Small Business and Self-Employed Insurance

Self-Employed and Small Business Insurance Needs 

Every small business owner needs to be financially prepared for any kind of event or accident that may occur.

This is why these shrewd business owners purchase Small Business Insurance, like Income Protection Insurance and Life Insurance to protect their small business assets, just like the self-employed who do not work for an employer earning a wage or a salary. Overheads are the regular expenses of operating a business that can be paid out if the business owner becomes sick or injured, such as electricity, internet, rent and telephone bills.

The self employed are people who work for themselves and can decide how much they earn and for what period of time. Self-employment means working without being employed by someone else. A person who works for himself is called a freelancer. Freelancers can work for one company or multiple companies. Some people call them independent contractors.

Someone who is self-employed is different than someone who works independently. Freelancers often work on a project basis for multiple clients at once. They typically charge a fixed rate for their services and can often negotiate the price based on how much work they do. Independent contractors usually have long term contracts and earn wages or salary. They may also register their business as a corporation for tax purposes.

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Statistics Canada considers self employment as being people who own a business, farm or professional service, or individuals without a job. StatsCan data shows that there were almost 2.6 million self employed Canadians as of late 2021, the fewest number of such workers since 2005.

For 73% of solo self-employed Canadians, the unexpected can strike at any time. They need to be prepared with a backup plan in case something happens that would put their financial stability into question and leave them injured or 500 dollars lighter from an accident lawsuits.

What kinds of insurance should you have if you’re self-employed?

It’s a good idea to think about this carefully, as the wrong kind of insurance could leave you vulnerable in many ways.

There are a few different types of insurance that you should consider if you’re self-employed. Health Insurance is one of the most important types of insurance for anyone to have, and it’s especially important for those who are self-employed. If you’re self-employed, you should also think about getting Disability Insurance. This will protect you financially if you’re ever unable to work due to an injury or illness. Finally, you might also want to consider getting Life Insurance. This can provide financial security for your loved ones in the event of your death.

Of course, there are a lot of similarities between self-employed individuals and other types of workers. But as it pertains to the kind of business insurance the self-employed need, the devil is in the details, or so the saying goes. That’s because every self-employed person’s service is unique, and accordingly, what insurance coverages they require may vary. 

Some coverages generally apply to most self-employed insurance policies. However, it is best to employ the service of an experience insurance broker to help your analysis, your high risk and low risk situations and develop an insurance plan for you to minimize your protectional risks and to protect your assets and profit. 

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at 1-888-256-8685

What is Small Business Insurance and what does it cover?

These may include the following: 

Accidental Death or Serious Injury

 Protecting your assets from accidental death or serious injury is one of the most important things you can do as an entrepreneur. Learn more about protecting yourself and your business!

You may not realize it, but there are many ways to protect your assets and profit. Learn what they are and how to implement them today!

Accidental death insurance will pay if you die resulting from a vehicle accident or other type of accident or die within 90 days of an accident. Some accidental insurance policies also pay for various loss of a limb or limbs from an accident. People up to age 35 are more prone to accidents. This is general low risk.

When accidents happen, they can be devastating. But if you’re prepared, you can minimize their impact on your life and business.

You Dying too Young (dying at an early age)

When you are young you are growing your assets and creating various debts and liabilities.  If you have a health condition you need Life Insurance to pay all these debts and liabilities. Living a long life is not a given. Good health is not guaranteed so you need protection. This is a high risk.

Life insurance is an important part of financial planning and can help protect your loved ones from financial hardship if something happens to you.

Long Term Sickness or Accident Recovery

Income Protection or Disability Insurance gives you a monthly income when you are sick or injured from an accident. It is generally based on 66% of your gross income. This monthly income comes tax-free to you because you paid the premium with after tax dollars. There is a waiting period for coverage to begin and may be paid monthly till you are age 65. This is very high risk because there is a greater chance of a claim than there is for Life Insurance. 

Health and Dental Benefits

Though being self-employed may offer independence, increased job satisfaction and a better work/life balance, what it doesn’t offer is access to group health benefits. As a result, if you’re self-employed in Canada, you’re responsible for paying for your own health and dental costs not covered by public health plans. That can easily cost hundreds of dollars a year. Some health benefits are high risk and some low risk.  

Health and dental costs not covered by public health plan in Ontario

Getting Critical Illness

Nobody ever wants to think about getting critically ill, but it’s something business owners must consider as part of their business plan. Not only could a long period of illness take a business owner away from their company for an extended time, but it can also incur hefty financial costs associated with medical care. Small businesses may be especially vulnerable to these types of expenses, as the money for healthcare benefits is not always easy to come by. As such, business owners should prepare for the worst and consider getting some sort of critical illness insurance coverage. This type of policy can provide business owners with funds to help pay for medical bills or lost wages should they experience a major health issue like cancer or heart attack, allowing them to focus on healing and returning to business as soon as possible. With the right preparation, business owners will have peace of mind knowing that if the unthinkable happens, their finances and business will still be secure.

If you had a stroke, heart attack or cancer, you may recover over time up to 4 years. In the meantime, you need money to live and someone to run your business in your absence. Critical Illness Insurance will give you cash after 30 days of being diagnosed. Income Protection will give you monthly income replacement while you recuperate.

Fire or Theft Property Loss

If your business property has a serious fire loss or a theft of your contents within it, this can be a large dollar loss. This is high risk.

As business owners, it’s our responsibility to make sure that our business is protected and secure. In the case of fire or theft of business property and its contents, business owners can face long-term financial losses due to the high costs associated with recovery.

Small businesses, in particular, are most at risk due to typically having less resources to fall back on. Preparation is key when it comes to avoiding these major losses. Despite the unpredictable nature of fires and robberies, business owners should try their best to be proactive about protecting their business’s property by having an extensive security system and periodic inspections for signs of fire hazards or break-in attempts.

Furthermore, having insurance coverage specific for theft or fire protection can help business owners recover more quickly with minimal interference as they would be financially supported through the claims process. With the right steps taken beforehand and thoughtful business strategy after such an event, business owners can effectively prevent future disaster from striking twice. Nevertheless, no precaution might ever be truly enough for the unpredictable nature of life – there will always be some risk when running a business.

Regardless, planning ahead will minimize these risks significantly and we can all benefit from that! Taking steps ahead of time may save us a lot of trouble in the long run! Don’t wait – start addressing your business’s potential risks today! It could prove invaluable later on in life!

Call Glenn Stewart Business Insurance Broker Now at 1-888-256-8685

Liability Claim

This is a high risk because if an accident happens or one of your products fails or does damage, there will be many expenses because lawyers are involved. The cost to fight these claims are high.

At some point, business owners may need to deal with a liability claim. For large business, these claims can be extremely damaging and costly since lawyers are often involved in settling them. However, it can be an even greater risk for small business owners whose resources are more limited. If an accident takes place, or one of the business’ products fails or does damage, the business owner is liable for any costs that arise as a result. These costs include legal fees for representation, making this type of claim extremely expensive.

With such high stakes comes further risk if the business doesn’t have the funds or means to make payment. That’s why it’s essential for business owners to understand both the risks and costs involved in dealing with a liability claim before they take on any responsibility. With proactive planning and adequate coverage, business owners can protect themselves against the financial burden of such claims and focus on their dreams instead!

Auto Liability Claim

Auto claims are expensive today because of potential injury claims. The vehicles themselves are expensive. The government mandates that you have coverage. 

Employee Claim

As business owners, it can often feel like an uphill battle to stay ahead of the latest regulations and business requirements. Keeping up with ensuring your business is compliant can be a big challenge – especially if you’re running a small business. This can be high risk with bad administration.  

One important concern for business owners is the potential for claims made by your employees. Employees have legal rights when facing improper termination or hazardous working conditions, and business owners are obligated to ensure those rights are respected in accordance with the law. Sexual harassment, not administering employee benefits properly, and failing to pay into (or provide paperwork to employees) WSIB or EI during layoffs can all lead to serious claims against a business. That’s why it pays to take extra care when managing employment-related issues and making sure business operations meet the applicable legal standards; protecting yourself from litigation through sound business practices should always remain a top priority.

With due diligence and attention paid to the details, business owners will be more secure knowing that they’ve done their part in avoiding high risk situations that might arise from employee claims. A little effort now can go a long way towards preventing major headaches down the road.

Retirement Plan

If you have an Employee Pension Plan and it is not administered properly there may be a claim. This may be a low risk if third party does the administration. 

Continuation of Business

You must have a business plan in case of death, sickness or injury. You may not be able to work for a long period of time. Who will run your business or sell it?  This may be high or low risk. 

Equipment Coverage

Business owners who work in certain self-employed professions, such as construction, cleaning businesses, contractors and landscapers, understand that tools and equipment are essential for running their business.

Unfortunately, business owners can often find themselves facing great financial losses should their equipment be lost, stolen or damaged. That’s why having a robust Equipment Coverage policy is critical.

This type of coverage pays to repair or replace business tools and equipment if they are lost, stolen or damaged – so business owners don’t have to worry about the added costs of replacing those items out of their own pockets.

For example, if a contractor has their air compressor stolen off the job site, they can have peace of mind knowing that their Equipment Coverage policy will pay to replace it. In today’s business world, Equipment Coverage could be invaluable for small business owners looking to protect their investments and stay on top of unexpected expenses.

Knowing that your tools and equipment are insured could provide you with an unwavering feeling of security for your business regardless of what lies ahead! So business owners should make sure they look into an Equipment Coverage policy to help protect them from any financial hardships associated with loss, theft or damage incurred by their business tools and equipment.

After all: when you’re running a business – it always pays to plan ahead!

All in all: consider yourself covered – whether you’re a contractor or a landscaper! Now you can focus on taking care of business without worrying about the what-ifs. 

Business Interruption

If a problem covered by your policy causes you to close your business temporarily, Business Interruption Insurance will replace lost income. For example, this would replace your lost earnings if a fire at your business location caused a temporary closure. It also covers money lost due to damaged merchandise and the cost to move to a new location on a temporary basis. This coverage is also called “business income insurance.” 

How much will Small Business Insurance in Kitchener cost me?

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What is the main disadvantage of being self-employed?

Being self-employed can have many benefits, such as the freedom to work when and where you want, the pride of business ownership, and the potential for financial success.

However, there is one main disadvantage that needs to be taken into serious consideration: the lack of certain kinds of insurance coverages. For example, business owners in small companies with few employees are often not eligible for group health insurance provided by an employer. Therefore, business owners need to acquire their own health insurance coverage.

If someone were to become ill without any form of medical coverage, they could face enormous costs which would bring significant financial burden. Thus, being self-employed comes with a risk of lacking appropriate health insurance and business owners must weigh this risk before deciding if self-employment is the right decision for them. All in all, business owners must make sure they have the right kind of coverage so that they do not find themselves saddled with overwhelming medical bills that leave them unable to manage both their business finances and health care costs.

TIPS: Here are a few things to consider when choosing self-employed insurance:

Health Insurance: This is probably the most important type of insurance for the self-employed. Make sure you have a policy that covers you in case of illness or injury.

Life Insurance: If something happens to you, life insurance can help your loved ones cover expenses like funeral costs and lost income.

Disability Insurance: This type of insurance can help you if you’re unable to work due to an injury or illness.

Business Insurance: If you have your own business, business insurance can help protect you from liability risks.

Small Business Insurance available in Kitchener, Waterloo, Guelph, Milton, Mississauga, Toronto, Elora, Elmira, Listowel, Mitchell, Stratford, New Hamburg, Brantford, Hamilton, Burlington, Fergus, Oakville, and Cambridge area.

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at 1-888-256-8685