Starting and running a business can be pretty challenging. But business owners in Alberta can be confident when venturing into this field because the province has tremendous support for small companies.
From start-up support and fund grants to tax credits and market expansion, business owners can access various assistance programs to suit their needs. This kind of support, when coupled with passion and determination, can be your formula for success.
And when you have the resources and attitude to start a business, all that’s left is effective planning and preparation. And one vital thing you need to prepare your business for operations is the right business insurance in Alberta to protect you and your company.
So, what type of business insurance do you need? Explore the different business insurances available in Alberta today, so you can decide what’s suitable for your company.
Commercial General Liability Insurance
As the name suggests, general liability insurance is a comprehensive policy that protects against broad claims made against your company – something every business needs today. These claims include bodily injuries and property damage that your product, service, or operations caused.
When your company is held responsible, the insurance will cover the medical expenses needed to treat injuries and your lawyer’s professional fees during the lawsuit.
Unfortunately, it will not cover injuries or damages expected in the business or those that are intentional.
Professional Liability Insurance
Professionals, such as lawyers, doctors, and accountants, need protection in their business too. Some clients can make claims against professional services, such as negligence, malpractice, misrepresentation, and other mistakes, causing damage or injury to clients.
When this happens, professional liability insurance secures the insured against any losses acquired from lawsuits.
This insurance policy does not cover criminal prosecution and is only valid during the policy period.
Commercial Property Insurance
Commercial property insurance is intended for any property used in business, such as those used by manufacturers and retailers. It provides the same coverage as consumer property insurance and protects establishments against damages from disasters, such as natural calamities, fire, and theft.
Usually, commercial property insurance is an add-on policy to general liability insurance so businesses can have more comprehensive coverage and better protection. However, it does not cover losses caused by tenants using the property.
Commercial Auto Insurance
As business owners, you must protect everything your business use, including vehicles like delivery trucks or your personal car used for business purposes. Hence, you need commercial auto insurance that provides liability and collision coverage.
This insurance policy pays for medical expenses for injuries resulting from car accidents, damage due to natural disasters and falling objects, and other specified causes. It may also cover losses from theft, including stolen vehicle contents.
Cyber Liability Insurance
When you handle sensitive information on the web, you will need robust cybersecurity technology to protect such data. But unfortunately, even solid computer security is susceptible to hackers.
So, you will need cyber liability insurance to cover losses acquired during a data breach, which can be costly.
This insurance will protect your business from financial losses associated with cyberattacks and other internet threats, such as lawyer fees, fines, credit monitoring, and client compensation.
Business Interruption Insurance
It is not uncommon for businesses to acquire income losses due to disasters like natural calamities or fire. When this happens, the loss of income can be significant, negatively affecting business operations. And sometimes, it can be too severe that your business stops operating altogether.
However, when you have a business interruption insurance policy, you can secure your business by replacing income loss caused by specific reasons.
Note that business interruption insurance is not an individual insurance policy but an add-on to existing property insurance or bundled with other insurance in a comprehensive business owner’s policy.
These are six of the most common business insurance policies that different companies acquire for their businesses. Other less common forms are also available in Alberta, including trades and construction insurance, builder risk insurance, and condo buildings and corporations insurance, which are specific to their industries.
Exploring the different types of business insurance available to you today is critical in choosing the suitable coverage that will benefit your business the most.
However, if you are still unsure about what to choose and need further explanation, it is best to seek guidance from qualified insurance agents or business lawyers. These professionals will walk you through the types of insurance suitable for your business and what will provide the best coverage. They can also recommend a business owner’s policy – a bundle of different insurance policies that provide more extensive protection.
Securing your company the right business insurance Alberta is the most important thing you can do as a business owner in Alberta.