Byron Broten Insurance Agency Ltd.

Commercial Insurance Frequently Asked Questions:

What are the benefits of Business Owner's Insurance?

Commercial insurance is designed to help protect many of the risks your business can face, including:

damage or destruction to your business vehicles
certain liability exposures resulting from the operation of your business vehicles
damage or destruction to your office equipment or inventory
loss of income in case you have to close-up shop temporarily because of a covered loss
certain business related liability exposures such as, wrongful entry or search, libel, slander and even certain offenses arising out of your business’s advertising • risks to your cargo while in transit or storage
theft or loss of tools and equipment • crime coverage including robbery, burglary, even employee dishonesty

What are the benefits of Liability Insurance?

General Liability Coverage includes:

Bodily Injury Liability Coverage:
Helps protect you in case injuries occur to other people resulting from your operations.
Property Damage Liability Coverage:
Protection in case damage occurs to the property of others.
Personal Injury Liability Coverage:
Helps provide you with protection for offenses such as false arrest, libel, slander and wrongful entry.
Advertising Injury Liability Coverage:
Helps cover your legal liability for a variety of offenses arising out of the advertising of your business’s goods and services.

What is coinsurance and why is it required in an insurance policy?

It is important to point out that most insurance losses are partial losses. Recognizing this, many insured’s would be inclined to purchase amounts of insurance well below the total value of their property-but what they feel would be adequate for their estimate of the size of loss they are likely to incur.

A coinsurance clause in a fire insurance policy obliges the insured to maintain a specified minimum amount of insurance in relation to the value of the property insured. If the insured does not maintain the proper amount of insurance the insured becomes a coinsurer and will have to absorb a portion of the loss which will depend on the limit of insurance that was carried on the property compared the limit that should have been carried on the property.

Common coinsurance percentages that are contained in present day insurance policies are 80% & 90%.

What is a Certificate of Insurance?

A certificate of insurance is a modified form of a policy in that it certifies the existence of an insurance contract. In automobile insurance most provinces have standard renewal certificates. They are quick and compact and do not repeat a lot of the information already in the original policy. In property insurance it is becoming common place for clients and recipients of your product or service to request a certificate of insurance as evidence that your business has a valid insurance policy in place. It is also a good idea for commercial businesses to ask the same from their suppliers, and others that you may do business with.