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blog on business insurance
Ten things you need to know about business insurance because everyone has a rainy day
By Angelo Zacharakis
Associate Broker, Rai Grant Insurance Brokers
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1. Building Coverage for structure and any permanent fittings
Gives you protection against perils such as fire, water damage, windstorm, sewer backup, flood and earthquake and other perils. The rate is based on replacement cost, taking into account key building details such as construction type and square footage.
2. Contents Coverage for belongings in an owned or leased space
There are three main categories of belongings:
- Equipment – All contents usual to the business other than stock. For example, this would include items such as computers, tables and chairs, machinery and tools.
- Stock – Merchandise usual to the Insured’s business. An example for a restaurant owner would be food and liquor.
- Tenant Improvements Coverage Applies to construction work you do as a tenant or improvements made by others which you are obligated by your lease to insure. For example, if fire or another peril destroyed a new washroom or a new kitchen you built to improve your work space, this coverage would cover the replacement cost (material/labour)
3. Business Interruption Coverage for replacement of loss income
Almost every small business owner will have a period when they are unable to work. Even a short-term interruption can have a significant impact as expenses continue whether you are earning income or not. Yet this coverage option is often overlooked.
4. Crime Coverage for loses related to criminal acts
Business related crime is not limited to just theft of property. You can also experience significant losses as a result of forgery, employee dishonesty and theft of intellectual property.
5. Equipment Breakdown Coverage
Every small business requires some form of equipment to function – and every piece of equipment will break down sooner or later. But you can rest easy knowing that the cost of repair or replacement – plus any related business interruption losses – will be covered. Applies to all forms of equipment, heating and air conditioning equipment, refrigeration equipment, pressure vessels, boilers and production machinery.
6. Commercial General Liability Coverage
Even the best run business can be sued by someone who claims they suffered Bodily Injury (broken leg or strained back) or Property Damage (broken furniture or flooring ruined by water leak) as a result of your negligence or the actions of one of your employees. Given the potential losses resulting from even a single claim, this coverage is a must for all small business owners.
7. Sewer backup/Flood/ Earthquake Coverage
This coverage is highly recommended because the risk of a flood or sewer back up is much higher now than it was even five years ago. You also have the option of adding Earthquake Coverage, which is now included in most business insurance packages
8. Professional Liability Insurance (Errors and Omissions Coverage)
This is necessary coverage for any business that can cause harm to another business. Certain professions, such as Insurance Brokers, Architects, Engineers and Doctors, are required by their profession to obtain professional liability insurance.
9. Cyber Coverage for the loss of company data
Business information, including customer data, can be lost or destroyed at any time as a result of building issues (flood, power surge), employee actions or malicious attacks by "hackers". The problems can start with something relatively small, such as a lost laptop or the opening of a link in an email that appears legitimate, but actually gives a hacker access to your company data.
But within days or even hours you may have lost some or all of your company information and can only get it back by paying an untraceable ransom. Cyber coverage ensures you have the ability to pursue remedies, which could include forensic IT services and data restoration and recreation, as well as related expenses, such as business interruption, public relations services, legal expenses and notification to affected individuals.
You should also know that effective November 1, 2018, all organizations are obligated by Federal Law to report a data breach of personal information to the affected individuals and the Office of the Privacy Commissioner of Canada.
10. Save on Group Home and Auto Insurance
Business owners who purchase our business insurance are automatically eligible for preferred rates on Auto and Home Insurance with savings of up to 30%. The same benefit is available for the company’s employees and spouses. See what we can do for you by requesting a free consultation with a Group Insurance Manager.
Angelo welcomes inquiries from anyone interested in learning more about business insurance. You can reach him by phone ((905)-475-5800, ext. 298) or email.
Disclaimer Last updated July 2018
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