Apart from wondering whether you even need insurance, as a business owner, you may also be asking how much such coverage will cost. This article examines the reasons for business insurance and describes the types of insurance products available. It also outlines some of the factors affecting the cost of insurance coverage.
As a business owner, consider the resources you use to carry out your day-to-day operations. These may include vehicles, office space, equipment and supplies, employees and, yes, even you.
Could your business survive if something were to happen to any of these? Do you have enough money to deal with any business emergencies that may arise?
Loss of key assets or personnel could devastate your business and your livelihood. Insurance protects your human and material assets from potential risks. Investing in the appropriate business insurance products is not only wise, but the investment could also save you from greater costs in the future.
There are various types of insurance available to help protect you—and your business—from potential liability.
It’s one thing to insure yourself and your employees: you must also protect your assets and premises. Doing so will help safeguard against loss of earnings in the event of disaster.
If you operate your business out of your home, avoid assuming that your home and property insurance policy offers adequate business protection. A home-based business insurance policy is the only way to ensure you’re protecting your livelihood. Ask a lawyer, accountant or your insurance broker for knowledgeable advice.
Employee error, faulty equipment and defective products can all hurt employees, customers or others involved with your business. The following types of insurance limit your liability and help protect your business from being sued.
Businesses exist to make money. You need to pay employees, vendors and suppliers. When customers don’t pay, you’re stuck footing the bill—without corresponding revenue. Credit insurance (sometimes called accounts receivable insurance) helps protect you should a client file for bankruptcy or otherwise refuse to pay.
There is no standard answer to this question. Every business has different needs and preferences. Cost of insurance depends on the products you choose, the amount of coverage you need and the area in which you do business.
Understanding the products available and the type of coverage they offer plays a key role in business planning and budgeting. Ask a lawyer or accountant to help you make best, worst and expected revenue projections. The team at Lift Legal is available—and happy—to answer any questions you may have.
Disclaimer:
The information on this blog and website is provided by Lift Legal for educational purposes only. It is intended to give readers a general understanding of the law, not to provide specific legal advice. Information contained in these pages should not be used in place of competent legal advice from a licensed, practising lawyer in Alberta. Furthermore, by using this blog and website, you understand that no lawyer-client relationship exists between you and Lift Legal.
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