Entrepreneurship & Small Business

Need business insurance recommendations

  • Last Updated:
  • Jun 24th, 2020 10:40 am
[OP]
Newbie
Oct 1, 2019
72 posts
21 upvotes

Need business insurance recommendations

Currently no office but might be getting one in the future so needs obviously change and grow in time.

Looking for any recommendations for biz insurance.
3 replies
Deal Fanatic
User avatar
Jul 26, 2007
5137 posts
2734 upvotes
Toronto
Lot of insurance caters to certain segment of the industry because they can offer group rates. If you have a restaurant, it might be real cheap to insure from company A then B. Call around, no one can help you find a insurance for your future office.
Newbie
Jun 21, 2020
1 posts
We have operated an ecommerce business out of our home for the past 3 years and just added Commercial Liability Insurance.
Deal Addict
Jan 21, 2018
3625 posts
3717 upvotes
Vancouver
There is very limited competition in most segments of the insurance market - the big players have agreed between themselves to divide the market up by region and segment, so you generally won't find much difference in offers via various agents. They all have to work with the offerings of the few players in that segment. You may be able to get a small discount by going through some sort of industry association that you belong to.

Mostly small business is looking for Commercial General Liability Insurance (CGL). Most landlords require business tenants to produce evidence of CGL insurance - it covers things like damage to the building or to other tenants, delivery people tripping over your loose carpet and breaking a leg, that sort of thing. The landlord needs you to have that insurance because they would likely be named as a secondary joint party in any lawsuit. Also many government and commercial contracts contain a clause requiring the seller to have CGL insurance, in case they cause damage to the buyer, for example if the seller's installer cut the wrong wire and put a building out of service for a few days.

There was one year where all small business insurers suddenly required companies to take out much more expensive Errors and Omissions insurance in addition to CGL if they sold any products or services in the U.S.. E&O insurance covers things like your staff concealing relevant damaging information about your product, delivering the wrong product and causing delay to the customer etc.. There were a few lawsuits in the U.S. where the argument was raised in court that even if the defendant didn't have E & O insurance, their CGL insurer was negligent not to have advised them that they needed it, and therefore the insurance company should be liable. It never went anywhere, but the insurance companies panicked, and for that year they refused to offer CGL renewal if the company didn't also take E&O insurance at 10x the cost. They backed off the following year when rationality returned.

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