Debunking business insurance myths
Sep 5, 2017 1 minute read
In 2015, there were 1.17 million employer businesses in Canada – 97 per cent were small businesses (under 100 employees). Small business owners usually take on many roles, such as accountant to marketer and everything in between. BrokerLink commercial insurance experts can take over finding the best insurance for small business owners, which includes acting as myth busters about insurance misinformation. Here are four business insurance myths debunked:
1. Myth: For home-based businesses, home insurance will cover claims for business activities.
Truth: home insurance does not cover claims which relate to the business. For example, if a painter operated from their home and their art supplies were damaged, their home insurance would not cover replacement costs. For this reason, it is important home-based business owners get insurance which meets their business needs. Some common insurance business insurance coverages include commercial general liability insurance (which could help with costs if there is damage to the business property or a lawsuit due to a customer being injured) and business property insurance (which could cover costs to repair damage to a business owner’s home).
2. Myth: If a business owner has customer data on their computer, their business insurance will cover potential expenses if the data is hacked.
Truth: the above statement is only true if the business owner has cyber insurance – a coverage which helps business owners handle expenses which result from customer data (or the business data) being hacked. For instance, if customer financial information was comprised from an online from a hack, the business owner could be sued. Cyber insurance could help cover the cost for legal expenses.
3. Myth: The personal auto policy of the business owner’s car will cover the cost of unexpected events during their business activities.
Truth: if a business owner uses their vehicle for business purposes, costs from claims which occur during business activities will not be covered by their personal auto policy. Commercial auto insurance could cover costs of unexpected events, such as an accident, if they occur during or due to business operations.
4. Myth: Customers who go to the business owner’s home are responsible to pay for damages if they slip or fall on the business owner’s property.
Truth: if a customer hurt themselves while they were on the business owner’s property, the business owner could be sued. Business general liability insurance could help with covering legal expenses, should this occur.
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