Small Business Insurance Ontario

Types of business insurance for small businesses

Business insurance is a very broad term. There are many different types of business insurance, and your broker will help you determine what you need. Here are a few types of small business insurance you may want to consider:

Commercial general liability insurance policy

Business general liability is a type of commercial insurance that all types of business owners should consider, regardless of their business size or the industry in which they operate. Essentially, this type of business insurance coverage helps business owners with liability claims resulting from their businesses' causing injury or damage to a third party.

The most common example is when someone is injured on your business property and decides to sue you for damages. Without a general liability policy in place, your business could experience substantial financial loss. However, with a general liability policy, any legal fees, medical expenses for bodily injury, and other settlement costs will be covered by your coverage limits. Brush up on business claims scenarios with BrokerLink!

Professional liability insurance (errors and omissions)

Another portion of small business insurance is meant to protect those who provide professional services if there are errors in their work and their client suffers financial losses due to those errors or professional negligence. This is commonly referred to as E&O insurance.

Some business professional services that might need this type of insurance include programmers, engineers, photographers, graphic designers, and management consultants.

Product liability coverage

On the other hand, if your business creates a physical product, you'll still require coverage. With this business insurance policy, against third-party claims alleging property damage or bodily injury resulting from products you create, distribute, or sell on your own.

Cyber liability insurance

Every business is susceptible to cyber attacks, even a small business. Some insurance companies offer cyber insurance for businesses that will cover the costs of a lawsuit that might stem from a cyber-attack. A common example of a cyber-attack is a client data breach.

These are just a few of the types of coverage available to your small business. If it seems a bit overwhelming already, don’t despair. That’s what your insurance broker is for. They will explain everything and help determine what your business needs to be protected.

Business interruption insurance

Business interruption coverage is an option type of business insurance in Ontario and the rest of Canada. With this type of small business insurance, you'll receive compensation for any lost revenue in the event an insured peril damages your business and needs to close for a specific amount of time.

Without this type of business insurance, small business owners can face a significant hit to their finances, depending on how severe the damage is to their equipment or physical business structure.

Commercial auto insurance

If your business uses vehicles to conduct daily business operations, you'll need to purchase business auto insurance. With this coverage, all vehicles will be protected, as well as any liabilities that could result from an accident that occurs during the time your vehicle is being used for business purposes. Insuring business vehicles is similar to how a standard car insurance policy works. However, this protection will extend to your employees who may operate your vehicles as well.

Business property insurance

Commercial business property insurance coverage is a type of insurance that protects the physical structure of businesses and the contents within these businesses from insured perils.

The coverage is specifically intended to safeguard against a variety of hazards, including smoke and fire damage, vandalism and theft, and weather-related losses such as storms. However, some natural disasters, like flooding or earthquakes, are not typically included in a basic plan. You'll need to purchase additional coverage.

Home business insurance

If you have a home-based business, you should seriously consider home business insurance. With a standard home insurance policy, you will not receive coverage for any losses or damages that are related to business activities that occur in your house.

However, with a home business insurance policy, you'll be protected against business risks that may occur in your home during your business operations. Based on the coverage options you choose, you may have coverage for things such as data breaches, personal injury that occurs on your "business premises," commercial vehicle damage, property damage, and other liability claims that may arise.

Who needs small business liability insurance in Ontario?

Do you have a small business in Ontario? If you answered yes, you need liability insurance! We know how expensive it can be to get your business off the ground. Buying insurance might be the last place you want to spend your money. But insurance will protect you from the things you don’t expect. Most small business owners don’t have the cash on hand to protect themselves from a lawsuit. The costs add up quickly. The right insurance plan will allow you to stay in business should the unexpected become a reality.

When it comes to business insurance in Ontario and other areas of Canada, all business owners can benefit from having the right insurance policy in place. Remember, at the end of the day, it's better to be safe rather than sorry.

Factors affecting the cost of commercial insurance in Ontario

At this point, you’re probably wondering how much this is going to cost. Every business will have a different answer. The cost of insurance will vary depending on several factors, including:

Business type

The type of business you operate and the industry you operate in will be taken into account by your insurance company. Some business activities are more dangerous than others, requiring additional coverage options and higher limits to ensure you, as a business owner and your employees are sufficiently protected by your business insurance policy.

Years of experience

Your years of experience can also be taken into consideration by your insurance company. Those with more years in business tend to have a better grasp on how to operate property and mitigate risks compared to newer businesses that have little to no experience.

Income

Other factors that will determine the cost of your insurance policy include how much your business makes and your overall business assets. This pretty much factors into the type of equipment you may use, the assets you have, and other finances tied to your operations.

How many employees you have

The more employees you have, the more risk your businesses assume when operating a commercial vehicle and performing other tasks that could lead to injuries or property damage. Because of this, Ontario small business owners will need to purchase higher coverage limits for their business insurance to ensure they are comprehensively protected.

Where your business is located

Where your business operates can also play into how much you end up paying for business insurance. Certain areas come with more risks than others, which an insurance company will look at when determining your overall business risk factors. For example, a small business in Atlantic Canada will operate under completely different conditions than a small business in Ontario, which will be reflected in the type of business insurance each company receives. A broker will discuss all these factors with you before presenting you with a quote.

How BrokerLink can help you get small business liability insurance in Ontario

There are a few things you should know about a BrokerLink insurance broker:

1. We are insurance experts - Our brokers have been doing this for a long time. We know our stuff, and you can have confidence in what we say.
2. We’re independent - We will always do what’s best for our customers, not what’s best for the insurance company.
3. We don’t do cookie-cutter solutions - Every business is different. This is why you need an insurance broker who gets to know your business and provides a plan tailored just for you.

The advantage of going with a BrokerLink broker is clear. At the end of the day, you’ll have peace of mind knowing your business is protected.

Contact BrokerLink today for your small business insurance needs

Are you ready to work with the small business insurance experts from BrokerLink? For business insurance you can count on, call us at one of our locations today! You can also get free small business insurance quotes whenever you use your mobile device!

Whether you’re getting ready to launch your small business, shopping around for your existing business, need more information about how to improve employee well-being and small business equity health, or want to make your small business more accessible, BrokerLink has got you covered!

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FAQs on small business liability insurance in Ontario

What is covered by business liability insurance?

That depends on your specific policy. With general liability insurance (one of the most common types of business liabilities insurance for small businesses) you will be covered for third party property damage and third party bodily injury.

What factors determine the cost of liability insurance for a small business?

Many factors will determine the cost of liability insurance for a small business. Just to name a few: where your business is located, how many employees you have, your company’s revenue, how much experience you have and the type of business you have will all be considered.

My business is really small – do I still need liability insurance?

Short answer: yes! Even if a business is really small, you still face risk. Insurance isn’t just for the risks you’re thinking about, like theft or a fire. It’s about the risks that haven’t even occurred to you. Protect yourself from the unexpected with the right liability coverage.

Are dishonest acts by employees covered under small business insurance?

So, when it comes to employee dishonesty, is your business covered? Dishonest acts by employees can seriously impact your business. Luckily, there are specific business insurance policies that protect against these sorts of risks. We recommend reaching out to different insurance companies for more information on how you can protect your interests in the event an employee acts dishonestly against you.

How can I find the right business insurance coverage?

You might be thinking, right insurance policy for my business? To ensure you get the right business insurance for your business needs, you may want to work with a broker. Brokers work independently from insurance companies and are therefore able to help you shop around and get a different business insurance quote from various providers. Not only will this allow you to find coverage for your specific business operations, but it can also help you land the best deal out there. To save on your new business insurance policy, make sure to ask about available discounts, as a broker can also help you secure savings!

Is small business insurance required in Ontario?

While business liability insurance is not legally mandatory for business owners operating within Ontario, it is still highly recommended that you purchase coverage, regardless of what kind and size of business you operate. Without small business insurance in Ontario, you’re putting your finances and interests at risk in the event the unexpected happens, leaving you to pay for losses, damages, injuries, and legal fees directly out of your own pocket. When it comes to protecting your small business, the best thing you can do is get ahead of the game and purchase coverage.

What is considered a small business in Ontario?

In Ontario, a small business is defined as any organization that has 50 employees or less. If you fall within this range, we recommend speaking with an insurance company about insurance policies designed to meet the specific needs of your organization. Because small businesses face unique risks, an insurance provider will be able to tailor your coverage accordingly.

If you have any questions, contact one of our local branches.