The key is to find the right combination of covers that suits your needs. In this article we explain what small and medium-sized business insurance is and solve frequent questions.
What is small and medium business insurance ?
The insurance of small and medium-sized enterprises protects the majority of businesses, regardless of the sector of activity, from multiple risks that they may face, mainly covering your property, such as:
Let’s look at some examples. Imagine that you are a restaurant owner and a customer slips on your floor, as a result of which he asks you for compensation. Or that you have an online business and your computers are failing. Your business is exposed to multiple risks every day. With business insurance, you’ll rest assured that you’re largely covered.
What Does Small or Medium-Sized Business Insurance Cover?
You can configure your insurance by selecting coverages according to your needs. A cornerstone of a program is property insurance that includes coverages for the building, contents and ancillary spaces.
For example, coverage from natural phenomena, fire, short circuit of electrical installations, etc. In addition, you can choose a number of supplementary covers and other forms of insurance, such as protection against robbery/theft, liability insurance to cover the cost of compensation for damages you may cause to third parties, money insurance, personnel insurance, etc.
Is business insurance compulsory ?
Business insurance is not mandatory by law, unless otherwise specified by the industry. In the case of insurance intermediaries, for example, liability insurance is a prerequisite for registration and renewal of their licence.
Also, depending on the nature of your business, some types of insurance may be mandatory. For example, if you are engaged in activities that include storage, treatment and other operations for the recovery and/or disposal of hazardous waste, then you definitely need insurance for the management of hazardous waste and for the prevention and repair of damage to the environment.
To make sure of the coverage you need as a business, consult your industry professionals association or contact the relevant regulatory body. The relevant services will be able to guide you regarding the specific requirements that apply in Canada or the USA for your industry.
How Much Does Small and Medium-Sized Business Insurance cost?
The cost of insurance depends on the type and size of the business, the area in which it operates and the types of cover you want.
Let’s look at two examples:
A Pet Shop business with an annual turnover of$ 180,000, and building, content, theft/robbery and money insurance covers, has an indicative insurance cost of approx. $ 300 a year.A bakery in Ioannina, with an annual turnover of 50.000€ and content covers for fixed equipment, machinery and raw materials 65.000€, has an indicative cost of approx. $ 117 a year.
What is the appropriate level of insurance coverage for my business?
If your business is high risk, the level of coverage should be higher, so the premiums you will be asked to pay will also be high. This is especially true for businesses with a large audience attendance, such as shops and restaurants. In this case, your coverage in case of compensation can reach up to 2 million euros! That amount may sound unreal. Consider that if someone slips and suffers a fracture while in your place they could claim compensation for loss of income, medical expenses and recovery, and in this way the costs accumulate.
Do I need to insure my business if I work from home?
This depends on your business. If you are frequently visited by customers at home, you can obtain liability insurance to protect you in case a customer suffers an injury at the time of their visit.
If you offer professional advice, services, manage customer data or intellectual property, then professional liability is certainly a very useful and valuable asset for your business, whether it is mandatory or optional for your industry.
In any case, ensuring the equipment you use (e.g. electronic equipment) or any merchandise in the case of a very small business, is always a right choice.