#SmallBiz Insurance Roundup: October 14, 2022

What Is a Business Insurance Grace Period?

Look up the definition of ‘grace period’ in a dictionary (or on Google), and you’ll find it can mean ‘courteous goodwill’. Who couldn’t use some of that occasionally?

As it pertains to a business insurance contract (your policy is a contract between you and your insurance provider), a grace period is an amount of time after a premium payment is due that a policyholder has to make a payment before their coverage lapses.

Insurance policy grace periods can vary depending on the insurance provider and your policy type. Usually, a business insurance grace period is a maximum of 30 days, but it can be as little as 24 hours.

Here’s what you need to know about insurance grace periods.

7 Cybersecurity Tips for Small Businesses

Cybersecurity threats are rising, and Canadian small businesses, microbusinesses (freelancers, side hustlers, solopreneurs), and startups are often in hackers’ crosshairs.

October marks Cybersecurity Awareness Month in Canada, and statistics show small businesses have a lot to do to shore up their defences against online threats. And those threats are noteworthy. For instance, according to data:

• Ransomware is the leading type of cybersecurity incident affecting 55% of Canadian businesses
• The amount of ransom payments made by affected companies is commonly over US$1 million
• Phishing accounts for 38% of cyber-attacks
• 24% of Canadian businesses suffered a malware attack

No small business is immune to cyber-attack risk, but that doesn’t mean you have to make it easy for cybercriminals to infiltrate your network. 

Here are seven ways to up your company’s cybersecurity protection.

What Is a Business Insurance Exclusion?

Small business insurance policies help business owners and self-employed professionals reduce risk and provide financial support if they suffer damage or loss. But an insurance policy can’t cover you for everything, which is why insurance providers have exclusions written into a policy.

Exclusions can come in many forms, and some are broad and non-negotiable. For example, your commercial property insurance may exclude coverage for certain perils like earthquakes or losses resulting from intentional criminal actions or fraudulent acts by the insured.

Learn more about common business insurance exclusions and why they exist.

How to Avoid Scams When Selling Online

Selling online has given businesses of all sizes the ability to sell their goods and services to new markets in Canada and abroad. While that can lead to increased sales and earnings, it can expose you to additional risks and scams.

E-commerce sales have soared over the past few years, notes Statistics Canada. In 2020, online sales accounted for 7.8% of all retail sales, up from 4.2% in 2019 and 3.4% in 2018. While the pandemic helped spur part of that recent increase, sales have been trending higher over the past few years.

However, fraud is also going to be a problem. According to the Canadian Anti-Fraud Centre, there were 107,139 reports of fraud and $383 million lost to fraud last year. 

As an online seller, you need to be aware of common scams that may affect your business and know how to protect yourself.