Contents Insurance Coverage

What is Contents Insurance?

Business contents insurance, also called commercial contents or business assets insurance, helps protect a company's possessions and equipment that are kept at the business' premises. It provides financial protection if any of the business' contents suffer damage from a fire, floor or other insured event. Essentially, Calgary contents insurance coverage refers to anything that is stored or kept at your place of business that is valuable. It can also include inventory or stock, which can be covered in a standard commercial property insurance policy.

While business contents insurance coverage is not a legal requirement, many companies choose to take out a policy to protect their valuable assets. Depending on the business, Contents Insurance coverage could be crucial to protect against significant financial loss. Imagine you operate a coffee roasting business. Now imagine the heavy-duty machinery needed in a high output coffee roasting facility. Picture the losses for this business due to business interruption in the event of damage to the interior of the facility, such as from a fire.

This type of policy can cover the cost of repair work on the contents should they be damaged by an insured peril. It can possibly even cover the replacement cost of the items that have been damaged beyond repair. The insurance can cover a range of items, from something as small as a mobile phone or a laptop, to office furniture, raw materials and large machinery. In the event your business suffers a threat, attempted theft or is damaged in an unexpected event, then Calgary contents insurance coverage will help you get back on your feet quickly and stay in business.

Who Needs Contents Insurance Coverage in Calgary?

Whether you are renting a facility or if you own your own premises, if you have valuable items in your commercial property you need to consider contents insurance coverage. In many cases, if you have commercial property insurance you can also get coverage for contents in addition to damage to the actual physical structure. If you are renting or leasing your physical space, you will need to get commercial general liability Insurance and tenants insurance. You can get contents insurance coverage riders to add to your policy to ensure your contents/property are adequately protected.

Items Covered By Contents Insurance:

While your business contents coverage will vary depending on your insurance provider, when you purchase Calgary contents insurance, you will be required to list and value the items to be insured. Coverage is broad in the sense that many items can be protected under this insurance policy. For instance, coverage is typically available for:

• Furniture, including bookshelves, desks, tables and chairs.
• Fixtures and fittings, such as lighting, flooring, kitchen utensils and appliances.
• Office equipment, like computers, printers, scanners and copiers.
• Manufacturing tools and equipment, for instance, tools and equipment used to produce or package goods.
• Personal belongings, including any items belonging to employees or clients in the building.

Alongside the usual items that are included in a contents insurance coverage policy, many insurance providers offer extensions or additional coverage, such as protecting stock, inventory or cash left on the property. You may also want to confirm if your policy covers specialist equipment, such as expensive computer systems, generators and electrical items.

Additionally, your contents insurance can be extended to cover business interruption due to loss or damage to contents, as well as extra expenses to keep you in business while your contents are being restored or replaced. For example, this could be the cost of renting kitchen or refrigeration equipment in the event yours is damaged due to a loss and you need that equipment to stay operating in business.

Categories of Covered Items 

It's important to note that for business contents insurance purposes, the items stored at your commercial business fit into one of two categories: contents or mobile equipment. Also, the property of others (such as employees and clients) may be specified in your policy, if you usually store these items on your premises.

Usually, mobile equipment is more expensive to insure. This is because it may move off-site and be exposed to greater risks, either in transit or while being used at a different location. Mobile equipment is covered while off-site, but contents are not. For this reason, mobile property insurance is usually sold as a separate add-on or floater to a commercial property insurance policy. If you do have mobile equipment that remains at your business' premises, then your insurance provider may provide the option to insure these items as part of your Calgary business contents coverage. Since different providers offer different types of coverage, it's best to chat with your Krywolt Insurance broker today to ensure you get the best coverage for your needs. Our team can also help you purchase additional coverage that can protect you and your personal property from property damage, such as liability coverages.

What Does Business Contents Insurance Cover?

Business contents coverage in Calgary can provide coverage for a wide range of events and perils that are outside of your control, and that may lead to significant damage or complete destruction of your company's possessions. This policy usually covers the cost to repair and/or replace the damaged items, permitting they were damaged by an insured peril. However, contents coverage does not include damage from wear and tear since wear and tear is not considered an insured peril and is excluded. It does cover perils such as extreme weather events or a break-in. While contents policies do vary, most can protect items that are damaged or destroyed in the event of the following:

• Fire
• Flooding and water damage can be added by endorsement
• Storms, lightning and hail damage
• Malicious damage and vandalism
• Earthquakes
• Explosions
• Theft

This is basic guidance only.  All insurance policies are different and will have different perils included or excluded.  We advise you to confirm the coverage options available to you before purchasing contents insurance.

Options for Business Contents Coverage in Calgary: Additional Coverage

Depending on the type of business you are in, there are many different options that can be added to enhance the basic contents coverage to protect your specific needs. For instance, you may want to consider:

Replacement Cost Reimbursement

In some cases, a contents coverage policy would ensure you would be reimbursed for the cost of repairing or replacing your damaged items at an actual cash value level. This refers to their depreciated value. However, this option covers the full replacement cost of your items at current prices—which could be much higher. This add-on may have some exclusions, so be sure to ask about it with your Krywolt insurance broker.

Consequential Loss Coverage

Most contents coverage policies do not include simple spoilage of stock and inventory. However, with this additional coverage option, you're protected against losses due to stock being ruined or spoiled by changes in storage conditions—such as temperature or humidity. This could be helpful especially if you stock items that are sensitive to temperature changes, such as wine or ice cream.

Floods and Water Damage Protection 

Not all types of flood damage are covered in a typical contents policy. However, this coverage protects you for damage to items caused by surface water, or water found at ground level. You will also need a separate coverage to protect against damage caused by sewage backing up into your commercial property.

Equipment Breakdown Insurance

This policy protects you in the event that machinery and equipment you count on to conduct business stops working properly. It's absolutely necessary for industries that count on equipment such as heavy machinery or computers. It's important to note that equipment breakdown insurance does not protect your equipment if it's damaged from external sources. Rather, it protects against internal failings such as malfunctioning.

Mobile Property Insurance 

As we mentioned earlier, mobile property insurance provides coverage for property that you don't store at a fixed location, or equipment that is regularly transported to different locations. Mobile property is usually exposed to more risks, so it needs its own policy to be adequately protected.

Cyber Liability Insurance

If you use computers at your business, then you need cyber liability insurance. This policy offers a range of coverages, including malware insurance, ransomware insurance, virus insurance and more. If you store valuable or personal information on your work computers, including private financial information or client data, then it's imperative to protect your business with cyber liability insurance.

Commercial General Liability Insurance

This policy is a must for Calgary business owners. Commercial general liability insurance covers property damage, bodily injury, medical payments as a result of bodily injury, defense costs for suits against your company (regardless of fault) and personal and advertising injury due to claims of slander and libel.

Business Interruption Insurance

Helpful in the event that you're forced to cease or limit operations due to damage to your building, theft of property or damage to important machinery, business interruption insurance helps you stay afloat in these circumstances. It can often include coverage for continuing to pay your employees and meet other financial requirements. It's important to note that business interruption insurance only provides coverage for insured perils. This often excludes damage from floods and/or earthquakes, which may require an additional floater policy.

Is Business Contents Insurance a Substitute for Business Interruption Insurance?

No. These are two different coverages. Even though business contents insurance will provide coverage to replace or repair your damaged items, there is still a chance you could lose business as a result of the repairs. However, business interruption coverage is a separate form of insurance. It accounts for any reduction in income or increase in running your business in the event of damage while waiting for repairs, replacements or for your property to be rebuilt. For the best coverage, it's sensible to have both business contents and business interruption insurance.

Can I Cover My Business Contents On My Home Insurance?

Often the answer is “No” and you cannot cover any of your business items under your home insurance policy—even if you operate a home business. Any computers, laptops and inventory that is owned by your business will often not be covered by your standard home insurance policy. Thus, you will need to make sure you have the right commercial property insurance coverage—including Calgary contents insurance coverage. There are some cases where limited business contents coverage can be included under a home policy if you are operating as a sole proprietor of the business.

Can I Insure My Business Contents and Building in One Policy?

Yes. It is possible to insure both your contents and commercial property under one umbrella policy. Talk to your Krywolt Insurance broker to learn more about protecting your commercial business today.

What Are Typical Exclusions for Calgary Contents Insurance?

Usually, a business contents insurance policy will exclude any damage caused by general wear and tear. It's also important to note that some insurers may not cover stolen items if the doors and/or windows to your commercial property's premises were left unlocked. You may have to provide evidence of the property's security in the event of a theft. Also, certain natural disasters like an earthquake or flood may not be part of some general contents insurance policies, but can usually be purchased as add-ons. Finally, if you're insuring items that are being transported, third-party couriers will likely not be included in your policy.

How Much Does Calgary Contents Insurance Cost?

There are numerous factors that will influence how much your contents insurance will cost in Calgary. Different insurance providers offer different rates, which is one of the main benefits of partnering with Krywolt Insurance to shop around on your behalf. Our brokers are highly skilled and connected within the insurance industry and will find you the best coverage possible. Other factors that influence the cost of business contents coverage includes:

• The type of items being insured
• The value of items being insured
• The amount of items being insured
• Your experience as a business owner
• Your claims history in the past