Landlords, especially “commercial” landlords are required to obtain business licenses. They are also required to obtain real estate business insurance, which covers a broad range of mishaps, including workplace injury and third-party property damage. It also covers all or part of a monetary judgment, out-of-court settlement, and legal expenses. There is no doubt, Canadian landlords face many risks on a daily basis. These risks may pertain to advertising, hiring, tenant application, lease, and other operational processes. One thing is for sure, you do not want to be uncovered in the event a third-party claim is filed against your commercial landlord business.
Know your insurance options by reading the entirety of this article. ProfessionalsCoverage recommends the policies listed in the article below for all commercial landlord businesses operating within Canadian borders.
Business Owner’s Policy – A Must-Have For Canadian Commercial Landlords
Tenants come and go, which is why landlords are always on the lookout for trustworthy, reliable replacements. Unfortunately, there are a lot of risks involved in commercial rental properties. These risks will never go away regardless of how much you want them to. A must-have for commercial landlords who own rental properties in Canada is a Business Owner’s Policy, also known as a BOP.
BOP plays a major role in heeding to the federal insurance regulations. In fact, it is part of a government mandate. So, there is no way of getting around it. Now, you know BOP is a must-have for commercial landlords, you need to know what role it plays in keeping your business from financial devastation when facing a third-party slander, injury, or property damage claim or lawsuit.
Many commercial landlords oftentimes forget about the risks associated with advertising and marketing. Rental properties are like revolving doors, as tenants are always coming and going, forcing landlords to continuously market their rental properties. While advertising appears to be a simple job, there are risks involved. A simple mistake could end up costing your company thousands. For example, a commercial landlord runs a television ad that turns out to contain false statements about a competitor, resulting in a lawsuit.
While the statement appeared to be innocent, it cost the competitor all of his tenants. Who is responsible for this damage, the competitor or landlord? You are right, the landlord. On a good day in court, the judge may be generous but this is unlikely to ever happen.
First and foremost, BOP covers damages caused by accidents and oversights your company is found to be at fault. Just imagine what it would be like to face a lawsuit without some type of protection. Your future would definitely look grim. Even a minor third-party accident could lead to a major lawsuit. What exactly does BOP cover? It covers the following:
- Monetary damages associated slander or libel lawsuits or claims
- Business property damage
- Third-party tenant property damage and bodily injury
If for some reason, a tenant files a claim or lawsuit against your commercial landlord business, you better hope you have a quality BOP to lean on in the time of need.
Cyber Liability Insurance
Decades ago, commercial landlords stored their tenants’ data in paper folders. Fortunately, this is no longer the case because paperwork requires a lot of space and manpower. Today, all tenant data is stored in a hard drive or on the cloud, both of which offer many benefits. With benefits, comes downsides. For example, cloud storage is a major target for online hackers. These scam artists work around the clock looking for vulnerabilities in cloud services. If your cloud server just happens to get hacked, all of your tenants’ personal information will be breached. Who will be responsible for the damage caused by this data breach? Unfortunately, your commercial landlord business.
While you have nothing to do with the hack, your business will carry the burden of repairing the damage. Depending on the number of tenants involved in the hack, you may be facing a mass lawsuit in the very near future.
Cyber liability insurance is the key to preventing major financial loss associated with cyber hacks. With this policy at your side, you may not need to pay one cent out of pocket. Even if you need to cover some of the damage, it will not be as devastating as compared to being uninsured.
Cyber liability insurance covers the following:
- Legal expenses associated with a data breach lawsuit
- Expenses related to the breach notification process
- Expenses related to fraud monitoring services
Remember, this policy may not cover all the expenses associated with the data breach. But, it could protect your business from bankruptcy and/or permanent closure.
Commercial Auto Insurance
It is highly likely you do not have a large fleet of work vehicles because commercial landlord businesses are not required to do a lot of traveling. However, you will need a couple of work vehicles for errands related to your business. These vehicles will be driven by you and possibly your employees. In this case, you will be required to cover them under a quality commercial auto insurance policy.
Commercial auto insurance is a government requirement for all Canadian commercial landlord businesses. A basic auto insurance policy will not offer enough coverage for a business. These are specifically designed for independent motorists. Businesses need more coverage than what a basic auto policy can offer.
Commercial auto insurance covers the following:
- Monetary damages associated with business motor vehicle accidents
- Theft and vandalism of work vehicles
- Expenses associated with weather damage of work vehicles
You can request to have this coverage added to your business insurance policy. So, if you or one of your employees is involved in an accident and determined to be at fault, the policy will kick the minute the insurer receives your claim.
Worker’s Compensation Insurance – A Canadian Government Mandate
Employees come with many responsibilities. One of these responsibilities is protection from financial loss associated with workplace injuries. Safety policies, refreshment training courses, and strict guidelines will only offer so much protection against workplace injuries. One of your employees could be injured while you are looking right at him/her. In fact, workplace injuries are inevitable, which is where worker’s compensation insurance comes into play.
Workplace injuries, regardless of the severity never end well. And, the more severe the accident, the more devastating the outcome. Worker’s compensation insurance offers protection for the commercial landlord business and injured employee. How is this possible? Well, it is just how the policy was designed.
Worker’s compensation insurance covers the following:
- Medical expenses of the injured worker
- Injured workers lost wages
- Rehabilitation expenses
- Legal expenses
While worker’s compensation is a government requirement, it would be a must-have if the role was reversed. Companies that have experience with workplace injury claims and lawsuits know the importance of this policy. This is one insurance policy that is guaranteed to pay for itself over time.
Need Help Customizing An Insurance Policy For Your Commercial Landlord Business?
ProfessionalsCoverage agents qualify in business insurance policy customization and modification. Whether you are new to the commercial landlord business work or have been around for many years, we are here to help. We can guide you in the right direction and will not stop until you have a policy that is guaranteed to meet all of your insurance needs.
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Other Types of Retail Insurance We Provide:
If your business is not mentioned below, have no worries. Our insurance markets can provide liability coverage for the majority of retail industries.