Like other Canadian small businesses, manufacturing businesses face a number of risks every day. And while general property and liability coverage is useful, it won’t always help you in specific day-to-day situations.
Depending on your industry, your business could grapple with the threat of product damage, equipment breakdown, production errors, or supply chain issues on a regular basis. For instance, a commercial printing company that makes an error on a big billboard can face a variety of expensive consequences, like reprinting, ad space rental, and business interruption costs – even a lost client. This is where errors and omissions (E&O) insurance comes into play: it can cover the financial losses arising from your printing mistake, which can help you shoulder the costly burden.
Since the results of a loss can be extensive, your coverage should meet your immediate needs – and go further to help you recover in the weeks or months ahead. In the event of a fire on your shop floor, you’d turn to your property coverage to help with your equipment and building replacement costs. But how would you keep up with bills or payroll while your shop is closed? In this case, business interruption insurance can come to your rescue; as it’s designed to cover the income you would have earned without the disruptive event.