The business insurance contract

Some examples of commercial property:

• Computer equipment
• Machinery
• Furniture, books, software and files
• Professional instruments
• Merchandise you have in storage
• Merchandise you use to manufacture products

This type of insurance is available as various products that protect companies in case of negligence or legal action related to their operations and decisions made.

To cover harm to a person or damage to their property caused in the course of your business or work, you need liability insurance. This insurance can cover an amount a harmed person claims from you, as well as legal defence costs should you be faced with a lawsuit.

Four warranties are included in commercial general liability insurance:

1. Warranty A called Bodily injury and property damage

2. Warranty B called Harm attributable to public advertising

3. Warranty C called Medical fees

4. Warranty D called Tenant’s liability, which covers damages caused to the workspace you are renting

Other types of liability insurance can also be purchased, such as directors’ and officers’ liability insurance and professional liability insurance.

Business interruption insurance can cover loss of income if a business has to cease operations after an event for which it is insured.

Cyber risk insurance protects businesses against certain losses of income and expenses caused by a cyber attack.

This coverage is useful in the following cases:

• A fire forces you to cease your operations and results in the loss of customers and income. Such coverage may cover the associated financial losses and the wages you will need to continue to pay to your key employees.

• Water damage in your workplace forces you to temporarily rent new premises. The additional cost of the rental will be covered.

• Your building is damaged and your tenants must be relocated. The rent not paid by your tenants as a result of their relocation will be covered.

This insurance reimburses you if you are the victim of dishonest acts posed by an employee who embezzles money from the company, causes losses, damages the premises or makes purchases with counterfeit money or money orders.

This coverage is useful in the following cases:

• You lose your customer accounts list after a covered loss and have no way to follow-up on accounts receivable. You may be reimbursed for the amounts of these receivables.

• Valuable documents are stolen (notarized contracts, shares, bank bonds, architectural plans, etc.). You may be reimbursed for the value of these documents.

• Following a loss, you need an accountant to assess the value of the income that you lost because of the incident. The fees of the accountant or any other professional will be covered.

• Earthquakes
• Flooding
• Water infiltration through the roof
• Sewer back-up
• Clean-up of polluted water or soil

Damages caused by these events are not generally covered under a business insurance policy. However, you can add additional protections to your insurance policy or through a separate document appended to your policy (called “endorsements” by insurers).