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The Coverage Your Business Can't Go Without

May 25, 2016
Business

At MIG Insurance, we can make sense of business insurance and help you find the coverage your business can’t go without.

Take a step in the right direction by reviewing this guide and make sense of your business’ insurance policy and what you should and need to be covered for.

Business General Liability Insurance

Under this coverage your business will be protected from any financial losses it experiences should you be sued because of property damage, injuries or death caused by your services, business operations or your employees.  There are a few forms of liability coverage to consider:

Employer Liability

This coverage provides protection against lawsuits that arise alleging that an employer’s negligence is responsible for a job related injury.

Employment Practices Liability

In the scope of human resources practices, hiring, promoting, and terminating employees may lead to complaints of human rights violations, wrongful dismissal, or discrimination allegations.  These claims would not be covered by general liability policies. This is where Employment Practices Liability can step in and cover those risks.

Employee Benefits Liability

In the event your company is held liable for claims arising from the administration of your employee benefits program, this coverage can protect you.  If a loss arises from improperly counselling plan participants; careless handling of records, failing to terminate or enroll employees or improperly interpreting the coverage you, you may be covered through Employee Benefits Liability.

Directors and Officers/Management Liability Insurance

There are a number of laws which can potentially impose liability on Directors and Officers of corporations; this is why adequate D&O coverage is important.

The most common lawsuits against Directors and Officers are shareholder lawsuits.  That being said there is an increasing amount of claims that have been initiated by individuals or groups who are not shareholders. These people may be employees, government bodies or agencies, customers, competitors, contractors, or professional and public activist groups.

Legal Expenses Liability

This will give your business added protection for liability claims against your business in areas such as:

  • Legal Fees
  • Out of pocket costs including court fees, expert witness fees, medical reports, etc.
  • Adverse costs when awarded against the insured or settles between the parties

This may include legal issues that are experienced by your company such as:

  • Physical damage to property
  • Tax audit or appeal
  • Statutory license protection
  • Employment disputes

Business Property Insurance

No matter the situation, whether your building is owned, rented or leased, your MIG Insurance broker will identify the coverage that's right for you as well as the limitations of the coverage for your business property.

Below are several additional types of coverage you will want to consider when choosing your business property insurance:

Builders Risk Insurance

This ensures that the value of your building is insured during the construction process. Under this policy, the structure, materials, supplies, and equipment are all covered if they are used to build part of the finished project.  You should review your construction contract to have an understanding whether it is the builder’s responsibility or the owner’s responsibility to insure the project while under construction.

By-Law Policy Insurance

 Usually a major property loss doesn't destroy the entire building. There may be a by-law in your jurisdiction that may require your company to have the remaining portion of the building demolished or it may state your building may have to be rebuilt to different specifications due to newer building code requirements. The standard business property policies exclude the extra costs associated with the operation of a by-law.

Commercial Flood, Earthquake and Sewer Backup Insurance

These additional risks are not covered in the standard business property policy, if your business may be at risk from these perils talk to your MIG Insurance broker to discuss your alternative coverage options.

Equipment Breakdown Policy

The standard business insurance policy excludes the breakdown of equipment as a result of explosion or rupture of pressure vessels (boilers, hot water tanks, etc.) mechanical failure and electronic equipment failure.  With this exclusion, it not only applies to the damage sustained by the unit itself but also the damage sustained by the building, improvements and contents.

Cyber Risk Coverage

There are many benefits of today’s online digital world, including the convenience, accessibility and speed in day to day business activities.  The risks associated with those benefits need to be take seriously.  Users are now vulnerable to cyber attacks, such as viruses, identity fraud and data breaches.  You can protect your business against the financial effect of these cyber attacks by ensuring you are covered with Cyber Risk Coverage. 

Tool Floater

Items, including tools, kept and used at the insured premises are covered by the property policy.  Any hand tools that leave the premises and used at other locations other than insured premises can be covered under a “tool Floater”.

Business Auto Insurance

With any vehicle being used for business purposes, your company will need Commercial Automobile Insurance.  How the insurance company determines your premium is dependent on what the vehicle is used for. Discuss with your MIG Insurance broker to ensure the use of the vehicle and the territory it operates in is correct to ensure you have proper protection.

The insurance company must be notified if you or any employee uses a personal vehicle for business purposes. This will ensure that your vehicle will be rated properly and have the appropriate commercial endorsement(s) added.

Other Coverages

Business Interruption Insurance

The event of a fire or any other incident that results in you having to cease or halt operations your business is at risk financially.  Business interruption insurance can help cover costs of lost revenue and additional expenses associated with being temporarily shut down, including employee wages.  A risk management plan can be useful to refer to during an unexpected event, MIG Insurance can provide this free of charge to our clients.

Crime Coverage

This can provide coverage protection against things such as:

  • Employee Dishonesty.  In the event of fraudulent or dishonest acts are committed by an employee, either alone or in collusion with others, excluding partners, this will protect your business from that.
  • Depositors Forgery.  This provides coverage to a person or corporation to protect against losses by reason of forgery or alteration of any cheque, draft, etc.
  • Inside/Outside Robbery and Hold-Up.  This protects against losses of money and securities at your business or outside of your business.
  • Money Orders and Counterfeit Paper Currency.  Losses arising from the acceptance of forged, counterfeit, or altered money are covered by this.

Umbrella Insurance

With the purchase of your insurance policy, included within it is a specific amount of liability coverage.   This amount may not always be enough to completely cover your business in certain situations.  Umbrella insurance could come to the rescue by covering the remaining amount.

Co-Insurance

In a property insurance policy, co-insurance is a clause where both the policy holder and the insurance provider share in the risk in the event of an under-insured loss.  If your property and contents are not fully insured and you incur a partial loss, you will only be covered for the elected percentage (not the total) of that loss.

 At MIG Insurance we’re making your business insurance make sense.  Connect with an MIG Insurance broker today and let us put your mind at ease.

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