Tuesday, March 3, 2015


3 Types of Insurance you should consider for your small business.

 Insurance is essential component of your risk management toolkit, particularly in respect of mitigating the financial consequences of certain loss exposures. Business owners must continually balance their need to manage risks with the cost of obtaining peace of mind through insurance. In the past few years some types of policies have increased in popularity and consequently these policies may be more affordable that they were before. Here are three policies that every Small business owner should consider;

1.     Cyber Insurance. We all use technology to some degree and many business are highly reliant upon IT to sustain their operations. The financial impact and associated liability can be mitigated through cyber risk insurance. Although this type of insurance has been available in Canada since the mid 1990’s, its popularity has increased considerably in recent years. There are numerous insurers in Canada who offer cyber risk insurance and policies can be customised in respect of retention amounts and potential losses covered. 

2.     Key – Person Insurance. Does your business include someone whose contribution is vital to the survival of your company? If yes, then key person insurance should be a part of your business continuity and succession plan - especially if you're a small business owner. Numerous insurers offer this type of coverage and many group benefits providers will include this coverage if requested. 

3.     Overland Flood. Traditionally this type of insurance has not been readily available in Canada, and the few insurers who offered it charged excessive premiums. But that is changing!  A number of large insurance companies have started to offer overland flood insurance, and as these policies become more popular the premiums should start to come down to levels were it may be a viable risk management option. 

You should talk with your insurance broker or consider reviewing your enterprise approach to risk management, to assess if your insurance is aligned with your risk management objectives. The risk management team at Osborne are available to help with all your risk management needs.

Ivan McClelland (click to read Ivan's profile)