Commercial Insurance

Common insurance products for business owners

Every business is different, but there are a series of insurance products available to business owners that will help you adequately protect your company from common risks. The following are some of the most popular types of business insurance coverages sought by business owners:

• Commercial property insurance
  Commercial property insurance provides coverage for your building, contents, stock and equipment against physical loss or damage. It is typically paired up with Business Interruption coverage which compensates you for your lost income while your business is closed due to an insured loss.
• Comprehensive, or commercial general liability (CGL)
  CGL insurance is designed to cover claims against your business for bodily injury or property damage to other people. Examples of coverage include if a customer is injured at your place of business, or say an employee damages property at a client's site. CGL is not a Professional Liability (errors and omissions) policy.
• Errors and omissions, also known as Professional Liability
  This type of insurance can be important coverage for anyone who deals with customers who could claim that something that you or your company did on their behalf was done incorrectly costing them money or causing them harm in some way.
• Accounts receivable coverage
  Accounts receivable protection provides coverage when business records are destroyed by an insured peril and the business cannot collect money owed. The policy covers these uncollectible sums plus the expense of record reconstruction and extra collection fees. It does not insure the physical value of the records themselves, such as the paper or computer disks and tapes.
• Crime coverage and fidelity bonds
  Crime coverage protects your business from losses resulting from crime, whether it's considered a burglary, robbery or theft. Fidelity bonds specifically cover theft perpetrated by your employees who might steal money, equipment or other assets from you (first-party fidelity) or a client (third-party fidelity.)

Third-party Liability Coverage

Third-party liability (known as Civil Liability in Quebec) covers you if you are held legally liable if your vehicle injures someone else or damages his or her property. If you are held liable for more than your coverage, you can be held personally responsible for the balance. Third-party liability coverage is compulsory in all provinces and territories in Canada, although the minimum amount of coverage needed may vary by province.

Uninsured, Underinsured or Unidentified Motorist coverage

This coverage is universal across Canada. While it may be called something different, or split into two or more coverage types the principles are the same. Uninsured, underinsured or unidentified motorist coverage provides payment (the amounts vary among the provinces) if you are injured or killed through the fault of an uninsured/underinsure driver, or by an unidentified vehicle like in a hit-and-run.

Family Protection

Family Protection coverage provides coverage for you and your family from the actions of an at-fault, uninsured or underinsured driver. If available in your province (it is not currently in Quebec), Family Protection coverage ensures that you and your family are covered if you are injured in an accident up to your own policy's limits regardless of the other person's coverage levels.

Limited Waiver of Depreciation

If you have a brand new car, still within the first 24 months of the original delivery date, this optional coverage ensures you will receive the full value of what you paid for the car -- without depreciation if it is written-off. If your car can be safely repaired, your insurance company will arrange for necessary repairs.

Loss of Use coverage

Say you're involved in an accident and your car is damaged. Your Loss of Use coverage pays for a rental car or alternate transportation (like taxi or train fares) while your automobile is being repaired. Loss of Use coverage is optional.

Damage to Non-owned Automobiles

If you need to rent a car for a short term, this option provides you with Collision and Comprehensive coverage on the rented car. This type of insurance can get expensive if you purchase it from a rental car company.

Before you sign up for this coverage, take a moment to check with your rental car company and your credit card company. You may already have this coverage elsewhere.