Does Your Business Need General Liability Insurance?

General Liability Insurance for Your Alberta Business

Most Alberta business owners are aware of the need for General Liability Insurance. When you think of this kind of coverage you may have images of a customer slipping and falling in a local store and then suing the owner. However, there is much more to liability than that, and if you operate a business you may be taking a great deal of risks that you are not currently unaware of. In fact, those risks could be severe enough to jeopardize your entire financial future. Let’s check out an example.

Henry D runs a local hardware store and receives a great deal of competition from another hardware store that recently opened up, just a few kilometers away. Henry heard that his competitor was saying bad things about his store. However, he had no real evidence to back it up. Finally Henry got tired of this problem and decided to do something about it. He posted an ad in the local newspaper declaring that his competitor was guilty of malicious gossip and slander and warned the public not to pay any attention to these matters.

This turned out to be a big mistake, because Henry could not prove his allegations, but his competitor had printed evidence that Henry was guilty of libel. Later, the competitor filed a lawsuit claiming that Henry had damaged his business and caused him a great deal of problems, with the newspaper ad.

When Henry checked his Business Liability Insurance policy, he noted that he did not have coverage for advertising injury. After a long legal battle and a great deal of legal bills, Henry was exhausted and so were his finances.

What Could Henry Have Done Differently?

Naturally, Henry needed coverage for advertising injury claims, but he was unaware of its importance. Also, Henry used an insurance company that specialized in personal auto and home insurance. They were ill equipped to give him what he needed for his business. He should have used a trained and experienced business insurance professional to give him expert advice on his risk factors, and the right kind of insurance coverage. A competent insurance professional would have helped Henry evaluate all of this business liability needs.

Questions about coverage? Contact your broker at Leibel Insurance today!