Why Calgary Businesses Need Commercial Property Insurance

Why Calgary Businesses Need Commercial Property Insurance

May 2, 2024 / 5 mins read

Do you own or rent the space that your Calgary business operates in? Have you protected your business from risks like theft, fire, and vandalism. With commercial property insurance, you are protecting your Calgary business and its contents from these kinds of risks.

Commercial property insurance isn’t legally required, but it’s strongly recommended for Calgary businesses of all sizes. It provides financial protection to your business and its contents in case of unexpected events that may cause damage or loss.

Wherever your business is located in the Calgary Metropolitan Area,

your Western Financial Group business insurance expert will give you top-notch commercial insurance advice and ways to save on insurance for your business.

What is commercial property insurance?

Commercial property insurance helps provide your Calgary business with financial coverage for physical loss or damage to your building, property, and contents.

Commercial property insurance can also be called business property insurance or commercial building insurance.

What Calgary businesses need commercial property insurance?

Ideally, all Calgary businesses should have commercial property insurance, but here’s a list of business for which it’s recommended:

  • Construction companies
  • Contractors
  • Electricians, Plumbers, Carpenters, Welders, Pipefitters
  • Landscapers, Lawncare
  • Snow removal
  • Retailers, including clothing stores
  • Auto garages
  • Bakers
  • Restaurants and cafes
  • Dry cleaners
  • Florists

Why do I need commercial property insurance?

As a Calgary business owner, you need commercial property insurance coverage to protect your business’s physical location and its contents.

Commercial property insurance can help cover repair or replacement costs if your Calgary business’s property is damaged or destroyed due to a covered loss, such fire, theft, storms including wind and hail, or vandalism.

Commercial Property insurance helps cover the cost of repairing or rebuilding your Calgary business.

Commercial property insurance typically covers:

  • Your premises, including signage and other physical structures such as a fence
  • Equipment
  • Machinery
  • Computer systems
  • Hardware
  • Inventory/Stock

What’s not included:

  • Equipment wear-and-tear
  • An unexplained loss
  • Deliberate damage to your Calgary business
  • Theft at a vacant location (more than 30 days)
  • Cash/securities

How much does commercial property insurance cost?

The cost of commercial property insurance for Calgary businesses will depend on factors such as:

  • What sector your business operates in
  • Annual revenue
  • Location
  • Type of property
  • Square footage
  • Number of employees
  • Any past claims
  • Any security measures

Here are 3 examples of how commercial property insurance can help your Calgary business:

  1. A windstorm damages the roof of your Calgary business. Commercial property insurance helps cover the repairs to your roof.
  2. Thieves break into your Calgary business and steal some merchandise and computers. Commercial property insurance helps cover stolen goods and computers.
  3. A small kitchen fire in your Calgary coffee shop leaves it damaged and there’s also some smoke damage in the café. Your commercial property insurance covers the cost to repair the kitchen, replace the damaged insured contents, and clean up the smoke damage.

Coverages you may want to add as extensions to your commercial property insurance:

Flood Sewer backup coverage: This add-on coverage helps protect your Toronto business against water damage from floods and sewer backups.

Business interruption insurance: This coverage supports you when your Calgary business can’t operate due to a covered loss.

There are a number of losses that can force your Calgary business to shut down. Some examples include:

  • Damage to your equipment from fire or vandalism
  • A major reduction in revenue due to a client/supplier facing losses of their own
  • A disruption in your supply chain

Business interruption insurance can help with expenses such as:

  • Payroll
  • Rent
  • Utilities
  • Property taxes
  • Alarm monitoring
  • Relocation of your business

Business interruption insurance can be the difference between recovering from a loss and closing permanently.

Here’s an insurance checklist for Calgary businesses:

  • Do you have the best Calgary business insurance rate that suits your work?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
  • Are you or your employees using personal vehicles for work?

What do I do if there’s a claim against my Calgary business?

  • 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 Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right commercial property insurance at the right value for your Calgary business. Our experts are available now to help you navigate the business insurance journey.

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