But, let’s dive into the coverage details so you can fully understand the policy’s inclusions and limitations before our expert team connects you with the best insurer for your business.

What Does General Liability Insurance Cover?

Liability claims are terribly common, meaning your business is constantly teetering on the edge of a lawsuit. For small companies with limited financial resources, they can become expensive — the average slip and fall claim in Canada is between $15,000 and $30,000. We don’t know many small businesses with this kind of cash in their back pocket.

But here is where this type of business insurance comes into play! It prevents you from needing to scramble for the legal and settlement fees in a wide range of cases, including:

• Advertising injuries and reputational damage — This clause is often called Coverage B. It’s added automatically to your CGL policy. However, its limitations depend on your business sector and overall policy wording. Typically, it protects you from defamation, stolen ideas, invasion of privacy, false advertising, copyright infringement, slander, and libel.
• Bodily injuries — If your business is considered liable for an injury to a third party (for example, maintenance staff, delivery people, vendors, employees, customers, and other visitors), the policy helps assuage your loss. For instance, if a delivery person slips on your shiny new floor, they can pursue legal action against you for any injuries. Although you aren’t directly liable, they can still file a lawsuit because the incident happened on your premises. Medical bills, pain and suffering, and lost wages are covered here.
• Product liability — Product liability covers the costs involved with claims alleging a product you distribute, make, or sell caused property damage or bodily injury. The most common coverages involve design, marketing, and manufacturing defects such as insufficient safety warnings or incorrect labelling.
• Tenant’s legal liability — Otherwise called commercial tenant insurance, it pays for the repairs or replacement of a property you lease or occupy. On top of that, it covers the legal fees, orders to pay awards, damages, and settlements.
• Property damage — If you or an employee causes property damage to a third party, you’ll likely find yourself on the wrong side of a lawsuit. The legal and repair fees are covered with this part of the coverage.

What Commercial General Liability Insurance Doesn’t Cover

As you now know, the CGL covers many kinds of lawsuits. However, it doesn’t protect your business from all eventualities, so you’ll need to purchase additional policies to acquire complete protection.

A commercial general liability policy won’t cover the following incidents:

• Commercial vehicle accidents — If you or an employee are involved in a vehicle accident while driving for work, any personal auto insurance you hold won’t cover it. Therefore, you should take out commercial auto insurance to pay for the damages, medical bills, and legal fees. Business-specific policies are easily customizable for numerous drivers and vehicles with work-related attachments (such as tool racks).
• Damage to your business premises — To keep your physical business location safe, you’ll need a commercial property insurance policy (also known as commercial building insurance). It provides financial coverage for the physical loss of or damage to your brick-and-mortar location and its contents due to events like fires, thefts, or vandalism.
• Errors and omissions in your services — If you’re sued for failure to deliver a service as promised, negligence, misconduct, or errors and omissions, you need professional liability insurance to cover the costs. The policy doesn’t include coverage for price estimates, violation of securities acts, property damage, theft of trade secrets, dishonest acts, or incorrect assessments of economic returns.
• Claims above your policy limit — An umbrella and excess liability policy can help extend the coverage limit of your underlying CGL policy.
• Cyber security breaches or data hostage situations — You need cyber liability insurance to protect against the potentially extortionate costs of responding to and rectifying network and data breaches. The coverage is relatively broad; it funds incident response, legal and forensic management, credit monitoring, notification, system restoration, and reputation recovery.

Who Needs General Liability Insurance Coverage?

According to Canadian law, holding a commercial general liability insurance policy isn’t a legal requirement. However, not having coverage can put your business at significant risk of closure if third-party bodily injury or property damage lawsuits occur.

With that said, it may be mandatory at times to secure new clients (i.e., potential partners wish to see proof of insurance) and enter lease agreements.

We recommend purchasing CGL insurance coverage if at least one of the following applies:

• You work near clients’ property.
• Your office or store is open to vendors, the public, or clients.
• You create marketing and advertisement materials for your business.
• You use social media for business purposes.
• You sell or serve food and beverages.
• You make or sell products.
• Your service could damage property or reputations.

Why Does Your Business Need Commercial General Liability Insurance Coverage?

Court costs, judgments, legal defence expenses, and settlements can be incredibly high. If someone pursues legal action against your business:

• You need legal representation, which can cost upwards of $100 per hour.
• You should anticipate spending over $75,000 if the case ends up in court.
• Administrative fees, legal secretary costs, judgements, and settlements are added to that already exorbitant figure.

The right commercial general liability insurance policy helps cover those costs while keeping your company thriving.

Choose LiabilityCover for Your CGL Needs

Finding the right insurance provider can be tricky, especially if this is your first time scouring the market. So, why not make your life easier by choosing LiabilityCover? Our years of experience and trusted partnerships with Canada’s leading insurers ensure you never need to deal with complicated quotes and less-than-perfect coverage limitations again.

Get the perfect liability coverage for your business today by completing our short online inquiry form or calling us on our toll-free number.

The post What Does Commercial General Liability Insurance Cover? appeared first on .

1. Fire and water damage
2. Allegations of third-party bodily injury or property damage
3. Electrical failures
4. Sensitive data security
5. Equipment protection
6. Adverse weather risk mitigation
7. Business interruption

Here at LiabilityCover, we specialize in connecting professionals and business owners like you with the best insurers in the country.

But if you’re not entirely sure where to begin, you’ve come to the right place. In the following sections, we’ll explore the reasons why you need insurance to secure your business’s long-term success.

7 Reasons You Need Business Insurance in Canada

#1 Fire and Water Damage

Perhaps one of the most obvious reasons your business needs insurance is to protect from the devastating (and expensive) effects of fires and water damage.

Fires have no mercy. Depending on their strength, they burn through everything in their path without caring about your business’ success. But with the right commercial property insurance policy, your company is protected from the damage and loss of your building and its contents (including inventory).

Specifically, the coverage areas include:

• The building itself
• Electronics
• Inventory (i.e., raw materials and physical products)
• Equipment
• Furnishings
• Fixtures
• Employees’ possessions
• Immovable improvements you make as a commercial tenant (including carpeting, lighting, and wall paint)

Unfortunately, most commercial property insurance policies won’t cover you for water damage caused by seepage, sewer backups, or flooding. However, many insurers offer sewer backup endorsements, ensuring you’re covered during unexpected floods.

#2 Allegations of Third-Party Bodily Injury or Property Damage

If you deal directly with third parties such as clients, vendors, other businesses, and members of the public, keeping yourself safe from lawsuits alleging bodily injury or property damage caused by your business is essential for survival. These cases are often expensive, with claimants requesting large compensatory payouts.

Luckily, commercial general liability insurance can save you from having to pay these expenses out-of-pocket. CGL covers settlements and the legal defence costs, regardless of the lawsuit’s outcome.

Generally speaking, we recommend the coverage if at least one of the following applies:

• Your business makes or sells products.
• Your business serves or sells food and beverages.
• Third parties come to your physical business location.
• Your business offers a service that could cause property damage.
• The services or products provided by your business could cause reputation or personal damage.

Consider commercial general liability insurance the foundation of your comprehensive protection and risk mitigation plan.

#3 Electrical Failures

Electrical failures can cause many losses. We recommend protecting your expensive equipment from mechanical and internal faults with an equipment breakdown policy. It covers the cost of repairing or replacing the items, allowing your business to continue running smoothly.

Additionally, hiring a licensed electrician to inspect and maintain all your electrical systems helps mitigate any catastrophic risks from faults and failures.

#4 Sensitive Digital Data Security

Today’s technological world is constantly changing. And while it’s always exciting to see what’s next, the advances bring a nonstop threat of cyberattacks and data breaches.

Cyber liability insurance coverage is essential to ensure you’re prepared for whatever the new technology throws your way. It monetarily covers you for the legal fees, system recoveries, fines, lawsuit costs, and notification expenses associated with cyberattacks on your business network or customer data. After all, recovering from these situations can be exorbitantly expensive.

Depending on your business type, it may be wise to invest in cybercrime insurance as well. It’s similar to cyber liability insurance but extends coverage to hacking, phishing, and social engineering fraud.

Just keep in mind that neither policy will cover you for:

• Software upgrade costs
• Hardware replacement costs
• Third-party problems
• Losses suffered before the end of the policy’s waiting period
• Bodily injury or property damage
• IP, copyright, or patent infringement

#5 Equipment Protection

As we discussed earlier, commercial property insurance protects your building’s contents from covered perils. However, you need to invest in extra protection if you take tools and equipment to job sites.

Tools and equipment insurance is a special kind of property coverage that funds the replacement or repair of lost, stolen, or damaged items. Normally, fires, floods, and vandalism are included.

#6 Adverse Weather Risk Mitigation

Your location plays a huge role in the safety of your business. Commercial property damage covers you against basic wind, rain, and hail damage. But if you operate from a place that suffers from adverse weather conditions, you should consider adding flood or earthquakes endorsements. That way, you’re guaranteed monetary coverage if the unthinkable occurs.

#7 Business Interruption

Last but certainly not least, your Canadian business needs insurance to protect you from income loss due to a temporary, unforeseen closure. Keeping your company’s doors open after an unexpected disaster can be impossible without business interruption insurance.

The good news is that it’s usually added to your commercial property insurance automatically. Although, it’s always important to check with your insurer. If not offered initially, most providers can tailor your policy to include interruption coverage.

Depending on your policy, business interruption insurance typically covers the costs of:

• Relocating to a temporary location after physical damage to your normal premises
• Overheads like lease or mortgage payments and electricity
• Taxes and loan repayments if they’re due throughout the covered period
• Telephone and internet connections
• Employees’ wages and payroll

Like most insurance, it won’t cover you for every type of closure. In general, business interruption coverage excludes:

• Viruses, pandemics, and communicable diseases
• Acts of terrorism
• Items are broken during a covered loss or event
• Earthquake or flood damage

Fulfill Your Business Insurance Needs Today With LiabilityCover

Minimizing risks is an essential part of running a business effectively. Making the right insurance decisions enables you to keep your company’s doors open for years to come.

But we know how hard it is to get started. So, we aim to make your lives easier by doing the hard work for you!

Get started by completing our short online inquiry form or calling us on our toll-free number.

The post Top 7 Reasons Your Business Needs Insurance Coverage appeared first on .

Before you dive straight into the insurance world, find out which policies will help you most with this easy-to-understand guide.

How to Determine Which Insurance Policies Your Canadian Small Business Needs

Commercial insurance is essential to long-term success, no matter what type of business you operate. Whether you sell products, provide a service, or do a bit of everything, use the tips below to determine which policies are right for you:

Ask Our Expert Team

The most accurate way to find the right policies for you is to consult our team at LiabilityCover. Our industry knowledge and experience make it easy to accurately analyze your insurance requirements and assign your perfect provider.

Here’s how our process works:

1. Firstly, complete our short online request form.
2. Then, our team analyzes your insurance needs based on your answers.
3. Next, we connect you to one of the country’s leading insurance brokers or agents with experience covering other businesses in your industry.
4. Finally, your assigned broker or agent contacts you to guide you through the process.

Know the Main Business Insurance Types

It’ll be hard to determine the policies relevant to your business without a basic understanding of each kind. So, we’ll give you a head start by briefly explaining the most common coverages here:

• Commercial general liability insurance coverage — CGL insurance gives you monetary coverage for third-party property damage or bodily injury caused by negligence or unexpected accidents. Any business that deals with clients, vendors, suppliers, or members of the public should purchase a policy.
• Commercial property insurance coverage — Otherwise known as commercial building insurance, it offers financial coverage for the physical loss of or damage to your property and its contents. Usually, the covered perils are vandalism, theft, and fires. It protects from direct loss (such as materials, products, equipment, etc.) and indirect loss (like income loss due to inaccessible offices).
• Professional liability insurance coverage — Often called errors and omissions insurance, it protects you from clients who hold you liable for your service. The typical coverage areas are negligence, misconduct, and failure to deliver a service as advertised.
• Product liability insurance coverage — As the name suggests, product liability insurance covers the legal costs associated with product-related claims and lawsuits. The policy covers manufacturing, marketing, and design defects. Typically, claims of this manner relate to insufficient safety warnings or incorrect instructions.
• Cyber liability insurance coverage — Somewhat new to the insurance world, cyber liability coverage financially protects your business from the effects of cyber events like data breaches. It covers everything from incident response costs to monitoring and restoration fees.
• Commercial auto insurance coverage — If you use a car, truck, trailer, or another automobile for work reasons, you should insure it with a commercial auto insurance policy. The coverage areas are akin to personal vehicle policies. The main difference is the commercial coverage’s adaptability and customization options for multiple employees. Your insurer won’t cover your claim if you’re caught driving for business purposes on a personal policy.

Why Choose LiabilityCover?

Make choosing the perfect business insurance policies easy with LiabilityCover. Our team is ready and waiting to put you in touch with Canada’s best insurers. Get started by calling our toll-free number or completing our short inquiry form.

Frequently Asked Questions

How Can You Keep Your Costs Down When Getting Business Insurance?

No matter what size of business you own, money matters. Therefore, when you’re determining the perfect policies for your company, it might be helpful to learn how to keep your costs down while remaining appropriately covered.

There are plenty of ways to save money on commercial insurance policies. However, we highly recommend the tips and tricks below:

• Wait it out — Arguably the easiest one on the list, simply waiting is enough to lower your premiums. Insurers believe that as you gain industry experience, you’re less likely to make mistakes and experience lawsuits, thus reducing your premiums. With that said, we’ll always give you the best, budget-compliant solutions, regardless of your experience level.
• Strengthen your security systems — The type of security systems in place can affect your insurance rates, especially commercial property premiums. To lower the cost, you should think about implementing:
  • a monitored alarm system.
  • a strong wifi password.
  • two-factor authentication on digital devices and online accounts.
  • fire safety equipment throughout your building.
  • physical security on your windows and doors.
• Reduce your building’s liability risk level — Depending on your level of control over the building, this method might not suit you. The building’s construction materials, use of space, and hydrant protection contribute to an expensive (or otherwise) insurance premium. If you can alter part of your property to make it safer in the eyes of your insurer, you’ll benefit from lower policy prices.
• Boost your deductible — The deductible is the amount you pay before your policy triggers. Raising the value decreases your premium. Just ensure the figure you select suits your revenue and risk appetite.
• Buy a policy package — Typically, it’s cheaper to buy a policy pack rather than individual coverages. Depending on your insurer, they’re highly customizable, meaning you only pay for what you need.
• Enhance workplace safety — Implementing an effective safety plan lowers your risk level, thus decreasing your premiums. It may include wearing the correct PPE or lifting items using the proper technique. Anything that increases safety within your business will work in your favour.
• Review your coverage regularly — As your business grows and changes, your insurance needs alter too. Therefore, you might find you’re paying for policies that no longer serve your company. To ensure you’re not wasting money on irrelevant coverages, review your plans regularly and cancel them as you see fit.

The post What Business Insurance Do I Need? appeared first on .

We’ve compiled a list of the top five factors influencing the cost of Canadian commercial policies to simplify your journey to complete insurance protection.

What Influences The Cost of Small Business Insurance?

Five main factors influence the cost of your small business insurance, including:

#1 Your Business Type

The industry you’re in decides the kind of insurance policies you need and how much a comprehensive protection plan will cost.

For example, if you’re a consultant and digital store your client’s financial information, you should think about purchasing a professional liability policy and cyber liability insurance.

On the other hand, if you drive from location to location delivering products, you should take out commercial auto insurance and product liability insurance.

#2 Your Company’s Worth

Your business insurance premium factors in many metrics, such as your company’s property, equipment, vehicles, inventory, and so much more. Why? Because the coverage needs to match your business’ present value.

But of course, this can change from industry to industry. As a marketing professional, you’re unlikely to use as many tools as a construction contractor. Therefore, you may not need to add equipment breakdown coverage into your insurance plan.

#3 Your Specific Risk Exposures

Your business is unique to others in so many ways, including its risk exposures. But, as a general rule, the more risks you’re exposed to, the more expensive your premium will be.

Many factors can impact the level of risks your business may face. One of the presiding metrics is your location. Areas with higher crime rates or adverse weather conditions often come with costlier insurance policies.

Insurers analyze the number, average cost, and type of claims typically made in your neighbourhood to determine how much they should charge.

#4 Your Service or Product Type

Some services and products are riskier than others. For instance, selling corrosive cleaning products presents more hazards than distributing paper or cuddly toys. Therefore, you’ll pay more for insurance than “safer” businesses.

#5 The Size of Your Business

If you employ a large number of people, you should expect to pay more for insurance. As your workforce grows, you’re exposing your business to higher chances of mistakes and, therefore, lawsuits. So, insurers bump up your premium price to compensate for the additional risk.

What Small Business Insurance Do You Need? Find Out Now With LiabilityCover!

Your business isn’t the same as anybody else’s. And while it’s vital to have a USP, we know it makes choosing insurance policies tricky. So, take the confusion out of the matter with LiabilityCover!

All you need to do is complete our short request form, and we’ll do the rest. Our advisors have years of experience connecting small businesses to their one true insurance match. We’ve established solid relationships with the country’s leading and licensed insurers to bring you complete coverage at the perfect prices.

The post The Cost of Small Business Insurance in Canada appeared first on .

Below, we’ll introduce you to our favourite tips and tricks that work wonders to decrease your insurance premiums.

#1 Check Coverage Overlaps

Generally speaking, commercial insurance policies don’t duplicate other kinds of insurance. However, overlaps can occur.

For example, non-owned cars and other business vehicles could be insured under your commercial auto and general liability policy. Likewise, your computer kit may be insured under your commercial property and equipment policy.

With that in mind, examining your insurance policies and eliminating these overlaps is a sure-fire way to decrease your premiums.

#2 Ensure You’re Not Carrying Irrelevant Coverage

All businesses change over time. For example, policies you purchased when your company was a startup might no longer apply to your well-established business. Alternatively, you might still be covering a building you sold eight months ago, or you’ve implemented a new risk mitigation strategy that negates some still-covered hazards.

Whatever your situation, it’s easy to lower commercial insurance rates by cancelling policies you no longer require.

#3 Categorize Your Business Properly

It’s vital to be transparent about the riskiness of your business. After all, insurers will charge you a much higher premium if they believe you’re a construction company rather than an advertising agency!

When applying for commercial insurance policies, detail your services clearly. That way, the quotes you receive actually reflect your business and associated risk level.

#4 Implement a Safety Plan

Insurance is all about risk. Therefore, proving you’ve adopted effective safety measures to prevent or eliminate the risks will lower your premium price.

Craft a safety plan specific to your company’s unique risks and ensure your employees understand it. Then hang the posters around your workplace, so you can prove to your insurer that you’re operating as carefully and safely as possible. Trust us; it works wonders to lower your premiums.

#5 Properly Train Your Employees

Having a trained workforce allows you to benefit from better insurance rates. Insurers like to see that your staff know what they’re doing since it limits risks and decreases the likelihood of making mistakes.

Investing in your staff might seem costly if you’re a startup. However, the expense is justified when you can gain cheaper insurance.

Not to mention that you’re more likely to retain staff if they feel you’re helping them reach career goals and aiding their professional development. After all, a happy workforce limits mistakes too!

#6 Join a Trade or Professional Organization

Depending on your industry, you might be able to join a professional or trade organization that offers complimentary insurance coverage to its members. Granted, they probably won’t provide all the coverage you need, but every little helps when it comes to saving your company’s money!

Canada boasts a wide array of national industry organizations, including:

• Canadian Maritime Law Association
• Canadian Energy Pipeline Association
• Canadian Association of Forest Owners
• Mining Association of Canada (MAC)
• Canadian Plastics Industry Association
• Canadian Trucking Alliance
• Canadian Manufacturers and Exporters
• Canadian Paints and Coatings Association
• Canadian Cattlemen’s Association
• Canadian Independent Petroleum Marketers Association
• Canada Cleantech Alliance
• Chamber of Shipping
• Canadian Steel Producers Association
• Canadian Federation of Agriculture
• Canadian Consumer Speciality Products Association
• Food Processors of Canada
• Global Automakers of Canada
• Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI)
• Canadian Council for Importers Compliance
• Renewable Industries Canada
• Chemistry Industry Association of Canada
• Cement Association of Canada (CAC)

#7 Ask Your Insurer for More Attractive Rates

You have the right to negotiate with your insurer to win better rates for your company. Since the insurance world is so competitive, providers are usually forthcoming with new quotes if you can prove you’ve implemented measures to decrease risks.

In addition, your insurance provider should be willing to offer extra advice as to how you can lower your premiums. We have working relationships with the best insurers in the company, allowing you to rest easy knowing you’ve got the best deal.

#8 Prove Your Business Is Well Run

If you can prove your business is correctly managed, you benefit from decreased insurance rates. However, will you be required to show evidence of this by supplying the following documents:

• Financial accounts that you file in a timely manner every year
• Risk assessments
• Quality control procedures
• Your professional qualifications and accreditations
• Your employees’ professional accreditations and qualifications
• Training and ongoing development plans

The safety plan we discussed earlier is also essential here. It should detail the personal protective equipment (PPE) worn by staff working in various areas, preventative slips, trips and falls measures, and more.

#9 Always Compare Rates Every Year

Even though it might be tempting, it’s best not to put your insurance policies on a rolling renewal. No matter whether you’re a well-established business or a startup organization, you can benefit massively from comparing rates.

Make sure you look at identical coverage to get a realistic view of your potential savings. Plus, if there are terms or restrictions on the quote you don’t understand, contact the insurer to clear things up. That way, you can make well-informed commercial insurance decisions.

#10 Review The Classifications of Your Employees

If you employ staff, it is essential to ensure they’re assigned the correct workers’ compensation class code; otherwise, you’ll grossly overpay for insurance.

Each employee is given a code that tells insurers the type of work individuals perform. Designating the wrong code and accidentally listing them as conducting high-risk tasks increases your premiums. Reviewing your staff’s classifications can point out any costly mistakes that need fixing.

Please bear in mind that deliberately assigning your staff a lower-risk code to save money is unethical. Not only that, but it leaves your employees without sufficient coverage!

#11 Pay Your Premiums In Advance

Insurance can cost a substantial amount of money. Therefore, many businesses choose to pay it monthly or quarterly.

However, insurers tend to offer incentives or discounts for those willing to pay upfront. So, if you can afford to do so, paying your yearly premium in one go is an effective way of lowering your premiums.

On top of that, you should think about purchasing a comprehensive commercial insurance package from one insurer. They’re more likely to discount the separate policies when you buy “in bulk.”

#12 Add or Increase Your Deductible

One of the most common ways to reduce premiums is to increase your deductible (i.e., the amount of money you have to pay before your insurance starts).

With that said, it’s vital that you select a manageable out-of-pocket expense. Otherwise, you’ll be financially stranded during a claim or emergency.

#13 Be Proactive About Risk Mitigation

Regardless of your business type, there are probably handfuls upon handfuls of risks you could consider, making it impossible to control all of them. However, you should attempt to curb the most frequent or expense risks through risk mitigation.

Controlling the risks doesn’t have to be hard work. Sometimes, assigning somebody to monitor the risk and implement a straightforward response protocol when necessary can do the trick.

Being proactive about preventing risks makes insurance providers keener to cover you, thus benefiting from more attractive rates.

#14 Review Your Policies Regularly

Once you’ve bought the policies, you should make a note to review them every year. As we’ve mentioned before, your business changes all the time, so you don’t want to risk renewing a policy you no longer require.

You might be surprised by how much money you can save just by taking the time to review your coverages.

#15 Use LiabilityCover

We’re proud to work with the country’s best insurance providers to give you the best policy deals for your business. Regardless of your insurance needs, we connect you with the industry’s leaders to ensure you have the coverage you require at a price you admire.

Frequently Asked Business Insurance Questions

How Much Should You Budget For Business Insurance?

There isn’t a one-size-fits-all answer to this question. However, many advisors tell you to acquire as much coverage as you can afford.

The best way to find out how much a comprehensive insurance policy package will cost is to fill out our secure online request form. We’ll accurately analyze your needs and generate precise quotes.

Before doing so, however, you might want to familiarize yourself with the factors influencing your premium price:

• Coverage type — Not all policies apply to your business. If you don’t feel you need crime coverage, eliminating it from your coverage pack will decrease the total cost.
• Claims history — If you’ve made consistent business insurance claims in the past, your premiums may increase as insurers see you as a more significant risk.
• Insurer — Of course, the insurer you choose affects the price. Different providers have varying levels of risk appetite, which is the main factor influencing their quotes.
• Services offered — If you employ firefighters, security guards, linemen, stunt professionals, arborists, and electricians (to name a few), you’ll experience higher insurance premiums as they’re classified as dangerous occupations. On the other hand, computer analysts, bookkeepers, clerks, phone operators, and similar professionals benefit from lower premiums.
• Number of employees — With more staff you can increase your workload and turn a higher profit in a shorter timeframe. However, the more employees you have, the higher your insurance premium, as everybody needs to have the correct level of coverage.
• Revenue — As your business makes more money, your insurance premium rises. Why? Because third parties will request more damages when they know your income can withstand the blow.
• Deductible — The deductible is the amount of money you must pay before your coverage triggers. The higher your deductible, the lower your policy payment.
• Location — Areas prone to floods, hurricanes, or tornados increase the price of your insurance. Likewise, locations with higher crime rates are costlier to insure.

What Are The Categories of Commercial Insurance?

There are four main categories of commercial insurance. They are as follows:

• Property — No matter what type of business you run, property is bound to play a role. From storing equipment to owning a commercial space to renting an office, you might be forced to temporarily close your business if something happens to the building. Property insurance pays for the replacement or repairs of your business location, sometimes including flood or earthquake damage.
• Liability insurance — This type of insurance pays for damages and legal costs associated with third-party lawsuits of bodily injury, property damage, and similar allegations. The policy gives you peace of mind by ensuring you have the funds to continue operating after being hit with costly liability cases.
• People — Employees must know that they retain their income if involved in a work-related incident. Workers’ compensation insurance is mandated by Canadian law for this reason. Plus, you might want to take out disability insurance for employees to keep their income following a disabling accident.
• Income — A portion of your business’s income pays employee wages, rent, electricity, and more. Sadly, even if your income stops, you’re still required to pay these fees. Therefore, business interruption insurance guarantees you’ll have the money to maintain payments if your business is forced to temporarily cease functioning.

How Do You Get Business Insurance?

With LiabilityCover, getting business insurance is easy:

1. First, you complete our simple inquiry form.
2. Then, we review your business insurance requirements.
3. Our team connects you to one of Canada’s leading insurers with experience providing insurance to other businesses in your industry.
4. Your assigned broker or agent contacts you to guide you through the business insurance acquisition process.

Other Frequently Asked Questions about Business Insurance

• How much does this insurance cost?
• How to qualify for this insurance?
• Which Canadian insurance companies offer CGL?
  
• How does a commercial liability insurance claim work?
• How do I apply?
• What is the purpose of this insurance?
• How long does it take to get this insurance?
• What are the different categories of commercial insurance?
• What are the mistakes that can be avoided?
• The basics and essentialities of this insurance

The post How to Lower Your Business Insurance Rates appeared first on .

We know that many believe obtaining an E&O quote is time-consuming and convoluted. But luckily, you’ve found LiabilityCover, the home of easy insurance! In the following sections, you’ll discover more about the factors that affect the quote-acquisition timeframe. We’ll even tell you exactly how to get one using our secure online form!

Other FAQs about Errors and Omissions Insurance

• Where can I find a detailed errors and omissions insurance guide?
• What is the cost of E&O insurance?
• How do I apply for An E&O insurance policy?
• What does errors & omissions insurance cover?
• Who needs E&O insurance?

The post How Long Does It Take to Get Errors and Omissions Insurance Quotes? appeared first on .

Thankfully, that’s exactly what we’re here to tell you. Below, you’ll find everything you need to know about the factors influencing the E&O policy premium.

The 10 Factors Influencing The Cost of Errors and Omissions Insurance Coverage

On average, you should expect to spend between $500 and $1,000 per year on an E;O policy with a $1 million limit. But let’s take a look at the top ten factors that decide your specific cost:

#1 The Size of Your Business

Your insurance rate changes based on the number of staff members you employ. Larger companies have higher risk exposures since they have increased opportunities to make mistakes and experience lawsuits. Thus, they pay more for E&O insurance policies.

#2 Your Profession or Industry

Every profession and industry come with their own risks and responsibilities. It goes without saying that some professionals are more exposed to more risks than others.

For instance, paralegals and healthcare professionals often pay more for errors and omissions insurance than copywriters and those in administrative roles. Therefore, the costs vary drastically depending on your field.

#3 Your Business Location

Your province affects the total cost of your errors and omissions insurance premium probably more than you realize. But when you consider that location changes the prices of everything from fuel to food, it becomes a no-brainer.

Businesses in areas affected by harsh weather conditions or higher-than-average crime rates should anticipate spending more on commercial insurance than those in safer locations.

#4 Your Coverage Level

The higher your coverage limit, the more premium you’ll pay. Errors and omissions policies come with a range of typical coverage limits, as per the following:

• $100,000
• $200,000
• $500,000
• $1 million
• $2 million

Despite the increased cost, your company might need a higher limit. You shouldn’t let a costlier price put you off if your business wouldn’t be sufficiently covered without a $2 million coverage cap.

#5 Your Deductible

The deductible is the amount of money you need to pay before your errors and omissions insurance kicks in. The larger the figure, the less expensive your premium price.

However, it’s vital to select a deductible amount you can afford comfortably. Otherwise, you’re putting your business in a precarious financial position if a claim occurs.

#6 Policy Endorsements

Your errors and omissions policy may not be the same as others. Since every business is wildly different (even those in the same industry), you have the option of customizing your E;O coverage to fit your company’s unique needs.

The policy add-ons may increase your premium price, so talk to your insurance broker about your requirements before choosing any endorsements.

#7 Your Insurance Claims History

Insurance companies increase premiums if your business has made consistent claims in the past. Those with clean records benefit from substantially lower insurance costs.

Don’t worry too much if you’ve needed to claim recently. At LiabilityCover, we connect you with the perfect insurer for your company.

#8 Your Experience and Training

If you have worked in your industry for a long time, you’re considered less of a risk. Plus, if your employees are well-versed in the sector and are regularly seen to attend training to improve their skills, you can benefit from decreased premiums. After all, with experience and consistent training comes a lower likelihood of making mistakes.

#9 Your Company’s Revenue

Of course, it’s always great to run a business that brings in a lot of money. However, it’s worth noting that the more money you make, the higher your errors and omissions insurance premiums will be. Why? Because third parties are likely to ask for more damages during lawsuits if they’re aware your revenue can fund it.

On top of that, a higher income suggests your business deals with more clients, exposing you to an increased number of risks.

#10 Contract

Contract breaches are one of the most common reasons behind errors and omissions lawsuits. You’ll be surprised by how much money you can save on premiums if you ensure all contract agreements are written and signed in a non-ambiguous way.

LiabilityCover Gives You The Best Rates

Our working relationships with the country’s leading errors and omissions insurance providers allow us to always award you the best rates. By following the steps below, we’ll connect you with your company’s perfect E;O insurer:

1. First, complete our short inquiry form.
2. Our team analyzes your insurance requirements based on the information you provided on the form.
3. Next, we connect you to one of Canada’s best insurance providers with experience covering other businesses in your industry.
4. The designated broker or agent contacts you to walk you through the process.

Other Frequently Asked E&O Questions

Who Needs Errors and Omissions Insurance Coverage?

A variety of professionals require errors and omissions insurance, including:

• Medical professionals
• Dog sitters
• Attorneys
• Chauffeurs
• Strategic, operations, marketing, and organizational consultants
• Interior designers
• Graphic designers
• Legal and finance professionals
• Social service professionals
• Photographers and videographers
• Human resources consultants
• Project managers
• Software developers
• UX and web developers
• Forensic experts

How Long Does It Take to Get an E&O Quote?

The duration varies massively. But on average, you can expect to receive a quote within 48 hours. Other businesses might be lucky and acquire the quote almost instantly, but most should expect to wait between 24 and 48 hours.

The size of your business, type of industry, and insurance provider are the main factors influencing your quote wait time.

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In the following guide, we’ll show you exactly how to acquire errors and omissions insurance coverage to protect your business from third-party claims related to your services or professional advice.

How to Apply For Errors and Omissions Insurance Coverage

There are multiple ways to apply for this kind of coverage — online, in-person, or telephone. We’ll explore each method in detail to help you choose how you’d like to obtain the policy.

Applying Online

The most preferred way for business owners to apply for errors and omissions insurance is online. It’s a simple case of filling out an electronic form!

As we move into an increasingly digital world, applying for insurance online is the most time-efficient method available. Not to mention that it’s a sure-fire way to gain access to deals and discounts you won’t be offered in-person or via telephone.

Just bear in mind that you will need to send a copy of your license and other documents to the insurer at some point during the application.

Applying In-Person

If you know which errors and omissions insurance provider you’d like to purchase from, you can head to their brick-and-mortar facility and apply there.

Remember to gather all your documents and personal information before heading to the storefront. The broker will use the documents to verify your business and identity.

With that said, you can opt to email your documents to the insurer when you return home. However, that will only delay the process, so we suggest gathering everything prior to your in-person application.

Applying Via Telephone

Finally, you can apply for an errors and omissions insurance policy over the phone. It’s a viable option for those who need many questions answered.

However, you’ll still need to complete the relevant forms and submit your payment before gaining coverage. So, the phone call truly only acts as a first step; the rest will most likely be completed online or in person.

Our Errors and Omissions Application Process

Our years of experience have allowed us to create a seamless, smooth process that affords you the time and space to make well-informed commercial insurance decisions.

Applying for errors and omissions coverage with us is straightforward. Follow the four steps below:

1. To begin the process, complete our short, secure inquiry form.
2. One of our experts will review your insurance needs.
3. Next, our team connects you to one of the country’s leading errors and omissions insurance providers.
4. Your assigned broker or agent contacts you to guide you through the application process!

We find you the insurance you need so your business can continue to thrive for years to come.

Frequently Asked Errors and Omissions Insurance Questions

How Long Does It Take to Get Errors and Omissions Insurance Quotes?

The duration can vary massively from case to case. However, most businesses receive an errors and omissions insurance quote within 48 hours. Some may even acquire it instantly, but we recommend anticipating a wait time of 24 to 48 hours.

What Does Errors and Omissions Cover?

Errors and omissions coverage protects you from third-party claims against services or advice your company provides. Specifically, the areas covered are as follows:

• Defence costs
• Slander, defamation of character, and libel
• Monetary judgements
• Copyright and trademark infringement
• Invasion of privacy (not every E;O policy includes this coverage)

Keep in mind that it doesn’t usually cover:

• Fraudulent acts
• Criminal acts
• Cost guarantees or price estimates
• Violation of securities act
• Dishonest employees
• Incorrect assessments of financial returns

How Much Does Errors and Omissions Insurance Coverage Cost?

On average, you’ll pay between $500 and $1,000 per year for an errors and omissions insurance policy with a $1 million limit. However, this largely depends on your profession and several other factors, including but not limited to:

• The size of your business — More employees equals a higher likelihood of making mistakes. Therefore, you should expect to pay more for E;O insurance if you’re a large business.
• Your coverage limit — The higher your coverage limit, the larger your premium price. The policy comes with five coverage limits to pick from, including:
  • $100,000
  • $250,000
  • $500,000
  • $1 million
  • $2 million
• Your deductible — Set a deductible price you can afford. Try not to fall into the trap of increasing your deductible to lower your premium payment.
• Riders and extra clauses — Not every errors and omissions insurance policy is the same. You might need to add endorsements that increase the price.
• Your insurance claims history — If you have a track record of making consistent claims, expect your insurance premium to be higher than those with a clean history.
• Your company’s location — Some areas are more prone to adverse weather conditions or have high crime rates. If you operate in a particularly perilous part of the country, insurers charge hirer premiums.
• Your experience and training — A wealth of industry experience decreases the likelihood of making mistakes, thus experiencing legal action. Insurers award lower errors and omissions coverage rates if you’re well-versed in your market sector. Some insurers consider the qualifications of your employees too.
• Your company’s revenue — The more money your business makes, the more at stake if somebody claims against you. Therefore, anticipate spending more on your errors and omissions insurance coverage.

Who Needs Errors and Omissions Insurance?

You need an errors and omissions insurance policy if you develop devices, offer services, or give advice for a fee. The following professions typically take out this type of coverage:

• Photographers
• Organizational, marketing, and operations consultants
• Strategic consultants
• Project managers
• Career advisors
• Management and recruitment consultants
• Software developers
• Human resources consultants
• Copywriters
• IT consultants
• Web and UX designers
• Health professionals
• Graphic and interior designers
• Forensic experts
• New media professionals
• Engineers
• Legal and finance professionals
• Social service professionals

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In this guide, we’ll answer your burning “what does an errors and omissions insurance policy cover?” question and put you on the path toward attaining the coverage you need.

What Is Errors and Omissions Insurance Coverage?

Errors and omissions insurance, often referred to as professional liability insurance, is a type of policy designed for professionals and businesses offering services or advice.

In short, it protects you from mistakes and errors that cause negative consequences for your clients. However, as you’ll see below, it’s quite a diverse policy that protects you from a plethora of otherwise costly situations.

What Does Errors and Omissions Insurance Cover?

Running a business is tricky, and no matter how hard you try, mistakes and issues will occur. With errors and omissions insurance coverage, you don’t need to worry; it’s designed to financially cover the costs of third-party lawsuits against your services.

But let’s take a deep dive into the specific protections offered by this much-needed insurance policy.

#1 Legal Defence Costs

If you’re sued by a former client, your errors and omissions coverage pays for the legal defence costs associated with the case. After all, you’ll be forced to seek legal help whether your client’s allegations are true or not.

To ensure the best outcome for your business, you’ll need to hire a qualified defence attorney. However, the best lawyers charge between $500 and $1,000 per hour. As you can imagine, this quickly adds up.

You don’t want one lawsuit to turn into a permanent closure. So, acquiring an E;O policy to cover these potentially extortionate costs is a wise business move.

#2 Slander, Libel and Defamation of Character

Many companies find themselves on the wrong side of a lawsuit after a third party claims they’ve slandered their reputation and name. If you don’t have enough money stashed away, these cases quickly turn into a business rescue mission as you try to cover the court costs.

Errors and omissions insurance pays the related fees for cases involving allegations of libel, slander, and defamation.

#3 Monetary Judgments

Lawsuits take a toll on all business owners — especially when it comes to the final decisions made by the judge.

The settlement amount depends on the type of error or omission made by your business and the severity of the consequences. Unfortunately, it’s not unheard of that these monetary judgments financially ruin a business, causing them to permanently close their doors.

Therefore, it’s worth protecting your company from total failure by acquiring an errors and omissions insurance policy. It will cover the costs of the settlement and associated legal defence fees to keep your business afloat during tricky times.

#4 Copyright and Trademark Infringement

It’s hard to be original in the modern world; it appears everything has been done before! With that in mind, it’s no surprise some companies accidentally infringe upon somebody else’s trademark or copyright.

However, ignorance won’t solve the inevitable lawsuit arising from infringement cases. You’ll be forced to pay the costs whether it was an accident or not.

Luckily, E;O insurance covers these issues. Any associated losses and damages are paid by the policy.

#5 Invasion of Privacy

Some errors and omissions insurance policies cover invasion of privacy claims.

If your current or former client decides to pursue legal action against you for invading their privacy, you’ll need to protect yourself. The defence costs can be extortionate, so coverage is vital to ensure your business continues to thrive.

What Isn’t Covered By Errors and Omissions Insurance?

Typically, errors and omissions insurance won’t cover you in the following situations:

• Violation of securities acts
• Fraudulent acts
• Criminal acts
• Cost guarantees or price estimates
• Dishonest employees
• Incorrect estimates of financial returns

Who Benefits From Errors and Omissions Insurance Coverage?

Any business that provides a service benefits from an errors and omissions insurance policy. Specifically, the following professionals should carry this type of coverage:

• Engineers
• Markers and advertisers
• Accountants
• Doctors
• Veterinarians
• Pet groomers
• Website developers
• Consulting companies
• Hairdressers, hairstylists, and barbers
• Printers and publishers
• Educators
• Wedding planners
• Interior designers

As a general rule, if you could be blamed for losses or damages, acquiring this policy could save you a lot of money in the future if a lawsuit is filed against you.

Frequently Asked Questions

How Do You Get an E&O Policy?

Obtaining errors and omissions insurance coverage is easy with our team at LiabilityCover. Simply follow the four steps below:

1. Start by completing our simple online quote form.
2. Then our team will review your application to understand your insurance requirements.
3. We’ll assign you one of Canada’s leading insurance providers with experience providing coverage to others in your industry or profession.
4. Your designated broker or agent contacts you to walk you through the application process.

How Much Does Errors and Omissions Coverage Cost?

For a standard errors and omissions policy with a limit of $100,000, you can expect to pay roughly $250 per year. However, certain factors influence the price, including:

• The coverage limit you pick
• Your industry
• The size of your company (i.e., the number of people you employ)
• Your business location
• Your deductible
• Your insurance claims history
• Any riders or extra clauses
• Your services
• Your business revenue
• Experience, training, and qualifications of you and your employees
• Contracts

To get an accurate understanding of your E&O premium price, complete our simple online request form.

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To give you a headstart, find out which professionals need errors and omissions insurance coverage below.

Which Professions Need Errors and Omissions Insurance Coverage?

Some business owners believe that errors and omissions insurance is only necessary for large enterprises. But in reality, a plethora of companies need this type of business insurance, including but certainly not limited to:

Dog Sitters

At first glance, dog sitting doesn’t seem to be a very high-risk job. However, that’s really not the case. Errors and omissions insurance can be beneficial if you’re pursuing this task.

With no word of warning, dogs could break loose from the lead, run away, and hurt themselves. Alternatively, a puppy might eat something strange in the garden and become seriously ill. Even though you didn’t directly cause these situations, the dog’s owner might not see it that way.

If you’re sued, you can very quickly go into debt. Therefore, an E&O policy is valuable to keeping yourself and your business afloat during these tricky circumstances.

Medical Professionals

Healthcare providers have more risk exposures than other industries. Lawsuits often end up in favour of your patient, come with high-cost settlements, and can end up compromising your professional license. Regardless of the allegation’s validity, your reputation can take a turn for the worst.

Your errors and omissions policy covers the settlements and legal fees during service-related third-party lawsuits.

Chauffeurs

Chauffeurs are often overlooked when it comes to insurance. But as a driver, you constantly have the responsibility of other people’s safety on your shoulders.

It’s common for people to blame their chauffer if an accident happens. Therefore, you can be on the wrong side of a lawsuit whether the accident was caused by you or not.

Your passenger can decide to sue for medical damages, potentially leaving you penniless. Errors and omissions insurance protects you in these cases and is recommended for drivers of all kinds.

Attorneys

As an attorney, you go above and beyond to protect your client. However, you can’t win all your cases. Despite your hard work and determination, the client may well blame you for their predicament, seeing you on the terrible end of a lawsuit.

With that in mind, it’s clear why attorneys and similar professionals should take out an errors and omissions policy. We recommend a $2 million coverage limit here, as anything less might not cover the often extortionate fees.

Why Choose LiabilityCover?

Frequently Asked Questions About Errors and Omissions Insurance

What Does Errors and Omissions Insurance Cover?

Errors and omissions insurance provides a myriad of protections, including:

• Slander, libel, and defamation of character — It pays the fees associated with cases involving allegations of defamation, libel, and slander.
• Legal defence costs — The best lawyers often charge between $500 and $1,000 per hour, which rapidly adds up. Thankfully, E&O coverage pays these otherwise mountainous costs.
• Monetary judgments — The settlement amount depends on the severity of the consequences and the type of error made by your company. Regardless, they can completely ruin your financial climate if you don’t have an E&O policy to cover them.
• Invasion of privacy — If your former or current client pursues legal action against you for invading their privacy, you need protection. Defence costs in such cases can be ultra-expensive, so having an errors and omissions policy is vital.
• Copyright and trademark infringement — If you accidentally infringe on somebody’s copyright or trademark, you’ll have to pay the costs associated with the case. In these scenarios, your errors and omissions insurance covers the fees, ensuring your business stays afloat.

How Much Does Errors and Omissions Insurance Coverage Cost?

You can expect to spend anywhere from $500 to $1,000 every year on an errors and omissions insurance policy with a limit of $1 million. But multiple factors influence the premium price, including:

• Your business size — The more employees you have, the more exposed to risks you are. Thus, you’ll pay more for insurance if you employ a large number of people.
• Your profession or industry — Some industries are riskier than others. For example, a medical professional carries more risk exposures than an advertiser.
• Your level of coverage — The higher your coverage limit, the more you’ll pay. Although, you shouldn’t choose a lower limit just to decrease the price. E;O insurance policies have five standard coverages to choose from, including:
  • $100,000
  • $200,000
  • $500,000
  • $1 million
  • $2 million
• Your business location — Provinces prone to extreme weather conditions or high crime rates come with pricier insurance premiums. If you’re operating in a particularly risky area, you’ll pay more than similar businesses in safer locations.
• Endorsements — Since all companies are different, you can customize your errors and omissions coverage to meet your bespoke needs. However, any policy additions may increase your cost. Therefore, it’s wise to discuss your needs with a broker to ensure you get the best deal.
• Your business claims history — A clean track record indicates you’re less likely to make a future claim, decreasing your current premiums.
• Your revenue — The more money you earn, the more third parties will request in damages. Therefore, you should expect to pay more for E;O insurance.
• Your experience and training — If you’ve worked in your profession for a while, you’re not as risky as startups. You’ll benefit from reduced premiums the longer you stay in the business, as with experience comes a lower likelihood of mistakes.

How Do You Get Errors and Omissions Insurance Coverage?

We’ve streamlined our process to make it easy for you to get the errors and omissions insurance your business needs. Simply follow the four steps below:

1. Complete our easy secure online quote form.
2. We analyze your insurance needs.
3. Our team connects you to the best insurance brokers or agents with specialist experience covering other professionals in your industry.
4. Your assigned broker or agent contacts you to help you through the process.

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