Insurance For Family Owned Businesses
Business is inherently risky, but there are many unique risks for family owned businesses, which is why working with an insurance broker that has deep experience & expertise in insurance for family owned businesses is essential. Family owned businesses make up the a largest percentage of businesses in Canada and are the backbone of our economy in towns and cities across Canada including Toronto, Waterloo & Kitchener, Calgary, Edmonton & Vancouver, which is why supporting and protecting them with specially designed insurance for family a owned business is so important.
While business relationships can be risky and/or complex, adding a family dynamic to the mix creates a labyrinth of unique issues and risks to navigate. Many family business owners believe they are at low risk for claims and as a result the value of insurance for family owned businesses is underappreciated; however, the opposite is true and there are many unique reasons why insurance for family owned businesses is critical.
Important Types Of Insurance For A Family Owned Business
Director and Officers Insurance For Family Owned Businesses: The most common source of directors and officers claims for private companies is when one shareholder alleges that a director or officer of the company has breached their corporate duty per the Canada Business Corporation Act. The most frequent of those allegations and why considering directors and officers insurance for family owned businesses is so important, typically occurs when succession is underway. More specifically Dad is passing down control and ownership to a son or daughter which is often followed by a dip in financial performance. This can result in siblings alleging breach of duty as they don’t like how the business is being run and their dividends are less then they are use to when Dad was running the business.
Employment Practices Liability Insurance For Family Owned Businesses
Many family owned businesses view their employees as part of the family and many employees feel the same way. As a result, best practices around documentation, performance management, compensation and federal & provincial employment standards etc. are often not followed as stringently and increase the risk for family owned businesses. Employment practices liability insurance for family owned businesses helps with that in a number of ways. 1. Applying for employment practices liability insurance for family owned businesses is a healthy process to go through as it encourages family owned businesses to objectively evaluate their internal policies and procedures around employment matters. 2. Employment practices liability insurance for family owned businesses can help pay for defence costs should an employee bring a wrongful dismissal claim against the business and/or owners.
The above are just two examples of valuable insurance for a family owned business, but to learn more about directors and officers insurance for family owned businesses, Employment practices liability insurance for family owned businesses or other important types of insurance for family owned businesses talk to one of our advocates today about how we can help you secure the best insurance products and solutions for your business.
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