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Yes, you need insurance protection
for your small business





Yes, you need insurance protection for your small business
Getting the right insurance for your small business
How much does small business insurance cost?
What is product liability insurance, and why do you need it?



Your business plan is solid. Your product and/or service is in demand. You have financial backing. And your work ethic is unquestioned. So what’s missing?  
Small business insurance will help protect you from a variety of risks if you sell a product or provide a service to a third party in exchange for payment.

You may require small business insurance coverage when:
· You have a location where your product is sold, or clients visit for meetings.
· You handle confidential information, or could be the victim of a cyber attack.
· You're required to participate in networking events or tradeshows.
· A client could claim that your advice caused them a financial loss.
· You're required to visit a client's location or any other third-party location.
· You have equipment, furniture, inventory, etc. to protect from theft or fire.
· You or your employees need to operate a vehicle owned by your company.
· Your business's product or service could possibly lead to a customer suffering physical harm or
   property damage.

Even if one or more of these scenarios describe your business, there’s plenty more to consider:

Canadian consumers are knowledgeable.

Customers often know what they want - and don’t want from a company. As such, don’t be surprised if you’re asked for proof of insurance, as is common when signing contracts with larger clients or partnering with other companies.

With growth comes responsibility.

If your small business outgrows its surroundings, you may need to lease commercial space. Within the lease documents, you’ll likely find a clause requiring you, the tenant, to have insurance, including commercial general liability insurance. This type of coverage is designed to protect you, the insured, against claims where your operations, the services you provide, or the products you sell, have been responsible for third party bodily injury or property damage. Further, if you’re hosting or participating in an event, many venues will ask for proof of liability coverage.

Stuff costs money.

If you need to buy an expensive piece of equipment in order to build your product or provide your service, you’re going to protect it the best you can, right? Almost every small business relies on some sort of equipment to get the job done. So whether it’s your building, equipment, stock or commercial auto, etc., you should have insurance to protect the things that keep your business going.

Think about your reputation.

Building a strong reputation is an important part of owning a successful small business. Yes you want your company to be known for its expertise and excellent products or services. But more importantly, you want your company to be trusted. Not having proper insurance coverage puts you at risk in the event of a loss, and can threaten your reputation with your clients. For example, if you’re a plumber and a potential customer asks to see proof of your liability insurance coverage, to which you reply, “What’s liability insurance?”, they may reconsider doing business with you.

Still not convinced?

TruShield Insurance suggests a few questions you can ask yourself to be 100% sure that you need small business insurance coverage:
· Do I have enough money set aside to rebuild my business if I ever experienced a major fire?
· If I suffer a loss, can I keep my business afloat while I’m waiting for my replacement stock or product to arrive, or for my damaged equipment to be fixed?
· Can I afford the legal costs associated with defending myself and settling a liability lawsuit?
· If I suffer a loss, how many months can I go without business income while still meeting my financial obligations with my suppliers, employees or the CRA?

In summary.

Small business insurance will help protect you from liability, as well as help protect your property, vehicles, stock, equipment, tools, and more. Small business insurance should be an essential part of a disaster recovery plan so that your business can fully and quickly recover from unexpected losses. The right small business insurance policy will have coverage tailored to the risks unique to your business. And remember, no business is ever too small for insurance protection.

About TruShield.

TruShield Insurance is proud to work with Business Development Centre, who shares in our support of Canadian start-ups, entrepreneurs and small businesses. TruShield offers insurance solutions to help protect businesses from risks they may face today, tomorrow, or down the road. For more information, call a TruShield Advisor toll-free: 1.844.285.6910 or visit





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