You wouldn’t go without home or auto insurance and business insurance is no different. In fact, it is even more crucial as it lends to the credibility of the business. Business insurance protects the company from financial losses as a result of unexpected circumstances related to property and legal liabilities.
By law, businesses in Ontario must carry General Liability insurance. Depending on the business, there are other types of insurance that businesses may also want to consider:
Must Have:
- General liability – Protects the business from liability claims including bodily injury and property damage caused to third parties. For example, if a customer trips and falls inside your store resulting in injury, the general liability insurance would cover medical expenses, legal fees, and any damages awarded to the customer.
Other Options:
- Business interruption – Covers rent or lease payments due to unforeseen circumstances that forces the closure of the business. For example, renovations needed after a fire.
- Product liability – Protects the business against defective merchandise and lawsuits from faulty products that cause personal or property damage to customers.
- Professional liability – Protects against negligence and errors for professional occupations such as doctors, lawyers, IT consultants and accountants.
- Cyber risk – Covers legal action taken against the company when confidential information has been breached by unauthorized parties. This will cover costs such as investigation into the breach and to pay for legal fees resulting from legal claims.
- Equipment breakdown – Covers for the repair or replacement of unexpected equipment malfunctions that results in the loss of revenue during the downtime
- Commercial auto – Covers commercial vehicles including trucks and automobiles from theft, accidents, and personal damage/injury
- Commercial property – Protects the company’s physical assets such as furniture and equipment from loss or damage.
It is vital to contact a reputable insurance agent or broker that specializes in small business insurance. They can complete a thorough needs analysis to recommend coverage that’s best suited for the business.
In general, business insurance premiums are tax deductible, however, it’s always best to consult with a professional tax professional when preparing your tax return. Should you have questions about claiming insurance on your tax return, please contact us directly.
If you’re interested in getting an insurance quote for your business, contact Brittany Lee-Ellliott of the Western Financial Group at (905) 451-4205 extension 70146 or by email brittany.elliott@westernfg.ca.
