Needs for insurance will vary widely with the different types of businesses. Consult your insurance agent to guide you through establishing comprehensive policies. It is recommended that all businesses carry liability insurance to protect assets. Coverage for perpetuation of income and lives of the owners should also be investigated. Consideration should be given to the following:

Business and Liability Insurance

This includes coverage against theft and damages and / or fire to buildings, equipment and documentation, employee theft, and liability through accidents. Liability insurance covers any area in which the business or employees might be held liable for negligence causing injury to customers, employees and the general public.

Disability Insurance

If you are the sole owner of a business, and should suffer an accident, injury or illness, the business income immediately ceases, thus threatening the financial security of both the business and family. Workers Safety and Insurance Board will only pay a portion of earned wages if you are covered and only if the accident or illness is work related. Be safe and protect yourself with a good disability policy that covers all contingencies.

Life Insurance

Invest in some form of term life insurance that protects your family in case of your death. Keep in mind that under current taxation laws, if the business pays the policy, the insurance payout will be taxed. However, if the premiums are paid personally, taxes are not payable at payout.

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