Starting a New Business During COVID? Protect Your Startup With The Right Insurance

It might seem counterintuitive to launch a new business venture during an unprecedented global pandemic.

For the millions who have been downsized during this past year, as well as for workers who can't get enough hours to make ends meet, launching up a startup is starting to look smarter and smarter.

The truth is, Canadians have a history of thriving during challenging times. Crisis can be the stuff of world-changing creativity and innovation.

And while insurance isn't the most exciting part of this type of venture, this is definitely not the year to start a new business without it.

If you are considering the launch of a new business or are already deep in the startup stage of a new business, this is definitely the article you want to read. Mackay Insurance in Belleville provides small businesses with the right insurance during the COVID-19 pandemic in Ontario.m Let’s make sure that your new business is fully insured and your investment is protected in 2021!

New Business Startup Insurance: Cover Your Bases With Mackay Insurance

Starting a new business will always require business insurance. This is one thing that COVID-19 has not changed.

However, as we mentioned in the introduction here, what has changed due to COVID-19 is the number of workers who are launching businesses for the very first time.

So this section gives you a quick overview of business insurance basics you need to address to protect your hard work and investment.

These are the three basic categories of business insurance coverage that every small business (whether home-based or not) should consider:

1. General (commercial) Business Liability 

Commercial liability insurance for businesses covers injuries that occur on the worksite. It sometimes also covers legal fees as a result of such injuries.

2. Business Property Coverage

Business property coverage typically protects against damage to the premises or the contents, which may range from equipment to inventory.

3. Business Interruption Coverage

As the name implies, business interruption coverage provides relief if the business is unable to operate for certain covered reasons as outlined in the policy.

Depending on the type of business and how/where you operate, here are some additional new business insurance coverage types you may want to consider.

Business (commercial) Auto Insurance

Commercial auto insurance protects you or workers using a vehicle for non-commuting business purposes.

Professional Liability (errors and omissions) Insurance

Professional liability insurance protects you or officers and directors from errors or omissions that result in legal fees.

Cyber Security Insurance

Data breaches are more and more common and this insurance can help offset the costs of suffering a data breach or cyber attack.

Accounts Receivable Insurance

If a major customer goes bankrupt, this insurance protects you from sudden loss of revenue.

Home Based Business Insurance Coverage

The start of winter saw another spike in COVID-19 cases here in Ontario. While this was not entirely unexpected, it has definitely put a damper on reopening plans for many brick-and-mortar business locations.

This has re-focused attention on the viability of home-based businesses, whether you are planning to launch or expand a virtual element to your existing business or proceed with starting a new virtual business.

Our brokerage team at Mackay Insurance recommends reading our blog post and reviewing the ins and outs of home based business insurance basics. If you have any questions regarding business insurance coverage or how to obtain it locally in Quinte, contact Mackay Insurance brokers today!

NOTE: The most important part of starting up a new home-based business is also the most-often overlooked part. Be sure the community where you live is zoned to permit home based business operations!

Small Business Insurance for Remote Workers

Running a business has never felt less secure or stable than it has this year. Many small businesses have made the leap to a remote workforce wherever possible. In some cases, the shift may become permanent.

One important aspect we take special care to mention each time we talk with one of our small business clients in Mackay Insurance is remote workforce insurance.

If your company had been operating out of a single location prior to 2020, it is definitely time to revisit your existing business liability coverage from every angle, including remote access to sensitive data and BYOD (bring your own device) policy coverage.

For businesses who are shifting to a remote model for the first time, be aware that you may need to change your coverage or add a relevant rider to protect remote work locations and/or work-related auto use that is not straight commuting (such as a new business delivery service).

We covered these topics in more detail in a blog post devoted to how businesses in transition may need to update business insurance coverage due to COVID-19.

COVID-19 Relief Business Insurance

Not surprisingly, Mackay Insurance has been receiving a large number of calls from our existing business clients asking about options for business relief insurance due to COVID-19.

The main challenge here is that the Canadian insurance industry has also been hard-hit by the global pandemic. Interest rates have plunged and claims have skyrocketed, with the predictable impact that premium prices are rising.

Earlier this year, many auto insurers initiated relief efforts to consumers struggling to pay their premiums. More recently in Ontario, a new relief effort began to support hospitality industry businesses who have been unable to obtain business insurance coverage.

Our brokerage team at Mackay Insurance is happy to talk with you about available options to obtain business insurance or apply for insurance relief.

We also highly recommend that you read our blog post about COVID-19 insurance relief.

Get in Touch With Mackay Insurance in Belleville Ontario

Here in Belleville, Ontario, Mackay Insurance is open to serve you! Let us know how you prefer to connect with us!

We are here to support home based businesses and small business owners with affordable insurance options to protect your present and your future.

Please reach out to our Mackay Insurance team by phone at 888-853-5552 or online for more information on small business insurance.