A business insurance plan is an excellent way to minimize the risks to your company or organization. The policy helps insulate your properties and assets from litigation, crime, income loss, accidents, and natural or man-made catastrophes.
A small mom-and-pop store has a small financial wriggle room to operate such unexpected emergencies could threaten its operations. So, you may believe everyone is scrambling to secure their operations from all internal and external threats.
Sadly, organizations still deal with prevailing myths regarding a commercial plan. Below are only a few of them:
The policy is expensive
While a business insurance plan will never be a hand-out, you get the most value for your investment. Being proactive is only good common sense, especially when you don’t have the resources to deal with the aftermath of a lawsuit, natural disaster, or accident claims.
For instance, a small company can expect to pay between $500 to $2,000 annually. Break those numbers down into 12 months, and you will see that it’s not as expensive as you think. In addition, you can customize your policy depending on the establishment’s needs, so you don’t pay as much.
General liability insurance is adequate
The plan is not all-encompassing, so it won’t cover every facet of your business. Essentially, the guarantee is limited to damage or injury to a third party.
So, for instance, it won’t cover any harm to the employees. Another area points to product liability, which guarantees security against loss in case customers develop an adverse reaction from the food at your restaurant.
My business is at home, so my personal insurance is enough
An individual or home protection plan is separate from your business. Although technically, both policies cover the same areas, they have very different premiums. The business insurance plan is typically more expensive, considering it carries more risks. In the same vein, even if an individual only works from home, they still need a general liability plan if they’re seeing regular clients.
My auto protection remains adequate
If a person uses their personal car for business, they may find themselves grappling for funds once the insurer rejects the claim. It’s because your protection only covers personal errands like driving the kids to school or going grocery runs. You can’t use your vehicle to deliver products, for example.
I’m too small to be sued
Another mistake for owners is to think that people would be more forgiving on account of their operation size. Just think of it this way: people secure health insurance to avoid medical bankruptcy, so there’s no reason why you also should not give your business a blanket of protection.
Unfortunately, the west is typically a litigious society, so anyone can sue anybody just for anything. Small enterprises are the top targets since people know that large corporations have the resources to delay the case forever. A community store cannot afford the lawsuit to drag on, so they have no choice but to settle.
Operating a small business is inherently tricky since the odds are against you. According to the Calgary Chamber, Calgary has the most number of small businesses per capita among Canada’s major cities.
Yet in 2019, more than 4 in 10 of 155 bankruptcies reported in Alberta were from Calgary. A business insurance plan will help you recoup some losses for affordable monthly or quarterly rates.
