As entrepreneurs, we’re well-versed in common forms of insurance that safeguard our businesses against property damage and liability. Let’s look at some other issues that may impact your business.
Professional Liability Insurance
A lesser-known coverage, such as Professional Liability insurance, deserves attention. Suppose you provide professional services, like medical care, design work, legal advice, or any other consulting services. In that case, this coverage shields you from losses from your professional activities, even ensuring your defence costs are covered in case of lawsuits.
So, what could go wrong?
1. You provide advice that has errors or even alleged errors. It does not have to be true for your insurance to cover it.
2. Your services claim certain outcomes and those outcomes are not reached.
3. You breach the contractual obligations outlined in your contract.
This coverage’s premium varies based on your business type, size, and experience and is well-worth the investment.
Home Base Businesses
Moreover, many entrepreneurs operate home-based businesses in Strathcona County, where a business license isn’t required. Yet, these ventures entail financial risks that standard home insurance policies do not cover.
Did you know?
1. Your home insurance will not cover bodily injury or property damage related to your business activities, leaving you vulnerable to lawsuits.
2. Coverage for business contents may be limited or excluded altogether.
3. Operating a shop in your garage or basement could invalidate your home insurance if a property loss occurs.
Consulting your home insurance provider is crucial to determine the extent of coverage needed, which might involve extending your current policy, acquiring a separate business policy, or seeking coverage from another insurer.
Additionally, it’s wise to consider legal and financial implications, including the potential benefits or drawbacks of incorporating your small business. Taking proactive steps to secure adequate protection ensures peace of mind and safeguards your business and home against unforeseen challenges.
Business Interruption Insurance
This insurance is vital for business owners, significantly when unforeseen events disrupt operations. This coverage helps manage ongoing expenses and loss of profit following an insured property loss. Factors like premises ownership, income replacement needs, payroll coverage, rental income, and supplier dependencies influence coverage selection. Involving your accountant is advisable to determine adequate coverage, considering the 100% co-insurance clause. This clause means that underinsurance leads to partial loss payment. Also, remember this coverage can extend up to 12 months from the date of loss, potentially covering losses beyond the policy term.
If you haven’t signed up for our monthly “Expert Advice” e-news, you can do so here.
And you will also be able to download your free copy of “Taking the Mystery out of Commercial Insurance.” It’s an easy read and will help you understand your insurance contract, what to look for and what questions to ask.
For inquiries on the above or any other insurance matters, don’t hesitate to contact Heather at 587-597-5478 or email heather@thorinsurance.ca.
