Tuesday, November 30, 2021

Do You Need Insurance for Your Local Business?

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The process of starting your own business is exciting. At the same time, it is confusing because of all the crucial considerations like getting the right insurance coverage.

But unfortunately, it is one of the bottommost areas on some people’s lists. No matter what your niche is, it is time to contact a local business insurance broker.

Even if you do your entire operations online, insurance is integral to your business’ success in the long term. It will protect your assets from unforeseen events due to negligence, third-party causes, or defective products.

What Is Business Insurance and Why Is It Important?
Owning a local business has its set of inherent risks. Common dangers like theft, fire, vandalism, potential lawsuits, and other threats lurk around the corner. Business insurance is the protection you need to safeguard your finances.

You can get a home insurance policy to cover some personal items you use for work, but your products or services won’t have coverage. For instance, if a client is not satisfied with an outcome, your business insurance covers the associated costs.

Commercial insurance, as it is also called, meets each business’ unique requirements that are ever dynamic. It prevents income, asset, and property damage, while you can focus on improving your business.

Meaning, you can save hundreds of thousands of dollars by making a timely decision.

Coverage Under Business Insurance
Business insurance has many types of policies, such as:

Commercial General Liability Insurance
General liability insurance policies offer protection against any potential claim you may face due to your everyday operations. It will cover property damage, injuries, and legal expenses.

Product Liability Insurance
You have liability protection for the products you sell, distribute, or manufacture. Common lawsuits involve property damages or bodily injuries caused to a customer because of:

• Faulty products

• Incorrect labelling

• Design errors

• Manufacturing issues

• Inadequate safety warnings

• Marketing defects

Professional Liability Insurance
Also known as errors & omissions insurance, this policy will protect professionals like lawyers, doctors, engineers, consultants, etc. It is useful to shield you against legal proceedings claiming your negligent practice.

Cyber Liability Insurance
The use of technology is inevitable for any business, making you vulnerable to online attacks. Cyber liability covers your business from the after-effects of cybercrime, such as investigation fees, lawyer expenses, and financial losses.

How Much Does Business Insurance Cost?
If you own a small business in Calgary, your annual spend for commercial general liability insurance can be around $650 with a $2M limit. However, the figure may vary with several factors, including:

• Business size

• Employee count

• Industry

• Location

• Years you have been operating

• Type of product or service

• Risk level

• Average annual revenue

• Claims history, etc.

Most importantly, the cost depends on the coverage you need.

How to Find Affordable Business Insurance Plans?
Even though businesses in the same niche are similar, their insurance requirements will be unique. So, the best way to find the right commercial insurance policy is to speak to a local business insurance broker. They can help you choose flexible options that suit your establishment.

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