As a startup entrepreneur, there’s every reason to protect your business against uncertainties. From property damage to car accidents, a disaster can hit anytime, and the only way to prevent heavy financial losses is by buying business insurance.
Many business insurance policies exist. However, as a startup in Edmonton, there are four vital ones you need to have:
- General liability insurance
- Business income insurance
- Vehicle insurance
- Home-based business insurance
We discuss them below:
- General liability insurance
General liability insurance covers a wide range of claims against your company, including personal injury, bodily injury, property damage, and product defects. It’s a broad coverage for general business risks.
Every business in Edmonton should have some form of general liability insurance as there’s a good chance of running into one of the myriads of liabilities it covers. Since the policy will vary depending on your business features and the tendency for liability, you should ideally get in touch with an Edmonton Insurance Broker. They can help find the most affordable liability policy that at least matches your business needs.
- Vehicle insurance
If your company has a fleet, those vehicles need to be insured to protect your business against liability in the event of an auto crash. At the very least, businesses should insure against third-party injuries during a car accident. In that case, your business won’t have to pay for the injured party’s medical bills and losses from your company account. Notwithstanding, comprehensive auto insurance will also cover damages to the company vehicle.
Granted, employees who use their own cars will be covered by their personal insurance during an accident. But the stakes are different if they’re delivering goods or services for your business when the accident occurs.
- Business income insurance
Suppose a natural disaster occurs, destroying a commercial property, the company and its employees would be unable to work and make an income.
Business income insurance covers loss of income suffered when there’s damage to the commercial property, leading to suspension of business operations. With the insurance payout, you and your employees may be able to weather the storm. Business income insurance is also known as business interruption insurance.
- Home-based business insurance
If you operate a home-based business, note that your homeowners insurance provides very limited coverage, and that’s if it provides at all. Some homeowners insurance policies do not cover business property or equipment stored in the home.
So if you work from home with valuable office equipment, it’s wise to purchase more comprehensive coverage through a homeowners policy endorsement or an in-home business policy. Otherwise, ask your home insurer to cover your equipment and inventory at an added cost to you. An insurance broker can also help you navigate the options and determine what’s best for you.
Final thoughts
Other business insurance policies are available, including Business owner’s policy, Professional liability insurance, and Product liability insurance. But as a startup or SMB, having the four major insurance policies discussed above are enough to get you up and running with peace of mind. Of course, nothing stops you from buying more coverage as your unique business requires. No two businesses are the same. Better still, talk to an experienced insurance broker to know the options best suited for you.