Overview of Small Business Insurance Needs in Calgary

Although the range of diverse items manufacturers make is immense, with just a few exceptions the risk exposures varied more in degree than in kind. Below is an a brief over of common business insurance policies in Calgary.

Business Owners Policy

A Business Owners Policy is the most cost-effective and efficient option to obtain property and liability insurance for your small manufacturing firm (BOP). This type of policy offers a bundle of several coverages for a single price. Insurers have put together packages geared to numerous distinct sorts of small manufacturers. These policies, which go by a number of names, often include provisions comparable to those found in the BOP’s sections on property insurance and liability insurance, with the opportunity to add various extra coverages as necessary.

Property Insurance

The package policy protects real estate your business owns. In the event of a potential loss or damage, the insurance covers tenant improvements and betterments if your factory rents or leases its premises. These are fixtures, changes, installations or additions that you have put into the space that cannot lawfully be removed from the landlord’s property.

The coverage also protects your other business property—equipment, machinery, raw materials, inventories, etc. The insurance will ask you to report routinely on values in raw materials, items at various stages of production and completed inventory so that if there is a loss, the claim may be handled with precise values.

Cyber Liability Insurance

Two types of coverage for electronic data are often included in the basic insurance. Coverage for business income lost and additional costs incurred as a result of many computer issues is provided by Computer Operations Interruption Coverage. Electronic Data Loss Coverage can pay the costs associated to replace or restore electronic data deleted or damaged as the consequence of causes of loss mentioned in the policy. These include a computer virus or hazardous code. Several endorsements can be added to your BOP for further protection. You should review what electronic data your business employs with your insurance agent to verify you have the correct coverages.

Business Interruption Insurance

The basic policy usually includes two coverages that can be vital to your business survival if there is a disaster: Business Income and Extra Expense Insurance (also known as Business Interruption Insurance). Business Interruption Insurance helps pay ongoing expenditures while your business is unable to function following a potential loss and also can provide help make up for lost revenues. Rent for temporary lodgings is only one example of the extra expenditures that Extra Expense Coverage pays for as a means of helping you get back on your feet fast. If these aren’t part of your standard coverage you may probably add them for an extra price.

Many companies require property coverage that isn’t included in the standard policy. Among others, these include coverage for theft and burglary, employee dishonesty, mechanical failure or property of others in your care, custody or control. Be careful to discuss with your agent any other property coverages you may wish to add.

General Liability Insurance

Liability hazards are part of any business venture. Liability coverage in a package insurance might include everything from slip-and-falls to slander and defamation lawsuits. In terms of importance, Products-Completed Operations Coverage is perhaps the most critical. This provides for legal defense and payment of damages in the case there is a lawsuit claiming that a product you created hurt the claimant.

Most package plans exclude any coverage for pollution or environmental harm. Coverage can be added through endorsements.

Insurance for Commercial Vehicles

If you use your car for business purposes, you’re generally covered under your personal auto insurance policy. A personal car policy is unlikely to offer coverage, however, if the vehicle in question is utilized largely in business. A business-owned car is not covered by this policy. For those cars you must have a business auto coverage.

A person who is hurt while you are operating your personal vehicle or van for business purposes may bring a personal injury claim against you. Can the damages to your car be covered by your personal vehicle insurance policy? If you don’t, a lawsuit might be brought against your business. The higher your personal auto insurance coverage, the better your business is protected if you drive for business purposes. You should address this with your insurance agent. Further information on typical types of business insurance can be found here.


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