The Importance of Insurance for Small Businesses

Why do small businesses need insurance?

Running a business means responsibility for many moving pieces and people. Commercial property insurance in Alberta is crucial for small businesses because it protects you from unforeseen financial hardship relating to your business property.

Some of the common issues small businesses run into include:

  • Fire
  • Weather damage
  • Equipment failure
  • Commercial vehicle repair
  • Theft
  • Vandalism

Depending on the small business you run, you may need more than one commercial property insurance product in Alberta. At Bow Valley Insurance, we cater our insurance products to the unique needs of our clients, including in-home and brick-and-mortar businesses.

Interested in learning more about why your small business could benefit from commercial property insurance in Alberta? Here are some reasons to get on board.

Damage Repairs are Covered Following Inclement Weather

Alberta doesn’t always have the most reliable weather patterns, which is why small businesses need to be protected against inclement weather damage. When weather damages your building, you’re on the line to pay for those repairs out of pocket if you’re not covered by insurance.

Depending on your property insurance policy, you may be covered from a wide range of risks, including:

  • Wind and tornadoes
  • Falling ice, hail, and snow
  • Rain and lightning
  • Wildfires
  • Earthquakes

Extended coverage may include flooding and sewage backup. If you have this option on your policy, we recommend selecting it, especially if you’re in an area in Alberta where flooding is common. You can also speak to your insurance broker about additional weather or natural disaster-related coverage you might need for a business in your location.

Business Interruptions are Accounted For

In any small business, a day can make a huge difference to your ROI. When your office needs to close because of unforeseen circumstances due to an insured loss, your commercial property insurance in Alberta helps cover the costs of your closure, so you don’t lose money.

This isn’t always included in a standard commercial property policy, so ask your broker about your area. Bow Valley Insurance suggests adding extended options when they make sense for your brand and business type. There’s nothing worse than being caught unaware and needing to close shop without a backup plan.

Repair Coverage Due to Vandalism

While there are many safe and friendly towns across Alberta, even Canadians experience crime from time to time. Commercial property insurance in Alberta keeps your finances safe if your office space or warehouse is vandalized.

  • Repair coverage extends to:
  • The physical structure of your office building
  • Belongings inside your office building
  • Extended structures such as storage sheds or garages

Replacement costs can also be provided through your insurance broker for stolen property on your business site. This is especially important for commercial sites with valuable objects, tools, and equipment on hand.

Increases Credibility with Shareholders and Investors

As a business, there are people you need to answer to outside of your internal management and customers. You also need to think about the interests of shareholders and investors.

Having commercial property insurance in Alberta makes your business a safer bet for new investors. It will also give you credibility with banks and other financial institutions if you need a business loan or other financial assistance.

Your insurance guarantees investors and lenders that their money is safe with you. That even if damage or an unforeseen closure occurs, you’ve got it covered without needing any extra cash to complete the repairs.

Assistance During Repairs

Damage to your business is enough trouble to deal with without adding more to your plate. When repairs for physical property damage are underway, how does your company continue earning? This is another area where commercial property insurance in Alberta is helpful.

Your insurance policy likely outlines something about covering financial losses if you need to close shop due to weather or local restrictions. 

Damage repair is covered through your property insurance, and so is the time spent to complete those repairs. Check your exact protection type and policy details to ensure this is the case before damage should occur.

In insurance, as in wilderness survival, it’s always better to have it and not need it than need it and not have it.

Pricing Your Commercial Property Insurance in Alberta

Knowing why you need insurance isn’t enough. It’s also good to know how much you should be spending on your commercial property coverage.

At Bow Valley Insurance, we consider many variables when we make decisions on cost and value. You must have enough coverage to make a difference if something happens to your company. Too many times, we see small businesses choose the cheapest insurance option to satisfy legal regulations and then fall victim to insufficient financial protection when it’s needed.

  • To price your policy, we factor things such as:
  • Age of commercial property
  • Experience in your industry
  • Previous commercial property insurance claims
  • Age and quality of heating and cooling, electrical, and plumbing systems
  • Location of commercial property
  • Estimated costs of repairs to property and contents

These qualities don’t weigh against you. In many cases, you might find you’ve been paying too much for your commercial property insurance in Alberta because you’ve chosen a broad range of coverage for perils or equipment you don’t need covered. At Bow Valley Insurance, we tailor your policy to fit your business and property type.

Contact Bow Valley Insurance to Learn More

Interested in learning more about commercial property insurance in Alberta and how it could benefit your small business? We want to help. Bow Valley Insurance serves customers across Alberta, and we take great pride in the connections we make with our clients.

We understand that your business is more than a company. It’s your livelihood, and in some cases, your legacy. We want to care for your business’ wellbeing as though it were our own, which is why we create bespoke insurance packages to meet you where you are.Want to chat with one of our experienced brokers today? We invite you to request a quote from us online or call 1-800-332-1308