Tuesday, July 5, 2022

What Is Small Business Insurance?

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In Calgary, 95% of the business population are small businesses, and 92.5% of which have less than 50 employees. So if you own a business, make sure to get small business insurance in Calgary.

Starting a business is no joke, and usually, new entrepreneurs pour all of their resources into running their business. It is a must to protect your business from anything that keeps it operational.

What is small business insurance?
Business owners who plan to start a small business need a BOP, or business owner policy, to protect their business assets, property, and income. Usually, a BOP covers the three necessities to safeguard a business; these are:

Business property coverage
Whether you own or rent the property where your business stays, you need protection from any possible damage from natural causes, fire, or break-ins. That’s when you’ll be thankful for business property coverage.

Should you need assistance with repairs from any of the aforementioned occurrences, your policy can cover the costs. Business property coverage also protects some of your business assets, like machinery and computers, and even replaces your business’ furniture.

However, this policy is subject to limits and deductibles. If your losses go beyond the allowable coverage, you will have to pay the excess costs.

General liability coverage
Typically, a BOP includes general liability coverage. It is helpful when someone within the premises of your business gets injured and proves that you’re liable for the damage; your policy can help you cover medical bills and or legal costs that may go with it.

But, again, like business property coverage, general liability coverage has its limitations. If medical and or legal costs exceed the allowable coverage, you will have to pay out of pocket to cover the remaining bill.

Business interruption coverage
Also called business income coverage, this policy helps you recover from income loss. For example, businesses affected by the COVID-19 pandemic whose operations have been interrupted are covered by this policy.

Other instances, such as repairs that interrupt your business operations, are covered. But, keep in mind that this policy is also subject to a time limit or is only viable for a limited time. To find more about this limit, you may ask your agent.

However, insurance policies offer a lot of other policies that your small business needs. It is up to you to determine which ones you want to include for your complete protection.

What does small business insurance cover?
A coverage limit is a maximum amount your insurance company will pay for an insured claim. On the other hand, a deductible is an amount you pay toward a covered claim.

Depending on the type of coverage you choose, your BOP protects your business from financial losses and anything terrible that may happen to it, such as theft, fire, lightning, and other things that may cause damage to your business’ property.

However, there is a limitation to coverage in your BOP, and some may come with a deductible.

Finally, small business insurance policies have more to offer than their disadvantages. Costs may also vary depending on how you customize your policy, which means the other aspects of your business that require insurance.

It is essential to know your business well and plan how you can protect yourself, assets, and employees before getting a BOP.

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