A Thorough Guide Focusing On Canadian Commercial General Liability Insurance
In today’s age, Canadian business owners have an abundance of concerns they contend with on a daily basis. These individuals are responsible for overseeing the actions of their employees, while ensuring the client receives a satisfactory experience. Unfortunately, there are numerous problems that could arise in the near future. A client may not be satisfied and they could seek repercussions via lawsuits against your business. In order to protect your business from potential civil suits, it is absolutely vital to acquire commercial general liability insurance. What does it do and how does it help? Continue reading below to find out right now!
Frequently asked questions regarding commercial insurance
- What is business interruption insurance? What does it cover?
- I have a vehicle I use for work, can that be insured?
- How do I get insurance coverage for crime?
- Why should I have a transit insurance policy?
What Is It?
Before delving into the sophisticated specifics of liability insurance, it is essential to learn about the basics. This type of insurance is specifically designed for the benefit of Canadian businesses. It protects the business from potential lawsuits, which may arise due to property damage, bodily injury, and other problems. As long as you maintain a sufficient amount of liability insurance, your business will be protected in the event of a lawsuit being filed by a third party. The insurance can cover the cost of the damages and injuries, as well as defense costs.
Suitable For All Businesses
There is often a misconception that only the biggest businesses within the country of Canada will need general liability insurance. This couldn’t be further from the truth. The truth of the matter is that all businesses can benefit substantially from commercial general liability insurance. By working with the right broker, you will be able to find a specific plan, which perfectly suits your business, your budget, and the amount of risk you face.
Even if you happen to run a home-based business, you should consider investing in this type of coverage. If a guest or delivery person is injured within your home, you could be held liable. Do not take the risk, without having protection. Truthfully, commercial general liability insurance is suitable for businesses of all shapes and sizes.
Commercial general liability insurance, or CGL, is responsible for covering several types of damages and injuries. These accidents can be very common, but the frequency of occurrence will depend on your specific line of work. Below, you’ll find a quick breakdown of the types of incidents this insurance will cover.
- Injuries to anyone visiting your business premises. This could include a customer, vendor, employee, or a general visitor.
- Injuries that occur due to the negligence or actions of your employee. This can occur inside or outside of your place of business
- Property damage caused by your employee.
These incidents could transform into complaints and may eventually result in lawsuits against your company. Regardless, the insurance will protect your business in both situations.
Bodily Injury Liability Coverage
As a business owner and employer, you are always going to be vulnerable to lawsuits. The lawsuits may be the results of an injury that has occurred at your place of business or an official worksite. While, many of these claims may be fraudulent, you are still responsible for taking the necessary steps to prevent further damage. The only way to protect yourself from financial loss is to get covered through a reputable Canadian insurance provider. CGL consists of various types of coverage, including bodily injury liability coverage.
Once the lawsuit has been filed in the court of law, you will have no other choice, but to dispute the claims. If the judge and jury decide in the client’s favor, you will be responsible for the compensatory damages. If your company is covered under an active CGL policy, the insurance provider will take full responsibility for compensating the victim. The total amount of the payout will depend on the extent of the injury, income loss, property damage, and whether or not the victim requests compensation for mental and physical suffering.
Property Damage Liability Coverage
If you are a business owner, with one or more employees, you will be vulnerable to client property damage claims. While, there is genuinely no way to prevent property damage, caused by employees, you can get protected. CGL includes property damage liability coverage, which is a necessity for all business owners. When a claim is filed against your insurance policy, a claims adjuster or appraiser will initiate an investigation to see if the claim is legitimate. The adjuster will also speak with the claimant and any witnesses. The appraiser will determine the amount of the compensatory damages that will be paid out to the claimant.
Whether your company manufactures a product or works inside of the client’s home, there will be a chance that something could go awry. If it does, the client could be injured and your company may be held responsible. If the client is forced to spend time in the hospital or proceed through a surgical procedure, they may attempt to reclaim their losses by suing your business. Normally, this would hinder your company’s ability to generate a profit. Hospital stays and surgery can be immensely costly.
By working with an advisor and acquiring the right CGL policy, you will not have to worry about paying for these expenses out of pocket. The insurance company will cover the costs.
In Canada, it is sometimes possible to slander or libel another individual or company through advertising. Although it depends on the specific type of policy you acquire, it may be possible to obtain coverage for these types of incidents. Some will specifically cover personal and advertising injuries, such as libel and slander.
Although CGL is considered comprehensive, it doesn’t actually cover all types of problems. Instead, it only protects the Canadian business from personal injury and property damage. Some Canadian businesses will need additional coverage, in order to protect their businesses from all potential problems. Some businesses will want to consider adding employment practices liability coverage, as well as errors and omissions insurance, to their policies.
The aforementioned coverage will protect your business from wrongful termination, discrimination and sexual harassment claims. E&O Insurance can protect your business in the event of financial report errors, which result in losses for the client.
Each business is unique. There isn’t a single CGL policy, which is capable of perfectly accommodating each and every business in Canada. Instead, the insurance provider will need to configure a policy, which caters to your precise needs. One of the factors, which can differentiate from policy to policy, is the policy limit. The policy limit is the maximum amount the insurance company will pay out to your company for damages and legal fees. In some situations, it may be possible to increase the limit, but doing so may require you to spend addition on the monthly premium.
Work with an advisor, so you can gain a better understanding of your risks and your needs. This will give you the ability to acquire the precise coverage needed to cover any problems that may arise.
Getting A Quote
When attempting to acquire the right commercial general liability insurance for your company, it is best to start by acquiring a quote. By submitting a few minor details, you will be able to acquire a cost estimation of your monthly premium. Alternatively, you may want to consider speaking with the broker directly. They’ll provide you with the assistance you need and help you obtain the coverage required within a jiffy.