Alberta is home to some of Canada’s most resilient entrepreneurs. From small family-run shops to energy-sector giants, businesses here face enormous opportunities, as well as equally significant risks. Alberta sees a ton of extreme weather incidents, there are frequent economic fluctuations, and several industry-specific hazards such as those pertaining to oil and gas mean that no two businesses have the same insurance needs.
Commercial insurance is essential, and flexible. Unfortunately, however, as insurance brokers we often see companies without adequate coverage. Often there are not enough of the right questions asked when putting together commercial insurance plans.
Consequences of these gaps in coverage can be to create financial strain and even threaten the survival of your company. If we look at past weather-related disasters, such as the 2013 Calgary flood, the 2016 Fort McMurray wildfire, and the record-breaking Calgary hailstorm of 2020, there is no doubt that comprehensive commercial insurance can help save a business.
Do not assume a basic policy covers everything … especially extreme weather
A common oversight for commercial insurance is assuming that a standard commercial property or commercial liability policy protects against all risks. In reality, most policies have exclusions. For example, overland flood coverage is often not automatically included, even though Alberta has a history of severe flooding.
Knowledgeable brokers such as us at Lane’s thoroughly understand Alberta’s risk landscape. We ask our providers specifically about add-ons for overland flood, sewer backup, hail, and wildfire and how that will affect your coverage.
Underestimating business interruption needs
Commercial property insurance will repair your building and replace your equipment should an insured peril occur, but it does not cover loss of income while your doors are closed. Too many Alberta business owners overlook the importance of business interruption coverage.
Often, business interruption insurance comes with a standard 12-month limit. However, using the 2016 Fort McMurray wildfire as an example, it is not uncommon for rebuilds to take far longer than just a year. Recovery didn’t happen quickly, with some businesses needing years to rebuild, rehire staff, and restore supply chains.
We can help you review your business interruption policy carefully. Eighteen or even 24 months of coverage more than likely better reflects the time you will need to fully recover. This helps factor in potential supply chain delays, customer attrition, and rebuilding confidence in your market.
Forgetting about cyber liability
Cybercrime is not just an issue for large corporations. It often hits Alberta’s small and mid-sized businesses hard, with ransomware attacks, phishing schemes, and data breaches triggering regulatory fines, lawsuits, and reputational damage.
In 2021, the Calgary Board of Education experienced a cyberattack that disrupted online learning platforms and exposed vulnerabilities. While that was a public-sector case, it highlights how disruptive and costly cyber events can be. A private business facing a similar incident could be left with massive out-of-pocket expenses.
All businesses are a target. Commercial cyber insurance can include costs for data restoration, regulatory compliance, legal defence, and even crisis management to help repair your reputation.
Not updating coverage as your business grows
Commercial insurance should evolve with your business. If you’ve expanded to a second location, bought new vehicles, hired more staff, or invested in expensive equipment, your risk profile has changed.
Commercial insurance should be reviewed annually with your broker or provider. Ideally, this should happen before renewal season. At this time you can provide updates on expansions, renovations, and new services.
Overlooking commercial auto insurance
Vehicles are essential for many Alberta businesses, especially in industries such as construction, landscaping, delivery, and energy services. However, some owners mistakenly assume personal auto insurance will cover vehicles used for business.
If vehicles (or even single vehicle) are used for deliveries, site visits, or transporting tools, staff, and passengers, you more than likely need commercial auto insurance. We can help you inquire about cost-saving measures such as telematics (also known as usage-based insurance) available for fleet owners. These sorts of options can help save you money while also gaining a better understanding of how your vehicles are being driven.
Not understanding deductibles and policy language
Insurance documents are complex, and filled with a ton of jargon that the average person does not understand. This causes many busy business owners to skim over the details and place far too much trust in their provider. Unfortunately, this can lead to very expensive surprises when having to make a claim. High deductibles, hidden exclusions, or limitations on replacement value versus actual cash value can drastically reduce payout.
A broker can help explain your policy in plain language and make sure you fully understand your deductibles, coverage limits, and exclusions. A clear understanding upfront avoids disputes and disappointment later.
The value of a trusted Alberta insurance broker
The right broker doesn’t just sell insurance. We act as a long-term partner in your business success. We at Lane’s Insurance can:
- Identify coverage gaps specific to Alberta’s environment and industries.
- Tailor policies to your operations, whether you’re in retail, construction, tech or energy.
- Compare quotes from multiple insurers to secure the best fit.
- Keep you informed about evolving risks like cybercrime and climate change.
The right insurance provides peace of mind. An insurance broker knows the products they work with and can effectively cross check different companies’ policies to be sure to check all of the boxes on your insurance to-do list. Experienced brokers excel at educating our customers, answering questions and explaining coverage, so you know you have the best commercial insurance for you and your business. Contact us at our Calgary, Edmonton, Banff or greater Alberta offices to learn more.
