7 reasons you need business insurance coverage

Owning a business, large or small, is an incredible amount of work. It takes passion, perseverance, dedication and a consistent focus on long- and short-term goals. Having business insurance coverage alleviates several major concerns and gives you more time to invest in the success of your business.

Here are seven top reasons to get business insurance coverage:

1. Water damage prevention
Water damage is a common claim that can happen in unexpected ways. A tenant may leave a sink or tub tap on, overflowing an apartment above your store; a pipe might burst if the heat is left off over a winter weekend; or extreme rain can overwhelm local storm drains and cause a sewer backup.

If your location has a basement that you use for storage or other purposes, consider an additional Sewer Backup endorsement, which includes coverage for sewer backup and the escape of water from a sewer system or sump, septic tank or drain (excludes seepage or leakage from natural sources).

2. Property protection for fires
Fires are especially devastating for small- and medium-sized businesses. Without property insurance, it can take a long time for your company to get back on its feet. If you’re leasing, the landlord's insurance covers fire damage to their building, but not your property. To protect your stock and business contents, you need insurance.

3. Security for the most sensitive data
We’re in a constant state of emerging technology and new app-based resources designed to make your business run faster, smarter and more efficiently. But these advances are also accompanied by the ongoing threat of cyberattacks and people who want to exploit these rapid changes. To stay prepared, add privacy breach coverage to your insurance policy. It gives you protection for legal liabilities and expenses you incur if personal information is lost, stolen or mistakenly shared.

4. Mitigating the risk of extreme weather
Your insurance covers you against rain, wind and hail damage. While weather damage is difficult to prevent, maintaining your roof, windows and doors can help reduce potential problems. Additional coverage such as earthquake or flood endorsements may be necessary.

5. Avoid electrical failures
Preventative measures are essential for minimizing losses from electrical failures. Have your electrical systems inspected regularly by a licensed electrician and keep your systems upgraded to reduce the possibility of an electrical fire.

6. Plan for business interruptions
Business interruption insurance, commonly referred to as loss of income insurance, protects your business if you have a loss or damage described in your insurance policy. It covers your lost income and day-to-day operating expenses, and you can add optional coverage to ensure payroll will be met in a given time period. Business interruption coverage can be added to your commercial property insurance policy and your Financial Advisor can customize a plan that meets the specific needs of your business.

7. Protect your equipment
Property insurance typically only covers your building and contents, not mechanical equipment when it breaks down, ruptures or cracks. Equipment breakdown Insurance covers you for protery damage resulting from the sudden and accidental breakdown of insured equipment that is not automatically covered by a standard commercial property policy.

Minimizing risk is a healthy business strategy. Making the right decisions can keep your employees safe and your company doors open. If you have questions about business insurance coverage, contact your local Financial Advisor.