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6 Benefits of Small Business Insurance

You likely have home insurance for your house and car insurance for your vehicle, but what’s protecting your small business? Small business insurance or commercial insurance helps safeguard the assets in your business. 

At the very least, small business owners should get started with a Business Owner’s Policy (BOP). A BOP usually includes three basic types of coverage: general liability, commercial property coverage, and business interruption coverage. 

These three coverage types are vital for small business protection, but there are many more you can add on. Small business owners can purchase extra coverage to customize their policy based on their business needs.

If you’re confused by the different options or are unsure of what type of coverage your business requires, then we’re here to help. Read on to see what an insurance policy from Marathon Insurance Group can do for your small business.

1. Gives clients confidence

Small business insurance doesn’t just protect the business from incurring hefty losses; it protects their clients too. Insurance coverage can help appease an upset client and reward them with compensation if anything goes wrong. 

It can be helpful to remember small business insurance is a safeguard that helps build trust—sort of like a bank vault. 

Would you deposit money at a bank without one? The bank teller could spend all day trying to convince you that your money will still be safe, but you’d likely still look for another bank. 

People often work with businesses when they trust them. Small business insurance can thus help build that trust for new customers and turn them into repeat clients.

2. Shows your employees they are valued

Your clients will only stick around if they trust you, and your employees will only stay if you show them they’re valued. You can show that value as a small business owner by offering a benefits package.

Recent data shows that 83% of employees say that their health insurance plan was a strong incentive for them to stay with their employer. 

Small businesses usually pass on benefits packages because they can be an expensive addition to their insurance plan. Talk to one of our experts to find a comprehensive yet affordable option for you.

Small business insurance can help your business if employees are forced to stop working. If you lose a key employee due to unexpected passing or inability to work, insurance can help you remain financially secure while finding a replacement.

3. Offers liability protection

Large companies do their best to provide high-quality goods and services that consistently meet or exceed expectations. Small business professionals can also offer that same quality of work, but it’s usually a bit more of an investment.

However, what happens when your business fails to meet your client’s expectations? If you’re unable to resolve the issue quickly, it typically results in a lawsuit.

Liability coverage or professional liability insurance can cover a percentage of the costs incurred from legal fees. These could include unexpected costs like legal fees or settlement payments. If you start your business without insurance, you’ll be paying for many of the fees out-of-pocket or with business revenue.

4. Preserves your business

This is important if you run a small business with a physical storefront. Your small business insurance will cover your brick-and-mortar assets from fire or other natural disasters. 

If you own the building, insurance can help you pay for repairs and cover the loss of equipment and tools. Items like writing utensils can be easily replaced, but office furniture or computers are much pricier. 

If an incident forces you to set up shop in a temporary location while repairs are being completed, then insurance can cover those costs too. 

It can also be used to cover lost income up to a certain amount. 

Make sure that your coverage limit is great enough to cover all potential damages; you’ll have to pay for part of the cost if it isn’t. A policy with commercial property insurance will also protect you in the event of theft.

5. Plans for the future of your business 

When it comes to your business, you’re always thinking ahead. When it’s time for you to pass the reigns on to someone else, though, small business insurance can make the transition smoother by:

  • Settling liabilities 
  • Naming beneficiaries 
  • Covering estate taxes 

Knowing how their business will be managed in their absence gives business owners the time they need to focus on the needs of the business in the present day. Having a plan in place will ensure that all of your bases are covered even in the future.

6. Guards customer information

With the ongoing pandemic, many small businesses have had to move their operations online. Unfortunately, small businesses are the most susceptible to cybersecurity attacks because of their weaker safeguards. 

If you can’t afford the software that big companies like Apple or Google use to protect user information, then you’ll definitely need cyber insurance. 

Small business insurance with cyber coverage protects against data leaks and can pay for your business’s legal fees after a breach.

Other Business Coverage Plans

We’ve already looked at what is commonly covered in a BOP, but here are a few more coverage options to consider adding on:  

  • Disability Insurance: Covers loss of income for employees that results from a disability incurred in the workplace.
  • Auto Insurance: This is the only insurance that a business must have in Canada (if you have a work vehicle, of course), and can cover damages or loss of a company vehicle.
  • Product Liability Insurance: If one of your products is faulty or causes injury to a customer, then you could be in for an expensive lawsuit. 
  • Umbrella Insurance: As the name suggests, this insurance covers various incidents. If you submit a claim that is not fully covered by a particular policy, then umbrella insurance can cover the difference.

Getting Small Business Insurance in Toronto

Our insurance experts at Marathon Insurance Group can get you set up with small business insurance in Toronto in three steps:

1. Your quote

The first step is to figure out how much insurance you need to cover a loss or liability. A Marathon Insurance Group broker can help you find that number by looking at annual revenue, the number of employees, and your industry’s products or services.

2. Custom coverage

The coverage requirements for small business “A” may not work for small business “B”. With all the different types of coverage available, you’ll want to make sure that your policy is tailored to your business.

3. Management options 

The needs of a small business can change from day to day. Therefore, it’s important that your insurance policy can change with it. 

The Marathon Insurance Group app lets you view and access your policy 24/7. As well, our brokers are available when you need to file a claim or upgrade your coverage.

As Canada’s most trusted insurance brokers, the Marathon Insurance Group team knows all about small business insurance in Toronto. To find a plan that will work for your business, call us at 844-429-0837 or click here to send us a message.

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