Thinking about risks and liability isn’t about doom and gloom: it’s a healthy business practice to protect people, business, and assets. Consider these five common areas of potential insurance needs for small businesses:
Thinking about risks and liability isn’t about doom and gloom: it’s a healthy business practice to protect people, business, and assets. Consider these five common areas of potential insurance needs for small businesses:
1. Insurance for owners, partners and key employees
Life, health and disability insurance can protect a small business from the loss or illness of a partner or key employee. This kind of coverage may be especially important to protect dependants of a sole proprietor, whose estate would have to cover any business debts.
2. Insurance for property and assets
This could include property insurance, contents insurance on rental space and car insurance. If you have to shut down due to a fire or emergency, business interruption insurance can cover the loss of earnings until you are back up and running.
3. Liability insurance
This kind of coverage protects against mistakes that could harm or injure customers, employees, or others connected to your business. This can include professional liability insurance or protection against errors, omissions or negligence.
4. Accounts receivable or credit insurance
This protects against the risk of non-payment of goods.
5. Employee health insurance benefits
Group plans are available to provide supplemental health and dental insurance coverage for employees, while you may have to contribute to a workplace health and safety program. Consult with an insurance professional or contact your industry association for guidance on best practices for your type of business.
Starting a new Business in Canada?
Company Formations: The Quickest, Easiest and Affordable Way to Incorporate, Register, Create, Start, Establish or Form any type of company in Canada.
