What Insurance Does Your B.C. Business Need?
You’re busy running your B.C business, but have you thought about protecting it with insurance?
Whether you are a contractor, electrician, retail store owner, restaurant owner, coffee shop owner or an owner of any kind of small business in British Columbia, a business insurance package protects you against common risks such as a customer accident, vandalism, or fire.
Here’s what’s in an insurance package for B.C. small businesses:
1. Commercial general liability (CGL) insurance: If you are operating a small business, this type of insurance coverage is essential. It can be a risk not to have CGL (business liability) insurance.
What if a customer gets injured at your small business or her property gets stolen? Without commercial general liability insurance, you would be responsible for paying any liability costs out of your own pocket.
You’ll also hear CGL insurance called “slip and fall” insurance.
It’s recommended that you have at least $1 million to $2 million, if not more, in commercial general liability coverage. The amount of coverage you will need will depend on the size of your B.C. business and what it sells or the service it offers.
2. Commercial property insurance: Commercial property insurance keeps your B.C. small business protected from property losses, such as theft, fire, or vandalism. You can also add earthquake insurance, sewer backup or flood coverage extensions to protect your business.
Property you may need to insure would be:
- Buildings and other structures
- Computers
- Equipment, supplies, furniture
- Documents such as payroll and accounts receivable
- Product liability insurance: It protects your British Columbia small business against claims that allege third-party property damage or bodily injury caused by a product you manufacture, distribute, or sell.
Product liability insurance protects your business from design, manufacturing, or marketing defects, such as incorrect labelling and safety warnings.
- Professional Liability Insurance: If you offer your customers advice or provide services, such as those offered by a consultant, contractor, accountant, you’ll need professional liability insurance.
This type of insurance helps cover you in the case of allegations of professional negligence, failure to deliver a service as promised, or a mistake that causes financial harm to a customer.
It’s also called errors and omissions (E&O) insurance.
- Cyber liability insurance: Small and medium-sized businesses are increasingly the targets of cyberattacks. Does your B.C. business store client information digitally and take online payments? If so, your business’s computer system could be hacked by cyberthieves.
Without cyber insurance, you will have to pay for the cost of restoring your system. You may also be liable for damages to third parties whose information was stolen and you may have to pay for notification expenses to inform customers affected by a breach.
Are there other insurance coverages that protect small businesses?
Business interruption insurance: If there is an insured loss at your B.C. small business that’s severe enough to prevent it from being opened, the expenses associated with getting your business running again will be covered.
This type of policy usually covers vandalism, fire, wind, flooding, and other risks (make sure to understand what your policy covers).
Business interruption insurance will help compensate you for lost income and expenses that you will need to continue paying even while you are unable to work. It can mean the difference between closing and not reopening your business.
Commercial auto insurance: Your small business needs commercial auto coverage as part of your business insurance package. Personal car policies will not cover your drivers or your business.
What to do if your small business has an insurance claim
Contact your broker immediately. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
Know your policy so that when you contact your broker you are familiar with what will be covered.
Document the damage. Take photos right away and write down what happened.
Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
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