Five Great Ways To Find the Right Business Insurance

August 18th, 2014

Whether you’re a small startup or a large multinational corporation, finding the right business insurance can sometimes be an overwhelming experience. To ensure you’re fully protected, you have to weigh the needs of your industry, as well as your day-to-day operations, finances and potential legal issues. To help make the process easier to understand, here are five things you should consider when it comes to finding the right business insurance.

1. Choose the Right Business Insurance Categories

Regardless of the size of your company or what industry you work in, virtually all forms of business insurance can be broken down into the following categories:

  • Property & Liability
  • Automobile or Fleet
  • Directors and Officers
  • Crime/Employee Dishonesty
  • Pollution
  • Equipment Breakdown
  • Cyber Liability
  • Aircraft or Watercraft
  • Benefits & Life Insurance
  • Errors and Omissions
  • Professional Liability
  • Marine/Cargo

Each of these categories has specific types of coverage that may or may not be suited to your industry. The best way to determine if you need insurance from these categories is to ask yourself if your business could potentially be exposed to financial damages by NOT having a particular type of insurance. Once you’ve made that decision, consult with an insurance broker to help find out specific options within each category.

2. Ensure You Have Legally Required Business Insurance

There are many types of insurance that companies in Canada (and around the world) are legally required to have in order to operate. These are primarily broken down into two categories: government and contracts. Government business insurance consists of coverage you’re legally required to have, such as automobile insurance for company vehicles or environmental/pollution insurance for industrial operations. Contractual business insurance consists of anything related to legal arrangements you’ve made, such as building leases and supplier agreements. Ultimately, the best way to ensure you’re operating above board is to consult with a legal professional and a broker to find out what business insurance you’re legally required to have.

3. Choose Industry Specific Business Insurance

Regardless of what type of industry you’re involved in, chances are there’s a type of business insurance suited to your particular needs. Of course, your needs are always changing, which is why the insurance industry is constantly staying up to date on the latest requirements. Pollution insurance, for example is becoming very important for many industries as government regulations tighten. Similarly, cyber liability coverage is a relatively new product that protects against any expenses resulting from a privacy/data beach. If your business deals with large quantities of receivables, you may also want to consider Trade Credit insurance. Look to what other companies in your field are doing and speak with a reputable broker to find insurance that’s specifically designed for your industry.

4. Consider Business Insurance Claims Scenarios

One of the best ways to consider what type of coverage you need is to consider specific scenarios that might come up during the course of your operations. Claims can come in all directions and all levels of severity. Perhaps you’ve accidentally sold a faulty product (product liability insurance), suffered a building fire (property insurance), had someone slip and injure themselves (liability insurance), dealt with an employee who may have stolen from you (crime/employee dishonesty insurance), had a damaged shipment (cargo insurance), dismissed someone from their job (Directors & Officers Insurance) or had an electrical panel in the building short out (equipment breakdown). In general, faulty work, faulty products, or accidents on the job are some of the most common claims you’ll face. However, you should also consider some of the most common situations you deal with on a daily basis, many of which will be specific to your industry and business. A broker can also help you consider other situations that might come up to help find the right insurance for your particular needs.

5. Understand the Risks Without Business Insurance

The fact is that without business insurance, you’re risking your company’s finances, future and reputation. One helpful way to ascertain what type of coverage you need is to determine potential risks related to injuries or property damage that could result in legal proceedings and financial losses. Ask yourself if your business could survive the financial fallout from a lawsuit related to that risk. If the answer is “no”, you should consult with an insurance broker to find out how you can best protect yourself from any potential risks.

In addition to the peace of mind from having the proper coverage in place, one of the other big advantages of business insurance is having a professional to represent, investigate on your behalf and defend you—something that would otherwise take time and resources away from your company. What’s more, a broker can provide expert advice on risk management to help ensure claims don’t happen in the first place. Ultimately, the best way to find the right business insurance is to speak with a qualified insurance broker who can help you navigate the complexities and requirements of this unique product.

To learn how business insurance can protect your company, contact Rogers Insurance today for a FREE quote.

* This blog is meant to be advisory in nature and should not be relied upon as legal advice or a definitive statement of law in any jurisdiction. Rogers Insurance assumes no liability for any actions taken as a result of information contained in this blog. For more details on anything discussed in this blog, consult with a Rogers Insurance representative.

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