Why you should consider having business insurance

(NC) Small businesses are the backbone of the Canadian economy, with 98 per cent of businesses being classified as such. Despite this critical role, many are exposing themselves to unnecessary risks. A recent survey uncovered that while nearly one in five small business owners say their biggest liability is having their business interrupted, almost 40 per cent of them do not have business insurance – a key tool in keeping their business operating and protected against financial loss should the unexpected happen.

“With over two million small businesses in Canada ranging in size, profits and industry, there is no one-size-fits-all approach to business insurance,” says Tang Trang, vice president of product and pricing, small business insurance for TD Insurance. “The unthinkable can happen and no business wants to close their doors to their customers. It’s essential that business owners find the right insurance policy that meets their unique needs and gets them back to serving their customers as quickly as possible.”

With business costs continuing to rise, it’s not surprising that 36 per cent of small businesses surveyed mentioned cost as a reason for not having insurance. “It can be tempting to forego insurance to cope with economic pressures, but for a small grocery store whose customer slips and falls on its property or a bakery who has to shut down due to significant fire damage, the financial loss could greatly outweigh the cost of protecting your business from the unexpected,” adds Trang.

As the economic landscape continues to evolve, so do business owners’ needs. Whether they are moving to a new retail location, buying new equipment or launching a new service offering, it is important for business owners to review their insurance policy regularly and speak with a licensed insurance advisor if they have questions.

In addition to proactively understanding the insurance needs of your business, there are many ways businesses can prevent having to temporarily close their doors:

• Establishing safety and emergency protocols and training employees on them regularly
• Conducting safety inspections and addressing any issues identified
• Installing anti-theft devices for their vehicle

When all else fails, whether you’re a solo accountant, own your own law firm, are a contractor or a professional photographer, having the right insurance in place could help safeguard your business and let you focus on what you do best.