Best Business Insurance Quotes in British Columbia for 2024

The business landscape in British Columbia is dominated by small businesses, with over 187,000 companies making up something like 98% of those in operation. Every small business is unique, and deserves to have its own business insurance policy to fit its specific set of needs and risks.

Whether you are a restaurant owner in Vancouver or an electrician in Kamloops, we have some tips to help you get the right kind of coverage so you can get back to running your business. Because everyone deserves a little peace of mind.

This guide will help you get the kind of protection you need so you can get back to focusing on the important stuff – the day-to-day running of your business.

What is business insurance in British Columbia?

Business insurance protects you and your small business against liabilities, unforeseen events, and the costs that come with them. These liabilities usually include accidents, personal injuries, property damage or a business service not having been rendered as advertised. Like any insurance product, business insurance in British Columbia is subject to regulatory oversight on both the national and state level. BC has a dedicated body called the Insurance Council of British Columbia that provides licenses to insurance companies and makes sure consumers are protected.

Every business insurance policy is different because every small business has its own set of unique risks specific to the industry in which it operates as well as its size and revenue. Policies will usually consist of a premium paid upfront, followed by monthly fees. An average business insurance policy typically includes the following three kinds of insurance products:

Coverage type	How it works
Commercial general liability insurance	Often referred to as CGL insurance, commercial liability insurance protects your business against claims that allege third-party injury or property damage.
Professional liability insurance	Also often referred to as Errors & Omissions Insurance, professional liability insurance provides cover for businesses against claims alleging misconduct, negligence or any failures to deliver a service as advertised.
Commercial property insurance	Commercial property insurance provides cover for your business in the event of the loss or damage of your property due to unforeseen events such as thefts, fires and other kinds of disasters.

Why do I need business insurance in British Columbia?

Accidents happen – no matter how well you conduct your business affairs. And when they do, costs can quickly spiral out of control. Business insurance is about more than just protecting yourself, your employees and your property in the event of a fire or theft – it is also about insulating your business from the effects of an expensive lawsuit. With two-thirds of commercial enterprises going out of business after incurring a major loss without the correct kind of business insurance coverage, it is essential that companies take steps ahead of time to shield themselves from risk. A good business insurance policy ensures you have the protection you need when things go wrong.

Here is an example:

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What does Business insurance in British Columbia cover?

Business insurance almost always includes Commercial general liability insurance (CGL) at the very least. A more comprehensive policy has a significantly larger set of protections, often including but not limited to liabilities associated with:

• Flood damage / Fires / Hurricanes / Tornados
• Burglary
• Car crashes
• Loss of income
• Lawsuits
• Database breaches
• Property damage
• Injury or bodily harm to clients on the business premises
• Employee injuries/illnesses and worker compensation.

Every company is unique. Their size, location, industry in which they work and number of employees means that they all require different forms of coverage. In most cases though, businesses will opt for CGL insurance alongside professional liability insurance, and commercial property insurance, with additional add-ons available, tailored to specific industries. A delivery company in Chilliwack will certainly want commercial auto insurance while a tax professional that handles sensitive client information will need cyber liability insurance.

How much is business insurance in British Columbia?

Like any insurance policy, it depends on your needs and which one you get. For an idea though, a leading small insurance broker in BC pegs the median cost of business insurance between $300-1700, with the average yearly premium costing around $1000.

The cost of your business insurance will depend on a range of factors, including:

• the industry you work in
• its particular set of risks
• your company’s revenue
• number of employees
• comparative size.

Other factors your insurance broker might consider include how long your business has been operational, your claims history and the location of your business. Since no two businesses are exactly the same, you'll need to get personalized business insurance quotes to know for sure.

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What is the cheapest business insurance in British Columbia?

Some BC business insurance brokers advertise monthly premiums for as low as $22.50.

These kinds of figures can, however, be misleading. That pricing is for the most limited form of coverage possible and most business insurance rates will be significantly more expensive. The cheapest insurance available will have less coverage, leaving your business exposed to more risk. Small businesses operating in BC are advised to search for a policy with the most extensive form of protection they need in order to carry out their work for the lowest cost possible.

What business insurance discounts are available in British Columbia?

You can usually find discounts for business insurance when you bundle insurance policies together. If you have car insurance or home insurance from a licensed provider, getting additional business insurance on top of this should be marginally cheaper. You might get a lower price if you have a claims-free record as well. Additional discounts will be particular to the insurance companies providing the policy. In order to find out more, just go to their website and correspond with one of their dedicated insurance specialists over the phone or via email.

For example:

What business insurance add-ons are available in British Columbia?

When you are signing up for your policy and designating what kind of coverage you want, the insurance provider in question should offer a series of add-ons that you can add to your policy. These will give you a more extensive array of protections and services that cater to the specific demands of your small business.

They usually include but are not limited to the following:

Insurance add-on	How it works
Business assistance services	Some insurance companies offer consulting services that help your business insulate itself from unnecessary risks, even after you have purchased your policy. This can involve helping your business implement loss prevention techniques that change and adjust in accordance with the nature of the services you are providing at a given time.
Commercial vehicle insurance	In the event that you use a vehicle for commercial purposes in the context of your business, commercial vehicle insurance makes sure you and your employees are covered. A commercial fleet policy is usually available upon request if you use multiple vehicles.
Cyber liability insurance	Cyber liability insurance, also referred to as Data protection insurance, protects your business against data breaches and other cyber security issues, often stemming from cybercrime or systems failures. With businesses often handling sensitive client information such as medical or financial records, cyber liability insurance provides a range of protections against loss of income and potential lawsuits.
Directors and officers insurance	Directors and officers insurance provides coverage should a legal claim be brought against a particular individual in your company. This ensures the professional risks undertaken by your personnel while doing their job will not result in personal financial losses or affect personal assets.
Product liability insurance	Product liability insurance protects businesses in the event that a product they have sold and distributed causes damage or injury to a third party.
Surety bonds	Surety bonds are third-party guarantees usually used in the construction industry to guarantee the fulfillment of a particular service. They provide additional security in the event things don’t go according to plan, where obligees (the person carrying out the service) is reimbursed the value of the bond to help cover costs.

Is business insurance tax deductible in British Columbia?

In short – yes. Business insurance is considered a business expense in Canada, and as a result can be deducted from your business’s taxable income, provided that the insurance policy is standard practice in your industry and considered necessary. This applies to most forms of insurance, with the noted exception of life insurance, although there are some loopholes pertaining to whether a life insurance policy is used as collateral on commercial property.

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