If you are just starting out in business, you may wonder about the value of business insurance. Whether your business consists of just you or one or two contract or part time employees, business insurance coverage could mean the difference between success and failure.
Going into business is risky all on its own. And, in the best-case scenario if nothing ever goes wrong in your business, insurance coverage certainly provides peace of mind. On the other hand, if and when something does happen, having the right kind of coverage will help you keep moving forward without skipping a beat.
Business insurance needs vary greatly. Yours may be a business that requires lots of equipment that could break down or even be stolen. Or you could be responsible for not sharing sensitive information received from you clients. It’s important to seek advice from an insurance broker or agent who is familiar with your specific type of business.
The following types of business insurance coverage comes from Canada Business Network (http://www.canadabusiness.ca/eng/page/2684/) and is provided to help you determine the kind of insurance you might require. Contact your Desjardin Financial Security Independent Network Representative to help you find the coverage that best suits your business needs.
Insurance for owners, partners and key employees
The loss of a key person (that could mean something happens to you if you are literally in business on your own) can devastate your business and your livelihood.
These types of insurance can help protect your business and your family from potential risks:
Life insurance — Protects your family in the event that something happens to you. This is especially important in the case of a sole proprietorship, because the owner is personally liable for all the debts of the business.
Disability insurance — Will provide you with income for a specified period of time, if you are unable to work due to an injury or illness.
Partnership insurance or buy-sell insurance — If your business partner passes away, partnership insurance will allow you to purchase the shares and continue running the business.
Critical illness insurance — Provides you with a lump sum benefit, if you are diagnosed with a critical illness.
Key person insurance — If you rely on certain key people to help run your business, protect yourself against the loss of these key employees.
Insurance for business property and earnings
You need to protect your assets and earnings in the event that a disaster or emergency destroys part or all of your business premises and assets. This could include:
Property insurance — Property insurance will cover the property and buildings owned by your business in the event of destruction or damage due to things like fire and other perils.
Contents insurance — This covers assets that you store at your business premises. If you are leasing space for your business, the owner of the property probably has property insurance. However, you are likely responsible for your own contents insurance. If you run your business out of your home, you will likely need separate contents insurance for your business assets.
Business interruption insurance — If you need to shut down your business temporarily due to a fire or other peril, business interruption insurance will cover your loss of earnings until you are back in business.
Vehicle insurance — You will need to insure any vehicles that your business owns. If you use personal vehicles for business purposes, be sure to advise your insurance company.