You’ve probably heard that your car is an expensive place to keep. Keeping in mind that you could be liable for any damage a stranger causes to your vehicle, it makes sense to protect yourself from the cost of repairs or replacement. Liability insurance covers you financially if you harm someone through negligence or cause damage to another person due to your actions. Your insurer will pay for their expenses and legal fees if they sue you for damages. If you own a business, professional practice, or contract with customers outside of your home as part of your livelihood, liability insurance may also be relevant to you as well. After all, every business needs financial protection in case something goes wrong. Here are 5 benefits of liability insurance you need to know.
You Need Liability Insurance If
Those of you with higher-risk jobs, occupations, or businesses will likely have higher rates for liability insurance. If you own a construction business, for example, you’re likely to see higher premiums than an accountant or lawyer who does construction work but does not own their own business. Some professions that are particularly risky and may require higher liability insurance rates include doctors, lawyers, health care workers, mechanics, insurance brokers, and accountants. The cost of liability insurance may also be affected by your geographical location and can be offset by using on-demand insurance, which can be cheaper. Companies that provide liability insurance in certain states or jurisdictions may charge significantly higher rates than companies that serve areas with a lower risk of lawsuits.
You Need To Register Your Business
According to the Canada Business Licence Guide, an agent or broker must have a business license for each branch office. This is to ensure you’re paying the proper taxes and respecting consumer protection laws. However, if you own a sole proprietorship or operate under an individual’s business license, you do not need to register your business as a separate entity. However, you’ll likely need to have some type of business license under the province you operate in. Some provinces require a professional qualification to practice, a business license, and/or insurance. Some provinces make it easier to register your business. If you plan on operating as an agent or broker of some type, you’re likely to require some type of business license.
You Need Professional Practices & Contractual Coverage
If your profession or trade involves working with others such as doctors and lawyers, you’ll likely want to consider professional practices and contractual coverage. Professional practice is a form of professional liability insurance that protects your practice or business. It covers claims made against you that result from things like malpractice or negligence. Contractual coverage is an add-on to most professional practices and business insurance policies. It protects against damages caused by things like contract breaches, damages resulting from the use of your business equipment, and other similar incidents.
You Need Auto Breakdown Coverage For Towing Vehicles
If you own a car that can be easily damaged, you may want to consider buying auto breakdown coverage for towing vehicles. This coverage will pay for the cost of towing a vehicle if it’s broken down on the side of the road. You can generally expect to pay about $50 to have someone tow your vehicle to the nearest garage. However, this coverage is not required in many provinces. Some policies will provide coverage for damaged vehicles that are broken down on the side of the road, but not coverage for towing costs.
You Need Collision And Comprehensive Coverage Too
Collision coverage protects your car and its parts in the event of an accident. If your car sustains major damage in an accident, you may be able to claim the cost of repairs under this coverage. Comprehensive coverage protects your car if it is involved in a crash other than one that causes damage. This will generally include coverage for things like damage to your car caused by something like glass or metal shrapnel.
Final Thoughts
While it may seem like a lot of work to keep track of all types of insurance and who needs what, it’s worth the effort. It can save you a lot of money in the long run if you have an incident that causes you to have to pay for repairs or replacements. Furthermore, having the proper amount of coverage is important for your car and your wallet. Make sure you have the right amount of insurance for your car, your driving record, and your finances.
