As a business owner, you must guard your business against unplanned risks. Having commercial liability insurance in Canada is one of the greatest ways to insulate yourself from such risk. But What is Commercial Liability Insurance Canada, and do you really need it for your business?
Basically, commercial liability insurance exists to protect your business against claims based on injuries or damage which are related to your business's activity. For instance, if an employee injures a customer inadvertently or if your product causes damage to somebody’s property, your business could be found financially liable. With liability insurance, this will all be paid for by your insurer up to the limit of your policy, offering peace of mind and financial security.
Although it’s not required by law, many business owners in Canada believe this kind of insurance is vital to protect their company and its assets.
What Does Commercial Liability Insurance Cover?
Commercial liability insurance in Canada typically covers:
- Bodily Injury:
Expenses arising from injuries someone sustains as a result of your business operations. - Property Damage:
Damage to the property of others in your part of a building or to other part of the premises you rent. - Personal and Advertising Injury:
Claims such as libel or slander, copyright infringement, or false advertising. - Payment of Legal Defense:
Lawyer fees and court costs if your business is sued.
And for businesses in direct contact with customers or clients, this coverage is crucial, as even simple accidents can result in expensive claims. Liability insurance works to safeguard your business from financial ruin that might otherwise severely disrupt or even destroy it.
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Who Needs Commercial Liability Insurance in Canada?
Commercial liability insurance is a good idea for just about any business. If your business has interactions with clients, tenants, or the public, you can be held responsible for accidents or damages. Some of the typical types of businesses that would make use of this insurance are:
- Service Companies:
Everybody, from the self-employed to consultants. - Landlords and Property Owners:
Defend yourself against injury to a tenant or visitor. - Storekeepers and dealers:
Protection for accidents to your customers or spoilage. - Product Liability Claims for Manufacturers:
Protecting Your Business.
Even if your company appears to be low-risk, liability coverage is the best way to protect against unexpected developments that result in legal claims.
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How Much Does Commercial Liability Insurance Cost in Canada?
The cost for small businesses in Canada can range depending on a variety of factors.
- Size and Type of Business:
Small companies usually pay lower fees than large corporations. - Limit of Coverage:
Higher coverage limits will result in higher premiums. - Geographic and Industry Risk:
Companies in riskier areas or industries may pay more.
As a general rule, small business owners can expect to shell out on the order of $500 per year for a modest level of insurance protection; bigger companies may spend anywhere from thousands to millions each year.
It may feel like an unnecessary expense as a small business owner to invest in liability insurance, but with something so unpredictable as lawsuits, it can actually end up costing your business if you don’t have any form of coverage. It’s one small step you can take to keep your money (and name) safe.
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How to Get Commercial General Liability Insurance in Canada
In order to get liability insurance for a business, you are required to work with a licensed insurance broker. Here’s how to get started:
- Evaluate Your Business Operations:
When starting a new company, evaluate your business based on industry, size, location, and potential risks. - Speak to a Licensed Broker:
A licensed broker will help you find policies that are tailored to your business needs. - Compare Quotes:
Don’t forget to ask for quotes from several services to know the best deals being offered. - Look for Discounts:
Some carriers will provide discounts if you bundle policies or have multiple locations insured. - Take a closer look:
It is imperative to know exactly all the policies on your insurance policy before it’s too late.
By taking these actions, you can get a policy to keep your business safe from unexpected accidents or legal action.
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Final Thoughts
What is Commercial Liability Insurance Canada? It is an essential means of protection for your business to have commercial liability insurance in Canada. By shielding you against costly and prohibitively expensive claims or lawsuits, business insurance keeps your small business operations afloat. Though not legally mandated, liability insurance at SummitCover is an investment that can prevent devastating financial losses and lead to long-term peace of mind.
