TORONTO, March 25, 2019 — Spring is officially here, and with warmer temperatures comes a welcome opportunity for a fresh start for many small business owners – and that includes some good old-fashioned spring cleaning.
Whether you work from home or rent out a workspace, regular maintenance is an integral part of ensuring the safety of you, your customers, and the business you’ve worked so hard to build. To help busy entrepreneurs get a head start on protecting their small business this season, TruShield Insurance has compiled internal claims data from 2018 in a new whitepaper that identifies the most common risks to home-based businesses.
Here are three of these risks, and tips to consider adding to your spring cleaning routine that may help you and your business avoid costly losses.
Fight fires before they transpire
According to our claims data, a fire can cost small businesses an average of $95,000, with some claims amounting to as much as $860,000. As the mercury rises, it’s a good time to check what electronics and equipment are plugged in around your home, as overloading electrical outlets can be a significant fire hazard. Our data indicates that fires causing as low as $36,000 in damage can keep a small business closed for an average of six months, which could put a dent in both your wallet and your reputation.
Keep your business afloat with routine checks
With seasonal rainfall on the horizon, it’s important that home-based businesses are properly maintained to handle rainstorms and sewer backup. Basement flooding can cause significant damage during the spring season, so checking on the conditions of walls, sump pumps, pipes, and drains is critical. Claims data shows that water-related disasters can cost small businesses an average of $19,000, with damages reaching as high as $305,000. Taking the time to routinely check these entry points can help home-based business owners avoid such costly disasters.
Ensure you’re covered before disaster strikes
You may be thinking to yourself, “I’m covered by my home insurance policy if anything goes wrong,” but that isn’t necessarily the case. Home-based business insurance is designed to help protect owners from risks that aren’t covered in a standard home insurance policy, such as damage to equipment or inventory in the event of an accident, or liability incidents like slip-and-falls on your property.
“Many business owners are optimistic and don’t think that they’ll be the ones subjected to a loss. But if the worst does happen, you’ll want to ensure that you have the right partner in your corner to help you get through that loss,” shares Scott Vandenberg, Vice President of Corporate Underwriting. “Your business insurance provider is there to take on the stress of dealing with a loss, and to work with you to identify potential risks and implement solutions to help avoid them in the first place.”
If you’re reluctant to add an insurance check-up to your spring cleaning list, remember that without proper coverage in place, one small accident could derail all your success. Here’s the worst part: if your home insurance provider doesn’t know about your home-based business, you might not be covered at all if disaster strikes.
With the right partner and a proper plan in place, spring cleaning doesn’t have to be a looming task on the horizon and will go a long way to protect your hard-earned efforts.
TruShield Insurance is a proud supporter of Canada’s small business community. We are 100% Canadian and owned by Fairfax Financial Holdings Limited. We focus on serving Canadian small business owners, entrepreneurs and startups. We provide affordable, flexible, and tailored insurance solutions for small businesses. Visit us online at trushieldinsurance.ca to learn more about our products and request a quote.
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