What kinds of business insurance does CRA offer?
CRA offers two main kinds of insurance to businesses:
- Insurance that protects you against the loss of a business owner, or a key person in the business
- Personal insurance for your employees, that you provide to them as a benefit
There are several other kinds of business insurance that CRA doesn't offer. These include:
- Business interruption insurance
- Public liability insurance
- Professional indemnity cover
You should talk to your general insurance broker about these types of insurance.
Is ownership or keyperson protection right for my business?
All businesses are made up of people. But sometimes, there's a person who is truly essential to a business. If this person suddenly wasn't there, it would fundamentally change the nature or even the viability of the business. A person like this can be an owner of the business, or a key employee who would be very difficult to replace.
The aim of ownership and keyperson protection is to protect your business if one of these essential people dies, or suffers a serious illness or injury that means they can no longer contribute to the business.
If you're a business owner, the key question to ask yourself is: "Do I have someone in my business who would be difficult to replace?" If the answer is "yes", then keyperson protection may be right for your business.
What's the difference between ownership and keyperson protection?
Ownership protection is for businesses with more than one owner. It provides for the smooth transition of ownership in the event of an involuntarily exit (e.g. death) of one of the business owners.
Keyperson protection is for businesses that have an employee who is vital to the business. The insurance pays a benefit to the business to ensure it can keep going if this key person dies, or suffers a serious injury or illness that prevents them from doing their job.
Is group insurance right for my company?
Group insurance is a form of personal protection insurance that is provided by a business as a benefit to its employees. Companies choose to take out group insurance for two reasons:
- It benefits employees by giving them a safety net if they lose their income through illness or injury.
- It benefits employers by limiting the financial risk of long-term employee absence from work.
If you want to do the right thing by your employees and limit your exposure to risk, group insurance might be right for your company.