Best Business Insurance Canada | Get The Right Policy Depending on Your Needs

August 3, 2021 | Editorial Team

Business Insurance Canada

When people think of insurance, they tend to think of a variety of coverage. Travel insurance, commercial auto insurance, or home insurance may come to mind. Canadian business owners should also consider commercial insurance. Commercial insurance, also known as business insurance, is meant to help protect businesses. Typically from risks such as property damage or third-party liability.

The coverage you need for your small business insurance will depend on your business needs. If you want to learn more about business insurance before getting a quote committing to an insurance policy, keep reading!

Why Do I Need Commercial Insurance?

Running a business is expensive and can be hard to build up. There are many overhead costs to think about, staff to pay, and often renovations need to be done. If your property or equipment is damaged or someone gets injured, you will be responsible. Both for the cost of any damage, and you could potentially be sued. With business insurance, the insurance company will bear the brunt of the cost.

There’s no way to expect when damage to your staff, customers or property could happen. So, it is always better to be covered than take a risk.

You may think if you are a small business or you run a home-based business that you don’t need insurance. Services or businesses conducted from your home are not covered by your home insurance. Small businesses can also benefit from business liability insurance and property insurance.

Business owners should take precautions to protect against unnecessary risk. Regardless of the size or location of your business, there is always a risk.

What Insurance is Mandatory in Canada?

Commercial auto insurance is legally required in Canada. Home insurance is not legally required, but most banks and mortgage lenders will not approve a mortgage without it. Business insurance is the same. It is not legally required in Canada, but you may have a harder time getting a business loan without insurance. Get more familiar with it by reading the business loan FAQs.

The laws on business insurance differ in each province. Whether you’re in New Brunswick, Newfoundland, or Prince Edward Island. Similarly, depending on what your business is, you may legally be required to have certain coverage. In Ontario, for example, accountants must have professional liability insurance.

How Can I Save Money on Commercial Insurance for my Small Business?

Business insurance tends to be more expensive than auto insurance, home insurance and travel insurance. But, it is possible to save money on business insurance – having mentioned savings, check out the best business saving accounts out there.

The first way is to lower the risk in your business. There are plenty of ways to do this. One of the biggest ways is to ensure your property is safe. Adding extra security precautions is a good way to do this. Another way to lower risk is to make sure you and your employees all receive safety or risk management training. This will ensure everyone knows what to do in case of an emergency.

When you are looking for business insurance, get a quote from many insurance companies. You can easily do this through a search engine such as Zensurance. Or, work with a broker to do it for you. Business insurance in Canada is readily available, so find an insurance policy that not only fits your needs but your budget as well.

How Much Commercial Insurance Coverage do I Need?

The amount of coverage a business should have will vary from business to business. But, there are five types of business insurance that every business owner should consider.

Commercial property insurance is the first to cover the cost of damage or loss of your property. Commercial property insurance will also cover theft or damage to your stock, or you can get crime insurance as well.

The next type of business insurance is professional liability insurance/ business liability insurance. Business liability insurance will protect your business if any third-party makes a claim against you. If someone slips on your property, for example, they could make a claim against you.

There is also errors and omissions insurance, which will protect your business against claims for mistakes you have made.

A buy-sell agreement will allow a business partner to buy out their partner’s shares if they die. Similarly, key person life insurance will give your business money if an employee considered important dies.

Business interruption insurance is the last type. It will help business owners pay their employees’ income if they must stop working due to property damage or loss.

For more information about what coverage you need, talk to an insurance professional. This could be a consultant or broker that has expertise with business insurance. As an expert in the field, they will know what insurance solutions will suit you best, so you are not taking any unnecessary risk. They will also help you get a quote that is unique to you and your business.

How Does Insurance Work in Canada?

If you have an insurance policy already either for your home, car or health, you likely understand how insurance works in Canada. Insurance for business ventures is no different. Damage or loss may occur to your business’ property, your customers, or staff. If it does and you need protection or reimbursement, look for the ‘contact us’ section on your policy.

You can then make your claims directly through your insurance company. If you are covered for the issue you are claiming, then your insurance company will reimburse you for the money you had to put out yourself.

What is Commercial General Liability Insurance in Canada?

Commercial general liability/ business liability insurance is a type of insurance coverage. It will provide coverage to a business for anything they may be liable for. Business liability insurance will cover personal injury or property damage within the premises.

Examples of times you can use your business liability insurance is if a customer slips on your wet floors. Or if someone damages a display on your property. If you have an experience where a customer or employee hurts themselves or your property, liability insurance will cover it.

What is the Difference Between Public Liability Insurance and Commercial General Liability Insurance?

Public liability insurance provides coverage for claims made by the public if they were injured on your property. It is similar to general liability insurance but less comprehensive.

General liability coverage will cover customer injuries, employee injuries, and property damage. Public liability insurance only covers customer injuries on your property. Or damage made from customers to your property.

The Bottom Line

It is often impossible to know when a risk to your staff, customers, or property can occur. Insurance policies of any kind are recommended. Every Canadian should have insurance. Whether it’s auto insurance, travel insurance, home insurance, or business insurance,

When looking for insurance on business ventures, make sure you get a quote from many lenders. You can do this by looking at an insurance search engine like Zensurance. Or, talk to a broker for more information and to help you find the best policy. Simply look for the ‘contact us’ section on any broker website.

Your services are valuable, and you don’t want to have to stop offering them because you can’t afford to pay for damages or liability claims.