Store owners constantly grapple with finances, so a commercial insurance plan in Calgary probably remains at the bottom of their list of priorities. However, many experts advise that you manage your risks, so securing yourself from possible financial threats is a sound management decision.
A protection plan covers the costs of liability claims or a negative consequence of erroneous advice. Without this protection, you may expose your assets in settling expensive lawsuits. It can be catastrophic for a small business owner who’s stretched his budget already.
Which Commercial Insurance Plan Should You Prioritize?
So, you realize that a commercial insurance plan in Calgary may be essential, yet the budget is thin. It may come down to prioritizing your needs according to your risk exposure.
At the very least, you should buy a general liability plan, which only costs you between $40 and $500 monthly. The amount would not burden your budget and give you enough room to run or expand your business.
But remember that this coverage only includes third-party impairment and property breakage. So, if one customer has an accident within your premises, you can cover their medical expenses.
So, if you own a building where the headquarters is, it’s sound advice to take out property coverage. This would secure your resources in case of a flood, theft, fire, or natural and man-made catastrophe.
But there are several types of coverage plans essential to any operation:
1. Cyber-liability insurance. If you conduct most of your operations online, you can secure vs losses if you become a target of a cyber-attack.
2. Business interruption. The protection clause kicks in when you must temporarily shut down your establishment because of a fire, storm, flood, or disaster.
3. Commercial auto. Unlike the other types, you are legally mandated to insure the vehicles you use in your business.
4. Workers’ compensation. You don’t have to dig into your pockets when your worker gets sidelined due to sickness or an accident while performing their task.
5. Professional liability. The plan encompasses the attorney’s fees or damages when your professional advice results in severe impairment or financial harm. This type of protection is necessary when you are a lawyer, doctor, engineer, accountant, financial manager, stockbroker, etc.
Ask the insurer for a business package plan to make the payment process straightforward. In addition, it will also significantly lower your monthly premium while providing you with the type of protection you need.
Factors Affecting Plan Value
The insurer will assess the type of industry where you belong. For instance, those who work in construction, mining, commercial fleets, airline, agriculture, and health industries typically have higher premiums.
Understandably, their employees are exposed to physical danger more than in any other field. So, insurers will pay to recompense companies and staff in case of workplace accidents or sickness.
Also, the more workers you have, the more you are considered high-risk. They will also review the claims history to determine the median number of applications you filed in a given year.
On average, however, a commercial plan in Calgary is a must-have for any business, even if the regulatory bodies do not legally require you to do so. The odds are already against you since only a few small enterprises survive their first year. Ultimately, you always have to anticipate problems before they threaten your business.