MY BUSINESS IS VERY SMALL SO WHY DO I NEED TO CARRY BUSINESS INSURANCE?
If you are renting space for your business, your lease agreement may require you to carry liability insurance in case you cause damage to the premises. But there are many other reasons why you should consider having insurance: to protect your property from theft or fire; to protect yourself or your company from lawsuits due to injury or damage you cause to a third-party; to cover the loss of income if you have to temporary shutdown due to a fire, etc.
WHAT IS THE COST OF VERY BASIC BUSINESS INSURANCE?
The cheapest stand-alone business insurance policy starts at around $750/year. But premiums are based on many factors such as the type of business, type of products sold, value of property, annual gross revenue, etc. For home-based businesses, you may qualify for coverage under your home insurance; the premiums start at around $190/year.
I’M OPENING A RESTAURANT SOON. WHEN SHOULD I START THE INSURANCE?
Since you become responsible from the moment you take possession of the premises, we recommend starting coverage once the lease agreement is signed or when renovations begin, whichever is first.
WHAT SHOULD BE MY MAIN CONCERNS WHEN BUYING BUSINESS INSURANCE?
We have seen many businesses destroyed by fires and other causes. Some businesses can easily start up again with only minor disruptions while others cannot rebound from the loss even after the claim has been paid.
Your main concern when buying insurance should be being able to continue operating the business after suffering a loss. We can identify the risks your operations face and fill those needs with the proper coverage.
WHAT ARE SOME OF MY OTHER CONCERNS?
– do I need to cover shipments of goods to and from my business?
– do I need to protect myself from dishonest employees?
– do I need to cover my loss of income to pay my ongoing expenses and to maintain my key personnel after I have a fire? Do I need to cover it from the time of the claim to the day I reopen, or until I reach my same profit level?
– if my laptop is stolen, can I absorb the loss myself or should I make a claim?
– if a customer is injured using a product I sold them, is it my responsibility, the distributors or the manufacturers?
WHAT ARE THE MOST COMMON CLAIMS REGARDING BUSINESS INSURANCE?
Each business is different and have their own set of risks. The most common claims are theft, fire, water damage and other losses to a premises. “Slip & Fall” claims where a person injures themself and blames the premises owner and tenant is fairly common. Product liability claims such as food health issues happen occasionally.
