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Mackay Insurance Blog

 

June 2021

Understanding The Importance Of Home Based Business Insurance in 2021



Click Here For A Free Home Based Business Insurance Quote

 

And so began a new era in the workforce - the era of home based businesses!

With the onset of COVID-19 in 2020, the number of home-based businesses drastically increased - practically overnight! Since its onset, both small and large business organizations were forced to comply with government stay-at-home orders and safety precautions in order to help protect our Ontario communities from the risk of catching SARS-CoV-2.

As we are now in the year 2021, many businesses have actually decided to discontinue the lease of their brick and mortar office building and opt for digital upgrades and technology advancements instead. Reason being, they don’t plan on returning to the traditional office lifestyle.

And so, suitcases were stored in closets, suits were hung up to collect dust and heels were forgotten.

But now that so many Canadians are working from home, there are a series of important factors that must be considered - including that of Home Based Business Insurance.

At Mackay Insurance, our brokers provide Home Based Business Insurance for small and large-scale businesses in the Quinte area. We help our clients find affordable insurance that they can rely on to protect their business assets, their investments, their employees and their employees’ homes.

Keep reading to learn how your business can benefit from Home Based Business Insurance.

 

Do You Need Home Based Business Insurance If You Work Remotely?

Yes. Although not a governed law, obtaining Home Based Business Insurance is incredibly useful. Whether you work for a company remotely or run your own home based business, obtaining insurance will allow you to safeguard both your own property and the property owned by your business.

Home Based Business Insurance Protects:

  • Business equipment that is damaged or stolen 
  • Business inventory that is damaged or stolen 
  • Property damages caused by customer
  • Customer lawsuits 
  • Liability for product(s) and/or operations 
  • And more!

According to a recent survey, run by the BDC (Business Development Bank of Canada), many Canadian employees and employers agree that there are incredible benefits to working from home! Even saying that the ability to work from home is a serious determining factor when applying for a new job in today’s day.

Working From Home Allows Employees To Have:

  • More flexible working hours
  • Increased efficiency 
  • Decreased absence

All leading business owners and entrepreneurs to contemplate whether a Home Based Business Model might actually be the best option!

 

Who Can Obtain Home Based Business Insurance?

Over our 165+ years, Mackay Insurance in Belleville, Ontario, has ensured a large variety of home-based businesses. Since the COVID-19 pandemic began, this has only increased. We’ve now seen an even greater number of businesses opt for the safeguarding of their assets with a Home Based Business Insurance solution in order to provide the protection they need to run their business securely.

Types Of Insurable Home Based Businesses:

  • Music Classes
  • Hairdresser Studio 
  • Catering Services 
  • Flower Shop 
  • Home Daycare Business 
  • Creative Studio etc. 

If you own a business and are looking for a means of protecting both it and your home, you are eligible to apply for Home Based Business Insurance.

Like many businesses in the Quinte area, our staff at Mackay Insurance have spent quite a bit of time working from home over the past year. We understand the taxing days, the distractions and frustrations of your everyday life crowding into your work life, and the challenges of finding that balance.

We also understand the vital need of securing and protecting your business assets. Protecting your equipment, data and investments is such an important step in pivoting from an office to a remote working environment, however it is so commonly overlooked.

In some cases, business owners assume that their home insurance coverage includes home based business insurance coverage. This, however, is not true.

While your standard Homeowner’s Insurance Policy protects your property, your Home Based Business Insurance policy covers:

  • General Liability 
  • Inventory 
  • Legal Expenses 
  • Business Assets (ie. laptop)
  • Business Interruption 
  • And Business Operations Liability 

 

4 Home Based Business Insurance Factors to Consider

As you begin the discussion of Home Based Business Insurance, it is so important that you first consider the following factors:

1.    Business Equipment 

Do you have proper coverage and protection for your business equipment? Whether you’re working from home for your own company, or working for another company, make sure that your equipment (ie. your work computer) is covered while working at your home.

2.    Business Tools 

If you have business tools, make sure that you do not leave them in your vehicle while it is unlocked. Always make sure they're locked away and stored somewhere safe.

3.    Business Liability

If you don't have the extension of liability from your home policy you could be in a lot of trouble. Make sure to talk with your Mackay insurance broker about your liability extension.

4.    Communicate With Your Insurance Company 

Make sure your home insurance company is aware that you are working from home. A lot of people working from home are not aware that their home policies are in non-compliance, which could affect their coverage moving forward.

 

Contact Mackay Insurance in Belleville For Your Home Based Business Insurance Needs

If the pandemic has taught us anything, it is to be versatile. At Mackay Insurance, our staff have been spending a lot of time working from home, and many of our clients are doing the same. As we adjust to this new workplace environment and consider the possibilities it has in store for the future, we want to remind each of our clients that obtaining Home Based Business Insurance for your home-run business is not only important, but necessary.

Contact your Mackay Insurance broker today to find affordable insurance options for your home-run business! We’ll work with you to secure and protect your business assets, liability, property and investments.

Contact Our Belleville and Napanee Insurance Brokers

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Choosing Affordable Life Insurance for Your Family's Future

Mackay Insurance provides affordable life insurance options for families in Quinte, Ontario.

Choosing Affordable Life Insurance for Your Family's Future

Life insurance is not likely to ever make your list of favourite topics to talk about. But it is a topic that can keep you up at night worrying over your family's future.

One of the reasons life insurance feels so complicated is because different people choose life insurance for different reasons.

For example, to some people, a life insurance policy is a smart investment strategy and part of their greater financial and retirement planning portfolio.

To other people, life insurance is simply insurance to protect their family's finances in case anything ever happens to the primary breadwinner.

What does life insurance mean to you? What type do you need? How can you choose an affordable policy that meets your current known and future unknown needs? Read on to find out!

 

Meet the Two Types of Canadian Life Insurance

As you have probably guessed by now, there are two basic types of life insurance here in Canada.

The first type is called "term" life insurance and the second is called "permanent" life insurance.

If you are already feeling confused again, you are not alone! These names do not necessarily make intuitive sense. So, let's define them before we go any further.

Term Life Insurance

Term life insurance gets its name from its function - you select this type of insurance for a specific period of time, or “term”.

If anything happens to you during that term, your family's finances are protected under the benefits of your life insurance policy.

After the term ends, the policy expires.

This simple and straightforward type of life insurance is also the most affordable option - something to keep in mind for big families!

Permanent Life Insurance

Permanent life insurance is more confusing, especially because it is sometimes called whole life insurance or universal life insurance.

But you can find the clue you need to understand this policy type in the word "permanent." This type of policy does not expire. It follows you throughout your life and functions as both a protective and investment policy.

For this reason, permanent life insurance tends to be pricier and also more complex to manage. But permanent life insurance also has lots of perks and benefits that can really make sense for some families.

If you are interested in a whole life insurance quote, contact your Mackay Insurance broker today for more information! 

 

Term Life Insurance Versus Permanent Life Insurance

So what is the best way to determine what type of life insurance you need and how much life insurance you need?

Here at Mackay Insurance, we always recommend starting your life insurance journey by identifying your main purpose for carrying life insurance.

There are two main reasons people choose to carry life insurance:

1. Family Protection

Family protection is nearly always what initially drives a person to start researching life insurance policies.

Whether your primary concern is paying off debt, affording funeral and memorial expenses, saving for a child's college education or maintaining a certain standard of living, life insurance is first and foremost designed to protect your family.

Both types of life insurance - term and permanent - can achieve this goal.

2. Retirement Investment

For some people, life insurance can also make a smart addition to their greater investment and retirement portfolio.

Only permanent life insurance can meet this particular need.

Depending on how the individual policy is structured, permanent life insurance can come with several attractive perks.

Permanent life insurance policies are generally interest-accruing. In some cases, the value of the policy itself may exceed the value of the death benefit payout.

Permanent life insurance often offers the option to borrow against the value of the policy for short-term emergencies or use the policy as collateral for another loan.

 

How to Choose Between Term Life Insurance and Permanent Life Insurance

In the greater life insurance marketplace, these two life insurance products generally appeal to people in different stages of life.

Read the following descriptions and see which one most closely matches your current situation.

Term Life Insurance Policy Holders

Term life insurance tends to be more attractive to single adults, couples and young families who are carrying some amount of debt and are just starting to build their savings.

Term life insurance premiums are typically very affordable and remain constant for the duration of the term. However, re-upping for a new term may come with cost increases.

Most importantly, when the policy expires, there is no residual value and no return on investment. You are simply purchasing peace of mind in the event a "what if" scenario becomes a reality.

Permanent Life Insurance Policy Holders.

Permanent life insurance, on the other hand, tends to be more attractive to individuals, couples or families who have sufficient means to max out contributions to other retirement investment vehicles.

With premium costs being less of an issue, permanent life insurance holders view the policy as an investment in and of itself with multiple perks depending on how the policy is structured.

There are three levels of permanent life insurance and each confers different benefits to the policyholder and beneficiaries.

Most importantly, there is a guaranteed payout with permanent life insurance regardless of the policy subtype you select. For some policyholders, there is no peace of mind like permanent peace of mind!

 

Why You Shouldn't Wait to Choose Your Life Insurance Policy

Life insurance premiums will be cheaper if you choose term life insurance.

But all life insurance premiums - term and permanent - will be cheaper when you buy now versus later.

This is because, statistically speaking, the insurer's risk of a potential payout is lower when you are younger and healthier.

The best way to get the most life insurance for the most affordable price is to buy it now rather than later.

 

Mackay Is Your Belleville Life Insurance Expert

Get in touch with your friendly, knowledgeable brokers at Mackay Insurance to get all your affordable life insurance questions answered and even get a free quote!

Visit us online or give us a call at 888-853-5552.

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