Managing business risks is easier when you have insurance. However, that doesn’t mean agreeing to the first offer. You potentially expose yourself to what insiders call “underinsurance” or “over-insurance.” So, you should get first-hand education from an experienced and credible business insurance broker in Calgary.
Nevertheless, this article will cover some of the policy options that will protect your organization.
This type of protection can be two types: professional and general. While they fall under the same umbrella, there’s a big difference in what they include. For instance, professional coverage will assume the damage resulting from erroneous advice given by the consultant. So, if the recommendation happens to push the person seeking insight to bankruptcy, you could be held liable.
In the meantime, general liability will protect you against claims of injury to a person or property —the policy kicks in when circumstance obliges you to pay for hospitalization, therapy, or burial.
The business insurance broker in Calgary will suggest that you get professional liability if you are in the fields of law, engineering, consultancy, accountancy, etc.
Commerce has shifted to the digital plane, so you must equip yourself before heading out to the battlefield. One option is to shield your organization from losses resulting from cyber-attacks. According to Canada’s Insurance Bureau, more than 4 in 10 businesses were victimized by hackers, costing them at least $100,000 in 2021.
A small business does not have the assets to absorb that loss. More than the immediate impact, they also have to deal with the aftermath. For example, one grim fact is that enterprises typically close shop six months after a cyber attack.
Theft and fraud
Another way you get protected is to secure a crime policy coverage. Most people probably don’t know that protection does not only include theft from criminal elements. It also covers losses arising from fraud involving your employees.
This policy will secure you from computer fraud, kidnapping, extortion, securities fraud, counterfeiting, forgery of documents and checks, etc. But crime insurance will exclude scams and deceit perpetrated by top management. So, you can’t defraud your employees and customers and receive a payout.
Commercial fleet or auto
A commercial auto policy will cover damages excluded from personal auto insurance. This type of policy is broken down into three parts: physical damage, liability, and “other coverage.” For example, the insurer would pay you if your vehicle sustained damage from a flood, break-in, fire, vandalism, or earthquake. You will also get coverage if your car crashes and causes injury or death to another person. Meanwhile, other coverage may include towing, rental, lease gap, auto loan, and labour.
Property and assets
You always want to protect your assets any way you can. Any organization can apply for this type of policy, whether for-profit or non-profit. You need this protection in cases of theft, fire, vandalism, flood, earthquake, or any other man-made or natural catastrophes.
Before talking to the business insurance broker in Calgary, you must inventory the assets. Nevertheless, the insurer will also conduct an independent audit to determine how much you must pay for your policy.
The service provider will replace some income loss due to closure or damage from man-made and natural disasters. The coverages include payroll losses, loans, taxes, and operating expenses. With that said, you have to clarify with the business insurance broker in Calgary if your policy will include damages arising from the pandemic. Nonetheless, you can deduct the premium as a business expense.
The coverage period varies depending on the terms of your contract. The standard duration is 30 days, but you can still extend it up to a year.
The directors and officers may be exposed to possible claims if they fail to fulfil their duty to be diligent, obedient, and loyal. Applying for this policy will protect your company against a lawsuit if, in case, they default on their responsibilities regardless of intent. D&O protection is highly advisable for non-profit and non-stock organizations. Before anything else, you must know that this guarantee does not cover fraud and corruption.
D&O insurance has multiple plans. For instance, if the company declares bankruptcy, the directors and officers will expose their financial assets to risk. Meanwhile, in the Side B option, the insurer will indemnify the corporate assets at risk. Lastly, you can also opt for entity coverage, where you insure the company, although your corporate assets remain at risk.
A small business owner can start with one policy if they can’t afford it. Luckily, you can combine two or more plans to enjoy maximum protection. In addition, a business insurance broker in Calgary can customize a program tailored to your specific needs.