Business Insurance Basics: What You Need to Know
If you run a business, whether you’re a solopreneur, a subcontractor, or managing a team - insurance is one of the most important safety nets you can have. It doesn’t just protect your bottom line; it gives clients, employees, and contractors peace of mind too.
Let’s look at three of the most common types of insurance business owners should understand: Professional Liability, General Liability, and WorkSafeBC coverage.
Professional Liability Insurance (Errors & Omissions)
What it is:
This coverage protects you if a client claims your professional advice or services caused them financial harm. It covers legal fees, settlements, and damages related to errors, negligence, or even misunderstandings.
Who needs it:
Accountants, bookkeepers, consultants, and designers
Contractors or subcontractors who manage projects or provide technical advice
Anyone whose expertise or professional judgment could cause a client financial loss if something goes wrong
Why it matters:
General liability won’t help if the issue is about professional mistakes. PLI fills that gap.
General Liability Insurance
What it is:
This is the “bread and butter” of business insurance. It covers you if your work causes bodily injury or property damage to a third party. Think slip-and-fall accidents, damage to a client’s property, or liability from a job site incident.
Who needs it:
Tradespeople (plumbers, welders, electricians, carpenters)
Retail businesses, restaurants, and storefronts
Contractors working on client property
Pretty much anyone who deals face-to-face with customers or the public
Why it matters:
A single accident could lead to a lawsuit that drains your business finances. This policy helps ensure you’re not left paying out of pocket.
WorkSafeBC Insurance Coverage
What it is:
In BC, WorkSafeBC provides workers’ compensation coverage. It protects employees if they get injured on the job by covering medical costs, rehabilitation, and wage loss. It also protects employers from being sued by workers for workplace injuries.
Who needs it:
Employers with workers on payroll (it’s mandatory)
Independent contractors and self-employed individuals can also apply for optional coverage to protect themselves
What about subcontractors?
Subcontractors are not automatically covered under a contractor’s WorkSafeBC account. Each subcontractor is responsible for having their own coverage unless they are considered a worker of the contractor (for example, if they’re hired on payroll). On most job sites, general contractors will ask subcontractors for proof of WorkSafeBC coverage before work begins. This protects everyone involved and avoids unexpected liability if an accident happens.
Why it matters:
Workplace accidents can happen even in the safest environments. Having WorkSafeBC coverage ensures compliance with the law and demonstrates responsibility for employee safety.
My 2 Cents
Insurance might feel like just another business expense, and like throwing money at something you’ll never use… But here’s the thing: one accident, one mistake, or one worker slipping on the site can cost more than you’d make in a year. It’s really an investment in stability and trust.
Clients want to see you’re covered, general contractors don’t want surprises, and WorkSafeBC isn’t optional if you’ve got people working for you. Having the right insurance just keeps things clean - no finger-pointing and no fighting about who’s paying for what when something goes sideways.
At the end of the day, it’s not about being scared, it’s about being smart. Cover your bases, keep you/your crew safe, and protect the business you’ve worked your ass off to build.
