It is crucial that business owners who are seeking Commercial General Liability Insurance in Ontario have a clear understanding of what they can expect and what to look for in an insurance quote.
A lot of business owners make the mistake of thinking that all insurance policies can be applied to every business. It is a fact that insurance policies and the coverage they provide can vary between companies. It all depends on the activities and operations of your business.
Here are some tips before you start shopping for CGL insurance.
What is Commercial General Liability Insurance (CGL)?
Commercial General Liability Insurance covers you and your company against claims for bodily, personal, or other damages. It can also cover incidents that happen on or near your business premises, such as physical injuries, property damage, or any kind of reputational damage.
CGL insurance will cover the legal costs of defending you and your company in court if you are subject to a lawsuit. CGL insurance would also pay for indemnity costs to cover third-party damages. Commercial General Liability Insurance in Ontario allows you to continue with your normal business operations while dealing effectively with fraudulent or real claims.
How to Buy the Best Commercial General Liability Insurance in Ontario?
- Know your Risks
Make a list of all possible losses and liabilities. You should list any assets (including your home if your business is based out of your own home), vehicles, equipment, and supplies that are essential to your business. Risks such as a data breach and the death of a key staff member are not to be overlooked.
To offer you a Commercial General Liability Insurance quote in Ontario, insurance companies will need to know some information about your company. The insurance company will want to know details about your business, such as the length of the business, your industry experience and past history, the type of services or operations your business will provide, etc.
This information will give the insurance company an idea of how much risk they are taking when they write a general policy for your company. This information will simplify the underwriting process and reduce the time it takes to get a quote for the coverage that you want.
- Set a Budget for Insurance
After determining which policies are needed, business owners then need to know how much insurance they will pay. Every penny counts when you have a tight budget. It is important to understand that although business insurance can be an additional expense, it can play a vital role in protecting your company from financial disasters.
Although it can be tempting to choose the cheapest commercial general insurance in Ontario to save some dollars on your premiums you could end up paying more over the long term.
Cheaper policies are often priced lower because they may cause you to be exposed to common risks because they offer limited coverage. They may also be offered by insurance companies with questionable business practices like slow claim processing or sudden premium increases.
It’s better to use reputable insurance companies and buy the best insurance coverage that your budget allows. You may discover that your insurance policy is too low to cover the losses you need to keep your business afloat.
- Understand Deductibles
Most business insurance policies have a deductible. This is the amount that you will be responsible for before your insurance carrier kicks in to help with a loss.
You might feel tempted to pick a higher deductible. If you have to file a claim, make sure that your business is able to afford the deductible. This is something to consider when choosing your deductibles.
- Ask About Exclusions
Asking about exclusions is another tip for purchasing General Liability Insurance. As a business owner, it is crucial that you review any exclusions that may apply to your business operations. Your commercial liability insurance broker will be able to help you determine the coverage you require. They can also show you gaps in coverage and compare quotes from different companies.
Ask about exclusions in the insurance quote you get. Certain types of losses are not covered by all liability policies. Some of the losses may not be relevant to your business and may therefore not be covered. A General Liability policy will include a Liquor exclusion if you own a restaurant that serves alcohol.