Q & A for Small Business Owners

Operating a small business comes with enough risk that you should not be worried what will happen if the worst were to occur. Your commercial insurance policy should provide you with some peace of mind that you can recover from a loss.
These are some of the questions we are commonly asked by our commercial clients:

What kind of insurance do I need?

The coverage you require will be unique to your business and its exposure to risk. The common coverages are:

  • General Liability – physical or financial harm caused to others by your business operations
  • Professional Indemnity – errors & omissions coverage which protects you when a customer claims that your service, product or advice was inadequate and led to physical or monetary loss
  • Damage to Business Property – protects your equipment, inventory and the building
  • Business Interruption – ensures business income continues (up to policy limit) if there is damage to the premises, equipment or inventory which prevents you from operating
  • Employer Liability – if you have an employee this coverage pays for injuries they might sustain while working for you
Are there risks for which I can’t buy insurance?

No policy is the same but there are those who offer more coverages than others. It’s important to discuss with your broker what coverages are important to you.

Insurance policies are designed to protect you from loss or damage caused by unforeseen events. Bu not all unforeseen events are covered or the coverage might be limited. For example most insurance policies now exclude coverage for pandemic related claims.

Will my Homeowner’s Policy cover my home business?

Your homeowner’s policy is not designed to cover your business. While you can add on a home based business extension to most homeowner’s policies it is rare that the endorsement will include all of the coverage your business requires.

What does Errors & Omissions cover?

You will need this coverage if you are paid to give advice. This coverage kicks in if you provide a client professional advice that is not accurate or incomplete and that advice results in damage to your client’s business.

What does business interruption insurance cover and do I need it?

Business interruption covers what your business would have earned during the period it is shut down due to an insured peril and up to your policy limit. You select the policy limit for this coverage. As your business grows it is important that you review this coverage with your broker often to make sure that it adequately represents what you are earning.

How much does my deductible affect my premium?

The higher the deductible, the lower your premium. Rates typically decrease with each $500 increase in premium.