Business Liability Insurance Alberta

General liability

• Also known as “commercial general liability” or “CGL,” general liability insurance in Alberta protects your business against third-party claims of bodily injury or property damage. If a customer slips and falls in your store, or your employee damages a client’s property, this coverage helps with legal defence costs, settlements, and court judgments. It is essential for almost any business that interacts with the public, from retail and trades, to hospitality, offices, and more.

Professional liability

• Also known as “errors and omissions” or “E&O,” professional liability insurance protects your business against financial loss caused by a professional mistake, advice, or negligence. For example, if a designer’s plans cause project delays, or an accountant’s oversight leads to an error in their client’s filing, this coverage helps with legal fees and compensation for financial damages. Professionals like engineers, real estate agents, and consultants often carry both types of insurance for better protection.

If your company interacts with clients, the public, or other businesses, it should have liability insurance. Lawsuits can cost six figures for legal defence alone and poof of business liability insurance is a requirement for most landlords, lenders, municipalities, and clients.

The same goes for businesses in high-risk sectors. Construction, oilfield services, trucking, manufacturing, retail, and food services should strongly consider business liability insurance. Meanwhile, professional liability insurance is the best fit for service providers like consultants, IT firms, designers, and accountants.

Business liability insurance isn’t one-size-fits all. That’s why we work to understand your business and the coverage it needs. Typical exclusions include:

• Intentional acts like deliberate property damage or bodily harm.
• Employee injuries, which are usually covered by workers’ compensation (WCB).
• Damage to your own property
• Poor workmanship or contract disputes.
• Pollution, asbestos, or mold unless specifically added.
• Cyber risks
• Natural disasters like floods and earthquakes

Westland advisors will work with you to navigate your premium factors. Industry, risk level, business size, location, coverage limits, previous claims history, and additional coverage can affect the total cost of your business liability insurance.

Average coverage for Alberta businesses ranges from $1000 – $1500, with small businesses ranging from $700-$1200. High-density locations like Calgary and Edmonton may have slightly higher rates. Westland’s experts work with multiple insurers to compare options and find the best value for your business.

Commercial auto insurance for company vehicles and employee coverage (WCB) is legally mandatory. While landlords, clients, and municipalities, for rentals and leases, projects, and permits, usually require business liability insurance as part of a contract. It’s strongly recommended for your own financial protection and to show credibility.  

Natural disasters and weather damage aren’t included with business liability insurance in Alberta. It only covers damage or harm to others, not to your own property or assets.

Commercial property insurance protects your business from things like hail, floods, or wildfires. If a fire at your property causes damage to a neighbouring property, that’s when liability insurance comes into play. It all depends on your risk factors, and Westland advisors are here to help assess them.

Given Alberta’s severe weather, combining liability with property insurance is essential for comprehensive protection.

Business liability insurance does not include cyber protection in Alberta. To properly safeguard against the complexities of cyber risks, businesses should have a dedicated cyber liability. This coverage can include response costs such as forensic investigations for data breaches, notification expenses for affected clients, legal defence for digital infractions, and even business interruption losses. 

Liability insurance financially covers your business if it causes harm to others, such as injury, damage to their property, or financial loss. Property insurance covers losses to your own assets, from buildings to inventory to equipment. If a customer slips in your shop, business liability insurance protects you from the financial aftermath. If a fire damages your stock, property insurance will cover your losses. Most businesses in Alberta use both, and Westland advisors can help bundle the right policies for maximum protection and value. 

Time is critical to avoid false reports and claim denials. Notify your Westland advisor immediately and include any documentation, such as photos, videos, witness statements, and on-site notes. Don’t admit fault or try to negotiate directly. Our Alberta claims team will help file any paperwork and connect you with an adjuster and legal support. We’re here to advocate for you throughout the process and make it as smooth, quick, and fair as possible.   

The typical range for small to mid-sized businesses in Alberta is between $2M – $5M in coverage. Large businesses and those in high-risk industries like construction, oilfield, and transportation may need $5M – $10M in coverage. Our advisors can help assess your exposure and recommend appropriate coverage.