What Are The Three Basic Types of Business Insurance in Nanaimo?
As a hard-working business owner, you know the level of effort and expertise it takes to run a small company in Nanaimo, BC. As both a business and an independent insurance brokerage, we understand commercial operations from multiple perspectives. For over 50 years, we have seen all different types and scales of business in the province of British Columbia, and we have just what it takes to serve the various areas in our beautiful province. Business insurance in Nanaimo comes in a variety of different forms, and as a company looking to protect its bottom line, it is a good idea to be familiar with the standard offerings and how they may support your organization.
The team at Acera Insurance want to make sure you have a solid understanding of the three basic types of business insurance in Nanaimo we most frequently recommend to our clients. Read on for more information about these key insurance coverage options, which are as follows:
- General Liability Insurance
- Commercial Property Insurance
- Business Interruption Insurance
For further questions with respect to your individual business, don’t hesitate to contact one of our members to discuss. Our friendly business insurance brokers in Nanaimo are always willing to lend a helping hand, especially if it means you can operate with peace-of-mind.
General Liability Insurance
General liability insurance, also called commercial general liability insurance (or CGL), is a type of liability insurance you can purchase as a standard inclusion with a Business Owner’s Policy (a BOP). This type of policy covers legal expenses should your business be found liable for property damage or bodily injury. Note that while nothing can prevent a lawsuit, general liability insurance works to cover the cost of claims if they should arise due to damages or injuries on your premises or because of your operations. Lawsuits can arise even if claims are not technically justified. A lawsuit may arise if:
- A client slips and falls while attending your place of business, injuring themselves in the process. They sue you for their medical bills and loss of income.
- While working at a client’s property and doing repairs, one of your employees drops a hammer which consequently damages their hardwood floors. They demand reparations for the repair costs to fix their home.
- You run an automotive body shop, and a customer sues you, alleging that their vehicle was scratched while it was being repaired due to the negligence of your workers.
These are just a few examples of potential lawsuits where having CGL or general liability insurance can prove to be very useful. This is the most standard business insurance you can get – Acera Insurance advises a bare minimum amount of coverage with CGL, no matter the kind of business you run.
Commercial Property Insurance
Commercial property insurance is critical whether you run a business out of a rented or owned property. So long as you have a physical premise, you need to protect your physical assets from loss or damage. Commercial property insurance provides coverage for physical structures or buildings, as well as your inventory or equipment. Perhaps a few items could be replaced on your own dime if something happened, but an important question to ask yourself is: how much would that put your business out? Could you afford to reopen if such a loss occurred, especially if everything you owned was damaged or destroyed? Commercial property insures against common perils such as:
- Fire
- Vandalism
- Theft
- Storms
- Earthquake (with an endorsement)
- Flood (with an endorsement)
- Sewer back-up (with an endorsement)
Typically, Commercial property insurance will include items like business buildings, inventory, electronics/equipment, and any relevant exterior fixtures (such as outdoor signs, fencing, landscaping, and so on.) With an endorsement, you may even be able to insure commercial property while in transit.
Business Interruption Insurance
Imagine a covered peril did occur, damaging your property. That’s fine – you know you have insurance, and you are aware that your coverage is enough to reimburse you for the repairs. But what are you going to do during the time where your business is forced to close while your property is being repaired or rebuilt? You may suffer due to loss of income and your business may not be able to afford to pay its bills without consistent revenue. Business interruption insurance will compensate you for your loss of income, as well as any fixed/additional expenses during the time that your commercial property is being repaired or even replaced entirely. Business interruption insurance may include coverage for:
- Income/profits
- Employee wages
- Taxes
- Temporary relocation
- Loan payments
- Fixed costs – operating expenses and other business-incurred expenses
- Civil authority ingress or egress
Business interruption insurance may not cover flood or earthquake-related loss of income unless you are covered by a separate policy or endorsement, undocumented items (items not listed on your business’ financial records), pandemic-related losses, or utilities. Many businesses cannot afford to reopen following a loss, even if the damages are covered, as the money lost during a period of closure can quickly begin to add up. Consider business interruption to preserve your peace-of-mind.
As you can see, there are many different types of business insurance in Nanaimo which can be of great benefit to the operations of your business. Our Acera Nanaimo business insurance brokers are here to answer your questions and will work with you to build a business insurance package based on your company’s needs.