We’ll be showcasing specific situations where you would need commercial coverage, and more importantly, why you want it.
If you are self-employed, you need the right amount of insurance, and also the right type of insurance to ensure you’re properly covered for your unique needs.
Mike is a self-employed contractor. He is 35 years old, married with 2 kids, and his wife works part-time in the evenings when Mike is home.
One day on the jobsite, the dry grass under Mike’s machine starts a fire. In a state of shock, Mike jumps out of the equipment, tripping and breaking his leg. The weather has been so hot and dry, all he can do is watch the fire spread as he calls for help.
Mike’s injury is worse than he thought and requires surgery. This takes a recovery time of four months where Mike cannot work and will not make any money, followed by 2 months of physiotherapy appointments and light duty work. Significant damage also occurred to the worksite.
Luckily, Mike had two different types of overage just in case an unexpected and unfortunate incident like this were to occur.
First, Mike made sure he had a Business Policy. This will pay to repair damage caused to the site through his liability coverage. It will also pay to replace the lost equipment.
SInce contractors do not have loss of income coverage, Mike also made sure to have a Disability Policy which will provide him with disability income while he is unable to work. His disability loan insurance will also make payments directly into his bank account to cover important bills such as his mortgage payment, truck loan, business loan, or tools.
Without both Business and Disability insurance, Mike would have faced a significant loss of income. His work may be forced to find a new job, or work full-time while he recovers at home, and he would have been responsible to replace damaged machinery, or risk being sued if someone else had been hurt.