Guthrie Insurance Ltd to get a commercial insurance quote that will help you secure all the coverage needed to protect the operation. Should the unthinkable happen, it will be a lot easier to weather the event and keep your business going.

You may be interested in reading, “What To Do If Your Small Business Is Running Out of Money“.