How Insurance Protects Your Kelowna Business
Small and medium-sized businesses are the backbone of our economy. You create jobs and contribute to local communities. You need commercial insurance that protects your Kelowna business as it grows.
Your Kelowna business needs insurance that’s customized to its needs and at the right value for you as its owner. Your Western Financial Group insurance expert will give you top-notch business insurance advice for your Kelowna business.
What are the biggest threats usually facing a business owner?
1. Lawsuits from customers or suppliers. A customer/supplier could sue you for getting injured at your Kelowna business.
2. Fire or Property Damage to your Business. What if your Kelowna business suffers property damage?
Why it’s important to protect your Kelowna business with commercial insurance
Insurance can seem like an extra expense, but when the unexpected happens it is there to protect your business. Can you afford not to have business insurance?
Top insurance coverages for Kelowna or surrounding area small businesses
1. Commercial general liability (CGL) insurance: You may also hear it called business liability insurance or “slip and fall” insurance. If you are operating a small business in Kelowna or anywhere in British Columbia for that matter, this type of insurance is essential. It can be a risk not to have CGL (business liability) insurance.
Without commercial general liability insurance, you would be responsible for paying any liability costs out of your own pocket if a client were to get injured (slipping and fall, for example, on ice or a wet floor) or her property damaged at your Kelowna business.
This type of coverage can also help protect you against allegations of false advertising, libel, or slander.
It’s recommended that you have at least $1 million in CGL coverage, but more is often recommended depending on the size of your Kelowna business and what sector it’s in.
2. Commercial property insurance
Commercial property insurance keeps your business protected from property losses, such as theft, fire, or vandalism. You can also add earthquake insurance, sewer backup or flood coverage extensions to protect your Kelowna business.
3. Property you may need to insure:
- Buildings and other structures
- Furniture, equipment, supplies
- Computers
- Documents such as payroll, accounts receivable
4. Product liability insurance
This type of insurance protects your Kelowna business against claims that allege third-party property damage or bodily injury caused by a product you manufacture, distribute, or sell. It protects your business from design, manufacturing, or marketing defects, such as incorrect labelling and safety warnings.
5. Commercial auto insurance
Your Kelowna or B.C. business needs commercial auto coverage as part of your business insurance package. Personal car policies will not cover your drivers or your business.
6. Cyber liability insurance
Small and medium-sized businesses are increasingly the targets of cyberattacks.
Do you keep client information online and take online payments? If so, your Kelowna business’s computer system could be hacked by cyberthieves.
Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.
7. Business interruption insurance
Business interruption insurance can mean the difference between closing and not reopening your Kelowna business.
If there is an insured loss at your business that’s severe enough to prevent it from being opened, the expenses associated with getting your business running again will be covered.
This type of policy usually covers vandalism, fire, wind, flooding, and other risks (make sure to understand what your policy covers).
Your policy will help compensate you for lost income and expenses that you will need to continue paying even while you are unable to work.
8. Crime insurance
Crime insurance is a good investment for many Kelowna businesses because it protects you from both employee and customer crimes. If a customer were to buy an item with a fake credit card or counterfeit money or an employee were to steal money from your cash register or accounts, your crime insurance would help reimburse you for the loss.
Other types of insurance to consider for your Kelowna business
Sewer backup insurance: Sewer backup insurance is designed to protect you from the financial burden that a sewer backup can bring. It covers unexpected water that enters your home through drains, septic tanks, downspouts, pipes, and eaves troughs. This can be caused by a clog in the sewer line, heavy rainfall or snow melt, or outdated sewer systems.
Tools and equipment insurance
If you are in the trades, tools and equipment insurance is needed. It replaces, or repairs damaged, stolen, or lost equipment and tools, accessories, or other property that you use in your small business. Anything valued at less than $1,500 is considered a tool and anything above that limit is considered equipment.
This type of insurance can also be called equipment floater insurance.
Directors and officers insurance
You need directors and officer’s liability insurance to protect your Kelowna business’s board of directors from claims of negligence. Individuals serving on your board of directors, whether your business is a not-for profit, for profit, public, or private entity can be sued for the actions of the companies they serve.
What do I do if my Kelowna business has an insurance claim?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your Kelowna business the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your Kelowna business.
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