June 13, 2012 — Between growing the business and keeping things running
smoothly, insurance may be the last thing a small business owner has
time to worry about.
Yet running a successful business has everything to do with making sure
you are prepared for any type of risk - especially during an economic
downturn. Failure to do so can lead to lost business opportunities,
additional expenditures, and even bankruptcy. Most large businesses
understand the multiple risks involved in their daily operations, but
smaller businesses may be overlooking important considerations.
What are the greatest risks facing small businesses? According to small
business insurer RSA Canada, these are the top 10 most common insurance
claims that small businesses face:
To ensure that the right coverages are in place, RSA advises small
business owners to talk to their insurance broker about how coverage can
be tailored to suit their business's unique needs.
- Fire and smoke damage.
- Water damage as a result of backed up drains and burst pipes. This
can have a severe impact on a business, especially in cases where
inventories or equipment are damaged.
- Break and enter in retail and commercial spaces.
- Delivery trucks labeled with in demand items may be attractive to thieves.
- Glass breakage due to vandalism, burglaries, high winds and hail.
- Damage from wind and/or hail. High winds can fell trees and rip the roofs off of buildings, sometimes leading to water damage.
- Slips and falls on premises and in parking lots.
- Injuries or illness caused by a product manufactured or even just distributed by the business.
- Theft or loss of tools and equipment from job sites or vehicles.
This can cripple a business that is dependent on having the tools to do
the job. Talk to your broker to ensure you have rental coverage, which
means that your policy will cover the cost of renting the lost equipment
while your claim is being appraised.
- Motor vehicle accidents. It’s important to make sure your business
has loss of use coverage in the event that a vehicle that is necessary
to the business is damaged.