With startup costs, personnel and cash-flow top of mind, most entrepreneurs wouldn't say that insurance is the first thing they thought about when starting a small business.

Even so, choosing the right insurance coverage may be the factor that makes or breaks a business. Whether it's a one-man operation or a larger company with 40 employees, having the right insurance makes sure company assets are protected no matter what happens.

“For a small business a comprehensive insurance policy is extremely important,” says Shelley Toyota of RSA Canada. “Even a relatively small loss can drastically impact a small business if the right coverage is not in place.”


RSA Canada offers a list of the top types of insurance that small businesses should consider:

Property insurance
This covers all physical assets related to your business. Look for a provider that offers flexible insurance that can be adjusted as your business grows.

Liability insurance
Having this type of coverage will protect you from being sued and any damages that result from legal action against your business or employees.

Business income insurance
If for whatever reason your business has a temporary shutdown, this type of insurance will cover the payroll and expenses by providing income on a regular basis.

Contents insurance
If your company is the subject of a burglary or vandalism, this will provide replacement funds to cover damages or losses.

Fleet insurance
Regardless of whether you have one vehicle or 20, a comprehensive fleet insurance package will assure that accidents will not result in damage to your bottom line.

Crime and Fidelity Insurance
Protect yourself from loss of money, securities, or property due to crime such as burglary and employee dishonesty.

Equipment Breakdown Insurance
Ensure you can cover the cost to repair or replace equipment damaged by a breakdown, or the loss of business income and the extra expense incurred to resume business, spoilage of perishable goods as a consequence of equipment breakdown.

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