Commercial General Liability Insurance Alberta
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According to data from the Government of Canada on Key Small Business Statistics, the province of Alberta has roughly 162,000 businesses, with 159,000 of those businesses being small businesses. It should be noted that small businesses face no less of a risk of bankruptcy than larger businesses, even while they might not be as “renowned” as the latter. They often lack the financial resources to recoup if a lawsuit is ever filed against them.
Regardless of the size of business you have, or its industry, purchasing the right Commercial general liability insurance is critical to your long-term survival. Ensuring you have the necessary coverage to cover unexpected events like damage to third parties, professional negligence accusations, or defective products are all ways you can help your business succeed.
EasyCover, a division of Acera Insurance Ltd., is happy to provide one of Canada’s only online portals through which you can get a free quote and purchase your insurance directly, without the need to talk to a broker. Protect your business today. Call now for a free quote on Commercial general liability insurance in Alberta from EasyCover!
What is Business Liability?
Business liability protects the financial interests of business owners or companies by helping fulfill certain legal obligations to a third party for an alleged wrongdoing. Every business, no matter how many people it employs, is at risk of legal liability. Consider it your business’s first line to defend yourself. Your business may even be exposed to being held liable even if you believe you have done nothing wrong; lawsuits can happen simply because a client believed their injuries or damages resulted from your business’ negligence.
The risk exposures of different types of businesses tend to vary, so you can expect each business to have a different need for liability coverage. For example, some companies may benefit from just an Alberta Commercial General Liability Insurance policy, whereas others may have more intricate needs, and may also need cyber liability insurance, or E&O.
A tech company would not have the same risk exposures as a hair salon, for example. The commonality between the two is that they both require some level of business liability insurance to be adequately protected. As to what that level is really depends on the nature of your business.
Even if there are no legitimate violations, legal problems can still arise. CGL coverage helps to protect against losses that may result from a lawsuit.
Who Needs Commercial General Liability Insurance in Alberta?
Commercial general liability insurance in Alberta is not required by law. However, some form of coverage may be required if you rent a commercial space or by the parties that hire you.
Up to 25% of Canadian small businesses are underinsured or uninsured. Here at EasyCover, we highly recommend CGL, whether it is needed in your line of work, since it can very well be the thing that keeps your business afloat despite disaster. If you are unable to afford the legal costs, this protection is important. Lawsuit expenses can be crippling for a company, which is why many people choose to insure their business with Alberta commercial general liability insurance.
In short, if you value the longevity of your business, you need commercial general liability insurance.
How Does Commercial General Liability Insurance Work in Alberta?
CGL provides coverage for liability claims related to bodily injury and property damage resulting from your business operations. When claimants seek damages, your liability coverage may cover third-party allegations and defense costs.
Your employees, your products, and your finished operations could all be held responsible for claims of bodily injury or property damage.
An Alberta commercial general liability insurance policy is based on occurrence. What does that mean? This means that all incidents occurring during the policy term (usually one year) are covered regardless of when they are presented.
No matter what your industry is, our Alberta business insurance brokers can quickly assess the risks and potential financial losses your business could face.
What Does Commercial General Liability Insurance in Alberta Cover?
Bodily injury
Liability coverage protects your business if a third party is physically injured on your business property or because of its activities. For example, your business could be sued if a customer slips or falls on your steps.
Bodily liability injuries are expensive. Bodily injury liability assumes that the injury was caused by negligence. It is possible that your store was not a danger to others if the steps leading up to it were not slippery or icy.
Customers, vendors, employees, and maintenance personnel can bring bodily injury claims against you since they all constitute third-party.
Your business may be required to pay compensation for medical bills, lost wages, pain, and suffering.
CGL coverage allows you to simply file a claim with the insurer, if you are facing a third-party claim, and will help cover related legal expenses.
Property Damage
Property damage liability is yet another potential liability risk that most business owners could face. It is possible that you could be legally held responsible for the damage done to property belonging to third parties.
This could lead you to pay high legal fees, which could also adversely affect your reputation. CGL insurance protects against third-party damage to your property or your business.
Other types of liability can be combined into one claim for property damage. Product liability claims often overlap when the product defect causes damage.
Product Liability Insurance
Product liability is a policy that protects you against any property or injury caused by the sale of a product or service. These expenses can be covered by commercial general insurance.
Personal and Advertising Injury Liability
Insurers who cover commercial general liability typically include personal and advertising injury claims.
This protects you from claims of libel and slander as well as privacy violations, intellectual propriety infringement, damages to third parties, and damages related to advertising.
Clients could sue you if you posted photos of their final hairstyles on your business’s Instagram account without their consent, for example. CGL coverage covers the costs of any lawsuit and will pay for damages.
Tenant’s Legal Liability
The tenant’s legal liability or commercial tenant insurance protects you against the risk of operating on leased premises. Your general liability insurance will cover damage to rental properties caused by you or your workers. This coverage is required by many property owners before you rent out space for your business.
Get the coverage you need for your business. Call now and get a free quote on Commercial general liability insurance in Alberta from Easy Cover!
Alberta Commercial General Liability Quote
What Are Other Types of Insurance Alberta Businesses Need?
CGL alone isn’t enough to fully protect any one business. You will need the right arsenal of various coverages to efficiently protect your business from losses. For example, if you were working as a consultant you would need professional liability insurance coverage on top of CGL, or as a retail store you might need property insurance on top of your CGL. Here is a list of some common inclusions in a comprehensive business insurance package:
Commercial Auto Insurance
This insurance is for you if your business operations include using vehicles by you or your employees. For example, a landscaping service provider may use vehicles to transport employees to and from the job location. If you own five or more vehicle for business purposes, you will require fleet insurance.
Commercial Property Insurance
If you own your business property, this insurance covers the costs to repair damage to the property, its content, and physical assets if the damage comes from an external factor, like a storm, fire, or flood.
Cyber Liability Insurance
Cybercriminal activity is rapidly increasing as of late and can result in considerable financial loss. This insurance protects your business against cyberattacks that result in data breaches, computer hacks, and other cyber risks. Cyber liability insurance comes in different forms.
Professional Liability Insurance
Known as errors and omissions insurance, this insurance helps you recover from a claim made by a client that you gave bad advice that led them to money loss.
Directors and Officers Liability Insurance
If you run a company with a board of directors or if you’re a member of a board of directors in a company, D&O insurance helps protect you from financial liability if a decision made by the board results in a lawsuit.
Equipment Breakdown Insurance
Damaged equipment can become an obstacle in running your operations. While property insurance covers the cost of repairing damage from some external factors, you need more protection if there’s electrical damage or in case your equipment fails. This insurance pays for the repair or replacement costs of damaged equipment.
Employment Practices liability insurance
If an employee files a lawsuit over an issue like wrongful termination, discrimination, or harassment, you might be liable to pay a large sum for settlement. This type of commercial insurance pays for legal expenses and any damages.
What is Not Covered by Commercial General Liability Insurance in Alberta?
The following are not covered by a commercial general liability policy in Alberta:
- You may be sued for any reason other than bodily injury or physical damage to another party due to negligence.
- Property damage to the company’s property.
- Motor vehicle accidents that cause injury or damage.
- Intentional and criminal acts that cause property damage or bodily injuries.
The policy will outline what is not covered under commercial general liability insurance in Alberta.
How Much Commercial General Liability Insurance in Do I Need in Alberta?
Because every business is unique, your risk may differ from those of neighboring businesses. The coverage level required will depend on three factors. These factors include the perceived risk, type, and operation of the business, and premises/operations liability.
Here are some questions you need to think about to determine how much coverage you need:
- What is the frequency of lawsuits in your industry?
- What is the cost of lawsuits in your industry?
- What do your business operations include and do certain areas pose a greater risk of causing injury or property damage?
- Which country do you operate from?
- What is your annual revenue?
- Who are your customers?
- Are you looking for worksites?
- How often do clients, vendors, and the public visit your office or business?
- How many employees does your company have?
Note that CGL may not be the only form of liability insurance coverage you require, depending on your scope of business. IT contractors might need cyber liability Insurance, E&O, and CGL, for example. A retail store, on the other hand, may only need CGL, and a base level of cyber liability if they store product data virtually.
How Much Does Commercial General Liability Insurance Cost?
You can expect to spend in the range of $2,000 for a small- or medium-sized company, and $450 annually on a basic Alberta commercial general liability insurance policy with a limit of $2M.
To better understand your needs, think about these factors that will be considered when choosing the right policy option for you:
- Years of experience
- Annual and projected gross revenue
- Number of employees
- Previous insurance claims
Our team of Alberta insurance brokers can you a free commercial general liability insurance quote with the most affordable prices while still getting all the coverage you need!
How to Save Money on Commercial General Liability Insurance in Alberta:
- Shop around for different quotes from different insurance companies – Insurance companies evaluate risk using algorithms that can generate quite different quotes from the exact same information.This means that you can find significantly lower rates by simply shopping around. How often should you request quotes for your business insurance?Financial experts recommend that you get quotes for your business insurance policy annually.
- Bundle policies – Combining several types of protection (property and business interruption, for example) into one plan is often more affordable than buying each coverage option individually.Before you sign, make sure to read the policy. Some bundled plans may not always include coverages such as commercial auto insurance, professional liability Insurance, or workers’ compensation.
- Evaluate your business risks – You should thoroughly review your policy to ensure that you do not have coverage you do not actually need. A broker may be of help with this task.Commercial auto insurance is not necessary if you do not own a vehicle that you use for business purposes, for example.You do not need employment practice liability coverage if you do not have employees. You should not be insuring yourself against risks you do not face.
- Try to avoid making frequent claims – For example, if your employees cause property damage that you can afford, it’s better to pay for it. Filing a claim is added to your insurance record and increases your premium rates.
How to Avoid a Commercial General Liability Insurance Claim – Risk Mitigation Strategies
- A detailed contract should be written. Client contracts should be clear and detailed. They should include details about the work that you will perform, the costs involved, and the deadlines. You may include an indemnity agreement depending on the nature and extent of your work to avoid any liability. An attorney can assist you if you are unsure how to create a detailed contract.
- Keep your data and client logs secure so your business may continue running in the event of a physical loss. Back up your documents and ensure you have additional copies of any important data.
- Communicate openly with your client. This is one of the best ways you can keep them happy. You should be clear about your expectations and responsibilities. Keep everyone updated on progress and any obstacles.
- Quality control is important. Although it may seem like an easy step, it is easy to rush through quality control checks when you are trying to keep a project moving forward. You need to ensure that your quality assurance process is focused, regardless of whether you are building a website or developing an app.
FAQs: CGL Insurance in Alberta
A commercial general liability insurance claim can be raised by customers, vendors, delivery personnel, maintenance personnel, or people passing by your place of business.
This coverage is optional in Alberta. If you violate contracts that require you to have commercial general liability insurance, you could face penalties.
Your company, employee, or you can be sued for causing bodily harm or damage by negligence. You would be responsible for all legal costs.
As a business owner with insurance, you are considered the insured or the first party. The insurance company providing you with coverage is considered the second party. Someone who brings a claim against your company, whether it be a client, vendor or other business, would be considered the third party.
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