How can I lower my commercial property insurance premium?

Did you know that you have more control over commercial insurance premiums as a business owner? Knowing where to start with negotiating an insurance premium is 80 percent preparation and 20 perception discussion, but many people only go for the smallest degree of coverage available to them to save money. Protecting your business is your number one priority, and having the tools and knowledge of how to negotiate for the coverage you want will help you take your business to the next level.

Back to the basics: What is covered?

Commercial properties, such as real estate, investment properties, or income properties can be used to generate a profit through rental income. As a reminder, we will briefly look at what is covered for your business and what is not.

Your insurance will cover:

  • Improvements done by tenants, including carpeting, painting, or lighting
  • Repairs or replacements to:
    • Building disasters
    • Inventory
    • Equipment
    • Electronics

Your insurance will NOT cover:

  • Unexplained disappearances of items from the property
  • A property that has been left vacant for more than 30 days
  • Everyday wear and tear on equipment
  • Cash or security items
  • Employee theft

Before you enter into negotiations, it is important to know the basics of what your commercial property insurance will cover and where additional insurance policies may be required. For a more comprehensive look at our commercial insurance options, check out our previous blog post!

Can I negotiate my insurance premiums?

As a business owner, you are in a unique position where you can negotiate your business insurance premiums. You are not alone in your negotiations, and at Sadler Insurance, we will help you find the best rate for your business needs. There are a few basics for preparing to negotiate your commercial insurance premiums.

  • Read your contract thoroughly: When it comes to managing your business costs, the fine print of your contract can make or break your negotiating power. Things to look for include the length of the contract term, written agreements for a premium increase rate, premium rate freezes, and the notice of non-renewal.
  • Stay up-to-date on your company information: If you are locked into an existing premium and are looking to renew each year, your company information for that year can impact your premium rate. Have the number of claims filed, current staffing counts, plans for new hires, and additional insurance policies ready!
  • Plan ahead: Did you know you can ask for notices of premium increases beforehand? By contacting your broker, they can give you up to 2 months’ notice for an increase, allowing you to choose to continue with your current plan or meet with your broker to find a better insurance plan.
  • What will you accept: Before you enter a negotiation, keep in mind what you are willing to accept as a premium as this will help with transparency between you and your broker. Don’t be afraid to engage in a discussion with your broker to find the right deal for your business.

5 Tips for lowering your premiums

The most common reason why business owners forgo commercial insurance comes from the cost. Individual commercial insurance policy premiums can start to add up, and we want to help you make the most of your money. Check out our quick tips for negotiating a lower insurance premium!

  • Ask about promotional discounts: 
    • While discounts will vary depending on the type of insurance and the insurance provider, there are often many savings available for commercial insurance for property, auto, and general liability. Your insurance broker can help you navigate various options and the types of discounts based on your business and line of work.
  • Whenever possible, bundle your insurance
    • At Sadler Insurance, we want to cover every aspect of your business while keeping your finances in mind. We have various commercial insurance products available, and our insurance brokers can help assess what coverage plan will work best for your unique business needs.
  • Raise the deductible
    • Deductibles are the amount of money you are required to pay on a claim before your insurance provider can pay out a claim. If you are in a place where you can afford to pay a higher deductible, it will have a lower premium overall.
  • Pay annually rather than monthly
    • When insurance fees are paid in installments rather than a lump sum, there may be discounts available depending on your commercial property insurance. Take time to review your policy and payment plan to determine what is the best approach.
  • Keep security front-of-mind and plan ahead
    • When extra steps are taken to protect your property, every security measure implemented can help to lower your insurance premium. Simple steps include installing a sprinkler system, alarms, security cameras, and fire extinguishers.
  • Plan with an insurance broker and shop for the best-priced insurance
    • Working with an insurance broker is one of the most important tips for negotiating. Insurance brokers act as a go-between for clients and insurance companies and work to find the right policy for your needs rather than a one-size-fits-all solution and offer greater transparency at every step. At Sadler Insurance, we advocate for your needs in conversations to help find the right price for your policy.

As part of our commitment, you can expect unbiased advice from our experienced team, with a wide range of options that will save you time and money that can be invested back into your business. Request a quote today and learn more about our commercial property insurance plans.

What does my commercial auto insurance cover?

 

Are you struggling to find the right auto insurance for your business? Did you know there commercial insurance plans for trailers and fleet vehicles? Navigating coverage changes can be tricky, but we want to shed some light on how to understand your auto policy. Let’s explore the basics of what commercial auto insurance covers, and common questions you may have for your insurance broker.

What is a commercial auto insurance policy?

What is the difference between a personal and commercial vehicle? Personal vehicles are those used to commute to and from work and must be legally registered with auto insurance in Alberta. Alternatively, commercial vehicles are used to transport goods, clients, or employees. Commercial auto insurance provides third-party liability and accident benefits, with the option to add comprehensive and collision insurance coverage to your plan. 

When does commercial auto insurance apply to you?

  • The vehicle is registered under the company name
  • It is used to transport materials or people, including ridesharing and deliveries
  • The vehicle has work-related equipment installed
  • Your employees operate the vehicle
  • Your personal vehicle is used specifically for work

Commercial auto insurance costs vary depending on the industry or business and the degree of risk and exposure present, but your insurance quote will factor in each of the following:

  • The location you are operating from
  • The type of vehicles
  • The number of vehicles
  • Driver experience
  • The nature of your business
  • Claims history

In the case of ridesharing services, commercial auto insurance policies are already in place. Ridesharing allows drivers to use their personal vehicles rather than commercially licensed vehicles. When registering for your personal auto insurance, you must clearly state if it will be used for ridesharing purposes. While insurance policies for ridesharing are specifically tailored to the driver, you may find that your personal auto insurance has a higher premium.

Do I need both personal and commercial auto insurance?

The difference between personal and commercial auto insurance lies in the types of risks covered, coverage limits, and policies. Personal auto insurance covers your individual needs as a driver, while commercial auto insurance is customized to accommodate a wide variety of business activities.

If your vehicle is used only for driving to and from work, you will need personal auto insurance. If your vehicle is used to haul equipment, drive clients, or make deliveries, then choose a commercial auto insurance plan. At Sadler Insurance, we strive to find the best plan for you and we can customize your commercial auto insurance to best suit your business needs.

How does it apply to trailers?

Just like your vehicle, the type of trailer will determine what type of insurance is required. On the whole, trailer insurance coverage should include liability, collision, and comprehensive. In the case of hail damage, theft or vandalism, comprehensive coverage can cover repair and replacement costs.

Alberta does not require mandatory trailer insurance unless it is self-propelled, in which case you will need travel trailer insurance. If your trailer is used for work, you can register for commercial trailer insurance. This commercial insurance extends to: 

  • Flatbed trailers
  • Gooseneck trailers
  • Livestock trailers
  • Auto haulers
  • Side dump trailers
  • Transfer boxes
  • Concession trailers
  • Dry freight trailers
  • Logging trailers
  • And more!

When should I consider fleet insurance?

If your business has more than four commercially insured vehicles, fleet insurance plans can offer you a better deal for the same coverage. For commercial vehicles to be considered a fleet, they must be owned and registered under a business or organization. Within your fleet insurance, you can assign named drivers to specific vehicles or insure all drivers to all vehicles. While your coverage remains the same as individual commercial auto insurance policies, fleet insurance policies offer you more flexibility.

Fleet insurance applies to any of the following:

  • Cities, municipalities, or townships
  • School districts
  • Care service providers
  • Farms
  • Auto repair garages
  • Restoration services
  • Dealerships and towing services
  • Transportation and trucking
  • General contractors

Finding the right commercial auto insurance plan for your needs shouldn’t be a hassle, and we are here to help. As an independent broker, we represent various insurance companies. Insurance agents and banks can offer limited products that cannot be customized, but with a Sadler Insurance broker, we can provide you with a variety of insurance products that fit your needs directly.  Request a quote and find ways to save on your commercial auto insurance today!

How Does Commercial General Liability Insurance Work?

Knowing where to start with insurance when starting a business is not an easy feat, but working with an insurance broker can help. At a glance, every small business should have one of the following: property insurance, liability insurance, commercial auto insurance, or workers compensation. Let’s take a closer look at Commercial General Liability Insurance and what it covers.

What is commercial general liability insurance?

The overarching purpose of commercial general liability insurance is to protect your business from lawsuits related to injuries or property damage. These may be injuries linked to a product or service that your business offers, damage to the client’s property, or advertising injury. Building your business reputation is vital to gaining the trust of your clients, but instances of libel, slander, defamation or copyright infringements are more common as your business expands. 

Commercial general liability insurance extends to cover damages when your business is found liable in court, in reaching policy limits, and any attorney or legal fees that arise. In the case of an injury claim, the medical bills of the plaintiff are covered if they were injured due to your products or on your property. Other coverages include:

  • Insurer fees from investigating or defending claims
  • Court costs or assessed costs
  • Loss of income from days in court
  • Settlement or judgment fees
  • Interest payments for defense
  • Lawyer and witness fees
  • Purchase of police reports

There are few things to keep in mind about the limitations of your coverage. Commercial general liability insurance does not extend to protect against any illegal acts performed by a business or employee. Additionally, if a claim is higher than the liability plan limit, your coverage will not cover the entire cost. In the case of a mistake or error, general liability coverage does not apply, but professional liability does.

What is the difference between professional and general liability insurance?

Professional and general liability insurance are differentiated based on the type of damage that is incurred. General liability insurance policies are triggered by injury or property damage to a third party. If damages or injuries occur to your own property or to your employees, they are not covered. Rather, commercial property and auto insurance or workers compensation would protect you against these claims. Alternatively, professional liability insurance covers any financial loss without the presence of injuries or property damage.

What do I risk without commercial general liability insurance?

Being prepared for the worst case scenario can be costly at the start, but you are thinking ahead for future problems. Without commercial general liability coverage, legal fees and court costs can easily add up to thousands of dollars regardless of whether the lawsuit is dropped or proceeds. Understanding the degree of risk also applies to how your business operates. Some industries have more risk associated with injuries, such as contracting and construction, compared to others. If you own the business property, there are higher costs to you as the employer in the case of property damage. If you lease the property, the owners may require you to take out insurance prior to using the facilities in accordance with the lease agreement. Conducting business on a client’s property can also mean more is at stake in the case of an accident or poor workmanship.

How much does commercial general liability insurance cost?

On average, commercial general liability insurance in Canada costs $500 per month for small businesses and is determined from an estimate of what you are likely to pay each year. Popular coverage plans for small businesses have a $1 to $2 million coverage limit, but larger businesses may require higher plans depending on the size of the company and the number of employees or assets. 

We can help you stay one step ahead to find the right insurance plan to help with your peace of mind and protect your business.

How to Choose a Good Commercial Insurance Plan for Your Business

 

Most new business owners are cautious with their expenses—and rightly so. However, there’s one expense you don’t want to cheap out on: your commercial insurance. In this post, we’ll provide the critical information you need to choose a good commercial insurance plan. After reading this post, you’ll be one step closer to choosing a plan that provides the protection you need, so you can keep your business thriving even in the midst of a crisis. 

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Will Auto Supply Chain Issues Affect My Insurance Claims?

white vehicle in mechanic shop; auto supply chain issues

 

We’ve all heard the news about supply chain issues. But if you haven’t, here’s a one sentence summary: it’s a mess. And that also applies to auto supply chain issues. Canadians are experiencing record-high pricing for new and used vehicles and car repairs. 

So what does that mean for your insurance? Could your claim or even premium be affected? 

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What Does Commercial Property Insurance Cover?

Understanding your commercial property insurance can be tricky, and you may find yourself asking what does commercial property insurance really cover? Commercial property insurance can be modified to fit your needs, every policy is different. It’s important to know the basics of commercial property insurance, so you can determine what your needs are and what changes you need to make to give you peace of mind. 

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