SMEs: information is the best place to start

Insurance experts and local associations estimate that about 40% of small business owners have no insurance at all and upwards of 75% are underinsured. Many owners falsely believe they can’t afford coverage. In truth, they can’t afford to not have coverage.

Not having insurance unnecessarily puts livelihoods at risk. A disaster can wreak havoc on assets and may even result in a company having to shut down permanently. Ironically, many of the landlords, suppliers, and the other entities necessary for a business to operate know every company needs insurance and probably require proof of coverage.

While it can be difficult to determine exactly what types of insurance are needed, a good place to start is a standard Commercial Package Policy.

It provides coverage for:

• property (fire, wind, theft, etc.)
• commercial general liability (injury of someone visiting your premises or by your product)
• business interruption
• cyber
• and in some cases, crime, including employee dishonesty

The components of each Commercial Package can be different, so it’s important to ensure the policy contains all the components that are relevant and required for the business. An experienced insurance broker can help sort through the options, ensure you understand the basics, advise on the industry specific aspects of the coverage, and help manage risk as the business grows.

Commercial packages are available for a broad range of businesses including most major industries and professions.

Other coverages to consider include:

• Professional Liability – Errors & Omissions
• Directors’ & Officers’ Liability
• Excess/Umbrella Liability

Ask your broker what you need to consider if you’re not sure. And even if you think you are sure, ask your broker anyway. Every business, regardless of size, is entitled to the proper insurance coverage. Information is always the best place to start.