In today’s competitive economy, it is increasingly important for businesses to have a big-picture outlook so that they can make the necessary business decisions. This includes protecting your business, employees, and assets from damages that are caused by both natural and man-made disasters.

Liability insurance provides protection for your business in case you are sued or a third party alleges that you, your products, or your operations have caused them harm.

And while it is easier to assume that all business insurance in Calgary comes with liability coverage, you need to check with your provider whether or not you have it – and if yes, what kind?

Why you need liability insurance
Working hard to succeed isn’t always enough to grow a business. As you grow, so will your liabilities. But if your company is sued for damages caused by your products or yourself, your liability insurance can cover those costs until the trial has been decided. And that’s just the short-term use of such a policy.

Ultimately, liability insurance allows you to continue operating your business without having to constantly be looking over your shoulder. It helps you run your company with confidence. That’s why you need to include liability insurance in your business insurance policy.

Types of liability insurance
General liability insurance
General liability insurance is a policy that covers any injury to a third party, whether or not you are at fault. There are two kinds of general liability insurance.

● Bodily injury
Every year, more than 42,000 Canadians get injured as a result of a fall. And if it happens in your store, you will be liable to pay for the damages in case the customer decides to sue you for it. Bodily injury liability insurance covers any injuries that a customer may experience while on your premises. It covers all of the costs associated with legal defence and compensation, which could cost your business hundreds of thousands to millions.

● Property damage liability
Property damage liability insurance provides coverage if you hurt someone else’s property or vehicle, or even a person. It may also cover damages that are more than the actual cash value of the property.

For example, if one of your drivers crashes with someone else’s car while driving a company vehicle, property damage liability insurance will help pay for the victim’s repair work as well as cover your legal fees if someone sues you over the accident.

Product liability insurance
Product liability insurance compensates you for any damages caused by your products during normal use. It helps cover the costs of any product-related claims, suits or settlements. That’s why it is extremely important if you are manufacturing products or selling them to consumers as a retailer.

Professional liability insurance
Commonly called errors and omissions insurance or malpractice insurance, professional liability insurance keeps you protected from any lawsuits by your clients if you have committed any mistake. It can help you cover losses arising from damages caused due to your incompetence or wrongful act related to training, accounting, consulting, engineering and legal affairs.

How much does business insurance in Calgary cost?
Business liability insurance protects against lawsuits and claims resulting from incidents that may happen at your company location. An indispensable tool in your arsenal, business insurance in Calgary can cost between $300 to $1000/year for a coverage of approximately $2 million.

Remember that business insurance premiums are based on a number of factors, including your revenue, the type of insurance you need, the size of your company, and the risks involved in your industry to name a few. So, make sure to do your research before committing to any policy or provider.