Basics of Commercial Insurance

Finding a broker who provides commercial insurance in Vancouver is not a difficult task – all you need to do is search the Internet or the local yellow pages. However, before you decide on the broker or the company from where to procure insurance, it is vital you understand the specific type of commercial insurance your business needs.

Commercial Property Insurance

When you run a business in Canada, you have the option of choosing from a wide range of commercial insurance policies. The most common one is commercial property insurance that provides cover for your building, equipment, inventory you carry, and losses caused by manmade or natural disasters – vandalism, fire, or windstorms. However, if you want coverage of your property against floods, you will most probably require to purchase a separate policy because this is not covered under the general commercial property insurance.

The equipment, inventory, fixtures and furniture at your place of business is covered under the business personal property insurance policy. However, if the nature of your business requires the frequent transportation of these materials to sites other than your office, it is advisable to also procure an inland marine policy.

Business Interruption Coverage

Sometimes, a disaster may cause your business to be closed for some time during which you seek to restore the premises to their previous status. At such times, it naturally follows that you have to meet these expenses even though you are suffering a loss because of the temporary closure of business operations. Having business interruption coverage means you get reimbursed for these expenses as well as the profits you lost during this time. Some policies also include reimbursement for losses that arise because your business is located in an area that is declared as being out of bounds by civil authorities following a major disaster.

Commercial Insurance for Home Businesses

If you have a small home business, it is vital to understand that you need separate cover for those tools, equipment, computers and other machines that are related to your area of work. These items that are not a part of your home but rather necessary for your business are not likely to be covered under any homeowner’s insurance policy you already own and therefore, it is necessary to obtain a separate policy from any firm or broker selling commercial insurance in Vancouver.

What to Consider

The type of commercial insurance you ought to get depends on many important factors such as:

The type of business you run
How big your company is in terms of volume of work
The number of employees you hire
Any specific insurance specified by the law for doing business in your chosen field and of course,
How much you can afford to spend on commercial insurance. When it comes to commercial insurance, the premium you need to pay may be high but this is an inevitable expense that no business can afford to ignore. Although you may be spending a lot on such insurance policies, it is worth remembering that this is your protection against loss from unexpected untoward incidents that can happen to anyone at any time.