INSURANCE AND THE SMALL BUSINESS OWNER
Dad Club London is full of entrepreneurs who have taken that leap of faith and pursued their dream to be their own boss. This choice is definitely full of risk, but also full of potential and reward. My job, as an insurance broker, is to make sure you have protected yourself and your business by purchasing proper commercial insurance. When it comes to your expenses, insurance will rank up there at the top, next to rent, stock, payroll, so it is important to know the costs that are associated with the proper policy. As a broker, I gather the information from you and send out to several markets to get you the best price, but even more importantly, the best coverage.
What to do when looking for the right policy for your small (but growing) business:
Have a business plan. Have you considered incorporating? This offers a level of protection of your personal assets in the event of a lawsuit against you.
Estimate your gross annual receipts.
Know how much coverage you will need for tangible items, such as tools, equipment.
Gather the details of your location (age, heat source, roof, plumbing, electrical condition).
Find out from your landlord what liability limit you will require to satisfy the lease.
Ensure your vehicle is insured for commercial use if that is the primary use. (coverage can be purchased to combine personal and commercial use that is equal or less than exclusively personal)
Combine business and commercial auto insurance for discounts.
Itemize high valued items (tools, equipment, etc.) with serial numbers, replacement cost, etc. as most policies will limit individual items to $1,500 – $2,000 each.
Be up front and clear with your broker what it is you are doing, e.g. structural work, licensed trades, sub-contractors used, online exposure.
A variety of operations are excluded in the small business package but can be purchased for additional premium, e.g. hot tar roofing, consulting, demolition, liquor liability
Be prepared to discuss experience, former employers, etc. This will help in rating the liability for the best rate. All information is kept confidential and no former employers are contacted.
Screen all potential employees that will be driving for you and ensure a clear MVR.
Your best insurance is an insurance broker, as we operate independent of the insurance companies and get the policy that is best for you. We work for you, not the insurance company.
Obviously prices will range depending on your operations, revenue, experience, etc. For the small business package, it is important to remember all companies have minimum premiums, ranging from $750 – $1,000 per year. There is no fee for working through a broker.
BrokerLink offers all types of coverage, ranging from Commercial, Personal, Life, Disability, Critical Illness, etc. There is a policy for everything, and being one of the largest brokerages in the country, we will find the market that best suits your needs.
Tony Blay, DCL Member
Commercial and Personal Insurance Broker Canadian Accredited Insurance Broker (CAIB), Registered Insurance Broker of Ontario (RIBO)