Kitchener Business Insurance Explained
Business insurance is a term for all types of insurance that provide protection from risks associated with operating a business. Business insurance is also often called commercial lines insurance and both terms are used to make a distinction between them and personal lines insurance, which cover personal risks like potential liability from owning a home or driving a car.
Kitchener Business Insurance Products Available Through ALIGNED Insurance Are:
- Commercial General Liability
- Property Insurance
- Directors & Officers(D&O) / Board Insurance
- Professional Liability / Errors & Omissions(E&O) Insurance
- Employment Practices Liability Insurance
- Crime/Fidelity Insurance
- Cyber Liability Insurance
- Machinery Breakdown Insurance
- Fiduciary Liability Insurance
- Kidnap & Ransom Insurance
- Drone Insurance
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There are a number of ways to determine what type of business insurance your organization needs including: How Do We Determine What Type Of Kitchener Business Insurance We Need?
- Review contractual obligations to determine the type(s) and limit(s) required by others for you to carry/evidence.
- Conduct a risk assessment to determine the types of risks that your business faces based on its operations, legal environment, industry geography etc.
- Speak to peers and competitors in your industry to determine what type of insurance they are buying and why.
- Connect with a professional insurance broker who specializes exclusively in business insurance to discuss your operations.
Commercial General Liability (CGL) insurance is the most commonly purchased type of insurance by far. A commercial general liability policy is issued to all types of business organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability. The CGL policy was introduced in 1986 and replaced the “comprehensive” general liability policy. Given the many types of coverage provided by the commercial general liability policy and the frequency of bodily injury claims, most businesses that are operating purchase this coverage.
What does a commercial insurance policy cover?
The most common type of insurance purchased as part of commercial insurance policies in Kitchener is Commercial General Liability Insurance. This type of insurance is broad and covers businesses in the event of a liability claim against them for property damage or bodily injury. These incidents may occur due to interaction with any of the following aspects of your Kitchener business: products, operations, business premises, completed operations, and advertising.
There are other options for coverage for businesses to protect them against the risks of operating in Kitchener and elsewhere. Commercial Property Insurance is another common coverage for companies to guard against risks like extreme weather, flooding, fires, and theft. In this case, the business’s physical assets in Kitchener and other locations are covered, including buildings, equipment, products, furniture, and more.
There are many additions to commercial insurance policies for Kitchener businesses based on their individual needs and attributes. If needed, companies can add Commercial Vehicle Insurance, Cyber Liability and Privacy, Equipment Breakdown, Director’s and Officer’s Insurance, and many other coverages to their comprehensive policy. ALIGNED Insurance advisors will work with trusted brokers to advise on your Kitchener business’s unique needs and provide pricing information recommendations.
How long does commercial insurance last?
Commercial General Liability Insurance in Kitchener can last as long as you would like. Typically, insurance policies renew annually to ensure that all information that may affect your coverage is kept up to date. In this case, the term of your insurance policy would be one year. Terms can also be varied, but one year is the most common.
Payment can also be made monthly, quarterly, or annually, depending on the arrangement you make with your insurance company or broker.
Working with a company you trust that is local to the Kitchener area will ensure you receive the best possible insurance coverage. A licensed and experienced broker will help determine how long your insurance should last and what the best options are for your Kitchener-based business.
What Type Of Kitchener Business Insurance Is Most Common?
Commercial Property Insurance is also a popular type of business insurance and provides coverage if physical assets are damaged or destroyed by numerous types of losses including fire, floods etc.
How Do I Buy Kitchener Business Insurance?
Kitchener Business Insurance is best purchased through a local, licensed and experienced insurance broker who will help you and your organization assess your needs, secure options and provide recommendations on what options are best for your organization.
ALIGNED Insurance Advocates specialize exclusively in business insurance and are experienced and skilled in risk identification. They also are experts in securing the best options available from insurance companies on your behalf.
To learn more about ALIGNED, our commitment to providing insurance expertise and the best insurance products or solutions, talk to one of our advocates today. We can help you secure the best products, services and solutions for your business.
How much does business insurance cost in Kitchener?
It mostly depends on the coverage limit you choose and the type of business insurance you include in your policy. Insurance companies use many factors to determine your risk as a customer and your monthly or annual insurance rates. Typically, high-risk customers pay more each month for business insurance than low-risk customers.
Here are some factors they consider:
- Business location
- Annual and projected revenue
- Number of employees
- Insurance claims history
- Business location
- Types of insurance you purchase
- Insurance limits and deductibles
- Value of your commercial property and equipment
These factors determine how much risk you pose as a customer and how much compensation you can get if you file a claim. Small businesses typically expect to pay around $650 annually for a basic general liability insurance policy.
What is the most common business insurance in Kitchener?
General liability insurance is one of the most common Kitchener business insurance inclusions and protects the business against third-party liability claims from injuries or property damages.
For example, if a customer breaks their wrist in your convenience store because your floors were slippery, they could sue you for the injuries sustained. Business insurance covers medical fees, settlement awards, and legal defence fees. Most general liability insurance policies also include a product liability policy, which protects your business against third-party claims of injuries or property damages because of the products you sell, distribute, or manufacture.
Other common business insurance inclusions are:
- Commercial auto insurance
- Equipment breakdown insurance
- Commercial property insurance
- Professional liability insurance
- Cyber liability insurance
What kind of insurance do I need for my business in Kitchener?
It depends on the type of business you have, your budget, and the risks your business faces. We recommend a general liability insurance and product liability insurance policy for all businesses regardless of the products or services they provide.
If you’re unsure about what type of Kitchener business insurance you need, speak with one of our specialists and we can help.
What insurance is mandatory in Kitchener for businesses?
Small business insurance isn’t mandatory, but it’s always good to have.