Calgary is one of the best areas to do business because of its strategic location, low tax rates, thriving startup community, and supportive government. On top of this, the city has a competitive job market and lower living costs, making it a top choice for residents.
That said, make sure you buy business liability insurance in Calgary before you launch yourself into the daily operations. No matter what business you have, protecting it from potential liability is key to preventing financial and reputational consequences. Get to know more about how insurance can help you and what policies you can get.
Liability Insurance vs. Business Insurance
If you have tried shopping for insurance in Calgary, you may have come across liability insurance and business insurance. So, what makes them different?
Generally, business insurance is a broad term covering different types of policies designed to protect your business. On the other hand, liability insurance is an insurance product that covers lawsuits and claims against your company. While you can also break this down into more specific policies, the gist is that liability insurance falls under the broader umbrella of business insurance.
Common Types of Business Insurance
Depending on the nature and industry of your business, you may need to get different types of insurance to safeguard against risks. To help you out, here are the common types of business liability insurance in Calgary:
● General Liability Insurance. This insurance protects your business from bodily injury, property damage, and personal injury claims caused by negligence. Your coverage will help pay for legal fees, medical expenses, settlement bonds, and other costs related to the incidents.
● Professional Liability Insurance. If you offer professional services, this policy protects your business from claims that you made a mistake in rendering your services. It is also called errors and omissions insurance and is common among lawyers, accountants, and physicians.
● Product Liability Insurance. Professional liability insurance is for service businesses, and product liability insurance is for merchandise businesses. It covers your company for claims that your product is defective or caused injury or property damage to someone else.
● Workers’ Compensation Insurance. This insurance policy covers medical expenses, ongoing care, and lost wages for employees who get ill or injured while on the job. Each state has laws related to workers’ compensation insurance, so make sure to look these up to ensure adequate coverage.
● Commercial Property Insurance. This insurance pays for damage caused by covered perils like fire or vandalism on your company property and equipment. Take note that this policy does not include flood protection, so you will need to get a separate flood insurance policy if you want such coverage.
● Commercial Umbrella Insurance. You can get commercial umbrella insurance to extend your liability coverage limits if you want extra protection.
Importance of Insuring Your Business
Of course, no business owner wants their products or operations to cause intentional injury or harm to others. However, these may sometimes happen due to unforeseen or unpredictable circumstances. Thus, getting business liability insurance in Calgary helps you stay proactive and avoid paying out-of-pocket for expensive damages and claims.
If cost is your main concern about insurance, think about how much more you would have to pay if something happened and you had no insurance. Liability claims can cost thousands of dollars, so your business will take a big hit from shouldering these costs.