Your Business, Your Dream
When you decide to go into business, you have your reasons, hopes, and dreams for how you want to provide for your future and your family.
You have everything mapped out. You have taken out a loan from the bank to make it a reality, scouted a location, and leased property. There is support from family members and friends. You are making your dreams come true.
Bank accounts are opened, websites and email accounts are created, and agreements are in place with vendors and perhaps even some staff. You open your doors and start operating and serving real people.
Then, it happens; the unthinkable. A fire, a cyber attack, robbery, or a natural disaster occurs, and you have to close your doors temporarily.
You sit back and watch your dreams go on pause, with staff expecting wages, customers expecting products, and nothing you can do.
Running a business in any capacity has many behind-the-scenes factors and risks that, as a business owner, you need to think about.
Fortunately, there are insurance policies out there to help in the event that the unthinkable does happen, despite all your best efforts. Small businesses are at a higher risk, as costs are a large factor to consider, so many people may not have all the right coverage.
In this article, we’ll review the top three risks and reasons to have small business insurance in Toronto.
1. A business interrupted
Anything that can stop your business from running properly is an interruption. This could be a fire, severe weather, a natural disaster, or, more recently, a pandemic.
Any temporary closure has a severe knock-on effect that can cost large businesses thousands of dollars. For a small business, though, it can cost even more.
With the recent pandemic, we have seen many businesses change how they operate to remain open and serve their customers. The changes have included everything from curbside pick-ups to home delivery, as well as social distancing in-store and mandatory masks and vaccinations.
However, this wasn’t possible for everyone, forcing many businesses to close when they were still trying to make the necessary adjustments.
Other interruptions could be natural disasters, earthquakes, tsunamis, and sudden blizzards that cover entire buildings and close down transport services and roads. A fire can destroy property, warehouse, and stock.
This can all lead to a temporary or permanent closure.
Cyber attacks can also cause disruptions. This is especially harmful if you are working from home, which several small businesses are now doing. This attack can result in stolen sensitive or confidential information, such as your business bank details.
Hackers can have a lasting impact on your reputation, making it even harder to recover from than any financial loss.
Hackers can post harmful information on social media, leave bad reviews, and target your clients and partners. Trying to explain to your client what happened can be embarrassing and awkward.
Small businesses may not have the financial means in the beginning to afford the latest in online security or even property security, so they are often targeted.
However, making sure you spend a little extra at the start of your business on security and the right insurance policy can save you a lot more money down the road.
2. Not all coverage covers
Working from home appeals to so many people, notably since the pandemic. However, your home insurance may not cover your business in such a case.
Your personal insurance may not actually cover things like your workspace, computers, and printers. Perhaps you make the product from your home, or your garage is your warehouse to store supplies and other materials. Your kitchen is now your factory, and your spare bedroom is the office.
However, what happens if a water pipe bursts and floods the spare room, or the sewage pipe bursts and floods your basement, where you store extra product?
Was it something you were working on that caused the damage to the home? Did you set the kitchen on fire while baking bread or damage the roof in the garage with a forklift?
Should there be any damage that your home sustains for any reason, your personal home insurance may not (and probably doesn’t) cover anything related to your business.
These are all things to consider. Therefore, it’s worth taking out a separate small business insurance policy that will guarantee coverage for any and all business-related claims.
It may be another expense, but it is one that will make a difference should anything happen.
3. Take the loss out of the liability
Property damage and injury to staff or customers can be expensive. From medical bills to construction costs, liability insurance is an absolute must for any business, including small businesses.
While we hope and pray that we will never need it, should there be an injury at work on location, or damage to someone else’s property in any capacity, the loss can be more to you than to the other person.
Even being unable to perform contractual obligations or order fulfillment can be a legal issue for which you are liable.
Small businesses are at particular risk here, as not everyone has the legal knowledge or expertise to fully comprehend certain circumstances and the legal aspects of the situations.
It doesn’t matter if the accident or injury happens on or off-site, liability insurance takes the question of who and what is covered and ensures that they make the right payments.
This also helps to maintain your reputation and shows that you look after your staff, property, and customers.
Talk to the Experts Today
It doesn’t matter if you have been in business for a day, a week, or even years. Talk to Marathon Insurance’s experts today about ensuring you have the right coverage for your small business.
Call us at 844-429-0837 and speak to a member of the team, and get your free quote today. Or, contact us online here.