What is Business Insurance?
As a business owner, you take calculated risks everyday in order keep your business thriving. But what about the risks you haven’t considered? Business insurance is an excellent way to allow you to concentrate on profit without being blindsided by unexpected liability.
Why do I need insurance on my business?Just like you do, your business owns assets. These could be vehicles, machines, properties, inventory, etc. These are essential to your business and need to be protected.
Having vehicle insurance is mandatory in New Brunswick. You need to have commercial vehicle insurance if you’re using the vehicle for work or having employees driving it. If you’re insuring a work truck as a normal truck and an employee causes an accident, your company may choose not to pay the claim.
Let’s say you just built a new factory costing more than $3,000,000 is labour, materials, and machinery. A severe lightning storm strikes the building and burns it to the ground. If you were uninsured not only are you out the $3,000,000 but you’re also in need of a factory and further delaying production. Let’s assume someone was inside the building while it burned. You are liable for their injuries as well.
What is professional liability insurance?Professional liability insurance protects you against giving bad advice and being sued for malpractice. Assume you’re a lawyer working on a high profile case that you’re certain you’ll win. You’re being kept up most nights due to your sick child and aren’t sleeping well. This is affecting your performance at work. You accidently forget to mention a pivotal point in court that costs your client the case. Professional liability insurance will step in to protect you and your assets when the client sues you.
What is personal and advertising injury liability insurance?Personal and advertising injury liability protects your business from legal actions as a result of your bad behaviours (things like libel and slander, invasion of privacy, false arrest). If your actions have caused someone to be extremely humiliated or stressed, you can be liable for their personal injuries.
What is tenant’s legal liability insurance?Tenant’s legal liability is for businesses that rent their locations. Because your business is using someone else’s property, there is an expectation that you will keep it in good condition and be accountable for damages that you cause.
What is products liability insurance?Products liability insurance protects your business if the product you’re selling is broken or defective. Imagine you are a chair company. The glue in your chairs is defective and after a few weeks breaks down. Customers are sitting in your chairs and then falling to the ground as they come apart. You would be liability for injuries resulting from this.
What is garage liability insurance?Garage liability insurance is for any business that cares for, takes custody of, or controls customers’ vehicles. This is needed to cover physical damage to the vehicles while they’re in your possession. A valet service would buy this insurance so that if they scrape your car on a pole, they are not personally liable for the repairs.
I plan to run my business from my house. How does these change things?Your company might need you to have a commercial property insurance policy for a home based business, but often times it can be accommodated with an endorsement, or change, to the home policy. This is considered a material change to your policy so you need to make sure your broker knows to be sure you’re covered.
This is important to have even if clients never come to your home. If you’re doing a presentation for a company at their office and someone trips on your equipment, or something sparks and a fire is started, your business is responsible for that.
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