Canadian Liability Insurance
is a form of insurance that will protect you against liabilities imposed by lawsuits or other third-party claims
. In the past, companies and individuals facing common peril established self-help funds that would serve to pay compensation if any of the members incurred loss.
Today, it is compulsory for natural persons or entities which run the risk of being sued for their professional activities or the services they provide. There are several types of liability insurance with the main ones being the public liability insurance.
Public Liability Insurance
This type of insurance will cover injuries caused to members of the public by you or your company while carrying out your business activities. The public liability insurance also covers damages to communal or personal property as well as any environmental pollution that comes as a result of your professional actions.
Some companies prefer not to take out a public liability policy
due to the large premiums they must pay. However, if you own a business that involves frequent visits by third parties (e.g. you are a pub, restaurant, or theater owner) it is better to opt for this type of insurance. Some common incidents include customers tripping over or slipping at your restaurant or eatery. If you constantly work with other people's property, e.g. you own a home maintenance company, it is recommended that you take advantage of this form of insurance.
Remember that public liability insurance does not cover injuries that your employees may get on the workplace. To cover against this liability you will need to sign employer's liability insurance.
Professional Liability Insurance
This form of insurance protects professional practitioners such as physicians, lawyers
, and architects against negligence claims by their clients or patients. Other potential policyholders are appraisers, accountants and brokers, or in general, people whose professional activities may cause damages as a result of inaccurate advice, unfair dealing, or divulging of secrets or misrepresentation.
Product Liability Insurance
If you are a manufacturer or a retailer of goods, you are advised to take out the product liability insurance, as it covers liabilities resulting from malfunctions or defects in the products you provide.
The premiums that are payable under this insurance depend on the type of products, the volume of sales, as well as the role of the insured in the production-and-supply process.
Employer's Liability Insurance
This insurance provides coverage against illnesses or injuries your employees may get while they are performing their professional duties for your company. Most countries' legislations
require all company owners who employ persons other than themselves to take out employer's liability insurance, but there are usually no strict limitations regarding the amount of the premiums. In general, the employer liability insurance protects employees from liabilities which may arise due to disease, injury, or fatality.
Keep in mind that sum for which you will insure yourself should be contingent on the type and number of risks your employees are exposed to.