|Provider||Monthly premium||Coverage||Review||Get a quote|
|$26||General liability: $1 - $10M|
Professional liability: $250K - $5M
Contents coverage: $2,500 and up
Cyber liability: $100K - $10M
Directors & Officers liability: $1M - $5M
|Zensurance is the leading source for small business insurance in Canada. Receive a quote and buy online within minutes. You can save up to 35% off with competitive rates from over 50 providers.|
|$28||General Liability: $1 - $5 Million |
Product Liability Limit: $1 - $5 Million
Errors and Omissions (E&O) Limit: $25,000 - $5 Million
Mobile Equipment Limit: $1,000+
Additional coverage: Umbrella Liability, Builder's Risk, Directors & Officers, Cyber, Commercial Property, Crime
|Foxquilt is an innovative insurtech with a true quote and buy online business insurance experience. |
Their customized quoting process for your industry helps you only buy what you need, at rates designed for small businesses.
They accept new businesses and you can have a high percentage of US sales.
|$33||Professional liability: $250,000|
Professional liability deductible: $1,000
General liability: $1,000,000
Privacy and security breach expense: $50,000
|Apollo is a cloud-based platform that keeps your |
information encrypted, confidential and secure.
Insure your business through their online subscription.
|$42||Commercial general liability: $2,000,000|
Business Contents: $25,000
Errors and Omissions (E&O): $1,000,000
Additional coverage: Business interruption and Cyber risk
|TruShield is committed to solving problems that small business owners face, so their coverage can be a good fit for entrepreneurs with smaller operations. They offer customizable plans that allow small business owners to protect what they need without purchasing coverage that they don’t.||In agency|
|In agency||General Liability coverage|
Professional liability coverage
Cyber insurance coverage
Business owners policy
|From basic protection to specialized coverage, the Progressive Advantage Business Program offers several types of commercial insurance so you can get the best combination of coverages for each |
stage of your business’s development.
|In agency||Business property insurance |
Equipment breakdown insurance
Loss of income coverage
|The co-operators business insurance has many coverages, from protecting your property to any cyber crime damage. |
They have several packages for each type of organization (business, non-profits, cooperatives..)
|In agency||Property insurance|
Commercial vehicle insurance
Business assistance services
|Intact offers exhaustive business solutions for all types of structures. |
The car insurance for your commercial vehicle can be included in your policy.
Business owners in Canada know that life rarely goes according to plan. That is why business insurance is crucial. It is a safety net protecting you and your business's financial future.
Did you know that even if you run a business out of your home, your typical home or renter’s insurance will not cover a loss stemming from your business? Most, if not all, Canadian business owners can agree that paying to recoup any sort of loss can be extremely painful. It can sometimes be the downfall of the financial health of a business.
Our guide will go over the basics of business insurance, what different types of business insurance are available to protect your business and how much you can expect to spend on business insurance premiums and more.
What is business insurance?
Business insurance exists to protect the business against a loss or damage to physical property or the loss of your business's ability to operate and generate income.
When you own and operate a business, losses can come in many different forms. A fire or water damage could force you to shut down operations and, therefore, you would not able to provide your product or service leading to a loss of income. The same goes for theft or vandalism.
If you have a physical business and someone slips and falls, having a business insurance policy could protect you from being liable for their medical bills. If they decided to sue you following that fall, your business insurance would protect you and your business financially.
Business insurance comes in many different forms to cover many perils. Managing risk is an essential part of every business, large or small. Business insurance protects you against perils that could come your way. It ensures you are ready if and when something goes wrong.
Did you know that if you operate a business out of your house, general home and tenant insurance policies will not cover losses that are related to a home-based business? Home-based businesses need separate business insurance.
What does business insurance cover?
Business insurance protects business owners from losses due to unforeseen events that may occur at any time during normal day-to-day business operations, including third-party property damage, errors or bodily injuries.
If you are a business owner in Canada, it is likely you have experienced a loss at some point over the life of the business. Imagine if your place of work burst into flames, destroying the building. The fire would force you to cease operations which would result in a loss of income until the damages were repaired. Or perhaps you are a victim of theft which results in a loss of inventory and revenue. Hopefully, your business has never had to experience a devastating loss. However, having business insurance is crucial if you are a business owner as it will financially protect you and the business in the event of a loss.
There are many types of insurance available for business owners. The type of coverage you need relies on several factors, including industry, size and revenue.
Common types of losses that business insurance would cover include general liability insurance, errors and omissions insurance and commercial property insurance.
What exactly is and is not covered will come down to your policy, the cause of the loss and its relation to the business. For example, frequent severe weather where you live can lead to water damage to homes and business structures. There are circumstances under which water damage to your business will be covered. It all depends on the coverage you purchased in your insurance policy. Insurance options may be available for situations such as:
- Inventory that is destroyed by water gushing from a broken water pipe or water entering from openings caused by an insured peril, such as wind.
- Water or raw sewage that backs up through your floor drains – depending on your circumstances, you may be able to purchase sewer backup coverage.
It is extremely important to read your policy carefully and ask questions if you are unsure about covered perils.
What types of business insurance exist?
Business insurance is simply an umbrella term that houses many different types of business insurance. If you are a massive corporation with hundreds of employees working in a large building or manufacturing plant, there are types of business insurance for you. Or, if you run a small bakery out of your home, there are home-based insurance policies that exist to cover you.
Check out our chart that covers some of the most popular types of business insurance on the market.
|Type of business insurance||How it works|
|Commercial property insurance||Pays for damage to or loss of your business premises. It also protects against damage, theft or loss of the business property or inventory.|
|Public liability insurance||Protects your business against third-party liability claims (for example, if a customer slips and falls at your place of business and gets injured).|
|Errors and omissions insurance||Protects your business against claims made against it because of a mistake you may have made.|
|Buy-sell agreement||Allows one business partner to use a life insurance death benefit to buy out a partner’s interests simply and quickly after the partner’s death.|
|Key-person life insurance||Provides money to the business if an important employee (such as the CEO) dies.|
|Cyber insurance||Protects business' liability for a data breach involving sensitive customer information, such as social insurance numbers, credit card numbers, account numbers, driver's license numbers and health records.|
|Professional liability insurance||Protects professionals and businesses to protect against claims of negligence from clients or customers|
Keep in mind these are not the only types of insurance policies. You can also get insured for:
- Home-based business insurance
- Business car insurance
- Directors and officers insurance
- Crime insurance
- Business interruption insurance
Unsure what kinds of coverage you need for your business? Speak with an expert today.
What business insurance do I need?
The short answer is, that the type and amount of business insurance you need will depend heavily on your industry and the risk profile of your business.
Unfortunately, there is no crystal ball to determine when and what kind of loss will occur so it can be hard to navigate getting the right insurance for your business. You do not need to be overinsured but you also do not want to be underinsured, or even worse, not insured at all.
As a small business owner, it is important to understand the risks your business may face and what policies are available to protect you. A few steps to take first:
- Inventory your business’ risks. Create a list of potential losses or liabilities. This includes any property, vehicles, equipment or supplies that are vital to your business. Also include risks like a data breach or the death of a key employee.
- Separate personal items from the business. If you are using your home or personal vehicle to complete work tasks, your personal policy will not cover you if there are damages while performing commercial activities.
- Find a way to reduce premiums. Ask your broker what you can do to lower your premiums. Cutting corners by excluding a policy you need can be financially detrimental. Instead, ask about discounts for purchasing multiple policies from the same provider or consider steps you can take to reduce your risk profile.
- Work with a broker that understands your industry. Business needs differ from industry to industry you want a broker who has experience selecting the right policy for businesses like yours.
Once you have determined the risks you need to have insured, then an expert can help you to determine which policies are best suited for protecting your business.
How much is business insurance?
The median cost of general liability insurance can range from $425 to $921 per month with the annual average premium ranging from $483 to $2,758. Business insurance will cost anywhere from $741 a month with a median price of $428 per month.
The higher the risk of business activity, such as running an oil drilling or mining company, the higher your premium is likely to be. The less risky the business is, say running an accounting business out of your home, the lower premium. This is because the likelihood of a substantial claim occurring from the oil drilling company is much higher than that of an accountant working from home.
However, the cost of business insurance will vary, not only what coverages you have, but also on what province you run your business in. If you operate your business out of Edmonton, Alberta, your premiums may differ from a similar business out of Calgary or one out of Vancouver, British Columbia.
For example, basic business liability insurance for a low-risk industry in Ontario will cost approximately $650 annually with a policy limit of $2,000,000. The type of industry will impact this premium. The higher the risk, the higher the cost. On the other hand, small business owners in British Columbia will pay on average between $300 and $1,691 for their insurance. The yearly premium average is estimated to be around $995.
These are all factors you will want to look into when taking out any business insurance policies.
If you need to purchase business insurance for your small business, contact an insurance broker to discuss exactly what insurance you need for your business. They will help evaluate your risks, give you a personalized quote and assist you with purchasing and activating your policy.
Can I get different business insurance policies rolled into one policy?
To combine multiple types of coverage under one policy, talk to your insurance broker or advisor.
If you are a business owner needing or wanting multiple types of business insurance such as public liability and cybersecurity insurance, you may be wondering if you need to purchase multiple policies or if you can bundle them together.
Some companies allow you to bundle small business insurance and save you money while providing coverage for a variety of situations. Talking to your broker or insurance company can potentially save you money and hassle by having multiple policies under one umbrella.
Is business insurance mandatory in Canada?
Except for being required to have a company car insured, having business insurance is not mandated by Canadian law. However, just because it is not a requirement does not mean you should neglect to insure your business. It is something that can protect you from costs associated with claims or lawsuits that may otherwise threaten your business’s financial survival. One major theme when it comes to deciding whether or not to insure your company is to consider the line of work you are in.
For example, accountants must carry professional liability insurance to practice in Ontario.
Always contact a trusted insurer with your questions to make sure you are getting the best advice for your business as possible.
What is business interruption insurance?
Business interruption insurance supports you when your business cannot operate as a result of a covered loss.
If a fire destroys your office, you and your employees cannot work in the building and therefore face a loss of income.
Business interruption insurance will pay for your fixed expenses, such as utilities, taxes and even employee wages. Knowing that these would be covered take some stress off of you trying to rebuild. Business income insurance may also be included in business interruption insurance which will cover your loss of earnings and make sure you continue to get paid while waiting to begin operations as normal.
Coverage begins from the time the loss occurs and continues until you can reopen your business.
Business interruption insurance can also include extra expense coverage which will help you pay for the extra costs of getting operational again. This may include things such as employee overtime or relocation to a temporary site. As with all types of business insurance, the coverage you need will depend on the type of business you operate.
More articles about business insurance
- Innovative business insurance for uncertain times? Our Foxquilt review
- Zensurance: a broker that makes buying business insurance better
- Why do you need commercial property insurance?
- What is cyber insurance?
- What is professional liability insurance?
- What is general liability insurance coverage for businesses?