What kind of insurance does my Victoria small business need?
You’ve spent enough years perfecting what you do, learning how to run a business, and mastering client relationship management. You know you need insurance, but what type? How much? Insurance brokers often see businesses go under when they’re hit with an unexpected lawsuit. Perhaps customers accuse a company of producing a faulty product or that their negligent actions have caused bodily injury/property damage to a third-party or client. It’s not something we like to see, but it happens – and we want to do our best to prevent that by educating business owners on the kinds of small business insurance Victoria firms may need.
Every business is different, and it won’t help your budget to “purchase all the fixings” – as the more insurance coverage you have, the more you’ll pay. You’re going to want to purchase the right coverage, at the right level, to ensure you’re neither over-insured nor under-insured. But how do we do that?
Let’s start by reviewing some of the most common types of business insurance in Victoria.
Commercial Property Insurance
Commercial property insurance is property insurance designed to cover your physical property, its contents, and any outstanding structures related to its operations (like sheds, garages, fencing, and signage) from perils such as fire, vandalism, theft, lightning, etc. If you are renting your business property, some lenders will require you to carry some level of property insurance to guarantee that their investment is well looked after.
Commercial Vehicle Insurance
Commercial vehicle insurance is an important insurance coverage designed to protect vehicles that are utilized for business purposes. Vehicles can include cars, vans, and trucks. Even if some of these vehicles are personal vehicles from employees, which are also partly used for personal usage, you need a separate auto policy to cover them while they are in-use during company hours.
Commercial General Liability Insurance
Commercial general liability, also simply known as business liability (or even abbreviated to just CGL), is designed to protect businesses from liability claims arising due to bodily injuries or property damage suffered as a result of your business operations or on your business premises. CGL is considered the base coverage when it comes to small businesses, and it’s highly advised you purchase at least the bare minimum when it comes to this protection.
Business Interruption Insurance
If your business was to unexpectedly close its doors to conduct repairs or restore itself following an insurable loss, how would you generate income? Business interruption insurance covers your lost income, including things like bills, employee wages, rent, loss of income, etc. until you can re-open your doors again or until coverage has run out.
Workers’ Compensation Insurance
Workers’ compensation insurance helps cover you if your workers should ever be injured or fall ill while on the job. This coverage provides employees with benefits and services, while also ensuring they will not lose out financially during their period of recovery. Coverage for workers’ compensation insurance is typically mandatory in most provinces in Canada and states throughout the U.S., so long as you have at least one employee working for you.
Professional Liability Insurance
If your business is considered to be of a “professional” nature, wherein it performs a professional service or advice for revenue, then it may be required to carry professional liability or errors and omissions insurance (E&O). This type of business insurance protects Victoria business professionals from liability claims of a professional nature that could otherwise see your business out hundreds of thousands of dollars. Whether you are a lawyer, financial advisor or HR manager, professional liability can help protect you and your reputation.
How much coverage do I need?
The level of coverage you require is dependent on what your business does, where it’s located, its industry, and so much more. Your best bet is to work directly with a broker, one-on-one, who can get to know you and your business, what you do, and offer you advice based on your personal circumstances. Then, depending on your budget, you can choose the level of coverage that you and your broker decide is best for your business.
Purchase business insurance in Victoria through one of our Acera Insurance commercial insurance specialists today. As an insurance broker with roots planted firmly in British Columbia, we personally understand the needs of businesses here in the province and have risk management solutions tailored to protecting you and your company.