Is Your Victoria Business Underinsured or Not Insured?

August 8, 2024 / 5 mins read

Is your Victoria small business underinsured or without any business insurance? Not having business insurance or not having enough business insurance can leave your business exposed to a financial catastrophe should there be a fire, vandalism, or weather event.

Repair and cleanup costs at your Victoria small business would be coming out of your own pocket as the business owner. That’s a lot to take on financially as a small business owner.

Many Canadian small businesses are underinsured or not insured

A recent study by Deloitte found that up to 25% of Canadian small businesses are underinsured or totally lack commercial insurance coverage.

Small business owners are busy and they value insurance products that are easy to understand, convenient, and personalized, says the Deloitte study.

Western Financial Group is here to help your Victoria business with its commercial insurance. Your Western Financial Group business insurance expert will make insurance easy for you as a business owner. We can customize it to your small business needs at the right value for you.

What your Victoria business can face without insurance or not enough

Having to pay medical bills or legal fees should someone gets hurt at your Victoria business
Paying the cost of repairs out of pocket if your property is vandalized or damaged by a fire
Paying the costs on your own should someone’s property get damaged at your Victoria business
Being refused a bank loan because banks can require businesses to have some type of insurance coverage if they’re taking out a loan

Not having insurance or enough insurance is a risky decision for your Victoria small business.

Does my home or car insurance cover my business?

The personal insurance coverage you have for your home and car does not cover you for incidents, mishaps, and accidents related to your Victoria small business.

If you have a home-based business, your residential coverage may not provide enough coverage for any accidents or mishaps.

Am I legally required to get business insurance?

No, insurance is not generally required by law for small businesses in Canada but there are situations where it is needed.

Here when you need insurance for your Victoria business:

When clients/customers ask for proof of insurance
Not being able to provide proof of insurance to clients or customers who ask for it will make them question your reliability and credibility as a Victoria small business.
Requests for proof of insurance can be common when signing contracts with clients or partnering with another business.
When you participate in a trade show
Typically, trade show venues ask participating businesses to show proof of insurance to take part.
Other events that may require participants to have insurance include farmers markets, fairs, conventions, and speaking engagements.
When you sign a commercial lease
A commercial lease usually has a clause requiring you as the tenant to have business insurance before you are able to finalize the agreement.
When you buy equipment
Commercial property insurance can help protect your Victoria business from unexpected issues with your equipment.
Commercial property insurance protects your Victoria place of business and its contents from damage or loss related to severe weather, natural disasters, theft, and vandalism.
Commercial vehicle insurance is needed: When you or your employees are on the road for work, commercial vehicle insurance may cover your vehicles in the case of an accident. Your personal vehicle insurance will not cover you in the case of an accident if the work is related to your Victoria small business.

What other kinds of insurance do Victoria small businesses need?

Business insurance is part of your small business plan

Business insurance planning is to reduce the risk that your Victoria small business can face.

Here’s how to plan for your business insurance needs:

What insurance do you need for your business? What kinds of insurance coverages are common in your industry?
Speak to an insurance expert about commercial insurance for your business.
How much money do you have available per month for insurance?
Choose the coverage that best suits your business needs.

Here’s an insurance checklist for your Victoria small business:

Do you have the best Victoria business insurance rate that suits your work?
Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
Are you or your employees using personal vehicles for work?

What do I do if my Victoria business has an insurance claim?

Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
Know your policy so that when you contact your broker you are familiar with what will be covered or not.
Document the damage. Take photos right away and write down what happened.
Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your Victoria small business the right business insurance package. Our experts are available now to help you navigate the commercial insurance journey to protect your Victoria small business.

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