Type of Business Insurance: Which is Right?

A multitude of insurance options are available to fit businesses specific needs and concerns. Although this is a good thing, trying to determine the best policies to cover your business’ needs can be overwhelming. There are many types of business or business insurance in Guelph.

Common types of insurance include accounts receivable, business income, business interruption, commercial automobile, commercial general liability, commercial property, crime, director’s and officer’s liability, home business, professional liability, and product liability. A few of these insurance types are outlined below. Unique types of commercial insurance are also available, such as farm or marine insurance.

Business Interruption Insurance

Insurance policies can be purchased to insure against the risk of interruption to your business, such as in the event of equipment failure, water damage, or fire, etc. The reason for such insurance is that it might be difficult – if not impossible – to carry on business without your workspace, machinery, equipment, or inventory or other aspects of your business in working order.

Business interruption policies, also known as business income policies, cover various losses, including:

• Profits lost by virtue of the accident at issue
• Operating expenses that are unavoidable and continue on regardless of the accident (for example, the ongoing payment of wages to employees, utilities, etc.), the costs of licensing the business, etc.
• Temporary relocation – the costs of temporarily relocating the business until the usual premises can be rebuilt of restored

The policy you choose will be for any risk that is not specifically excluded from your policy or otherwise for named perils listed.

If the continuing success of your business is contingent on having a physical premise at a particular location to work from and/or where expensive, complex machinery and equipment are necessary to conduct business, obtaining a business interruption policy will be particularly critical.

If your business owns a fleet of cars or trucks to be used for commercial purposes, you must ensure that you purchase the appropriate car insurance policy to cover your business activities and all employees who will be using the vehicles. This means that you will need to take out a commercial auto insurance policy for these vehicles, as your employees will not be able to rely on their personal policy.

Commercial General Liability Insurance

A commercial general liability insurance (CGL) policy will provide certain protections, in the event that your business’ services cause injury or property damage to a third party. For example, if you own a hotel or restaurant, a patron may slip and fall on the premises and decide to sue. If this happens, a general liability policy will generally cover the costs of defending such a claim and the settlement of the claim itself.

CGL policies will provide liability limits to suit your business needs. If your business is home based, your homeowner’s insurance may contain certain limitations and a commercial general liability policy should be considered. It is important to be aware, however, that a CGL policy generally does not cover liability for injuries or losses caused by defects in products manufactured by the insured company.

Commercial Property Insurance

Property insurance is important to have because it protects your property and the contents of your property. Most companies conduct work in a physical location outside of the business owners’ or employee’s homes. Whether you are leasing or own an office, factory, studio, or another type of property, you will want to ensure your property is protected.

If your business owns the property, you will want to make sure that your insurance policy adequately covers the expense of rebuilding in the event of a fire, flooding, or other accident. Insurance policies are very specific with respect to the specific types of events that will be covered, especially when it comes to water damage. Always review these provisions with an experienced insurance agent.

In addition to physical working space, your company could own substantial office equipment, furniture, machinery, and business inventory. If your business keeps a substantial amount of inventory on the premises, you will be especially interested in taking out a policy to cover these contents in their entirety. Doing so will involve reviewing the total value of goods, reporting to your insurer, and updating your insurer any time where the value of goods being kept on the premises substantially changes.

Product Liability Insurance

If your company is in the business of manufacturing a product that poses potential hazards, or could possibly be defective, you are best to obtain protection against any potential product liability claims. This is especially important if your business is not incorporated and losses therefore could become your personal liability.

When it comes to the product liability insurance, there are complex distinctions between manufacturers, sellers and intermediaries, and the types of incidents that are covered under these policies. If you are considering whether a product liability policy is necessary for your business, your insurance broker in Guelph can advise you.

Contact the Insurance Brokers in Guelph at Jeffery & Spence Ltd.

Understanding the purpose and limitations of various types of insurance policies can be difficult. While it is good to educate yourself, it is always wise to speak to an insurance broker to determine which specific insurance products are best suited to your business needs. We can assist with a claim should there be a need. Contact us for a free business insurance quote that suits your business.

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Showing 12 comments
  • Octopus Financial NZ

    Thanks for this useful post. Can really help in any other way on which type of insurance is perfect for their business. Great article.

  • Ellen Hughes

    It was nice when you said that you can protect your commercial property and its contents when you choose to purchase a property insurance policy. One of my friends told me that she’s dreaming of owning a business building in the future. What she wants is to make sure that her investments are going to be protected because they are all precious to her. Since she’s planning to purchase a business insurance policy, I’ll share your blog with her.

  • Zia Murphy

    I like that you talked about how business interruption policies can cover your business’ losses because of accidents and unavoidable operating expenses after an accident. My husband and I are planning to start a business in the future. We know that accidents and tragedies can be inevitable, so we want our business to be prepared for accidents. We’ll make sure to consider all your tips on choosing a business insurance policy.

  • Kyle Elbin

    This is a very thorough and precise explanation. Thanks for writing this. It will help me in my research purpose. Appreciate it!

  • Jamie Ross

    Thanks for this. As a broker, our goal is to educate clients – that’s how we add value. Breaking down the coverage in simple terms makes clients that much more aware.

    Price is one thing, but there’s more to insurance than the price of the policy and communication has never been more important.

  • RichardLoody

    amazing felling here.

  • wow!up

    А кто знает про проект Wowup?
    Наткнулась на пост в инсте и не помню у кого… какой-то конкурс начинается с курсами прикольными и призами, нашла пока один паблик их, https://t.me/+P8XRYGcaVMMzYzhi, может знаете официальный сайт?

  • PedroWer

    Срок окупаемости вложений.
    создание комплекса каталитического крекинга (инициатор – ОАО «Газпром нефтехим Салават») с общим объемом инвестиций 24,3 млрд. рублей и созданием 168 новых рабочих мест,
    В рамках реализации проекта в 2010 году на предприятии ОАО «Сокольский ДОК» было завершено строительство нового цеха по производству домов, запущена 1-я очередь сушильных мощностей (8 сушильных камер). В 2011 году на промышленной площадке ДОКа введена 2-я очередь сушильного комплекса (3 камеры). На предприятии ООО «Сухонский ЦБК», начиная с октября 2011 года, ведётся монтаж новой бумагоделательной машины, также приобретена третья линия производства твёрдых древесноволокнистых плит. В результате реализации проекта (по состоянию на сентябрь.


    (то есть российское) происхождение существенной доли поступающих в страну инвестиций (в частности, «круговорот капитала» — схема, при которой местные деньги перемещаются за рубеж, а затем возвращаются в отечественную экономику в форме прямых инвестиций). Крайне неравномерное распределение инвестиций между отдельными регионами страны. Высокая отраслевая волатильность.
    Он показывает количество средств, заработанных за время существования инвестиционного проекта. Чистая стоимость отражает динамику и характер денежных потоков, которые принесут вложения.
    Чтобы объективно оценить инвестиции, инвестор опирается на показатели эффективности инвестиций.
    В Переславле находится работающее промышленное предприятие — «Славич». Комплекс расположен посередине пути из Ярославля в Москву, в непосредственной близости от Ярославского шоссе с удобными подъездными путями и собственной железнодорожной веткой. Здесь находится оборудованная площадка для развития высокотехнологичных отраслей Ярославской области. Многие крупные компании региона уже выразили заинтересованность стать резидентами Технопарка и участвовать в его работе. Он уже заинтересовал бизнесменов из Москвы, а также иностранные компании, не говоря об ярославских предпринимателях. Определены якорные инвесторы, которые заинтересованы в скорейшей реализации проекта, и их деятельность совпадает со специализацией Технопарка.
    Продукты и услуги Информационно-правовое обеспечение ПРАЙМ Документы ленты ПРАЙМ Постановление Правительства РФ от 27 декабря 2016 г. № 1502 “О порядке согласования Министерством Российской Федерации по развитию Дальнего Востока инвестиционных программ и иных планов по развитию инфраструктуры, реализуемых государственными корпорациями, государственными компаниями и иными организациями с государственным участием”

  • PedroWer

    Подрядчики – физические и юридические лица, выполняющие работы по договорам подряда, заключаемым с заказчиками в соответствии с ГК РФ.
    Теоретические аспекты определения эффективности инвестиционного проекта. Показатели оценки финансовой надежности проекта и методика их определения. Краткая характеристика инвестиционного проекта. Оценка коммерческой эффективности инвестиционного проекта.
    Инвестиционная декларация Республики Татарстан публично декларирует общие ключевые принципы взаимодействия органов власти Республики Татарстан с субъектами предпринимательской и инвестиционной деятельности, закрепляет гарантии защиты прав инвесторов в Республике Татарстан и направлена на повышение инвестиционной привлекательности Республики Татарстан.


    Отрицательное значение чистой текущей стоимости свидетельствует о нецелесообразности принятия решений о финансировании и реализации проекта, поскольку если NPV.
    Трудности на пути инвестора.
    Индекс рентабельности – PI (Profitability Index).
    Инвестиции классифицируются в зависимости от срока вкладов:
    Самые востребованные у иностранных инвесторов регионы: Москва и Московская область (41 проект), Санкт-Петербург и Ленинградская область (16) и Татарстан (10).

  • PedroWer

    Привет планируешь начать инвестировать, не забывай следить на новостями на сайте npo-invest.ru

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