If you run a business in Alberta, acquiring coverage should be number one on your to-do list. As Canada’s fourth-largest province in terms of the small business population, insurance is vital for survival. Luckily, we’re the experts you’ve been searching for. We can connect you with the country’s leading insurers to keep your business safe from all eventualities.
In the next sections, we’ll answer your burning questions about business insurance in Alberta.
Commercial Insurance Coverage For All Businesses in Alberta
Alberta boasts a whopping 160,264 small businesses, 2,933 medium businesses, and 387 large businesses. With over 163,000 in total, there are plenty of risk exposures.
Protecting your company, no matter its size, with commercial insurance is key to thriving in Alberta for a long time. With so many policies to pick from, you can ensure your business stays safe from all sorts of situations — from bodily injury to equipment breakdown and everything in between.
What Does Business Insurance in Alberta Cover?
Technically, business insurance isn’t a type of coverage. Instead, the term is used to describe many commercial insurance types.
Here are the most commonly sought after policies in Alberta:
- Commercial general liability insurance coverage — It provides coverage for claims of third-party bodily injury or property damage. Usually, it’ll cover compensatory damages, medical bills, and defence costs associated with a case.
- Commercial property insurance coverage — Similar to your home insurance, commercial property insurance covers the loss or damage of your business building and its contents. The covered events tend to be fires, thefts, and vandalism.
- Product liability insurance coverage — This policy financially covers the costs related to third-party claims of property damage or bodily injury caused by a product you distribute, manufacture, or sell.
- Legal expense insurance coverage — Hiring lawyers can cost you upwards of $500 an hour. Legal expense insurance covers your lawyer’s fees for a wide range of standard commercial disputes.
- Directors and officers insurance coverage — It’s only applicable to businesses in Alberta with a board of executive-level members. It personally protects your directors and officers and their assets should they be personally cited in a lawsuit.
- Professional liability insurance coverage — The policy is similar to product liability but covers claims relating to your services or advice.
- Cyber liability insurance coverage — It covers the financial costs associated with cyber-attacks and data breaches.
- Commercial auto insurance coverage — It’s similar to your personal auto insurance but covers your company’s vehicle instead. There are plenty of optional endorsements to choose from to diversify your vehicles’ protection.
Who Needs Business Liability Insurance Coverage in Alberta?
Regardless of your industry or business size, owning correct insurance policies is necessary for your company’s longevity. You should always hold coverage for the financial expenses associated with incidents like third-party property damage, accusations of negligence, and bodily injury.
Alberta’s economy is mainly made up of small businesses (roughly 98%), which are particularly susceptible to risks. Why? Because of their limited financial resources, they have a higher chance of filing for bankruptcy without proper coverage.
We’ve helped many professionals in a wide array of trades and industries find the insurance they need, including:
- Home and office professionals
- Health professionals, including chiropodists, chiropractors and holistic health providers
- Construction contractors
- Event planners and organizers
- Private investigators
How Much Does Business Liability Insurance Cost in Alberta?
You should budget approximately $650 per year for a basic commercial general liability insurance policy with a $2 million limit for a small business.
However, the exact cost of your premium changes according to various factors, such as:
- Your industry — While all industries carry risks, it’s no secret that some come with more than others. The higher your risk exposures, the more likely a claim. Therefore, you’ll pay more for Alberta business liability insurance. For example, if you work in construction, expect to pay a higher premium than somebody running an advertising firm.
- Your company revenue — Making money is fantastic. After all, it’s one way of showing success and growth. However, it means there’s more at stake if somebody takes legal action against you, increasing the costs of your insurance.
- Your business location — Don’t forget that your location plays a role in premium prices. If you live in an area of Alberta with a high crime rate (like the following), anticipate spending more on liability insurance:
- Grande Prairie
- Red Deer
- Spruce Grove
- Wood Buffalo
- Cold Lake
- Medicine Hat
- Your years of experience — As you acquire experience, the likelihood of making mistakes decreases. Your policy premiums reduce the longer your company remains in business because insurers see you’re more capable of operating without issues.
- Your business insurance claims history — A clear insurance claims history is advantageous as it allows you to benefit from reduced insurance premiums. Insurers believe you’re less likely to claim if you haven’t done so previously.
- Your company size — You could be held responsible if your employee makes a mistake, causing a liability claim. Thus, your likelihood of a claim grows as your workforce expands, increasing your premium payments.
- Your insurer — Every insurer comes with a different appetitive for risk and pricing structures. Our team connects you with the country’s best brokers and agents offering the greatest value for money.
Why Choose LiabilityCover?
It’s true; you could go straight to a broker. But there’s a simple reason why LiabilityCover is the best option — we make your life much easier.
Running a business is hard enough without worrying about whether you’re purchasing the right policies. Our team analyzes your insurance requirements based on your inquiry form answers. Then, we pair you with a broker or agent specializing in covering your industry.
Insurance is straightforward when using LiabilityCover. Start by calling us on our toll-free number or completing our secure quote form.
Frequently Asked Questions
Where Do Small Businesses Thrive in Alberta?
Alberta’s economic prowess comes from the cities that keep the small businesses thriving, including:
- Spruce Grove
- Medicine Hat
- Grande Prairie
- St. Albert
- Red Deer
- Fort Saskatchewan
- Cold Lake