BUSINESS INSURANCE

A typical CGL policy provides coverage for claims of bodily injury or other physical injuries, personal injury (libel or slander), advertising injury and property damage as a result of your products, premises or operations, and can be offered as a package policy with other coverages such as Property, Crime, Automobile, etc. As a safeguard against liability, CGL enables you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. CGL policies also provide coverage for the cost to defend and settle claims.

The amount of coverage that your business needs depends on three factors: perceived risk, where you operate your business and the type of products you manufacture. – Perceived Risk – Consider the amount of risk associated with your business operations and functions. For instance, if you manufacture heavy machinery, you would generally need more coverage than another organization that manufactures stuffed animals. – Premises and Operations Liability – If you operate in a province or area that has a reputation for rewarding high damages, then you may wish to purchase higher limits of liability. – Type of Product Manufactured – If you manufacture a dangerous product, you may want to carry higher limits of liability.

Co-insurance is a clause used by insurance companies on policies covering property such as buildings, contents, stock, or industrial equipment. This clause makes sure policyholders insure their property to an appropriate value and that the insurer receives a fair premium for the risk, whether on a replacement cost basis or on an actual cash value basis (subject to depreciation). The co-insurance clause can also be found on business interruption policies where it ensures that policyholders insure their revenue stream to an appropriate value.

Unlike a commercial general liability policy that provides coverage for claims arising from property damage and bodily injury, a D&O policy specifically provides coverage for a “wrongful act,” such as an actual or alleged error, omission, misleading statement, neglect or breach of duty. For example, a manufacturer told one of its suppliers to increase inventory because they were expecting a large increase in production. As predicted, demand for the manufacturer’s product grew, but the manufacturer increased its inventory with another vendor. The original supplier successfully sued the manufacturer, alleging they suffered damages as a result of having relied on the manufacturer’s promise. A D&O policy provides defence costs and indemnity coverage to the entity listed on the policy declarations, which may include:

• Coverage for individual directors and officers;
• Reimbursement to the organization for a contractual obligation to indemnify directors and officers that serve on the board; and
• Protection for the organization or entity itself.

Indemnification provisions are typically included in the charter/bylaws of a corporation. While an important risk component, small to midsize privately held companies or non-profit organizations often do not have the financial resources to fund such indemnity provisions. A D&O policy provides an extra blanket of security in the event of a covered loss.

Business interruption insurance can help protect small and medium-sized organizations against common interruptions that could damage their revenue or halt their cash flow. Some typical interruptions that may be covered include natural disasters, equipment damages and vandalism.

We think you should get more from an insurance broker than just a bill and a policy. With twelve locations throughout the Lower Mainland and Vancouver Island, including South Surrey, Surrey, Delta, Ocean Park, White Rock, Cloverdale, Delta, Richmond, Coquitlam, Maple Ridge, and Port Alberni, we’re big enough to make a difference, and yet small enough to still provide the personalized service our clients have come to expect. We’re able to assist with all your insurance needs – home, auto, business, marine, travel and life. We have access to a wide selection of some of the best insurers in the country, most of whom do not sell directly to the public. We also cut through the jargon. We want to be sure you understand your insurance policy, so if you ask us, we’ll be happy to talk you through it. If you need to claim, we’re on hand to guide you through the process and negotiate on your behalf to ensure things go smoothly and you are getting the best from your insurance provider. Because we’re independent of the insurance companies all advice we provide is focused on meeting your needs – 100%.