Smaller troubles will get your head spinning non stop! BOP
How small are most small businesses in Canada nowadays?
Canada is dotted with small businesses varying from real estate companies to fitness and leisure sports companies as some of Canada's topmost money-racking small businesses. This country, in particular, views small businesses as companies that have workers not exceeding 100 on the payroll. These are essentially small business ventures owned by striving individuals whose yearly earnings show little income compared to a regular business venture. Bloggers and cab drivers also fall as part of small business owners.
According to 2016 Canadian government statistics, 54.1 percent of the 1,167,978 active employers are made of companies with only one to four employees. If you include those businesses that employ five to 19 employees, that equals a staggering 86.2 percent of Canadian businesses. So if you're thinking of starting a business, you're in a good company.
Business Owners Policy (BOP)Click on the title below to expand
What is BOP
Businesses are prone to risks and "attacks." For this reason, they need to be mitigated. Business Owners Policy (BOP) is a unique form of bundle insurance designed to secure small and also medium-sized firms. Business Owners Policy insures the business property, which includes the business equipment/tools and the business physical building. Business Owners Policy also protects the company against liability which includes protection to others property as well as injury caused by your business to others. This insurance ensures that these small businesses run as smoothly as possible with no hiccups or hitches to ruin the profitability and stability of the small businesses. The coverage offered within Business Owners Policy might vary depending on the insurance, some bundles might even include business interruption insurance but it is up to your specific insurance company.
Small Businesses & BOP
Risks in businesses do not discriminate in terms of sizes; they occur anyway. Small companies involve people and products in their operations, both of which are exposed to risks in terms of damages and injuries. Therefore, it is of great vitality for small business owners to solicit the services of Business Owners Policy (BOP) insurance cover.
Cover your small business venture regardless of how optimistic you are about you incurring any incidents. We never intend for accidents nor damages, and the best thing is always to be prepared with a safe landing coverage.
Advantages of BOP
There are limitless advantages that a small business accrues by having Business Owners Policy (BOP) insurance cover. They include:
- First, running and managing a business as an individual can be mentally exhausting. For proper sound decisions to be made, the business owners need to be in their right frame of mind away from the anxiety of following up and paying insurance premiums to more than one insurance policy in different agencies.
- A BOP takes care of all risk protocols as a single contact agency. Therefore, business owners can peacefully work by having all of their troubles sorted out at a go.
- Also, any business exists to make profits by ensuring that it limits its spending at all costs. This means that soliciting services from multiple insurance firms makes you pay more insurance premiums which are eventually cost-ineffective. BOP gives you the solid opportunity to combine all those things and people you need to ensure against as a small business. Essentially you get to enjoy economies of scale from purchasing multiple services.
- BOP might grant you deductions and rebates. You get to save yourself and your business a lot of money that you can otherwise invest elsewhere.
- Lastly, no business owner wishes to lose custody of their business firm after pouring their lives into it. The individual will seek to secure their company as the pride possession that it is. In the event your company is sued in court due to, say, workers causing damages to others property while operating machines in your firm or heavy products falling on a client and injuring them, the company can be sued. These processes can get ugly and very costly to solve. Having a BOP cover on such incidents guarantees that you still get to keep your small business.
Other Insurances for Small Businesses
As a small business you will need to understand how the following insurance works. Some of the following insurances might be included under the BOP bundle, such as a commercial general liability and commercial property or equipment breakdown. However, you will need to confirm with your specific insurance company to check which are the coverages under their BOP packages.
Commercial General Liability
This protection ensures a small business from harm caused during the process of making its products and services known to the general market. Small businesses might be sued for wrongly using, for example, other people's intellectual properties or even foul language and images in the public domain.
covers small business owners in the case where the heater they provide to clients to be faulty or cause injury to them through faulty functioning . The clients can lawfully sue the small business for jeopardizing their wellness due to the products they manufacture and sell.
Business Interruption Insurance
also compensates your small business earnings lost when the small business operations are involuntarily instructed to stop when they should be in progress. For example, a disease outbreak where the business is located or flooding and other natural disasters.
Equipment Breakdown Insurance
will cover or compensate a small business for the amount it uses to fix a malfunctioning work tool. For example, when a photocopy machine is damaged or a fridge in a dairy shop incurred electrical hazards and needed repair.
Commercial Auto Insurance
covers vehicles used to work in small businesses. For example, food trucks or cabs for transportation. For instance, if one of your employees gets in a car accident while driving the work vehicle, your small business will be compensated to repair the car.
Commercial Property Insurance
covers the physical structures housing the small business against the specified risks. For example, when the building is broken into and damaged or it is brought to ruins by a fire accident. The small business owner will be compensated the cost to rebuild or repair.
All of the above-discussed insurance policies are essential for small businesses to safely and legally operate.