General Liability Insurance
As a general rule of thumb, general liability insurance is something all small businesses should carry – whether they have been operating for years without incident or have just gotten started. General liability insurance protects you against liability claims if your business operations should indirectly or directly result in someone’s injury or damage to their property.
Commercial Property Insurance
Commercial property insurance works to cover your business property for damages resulting from fire, vandalism, theft, storms, falling objects, etc. This also includes detached private structures, like signage, fencing, landscaping, and even contents within the property, such as office supplies. If your business has a physical premise, it needs this coverage. Your building is very well imperative to your business’ function. If you work from home but have a warehouse with inventory, commercial property can still be of great help.
Errors and Omissions Insurance
Errors and omissions insurance, sometimes also referred to as professional liability insurance, is a special type of insurance designed for professionals who require that added layer of protection. E&O insurance protects professionals against claims of negligence, errors, and omissions resulting in financial losses. These allegations do not have to be true to result in a lawsuit, and they can cause tens of thousands, or even hundreds of thousands, in losses.
Small and medium sized businesses may pay anywhere between $500 to upwards of $1,000 per year for an average $2,000,000 general liability insurance policy. This figure doesn’t take into account additional insurance options. Costs may vary based on the following:
- Business size
- Business location
- Number of employees
- Annual and projected revenue
- Years of experience
- Insurance claims history
It is not required by law that you purchase business insurance in Ottawa; however, it is recommended because it protects you from costs associated with lawsuits, repairs, etc. That being said, E&O or professional liability insurance is sometimes required for various industries. As an example, accountants and lawyers must carry some level of professional liability insurance to practice in the province of Ontario.
Unlike personal insurance policies, like home and auto, there’s no standard business insurance policy because every business has different needs. “Business insurance” is a term used to describe the most common types of insurance that business owners may buy to cover third-party claims and liability lawsuits. General liability insurance and commercial property insurance are two of the most common coverages, and they cover your business against liability (if you’re responsible for injuries or damages due to your operations) and the physical structure of your business.
Your business insurance coverage will not cover anything that is not listed on your policy, and it generally will also not cover intentional actions, criminal activity, contractual liability, cost guarantees, or cost estimates that you provide. It may also not include coverage for your employees and/or yourself, as it is designed to provide coverage for incidents involving third parties.