insuranceSmall businesses have a large impact on Canadians.
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Small Businesses Have a Large Impact on Canadians.

Small Business economic impact

Nearly 98% of Canadian businesses are small businesses, accounting for over two-thirds of employment in Canada in all industrial sector categories. These statistics indicate that small businesses have a significant impact on the Canadian Economy. From 2002 to 2018, research shows that the number of small companies grew rapidly from 100,000 to 1.15 million.

However, insurance policies will cover businesses for recovery and protection against damages and adversities for small businesses to grow. Suppose you intend to open a small business in the future. In that case, you should include an insurance policy within your budget because it plays a vital role in the growth and development of your business.

Insurance for online businesses

Insurance for your online business is essential. Online businesses can face serious challenges such as cyberattacks targeting personal data from clients. This can potentially put you, as an online business owner, in a liability lawsuit. Moreover, online businesses often have delayed delivery and missing deadlines, which can cost them a lot and hinder revenue generation. For instance, a client might file a lawsuit for compensation for a product she ordered from your online beauty product store that harmed her skin.

Therefore, it is essential to have insurance for your business for data breaches, negligence claims, product harm, delayed or missed deadline delivery, professional errors, and oversight and financial losses. The best insurance cover for small online businesses is product liability insurance. They can cover online business challenges and even defend you in court if you encounter a liability lawsuit. You could also opt for business owner insurance which also comprises general liability insurance.

Conclusion

All in all, a small business owner need insurance for the following reasons:

  • It is a cost-efficient way of compensating your employees if they get injured or involved in an accident while on duty. Hence, minimizing the financial losses in the long run.
  • In the event of a liability claim, your business will still be active because insurance covers legal matters.
  • Since your employees are your valuable assets, insurance cover will guarantee their wellbeing by protecting them against injuries and accidents. Thus, reducing liability claims and against a lawsuit. 
  • It improves productivity because insurance cover assures their safety and compensation, thereby attracting employees to extend their contract. Nevertheless, increased production increases profitability which later rewards the growth of your small business.
  • The image of your business is protected because of minimal lawsuit cases and risks.

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