What Is Business Insurance And How It Can Protect Companies From Financial Loss

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Oct 202017

Business insurance is truly not that complicated, as it is basically designed to protect companies from financial loss linked to a variety of factors. However, there are so many different types of commercial liability insurance policies available, making things a little more complex. In order to protect you and your business from risks of financial loss, it is imperative to choose the correct business insurance policy. This is where a broker or agent will come into play. This professional can help you devise a plan that will fit your company to a tee.

What Is Commercial Liability Insurance?

Commercial Insurance also known as Business Insurance Ontario is designed to protect companies from financial loss, in the event of an accident, fire, major storm, theft, embezzlement and much more. Each policy offers unique protections, so you really have to become familiar with each to know which ones you need to invest in. Most Ontario insurers are more than willing to sit down with business owners to go over each of these options. If you fail to include the proper policies in your plan, you could end up facing a loss in the future. You’ll quickly discover that business insurance is a vital necessity for all businesses in the country! Without insurance, your company is put at a significant risk.

Business Operations Interruptions

Every business is at risk of operations interruptions, relating to a natural disaster, fire, electrical outages, equipment failure, illnesses and accidents. While these are things that cannot be prevented, companies can protect themselves from the potential risks financial loss, by investing in business interruption insurance. This type of policy will cover damage or financial loss that occurs when a company is forced to cease operations. You cannot be sure how long your business operations will be closed. However, with business operations interruptions it will be much easier to accept the downtime, because you will be ensured that it will not result in major financial loss.

The Statistics

When it comes down to it, Canadian businesses are always at risk of getting sued by their customers. There is a chance that someone will be injured inside of your store. If this happens, you’re going to face serious consequences. It is estimated that 95 to 96 percent of all personal injury cases are settled before the cases ever enters the courtroom. At the same time, some experts believe that 90 percent of cases that advance to trial result in a loss for the business.

This is why it is absolutely pertinent to protect yourself and your business. Getting the right insurance for business is downright vital. Business liability insurance can prove to be a godsend in the future.

Slips & Falls

Commercial general liability insurance offers a wealth of benefits to the business owner. In fact, it is very foolish to run a business without having the right insurance. There are numerous business insurance Canada providers and they’ll all tell you that general liability is a must. This specific type of insurance can provide you with protection from lawsuits regarding slips and falls. In the country of Canada, it is estimated that more than 40,000 workers experience a fall at work each and every year. A slip and fall could easily fall back on your company.

The fall could be caused by poor working conditions, inadequate protection, and even poor training. In 2013, ten people passed away after suffering a fall in the workplace. And, there is a good chance that the business got into hot water as a result. Make sure that you get liability insurance, so you can protect yourself from lawsuits stemming from slips and falls. Remember that consumers can also slip and fall in your store! Get covered to avoid future problems.

Product Related Injuries

Do you manufacture and sell products to the public? If so, there is a possibility that your product could result in the consumer being injured at some point. If this happens, there is a good chance that you’re going to end up on the wrong end of a lawsuit. It may be possible to reduce the risks involved by initiating a recall. Nevertheless, even a minor injury or two could cause your business to get sued. This is why it is absolutely pertinent to protect yourself with liability insurance.

This type of insurance will help you get the money needed to defend yourself in the courtroom.

What Is Not Covered?

While general liability insurance for your business is pertinent, you should understand that it will not cover everything. For instance, most general liability policies will not cover employee injuries. For this specific type of problem, you need workers compensation insurance. Professional mistakes and auto-related incidents may not be covered either. To protect your business to the fullest, it is absolutely pertinent to obtain all of the insurance policies that you feel are essential!