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If you are operating a small business in the Canadian provinces, you should be aware that most forms of business liability insurances are very similar to those of American states, however there are a few subtle differences. It is important to be familiar with the different types of small business insurance. Ontario, Canada is the most populous and wealthy province in the nation, and if you are going to do business there, it is important to be familiarized with the various kinds of Canadian business insurance.
Business interruption insurance protects the industry against a loss of profits that result from fire or a similar insured catastrophe. It provides the business with a reimbursement of profit, as well as the necessary operating costs to get it back on its feet. This type of insurance is also referred to as profits insurance, or earnings insurance.
Errors and omissions insurance protects professionals against lawsuits resulting from the firm or business’ poor performance. It is typically used by legal professionals, doctors, accountants, architects, and engineers, though these are not the only professions that use this brand of small business insurance. Ontario, Canada (and Saskatchewan) both require the purchase of E&O insurance for estate planners and financial consultants as well.
Home-based business insurance covers damages done to your home as a result of the business you are running. Most home-based business owners own their own homes, and make the common mistake of thinking that problems caused by their businesses will be covered by their homeowners’ insurance. This is not true; homeowners’ insurance only protects the owner against common accidents that occur within a domicile, not a place of business. In other words, if your grandmother gets injured in the house, your homeowners’ insurance will cover it. If a client does the same thing, it will not…and may even void the policy.
And the most common form of small business insurance is general business insurance. General business insurance protects the owner from lawsuits resulting from property damage, false advertisement claims and personal injury. This is a common form of business insurance that is used in America as well as Canada, and nearly all industries purchase it in some form or another.