Running a business isn’t easy, and this doesn’t change as you grow and expand your operations. Something that should remain a constant, however, is having the right insurance policy in place to protect not only your investment and company but also those within it. Here are some tips on choosing the right commercial insurance for business owners.
Ensure You Have General Liability Coverage
Does your company deal with a lot of chemicals, such as cleaning solutions or industrial-strength compounds? There’s an added risk element there when it comes to storing, utilizing, and transporting hazardous materials. Of course, standards like adhering to WHMIS best practices are essential for frontline safety and proper handling. You should also ensure, however, that you have a policy in place that protects against any potential lawsuits resulting from accidents associated with your operations.
Lawsuits can stem from other causes as well, such as a fall causing injury after slipping on a mopped floor that didn’t have proper signage erected. Regardless, you should seriously consider obtaining general liability insurance. Not having it active for your business means you won’t be covered for the following:
- Contract and/or lease breakage
- Onsite customer or employee injury
- Onsite damage to customer/employee property
- Securing approval for financial support, leases of equipment, or otherwise
Be Aware that Personal Property Coverage is Separate
If you operate a small business and use your own home or vehicle, it doesn’t mean that commercial insurance will automatically cover you in the event of damage, theft, or otherwise due to your company’s operations. These assets fall under the purvey of personal insurance policies. Alternatively, if you have a fleet of registered commercial vehicles that are only used for work purposes, or if you operate a dedicated office space for your company outside of your home, then commercial insurance coverage can cover these assets.
Find Out Whether You Need Professional Liability Coverage
While general liability is ideal for coverage in the event of a slip causing an injury or other similar scenarios, professional liability is completely different. This is crucial to bear in mind if you sell advice or services that aren’t related to a physical product, such as a legal or HR firm. In the event that the professional service you offer winds up costing a client money or hardship, causing them to pursue you legally, professional liability coverage can safeguard your financial stability. For consultants, inspectors, web designers, agencies, and/or other similar service providers, we highly recommend securing this coverage.
Emergency Coverage (Business Interruption Insurance)
In the event of a massive protest beyond your doors that threatens employee safety, a fire, flood, or an accident that blocks access to the business, emergency coverage should provide peace of mind. This is known as business interruption insurance, allowing you to recoup losses stemming from damages sustained or frozen operations. It applies to employee salary, repair expenses, and more.
Product Liability Insurance
If you not only create a product for sale but also sell it yourself, there’s always a chance something could go wrong. Product liability coverage protects your operations’ bottom line in the event of injury or damage suffered from a defective item sold. This is important as lawsuits and other measures to seek compensation from those negatively affected will almost certainly occur in such instances.
There is much more to explore when it comes to commercial insurance for business owners. For further insights or to explore our own available policy options here at Tanner Insurance, don’t hesitate to contact us. We’re happy to help you find an ideal solution for your specific operational needs and budget.