If you are a small business owner, you know that operating a business requires an incredible amount of work. Small businesses face many risks, which is why you should absolutely consider insurance.
Insurance can save you from financial disaster if something goes wrong, alleviating several major concerns, and giving you more time to focus on the success of your business. And the best part is, there are companies like Aha Insurance that allow you to buy a business insurance policy online within minutes.
Here are the top 5 reasons why you need business insurance.
1. Protect Your Business From Natural Disasters And Theft
When certain disasters and weather events strike, having insurance can help cover the cost of replacing or repairing your property. Insurance can be especially helpful for small businesses that don’t have the capital to completely replace things if they get destroyed by floods, fire, or extreme weather (such as wind, rain, and hail damage).
Business insurance also protects against burglary and theft, two of the most common small business claims, affecting 20% of small business owners.
2. Protect Your Employees
Your employees are crucial to your business’s success. They help your company grow but they also bring more risks. Workers’ compensation is a type of commercial insurance that provides benefits, rehabilitation, and medical care services to injured workers and anyone suffering from an occupational disease. Most workers in Canada are eligible to apply if they experience a work-related illness or injury.
Protecting your employees with insurance will not only make them feel more secure at the workplace, but it could also help protect them from losing employment if a lawsuit comes up. Insurance can also help you reduce employee turnover, encourage them to work harder, and attract new employees.
3. Protect Yourself From Lawsuits
Interacting with customers brings the risk of lawsuits, which can significantly damage your business. The good news is there are several different business insurance policies that can help you manage these risks.
For instance, if a customer gets injured on your property, general liability insurance can help you pay for medical expenses and lawsuit costs in case you are sued. Another example is if your client suffers financial loss or property damages after taking your professional advice. In this case, professional liability insurance (also known as errors and omissions insurance) will pay for your defense.
4. Protect Your Motor Vehicles
Many business owners are not sure whether they need coverage for their commercial motor vehicles. In fact, some of them believe they can use their personal vehicles for business if those vehicles are insured, but this can be quite an expensive mistake if you or your employee get in a car accident.
According to a study by The Hartford, vehicle accidents are the second-costliest small business claims averaging $45,000, right after reputational harm claims which average $50,000. This is why it is wise to have commercial auto insurance if you have a business-owned motor vehicle, regardless of whether it is a single car or a fleet of delivery vehicles.
5. Comply With Requirements
As mentioned before, businesses that have employees are required to carry workers’ compensation insurance. However, the specifics will depend on your province and its workers’ compensation system. For instance, in the Northwest Territories, every company has to register with the WCB within ten days of starting operations, even if you are a solopreneur.
In addition, if your business uses and operates motor vehicles, you need commercial auto insurance to protect them and your employees. Commercial auto insurance provides coverage for any vehicle used for business purposes, including trucks, vans, and cars. If your business has 5 or more vehicles, you can opt for a fleet insurance policy.
Laws requiring insurance vary by province, so make sure to visit your province’s website to see the requirements for your business.
Many businesses owners put off getting business insurance because they believe the worst is not going to happen to them or because they assume they can’t afford it. However, with the many business insurance policies available on the market these days, you can compare quotes from leading providers and find the one that best suits your needs and your budget.
Minimizing risks is a healthy strategy that will not only keep your employees safe but also make sure your company doors stay open.