Which Insurance Policies Does my Business Need?
Get The Right Coverage
Perhaps you are tired of working your regular day job and feel it is time to start your own business. We applaud that and respect that decision. It is a tough one but with time and correct effort, it will be rewarding.
Now assuming you have already got your plan together and are working on the details, one of the most important steps is attaining the correct business insurance policies. We have put together a list of the most common policies that every owner should have to cover all sides.
Which Policies Should I Get?
It is always a good idea to keep as many policies in one company as possible because you may be eligible for some small multi-policy discounts. These policies are not as expensive as one may think especially if the business is still somewhat new and in its early stages of development.
Do not pickup a hammer/ call a client/ turn on your computer without having the basic CGL (Commercial General Liability) policy. As a business, you are liable for many things which you may never have considered. A General Liability policy covers legal and damage costs if you or your employees cause bodily injury or property damage to a third party. If you are a sub-contractor, many contractors that are hiring you will expect you to have a CGL policy in place.
This is a policy which business owners usually purchase along with their Commercial General Liability policy. If you own a store or office, you will want to cover your investment as well. This can cover your equipment, stock, tools/hardware and the actual unit itself from fire, water, theft vandalism etc. If you are renting the unit, it is still advisable to cover all your equipment and stock from potential losses.
This is very important for any business that operates from a vehicle or has its employees driving cars. A personal auto policy excludes any commercial use of the vehicle. This means you need to get a Commercial Auto Insurance policy to be able to use the vehicle for commercial use. Insurance companies are very strict with what they consider commercial use. Any contractor who has tools in their work vehicle needs to get a Commercial Auto Insurance policy. (Tip: Commercial Auto policies are usually less expensive than personal policies). The vehicle does not need to be a Van/Truck to be viewed as a commercial vehicle.
This is also known as Errors and Omissions Insurance. This policy is required for any business that provides professional services such as accountants, lawyers, consultants, real estate agents, technology providers etc. This policy covers your damages and legal costs in the event that your company fails to provide proper professional services. This is not covered under a Commercial General Liability policy and will need to be purchased in addition to it.
If you are unsure of what insurance policies are required for your business, you can call Filip Ambroziak at (416) 803 – 2113 or email at email@example.com.