Is your small business properly protected with insurance? | CFIB

No matter what industry you are in, you need to protect your business, your employees and your bottom line. Being savvy about insurance, and working with an insurance provider suited to your business and industry, are key to protecting your investments.

Every business owner should:

Avoid the gamble

The decision to not buy insurance, or buy the wrong coverage, can be risky. The premiums are likely less than the costs you may face having to deal with something without insurance.

Boost your insurance IQ

Learn about the different types of insurance by reading the Financial Consumer Agency of Canada's Types of Business Insurance or the Insurance Bureau of Canada’s Key Types of Business Coverage.

Are you puzzled by insurance words and terms? The Insurance Bureau of Canada’s glossary provides definitions.

5 Cost-Saving Insurance Tips Every Small Business Should Know

By implementing some of the measures listed below, SMEs can better ensure they select the most suitable coverage to protect their business effectively.

1. Seek expert advice. Consult with an insurance professional (such as a broker) who specializes in your industry to get tailored recommendations and insights.
2. Shop around and ask about discounts. Compare quotes and policies from multiple insurers to find the best coverage at competitive prices. Ask about discounts for safety features or low claims history. Consider bundling policies to reduce costs. Check if you belong to an industry or sectoral association that may offer discounted rates (including CFIB’s partnership with Northbridge delivered through independent brokers).
3. Review and make sure to understand your insurance coverage. Our survey found that only 36% of SMEs did a market review in the past 12 months. Consider reviewing your coverage periodically to ensure it meets your business needs and make changes when necessary. Additionally, carefully read and understand the fine print, including exclusions and conditions of your insurance coverage.
4. Invest in risk management policies and tools to reduce the likelihood of claims, which can lead to lower premiums and better coverage options.
5. Train and certify employees in relevant areas to reduce risk and demonstrate a commitment to safety and quality.

Watch CFIB’s Webinar: Best practices that could save you money on your commercial insurance.

Have a Business Continuity Plan

Are you ready to survive a disaster or sudden loss of key people? Do you have a plan outlining where you will operate and how you will:

• communicate with customers and staff
• replace equipment and stock
• continue to generate revenues and pay bills
• retrieve information and documents

If you don’t have a plan, the Business Development Bank’s Business continuity plan and templates is a great resource. In addition to this, as a CFIB member you can access our template library where an Emergency Preparedness Guide is available to you!

If you do have a plan, when was the last time you reviewed it to ensure you are prepared for unexpected events?

Having insurance and a disaster plan shows employees that you are prepared. Although you can’t always prevent disasters, putting policies, procedures and protections in place will help mitigate the fallout from major events.

Have questions or need help accessing one of our templates? Give our Business Resources Team a call at 1-833-568-2342 or reach out via web here.