Business insurance is flexible, customizable and comprehensive. But it is also a bit hard to understand. That’s why we often rely on others to explain how it works, and it’s easy to turn to friends and colleagues, not the experts.
At Lane’s Insurance, we have a staff of experienced insurance brokers whose job it is to fully understand the policies of not just one company, but several of Canada’s best providers, in order to ensure you and your business are accessing the very best coverage available for your company. We strongly suggest if you have any questions about your business insurance coverage that you contact us, the experts of the industry. It is imperative that you fully understand your business insurance package to protect your hard work and your family legacy.
As we speak with our clients, we have come to understand the most common misunderstandings about business insurance. Here are a few of the most important.
- Basic business insurance will save you from hackers.
We all know how hard it is to avoid the dozens and dozens of traps that hackers set up to trap us every single time we log on to the internet. You have to be very, very careful to not absent-mindedly click on a link, open an email without thinking, or download an attachment that comes from a suspicious source and that is loaded with malware. Multiply that risk by the number of employees you have and there is a high probability that your business will be hit at one point or another.
Your regular business insurance will not protect you from the financial pitfalls associated with falling prey to a hacker. Cyber insurance is absolutely essential for all businesses. About 70% of all Canadian business owners have already been victims of a cyber attack, with the average cost per incident tallying up to $15,000 for retrieval of lost data or the ransom paid to the hacker to provide you access to your computers and network again. Cyber security should always be top of mind, and ensure your employees are well-trained on what to look for.
- Your home insurance will cover you for your home-based business claims.
Lots of Alberta’s entrepreneurs work from their home, which is extremely convenient, but also places you at different kinds of risk. Basic home insurance is not designed to cover commercial property and equipment. If you keep and use specialized or expensive equipment in your home as part of your business activities, you should consult your insurance broker to make sure you have the right type of protection in place. In addition, your home insurance will not cover you for liability for home-based commercial practises. You will require professional liability insurance.
- Your personal auto insurance will cover you
Your regular auto insurance coverage does not cover you for activities that are business related. This means that if you are in an accident while using your personal vehicle for your business, your claim could actually (and legitimately) be rejected. If your vehicle is registered underneath your business’s name and used mainly for business purposes, a commercial auto insurance policy is warranted. If you have a home business but rarely leave to visit customers or clients your personal insurance policy is likely good enough. In either case, definitely speak to one of the expert brokers at Lane’s to ensure you have the right coverage. Some questions to ask yourself if you are trying to figure out if you need a commercial auto insurance policy are:
- If all you do is consult and advise, you don’t need Errors and Omissions coverage
Let’s say you provide advice to a client, who then puts that advice into action. Unfortunately, it fails. That client could then sue you for losses incurred.
Bluntly put, all business owners are at high risk of liability, and all businesses should invest in Errors and Omissions insurance. Errors and Omissions insurance is generally a component of a larger business insurance package that works a lot like liability coverage for a personal insurance plan. Errors and Omissions insurance is also often called professional liability insurance, as it provides a high level of protection against litigation and financial loss due to your business’s actions.
- A way to avoid being sued it to just close your business
Not only is this just wrong, it’s also unethical to even think this way. Plus, in almost all cases, once a business is dissolved it will still “exist” to allow for claims to be settled. In order to avoid a liability claim in the first place, establish the right training, policies and procedures and stipulate they be followed by everyone.
Speak with an insurance broker to ensure your commercial liability coverage is robust enough to cover the size of a lawsuit you may face, and keep your assets in the bank once you have closed your business in the case of a lawsuit being filed
Trust Lane’s for All of Your Business Insurance Needs
Life is full of surprises, and not all of them are good ones. You’ve worked hard to grow your business, and you need to protect that investment with the right business insurance policy.
A sampling of some of the business insurance policies available through Lane’s are: