What is Commercial Insurance and Its Different Types?

Are you wondering what is commercial insurance? If you’re a new business owner, you likely have experience with personal insurance. This could include auto, home, travel, or more. However, your commercial insurance may be new terrain for you.

So, that leads to our first most commonly asked question…

What is commercial insurance?

Commercial insurance is designed to protect a business, employer, and employees from a wide range of risks. These risks can include:

  • Lawsuits from clients or customers
  • Property damage or theft
  • Injuries to customers or employees
  • Or other unforeseen circumstances that result in financial loss

Because commercial insurance is intended to protect many different individuals, it typically has a higher limit. 

Now that you have the answer to your question, what is commercial insurance, let’s take a look at why you need it.

Why do you need commercial insurance?

Commercial insurance is a must for any business, no matter its size. Many new businesses believe it’s not worth the extra fees. After all, what are the chances of something really happening? 

But the honest answer is: at some point in your business’s lifespan, you will likely experience an unexpected event. And it’s your job as the business owner to ensure you and your employees are protected. 

For instance, in 2019, there were over 1,844,000 injury claims submitted to the Alberta government. Construction, mining, manufacturing, government, healthcare, and transportation industries were amongst the highest levels of workplace injury claims. In addition, there were 4,309 incidents of property crime per 100,000 people in Alberta during 2014. 

These statistics only reflect one aspect of a business’s liability. There are several other risks a business faces, and if they don’t have the proper insurance in place, they can be liable for thousands (even millions) in damages.

What are the different types of commercial insurance?

There are several different types of commercial insurance available in Alberta. And they all factor into your question, what is commercial insurance?  

So here are some of the common types of commercial insurance you can get:

01. Liability Insurance

Commercial liability insurance typically covers a few different facets, including general liability, professional liability, and umbrella liability. This type of insurance is designed to protect against unforeseen liabilities that can cause significant financial loss.

  • General liability insurance protects against medical costs in the event a customer or client is injured in your business establishment 
  • Professional liability insurance (also known as errors and omissions insurance) provides protection if you’re sued for any mistake that results in financial loss, including negligent acts and missed deadlines 
  • Umbrella insurance offers extended protection in the form of additional liability coverage

We offer a wide range of liability insurance for Alberta business owners. Our coverage can include judgments, lawyer fees, court costs, and other related expenses!

02. Commercial Auto Insurance

We all know accidents happen. Chances are you’ve experienced some type of minor collision in your personal vehicle. The same risk applies to your commercial vehicles, especially if there’s a considerable amount of driving in your industry. 

If you own a commercial vehicle or fleet, commercial auto insurance is essential to protecting your investments, employees, and your business. We all know how expensive vehicle repairs are at the moment. 

Check out our Edmonton commercial auto insurance, and discover how we can give you the peace of mind you need.

03. Commercial Property Insurance

From contractors to retail to offices to realty owners, there’s no shortage of commercial property types. And they are all susceptible to vandalism, fire, flooding, and natural disasters.

Commercial property insurance can help cover damages related to the above risks. Your coverage can extend to:

  • Inventory in your store
  • Technology (computers, electronics, etc.)
  • Employees’ and customers’ personal property
  • Tools and equipment left on site 
  • Furniture

Are you looking for commercial property insurance in Edmonton or Alberta? We have you covered! Our services will take the stress out of your insurance purchasing experience.

04. Business Interruption Insurance

Your business makes money when it’s running. But what happens when you’re forced to temporarily shut your doors in the event of a major incident, like a heavy storm, electrical outage, or even a system hacking? 

Business interruption insurance protects against lost revenue during unforeseen events where you cannot safely operate. It can help you cover lost funds or provide additional assistance if you decide to operate in a new location on a temporary basis. 

At Sadler, we strive to provide all the services you need to feel safe and secure. For our Edmonton business interruption insurance, we can cover a wide range of corporate aspects, including earnings, profits, rental income, and extra expenses.

05. Equipment Breakdown Insurance

Commercial equipment can get expensive very quickly. Regardless of your industry, you’ve likely purchased some sort of equipment for your business. This can include computers, phones, or other electrical devices. But it can also include parts of larger equipment that are not always covered in your commercial property policy, like air conditioning and refrigeration units. 

Equipment breakdown insurance can help you cover the costs of repairs, replacements, and other expensive costs related to unit failure. 

06. Crime Insurance

Do you remember the statistic we mentioned above? In 2014, there were over 4,000 property crime incidents per 100,000 people in Alberta. And that number has risen. Protecting your business against crime is essential to having the security you need to worry less and operate for longer. 

While you can protect your building against theft and break-ins with sophisticated security measures, there is still a high chance that crime will occur at some point. Crime insurance can help protect you from an employee or third-party agent stealing money or property. This is especially important if you handle your client’s or customer’s money, including in the form of credit cards. 

Our Edmonton crime insurance can provide coverage for employee dishonesty, in and out robbery, disappearance and destruction, and forgery and alteration. 

07. Bonding

Being a bonded business can help create a higher level of trust amongst your customers. While general liability insurance protects against unforeseen incidents, bonding protects your customers against incomplete or low-quality work. This is especially important for contractors. 

We offer multiple different types of bonds, including: 

  • Fidelity bonds: protects against fraudulent or dishonest acts carried out by an employee 
  • License and permit bonds: helps protect your customers and consumers in the event a business does not follow or adhere to government regulations and laws 
  • Contract bonds: protects your customers in the event you do not fulfill all the terms outlined in your contract

Give your customers that extra level of trust in your business with our Edmonton bonding services

Where can I find business insurance?

Finding commercial insurance can be a daunting task. You want to make sure you’re getting the insurance you need at a reasonable premium. With our brokerage services, you don’t have to worry about the fine print. We’ll help you find the commercial insurance you need to protect your business in all areas.

Request your quote today!