Common Insurance Claims for Calgary Businesses

December 21, 2023 / 5 mins read

Your Calgary small business faces risks every day. Understanding the common insurance claims that business owners file will help make sure that your business is protected with the insurance that you need.

When you experience a financial loss caused by an accident or damage that affects your Calgary small business, you’ll need to file an insurance claim.

First, you’ll need to check that your policy covers your claim and pay any deductible, which is the amount you will have to pay before your coverage kicks in. Your business will receive payment for losses if the claim has been found to be legitimate.

Let’s review common business insurance claims that your Calgary business may face.

Here are 9 Common Business Insurance Claims:

1. Fire Damage

Fire is one of the biggest threats facing business owners. If your Calgary small business has damage or losses due to a fire, you can file a commercial property insurance claim to cover your financial losses.

In some cases, your Calgary business may need to replace damaged equipment and rebuild areas of the building. If your business’s operations are on pause due to fire damage, you can rely on business interruption insurance to cover the money you lose while the business is temporarily interrupted.

2. Customer injury or customer property is damaged

Customers routinely come in and out of your Calgary small business and it’s your responsibility to keep them safe. If a customer gets injured while on your premises, that can lead to a bodily injury claim against your small business. The most common form of bodily injury is a slip or fall, such as on a wet floor or icy sidewalk.

A customer’s property could also be damaged at your business.

In the case of an injured customer (or supplier) or a customer’s property is damaged at your small business, you would file a commercial general liability insurance claim.

If a lawsuit is brought against you as a result, this type of insurance would help cover legal costs to defend you and your business in court and it would help cover damages to compensate a customer.

3. Theft

Theft by customers and employees is a common insurance claim. Organized retail crime is a $5 billion industry in Canada annually.

As a Calgary small business owner, you can file a commercial property insurance claim, or a crime insurance claim in the case of employee theft.

4. Cyber crimes

Small and medium-sized businesses are increasingly the targets of cyberattacks. Cybercrimes are growing rapidly and have the potential to become a common insurance claim.

Many small businesses underestimate the possibility that they will experience a cyber attack.

Does your small business keep client information online and take online payments? If so, your Calgary business’s computer system could be hacked by cyberthieves.

Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.

5. Product liability

If any of the products you sell or manufacture are faulty, you’ll likely be held responsible for related damages, injuries, or illnesses that a customer experiences. You’ll need to file a product liability insurance claim.

Without product liability insurance, your Calgary small business will be responsible for medical expenses, legal fees, loss of wages, and the cost of a product recall.

6. Car accidents

If your Calgary business uses commercial vehicles, you should have the proper coverage in the event of vehicle damage, property damage, and/or injuries. A commercial auto insurance policy can help protect your business, employees, and commercial vehicles after an accident.

7. Burst pipe

Your Calgary small business has a burst pipe and it has water damage. You would file a commercial general property insurance claim, which in some cases may cover your burst pipes if the burst is sudden and unexpected.

Water damage will not be covered if it's caused by natural floods or negligence. If burst pipes are caused by normal wear and tear or negligence on behalf of the business owner, any damage caused will not be covered.

Calgary business owners should consider sewer backup insurance to protect their businesses.

8. Professional liability

A client sued your Calgary small business for not having provided the professional services you promised, causing the client a financial loss. You would file a professional liability insurance (also called errors and omissions insurance) to help defend your business against these allegations.

Errors and omissions insurance covers:

Negligent acts, or errors, or omissions related to your business’s services
Failure to deliver a service as promised
Media and advertising services that result in your client getting sued for defamation, libel, or slander

9. Reputational harm

If your Calgary small business is being sued, it can cause your business to have its reputation questioned or negatively affected.

You would need to file a commercial general liability insurance claim, which can help protect you against claims of false advertising, and libel or slander.

Here’s an insurance checklist for Calgary small business owners:

Do you have the best business insurance rate that suits your small business?
Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for your business?
Do you know the value of your equipment and tools and are they properly insured?
Are you or your employees using personal vehicles for your work?

At Western, we are business insurance experts. We will save you time and money by doing the insurance shopping for you to find the right package at the right value for your Calgary small business.

What do I do if my Calgary business has an insurance claim?

Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
Know your policy so that when you contact your broker you are familiar with what will be covered or not.
Document the damage. Take photos right away and write down what happened.
Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your Calgary business the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your Calgary or Alberta business.

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