Protect your business from liability claims Insurance
Commercial General Liability(CGL) insurance, often referred to as business liability insurance can protect you from various claims, including bodily injury, property damage, personal injury, and others that can arise from your business operations.
Commercial General Liability insurance often covers:
Bodily injury and property damage
Personal and advertising injury
Medical payments arising from injury through business operations
Products completed operations
Damage to premises rented to you.
Any business owner that operates without commercial general liability insurance runs the risk of financial instability should a case occur where the injury to a third party is substantial. In many cases, it bankrupts the business.
A single accident could result in a lawsuit that you might not be able to handle. A great way to protect against this is to make sure you have liability coverage that matches your exposure level.
The commercial general liability insurance ensures that you can run your business without worrying about large claims digging into the company's bank account.
Also, some employers or clients might require you to carry a certain amount of commercial general liability insurance before they establish any connection with you.
The Limited Liability Company (LLC) form of business ownership does not exist in Canada. Thus, it is not an option for Canadian business owners. The only form of business ownership in Canada that offers limited liability is LLP or Limited Liability Partnership. However, it is only available to groups of professionals such as accountants, financial advisors, doctors, lawyers.
All companies structured above DOES protect the owner (shareholders') assets from the company's creditors, so all personal assets are virtually untouchable. In the event of a liability lawsuit, it is only held accountable for the company's actions and limited to all assets of the company only. However, having a fair amount of insurance coverage is still a wise way to protect the company.
The owner/shareholder will remain personally liable for any wrongdoing they commit during the business. For example, owners/shareholders will be responsible when they personally and directly injure someone during business due to their negligence. The company itself may be at risk from the owner's shareholders' creditor.
The answer to the question is, you need both commercial and personal liability insurance.
Unlike property insurance that covers your assets, liability insurance covers the third party. Businesses still have the obligation and responsibility to protect any visitor or passerby near their business location. Should any company that is not operating, one can acquire the bare minimum liability of Owners Landlord and Tenant Insurance (OLT). However, the OLT insurance does not cover any business activities outside of the scope and has minimal coverage. There is no property coverage under such policy.
Any businesses that generate income have visitors visiting; they will need commercial general liability insurance to cover the business activities. The nature of the business conducted at the risk location has to declare to the insurance company.
An insurance policy is a legally binding contract that takes money in exchange for indemnity if the policy owner suffered financially due to an insured risk per declared on the insurance contract (wording of the declaration). As they are legally binding, it needs the legal entity (i.e. a person, a registered corporation etc.) to function correctly. If someone conducts illegal activities such as failure to register a business license when the law requires it, it becomes void. So the short answer is, would it be legal to run a business without having a business license?
Commercial General Liability Insurance will only cover a third party when someone suffered financially due to the insured negligence. If a vehicle belonging to the business owner got stolen from the business location, it would be the comprehensive coverage of the owner's car insurance that pays, not the business liability insurance.
Four steps to buy business insurance
- Assess your risks. Think about what kind of accidents, natural disasters, or lawsuits could damage your business. ...
- Find a reputable licensed agent. Commercial insurance agents can help you find policies that match your business needs.
- Shop around. ...
- Re-assess every year.
Professionals that operate their businesses need professional liability insurance in addition to an in-home business or a business owner's policy. Doing so protects them against financial losses from lawsuits filed against them by their client.
Find out if your business is eligible for commercial general liability insurance. We can help you find the best combination between price and protection by tailoring a policy specifically for your business. Call us today or start a quote online.
Product liability insurance is usually incorporated in a commercial general liability insurance policy, but not all the time. It's always vital to ratify that your small business insurance policy can protect you from risks that are sometimes associated with product liability claims.
Cyber-attacks have recently posed problems to small businesses and have continued to soar lately. The insurance help protects small businesses that rely on technology to operate from expenses associated with a cyber hack; cyber event expense coverage can be an excellent remedy.
If you offer professional consultancy services, and one of your clients claimed that your advice had caused them monetary loss, your professional liability coverage can be a tremendous help. It can help cover expenses that you may incur. It is also known as errors and omissions (E&O) coverage. It also forms part of the commercial general liability insurance.
Small business owners naturally rely on property, equipment, tools and technology to keep their businesses operating. If one of those critical components was damaged and would undergo repairs, your business might not be able to continue its operations. In this situation, you might need property insurance coverage.
External sources of damage such as floods, bad weather and fire may affect the entirety of your business, but the effects of those damages are covered in your property insurance policy. However, damages from within your business, such as electrical or mechanical failures, may not be covered. In situations like these, you might need your equipment breakdown insurance, which can be incorporated into your commercial general liability insurance.
You already have your personal auto insurance policy, but there are times when you or your employees utilize your private vehicle for business or commercial purposes. In this case, you may need commercial auto insurance to protect that vehicle in ways that are beyond the scope of your personal auto insurance policy.