Tuesday, 19 August 2014

How to Properly Insure Your Business

If there is one thing that every business owner should be aware of, it's how to properly insure their business. Here's why: We live in a very litigious world. Because of this, getting sued is a very real possibility. No scratch that -- it's a constant threat.

This is why Sharp Insurance and several other companies offer Grande Prairie commercial insurance policies. As we like to say, prevention is the key. No business is immune to lawsuits, regardless of whether they are founded or not. The unfortunate truth is that small business have even less tools and experience to deal with them.

So the question remains: If you own a small business, how do you go about preventing lawsuits? Of course you know that you need to insure your business, but do you know exactly what policy or policies would benefit you the most?

While we always recommend people to spend some time discussing this with their insurance broker, doing a bit of research has never hurt anyone. If you own a business, the first policy that you should look into is known as commercial general liability insurance. The IRMI defines this policy as:

A standard insurance policy issued to business organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability.
As an example, imagine a customer slipping and injuring themselves on your premise. In the event of the customer actually going as far as to file a lawsuit against you, not being covered under an insurance policy could well prove to be your business' downfall.

See where this is going? It is your responsibility, as a business owner, to do everything in your power to prevent such a scenario from happening. You did not build your business only for it to come crumbling down because of one simple mistake.

Of course, plenty of other commercial insurance policies are also available. If you rent or own your premises, you might be looking into purchasing a commercial property insurance policy. The latter covers your property from damage associated with various disasters. (Think fire and vandalism.)

Once again, your insurance broker knows what works best for you and your business.

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