What You Need To Know Before You Buy Business Insurance

Here is a business insurance guide so you can start

Operating a business in the greater Ontario area can be a risky venture. In fact, operating a business anywhere nowadays can be a fairly risky venture. Even some of the most successful and knowledgeable businessmen have made mistakes that ended up in bankruptcy or foreclosure. It really doesn’t matter what type of business or the size of the business that you are running, there is always so much to consider. You have to think about how to win over customers, keep employees happy, and how to turn a profit. With that being said, these are all things that you as the boss might have control over, but there are things that can happen that are completely out of your hands. This is where business insurance Ontario can come in handy.

 However, business insurance is by no means an easy topic to understand. There are a variety of different providers along with tons of different policies. You might not know which policies you need, or how to even go about applying for a policy. Below you will learn everything that you need to know before you purchase your business insurance.

How Ontario Insurance Providers Gauge Their Customers

While there are tons of different business insurance providers available in the Ontario area 99% of companies stick to similar practices. For instance, an insurance company’s price is going to be based on the type of risk that your company poses. For instance, if you run a crane operating business, which is considered fairly high risk, you are going to be charged higher premiums for insurance coverage. However, if you are considered a lower risk company, you won’t have to pay as much for coverage. It doesn’t matter what type of commercial insurance policy you seek out or the provider you decide to go with, all insurance providers are going to gauge your company in this manner.

In addition to this, there are a variety of other factors that can determine one’s insurance premiums as well. The amount of experience that you have in your chosen field of operation can even play a role in your cost, your personal credit history, and even the location of your business can come into play.

Finding The Best Insurance Policy For You

As a resident of the Ontario area you are probably already fairly familiar with renter’s insurance and automobile insurance. However, business insurance is a lot more complex, as there are a variety of different policies available. While your business might not need every type of policy to ensure that it is risk free, it is highly likely that you will need at least 2 or 3 policies to make sure that you are completely covered from the risks.

  • General Liability Insurance – It doesn’t matter what type of business you are running, the size of the business, or where it is located, general liability insurance is a must for any business owner. General liability insurance will cover legal liabilities that are the result of injuries, accidents, or negligence claims. This type of policy will cover medical expenses, legal defense, settlements, slander, and property damage.

  • Product Liability Insurance – This is a type of insurance that specifically covers companies that manufacture and distribute products. For instance, if you are manufacturing children’s toys in your basement and selling them online or to the local public this is a type of coverage that you want to invest in. If a child happens to choke on one of the pieces or has an allergic reaction to the materials that are used in your manufacturing process this policy will come in extremely handy. Keep in mind that when purchasing this type of policy, the type of product that you are selling can make a major difference in the cost of your premiums. For instance, electronic manufacturers are always considered higher risk businesses as compared to any other product manufacturer.
  • Error And Omissions Insurance – E and O Insurance policies are specifically designed for companies that offer a service to the public. In fact, in some regions of Canada, you might be required to purchase this policy before you are even allowed to operate. E&O insurance covers you in the event that you or one of your employees makes a mistake that results in financial losses to the customer. For instance, as a doctor if you prescribe the wrong medication or recommend treatment that results in further harm to the patient E and O insurance will cover the financial losses that are incurred by the patient. If will also cover you in the event that the patient tries to sue you for the mistakes that you or your employees made.

  • Commercial Property Insurance – If you own a physical brick and mortar store with business equipment this is going to be a type of policy that you do not want to overlook. Commercial property insurance covers the cost of your building and equipment in the event that it is vandalized, stolen, or damaged during a natural disaster. Along with this, the policy can also cover any income or any interruptions that are made to your business if you have to close your doors for a certain period of time. For instance, if a tornado wrecks your store and forces you to shut down for 2 weeks while repairs are made; this policy can cover the financial losses that you experience during your time of closure.

Purchasing Different Policies

Before you start picking what policies you do and do not need, you need to be aware of the fact that some areas in Canada might require minimum levels of coverage for certain policies before you even start your business. In addition to this, you have the right to purchase as much or as little coverage of each policy as you want. The most important thing is to make sure that you are following the law and protecting your business in the best manner possible. So, always weigh your risks to determine what type of coverage you need. This is probably something that even a good and dependable insurance provider could go over with you.

Don’t Forget To Shop Around

Now, that you know the types of policies that you need and how much coverage you want, you will be ready to select a provider. Just be sure to shop around and get several different quotes from a shop for insurancevariety of business liability insurance in Ontario, Canada companies to ensure that you are getting the best rates possible. With that being said, just because a company is offering you the lowest premiums and monthly payments it truly does not mean that they are your best fit. Some providers will offer more of a customized package, whereas other providers just offer general coverage. Depending on the type of business that you are running, a more customized package truly might be your best fit.

Just keep in mind that not every business needs to be protected from every single type of threat.

Always Stay Aware And Up-To-Date

Getting covered is just the beginning of the process. Over time you are going to have to review your policies, read the fine print in your contract, and make sure changes aren’t made to your policies. It is possible that it might turn out that you thought you were covered for a certain event when you actually weren’t covered. While this is never a fun or exciting process, it is necessary because there could be a crucial detail missing that could be the difference in you being and not being covered.

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Check Out Different Business Insurance Policies For The Best Deal

How to start looking

Keeping the subject of business insurance policy aside, even if you buy any small thing, you will check thebusiness insurance policy canada same thing at different shops so that you can save some money, even if it is simple nail paint. So, when it is such an important thing as business insurance policy, you need to play it safe. You must check out various types of business insurance policies that are available for you to pick from. The easiest way to do this is by either going online and looking for brokers or to simply call insurance companies you have heard off in Canada. Almost every broker and insurer offers this type of insurance so it will never be hard to find a provider with competitive rates and packages.

For claims

The first type of policy is for compensation claims. It definitely is a mandatory policy that any business owner would buy. It offers coverage to all employees in case of any accident that may happen during working hours. Another inclusion would be official trips that would be insured too. Now let us see why it would be a need for your business. This policy takes care of your legal responsibility about the employees who are at work in your office or on a tour. Furthermore, when your employees are insured, they have a great sense of security in their mind and they would be able to give better output at workplace, without worrying about anything else.

 

For suspension

Next type of business insurance is in case of any suspension. This insurance is coverage in case of any natural disaster or human error. So, you will get support in your business and make it stand after the disaster. Your business insurance policy will help you in covering utility costs, bills or the taxes that you will face after the peril. A business person would know that even if the business is non-operational at the moment, then too there are many types of expenses that need to be cleared from time to time. For example, if your business suffers a fire disaster, even then, you will have to pay electricity bills and/or water bills etc.

Automobiles & company vehicles

company auto insurance

Last but not the least; you have automobile insurance as one type of business liability insurance policy. Every business has some or other vehicle. It may be for employees or for transportation of goods. What you should know is that this business insurance policy covers the business vehicle only if it is damaged during working hours. If the vehicle gets damaged during any disaster while the vehicle was put to personal usage, then no coverage would be given.

Another thing to worry about – Employees driving and you being at risk for them

Your employees can easily turn into a liability for your business. One mistake from them can cost you thousands if not more. The most common type of claims that occur because of employees is automobile insurance claims. It is likely that if your business has vehicles, then one day your employee will drive that vehicle for some sort of business related work!

Now imagine that worker running over a pedestrian or T boning another vehicle while make a right turn. Weather they are at fault or not, they need to be insured under the business insurance policy as one or both of the parties will be making a claim since there would be damage. If your business was not insured properly and your employee was at fault, then you the business owner would be paying out your own hard earned money to pay for the damages plus legal cost for the party that is suing your employee or in other words your company.

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Exploring The Risks Of Not Having Errors And Omission Insurance Coverage

As an accountant in the greater Ontario area, you probably often find yourself dealing with 6 and 8 digit figures. However, as you know all too well just one little simple miscalculation on your part can throw the all the calculations off. A miscalculation could make it look like your client’s company has more money coming in than it actually does, which may eventually lead to overspending. While you are probably already familiar with business liability insurance, which protect you against property damage and bodily injury, you may not be familiar with error and omission insurance.

Error and omission insurance is also known as professional liability insurance. It covers public service providers, in the event that they make professional mistakes or accidentally overlook something. The above scenario is a perfect example of when professional liability insurance would come in handy. While error and omission insurance may seem more like a nuisance than a necessity at first, as an accountant this type of coverage can come in handy, and without it, you can potentially face dire consequences.

Facing Court Costs And Lawyer Fees

Error and omission insurance can be helpful, when you find yourself in a court of law disputing a claim. Even if your work is found up to par and all of your calculations were exact, just imagine all the time that would be spent in court disputing this claim. Sometimes these types of cases can last months and even years. The lawyer fees and court costs alone could cause any single-man operation or small company into bankruptcy. However, with the right errors & omissions insurance ontario policy, you wouldn’t have to worry about paying these fees, because the policy would cover all the court and lawyer costs, along with the settlement.

If you are found at fault, which sometimes happens, the policy will still cover your litigation fees, as well as the settlement costs. However, you need to keep in mind that the total judgment amount depends on how much coverage you have. If the total amount of the ligation fees and settlement exceeds your coverage limitations, you will have to end up paying out of pocket for the rest. So, not only is error and omissions insurance important, but the amount of coverage that you have is important, as well.

Damaged Reputation

Any type of claim, filed by a client or customer can ruin a company’s reputation. When a customer files a claim against a company, it can have negative effects and it does not matter if the claim is legitimate or frivolous. If the issue can be resolved with a few tweaks, it will be in the accountant’s best interest to resolve the issue as soon as possible. Of course, this is not always the case, because one minor calculation error could potentially cause a client to lose a lot of money. Most accountants will not have the funds on hand to cover the reimbursement cost, so the client will hire an attorney and file a lawsuit.

If the judge finds in favor of the complainant, the accountant will be left in a devastating mess. This finding will ruin the accountant’s reputation and potentially their business. Consumers will refuse to do business with an accounting firm that has a poor reputation. In fact, the court case and decision will probably end up in the local newspaper and on the local news network. It is extremely difficult to overcome such a tragedy, but not if you are covered with errors and omissions insurance.

Bankruptcy

When one thinks of a lawsuit, they do not give much thought to the litigation fees. The defendant in a lawsuit will need to hire the best lawyer they can afford. Of course, litigation fees are not cheap, but can run anywhere from $200 up to $1,000 an hour. This is money that most people do not have on hand. However, as a business owner, you will need to do whatever is necessary to hire the best attorney possible. When you combine the settlement, judgment and litigation fees together, this will be a large lump sum of money. If the accountant is not covered under an E&O insurance policy, they will be forced to pay these costs out of pocket.

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Learning All About The Surety Bond Market In Canada

An Introduction to bonding

Are you a Canadian resident, who wishes to open a business and start serving the public? If this is the case, you may very well be required to obtain a surety bond, before you’ll be able to move ahead. This is unfortunate for many Canadian citizens, since they’ll be completely unaware with the surety bond market within their home country. The good news is that surety bonds aren’t all that complicated, once you get to know them a little better. Below, you’ll be able to do just that.

What Are Surety Bonds?

There is often a misconception that surety bonds are a form of insurance. This simply isn’t true. Although they do work somewhat similarly to insurance, they’re technically different. So, what are surety bonds? Well, they’re a type of contract, which involves three parties. Within the arrangement, one parties is responsible for delivering a service to another. The provider is the principal, while the receiver is the obligee. And finally, the third party is the surety. The surety generally stays out of the way, unless a claim is made against the principal.

Major Players In The Market

Now, you should understand that it is possible to acquire surety bonds from several different companies or providers. In fact, the mass majority of Canadian insurance companies will also offer bonds. This is a good thing and slightly more convenient for many, but the experts recommend finding a provider, who is completely dedicated to surety products.  This is the case, because the latter will be more knowledgeable in regards to surety. They’ll be able to serve your needs better and will be able to guarantee that you find the lost price possible.

The PurposeGetting Surety bonded in Canada

There are many Canadians, who have used surety bonds for many years that still don’t understand their purpose. The truth of the matter is that there are numerous different types of surety bonds and each one will serve an individualistic purpose. In some situations, the bond will help to protect the public from fraudulent or devious companies. On the flip side, it is also possible for the bond to protect a singular group, company or event the federal or provincial government. Aside from offering protection, the bond will also serve the purpose of keeping professionals and companies on the straight and narrow and discouraging abuse.

Overall

Surety bonds are very complex in scope. However, when broken down into single products, they’re fairly simple and much easier to comprehend. By working with your surety provider, you’ll be able to better learn about your needs and your options. Be sure to do so, before handing over your money!

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