Business owners face a unique set of challenges and opportunities when it comes to the management of their
wealth. Whether you have a sole proprietorship or a corporation, protecting your business from a number of key
risks is critical to your continued success. Insurance-based solutions have an important role to play in mitigating
the financial impact of several of these, such as the loss of a key emInployee or shareholder, the loss of personal
income and the high taxation of corporate investments.
It’s also important to regularly revisit your insurance coverage, especially if your business situation changes significantly.
Here are the main types of insurance that entrepreneurs should consider.
Life and disability insurance—Life and disability insurance policies are important for entrepreneurs so their family and business isn’t at risk of financial hardship if you can’t work for health reasons or pass away.
While many entrepreneurs have life insurance, they neglect disability insurance. However, the odds are much greater that you will be disabled during your working life than that you will die prematurely.
Property and liability insurance—This is actually two kinds of insurance bundled into a single package—property insurance and comprehensive general liability insurance. Banks often require a business to have this type of coverage when getting a business loan.
Property insurance covers loss of business assets such as buildings, inventory, materials, equipment and furniture.
Comprehensive general liability insurance covers injuries and property damage that occur due to a company’s negligence on its premises or involving an employee. It also covers damage that a customer experiences due to your defective product or work.
Business interruption insurance—If a fire or other calamity forces your company to temporarily stop operations, business interruption insurance covers your lost income.
Combined commercial insurance—Also sometimes known as a business owner’s policy, combined commercial insurance is a tailored package that can include a variety of coverages—for example, property, liability, business interruption and supplementary insurance for “goods in transit".
Key person insurance is a term insurance policy on the life of a key employee. In the event of the employee’s death, the business receives a lump sum, tax-free payment which can be used to hire an experienced replacement
or to deal with cash flow issues caused by a disruption to the revenues or operations of the business.
Consult with Doug Shaw at Bayside Financial in Barrie and create an insurance plan to protect your business.