Why do I need business insurance?

by Aug 9, 2018Small Business

As a business owner, you may have many assets for example equipment, vehicles, inventory, a key employee or partner, and yourself just to name a few. Because of these assets, it is important to protect your business from any possible risk.

There can be any possibilities that can happen when running a business like theft, lawsuits alleging negligence, a faulty product or the death or injury of a partner. Imagine if one of the partners dies or becomes disabled? How would you deal with this emergency? Would you have enough money to deal with such emergencies?

If you answered “No,” it is time to consider getting business insurance to protect your business. Any business owner understands that it is essential to have some form of business insurance coverage, while at the same time, some specific coverage is often legally required depending on the nature of your business (For example WSIB is mandatory in Ontario).

In this post, we will look at insurance for owners, partners and key employees, however insurance needs can vary. It is best to contact me to see which services will match your specific business.

  1. Life insurance — Protects your family in the event that something happens to you. You would want to look at this especially if your business is a sole proprietorship because you as the owner are liable for all the debts of a business.
  2. Disability insurance —  Many entrepreneurs have life insurance, but they neglect disability insurance. The reality is that the odds are much greater that you will experience a disability during your working life than that you will die prematurely. Disability Insurance will provide you with income for a specified period of time if you are unable to work due to illness or injury.
  3. Partnership insurance or buy-sell insurance — Small businesses even sole proprietorships and joint partnerships are potentially immortal entities. The owners, unfortunately, are not. That’s why many small businesses consider getting a partnership or buy-sell insurance. If your business partner passes away, partnership insurance will allow you to purchase the shares and continue operating the business.
  4. Critical illness insurance — Provides you with a lump sum benefit, if you are diagnosed with a critical illness.
  5. Key person insurance — The loss of a key person (an individual whose knowledge, creativity, inspiration, reputation and/or skills are critical to the viability or growth of an organization, and whose loss may cripple it)  can devastate your business and your livelihood. This type of insurance can help protect your business and your family from potential risks. If you count on certain key people to help run your business, protect yourself against the loss of these key employees.

You work hard for your business, contact me to find how we can best protect it by finding the right business insurance solution for you.

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