About Business Insurance in Canada
Starting a business in Canada is like going on an exciting adventure, but just like any voyage, you need to prepare for unexpected storms, and this is where business insurance comes in.
You can think of insurance as a safety net that has been designed to protect your company from financial losses that could arise from unforeseen circumstances.
Your company’s future stability may depend on selecting proper business insurance coverages which will either let you survive natural obstacles or seal your company’s fate.
Businesses operating in Canadian cities like Toronto, British Columbia, and many other cities have to deal with different types of risks, that’s why any business owner operating in Canada needs to get business insurance as it has become an essential requirement.
Best
9.7
Price From
$11/month
Term
1 year
Types
13
9.4
Price From
$20/month
Term
1 year
Types
9
9.3
Price From
$29/month
Term
1 year
Types
7
What is business insurance?
Business insurance is a protective layer which enables your business operations to continue when unexpected incidents trigger them. Business insurance functions as a protective safety measure to protect businesses from financial problems.
It covers costs related to accidents together with natural disasters, lawsuits and various unexpected events. The insurance works as a protective financial reserve which accelerates business recovery in cases of swift unexpected calamities.
9.7
Price From
$11/month
Term
1 year
Types
13
Zensurance Best For
Who it's for
Zensurance is a great option for any Canadian small business. They can save you up to 35% because they compare policies for you from over 50 providers.
Zensurance Features
Stand-out features
- Covers any industry
- Trusted by 350,000+ businesses
- Save up to 35% on insurance
- Instant price & coverage in a few clicks
- Canada’s #1 small business insurance
- Compare 50+ insurance providers
Who it's for
Zensurance is a great option for any Canadian small business. They can save you up to 35% because they compare policies for you from over 50 providers.
Stand-out features
- Covers any industry
- Trusted by 350,000+ businesses
- Save up to 35% on insurance
- Instant price & coverage in a few clicks
- Canada’s #1 small business insurance
- Compare 50+ insurance providers
9.4
Price From
$20/month
Term
1 year
Types
9
FoxQuilt Best For
Who it's for
Foxquilt is built for small to medium sized businesses and B2B networks. If you're looking to save up to 35% on your business insurance and value online platform experience, they are for you.
FoxQuilt Features
Stand-out features
- Tailored to your business
- Embedded online experience
- Competitive pricing
- Streamlined and intuitive
- Highly-rated service
- Instant policy documents via email
Who it's for
Foxquilt is built for small to medium sized businesses and B2B networks. If you're looking to save up to 35% on your business insurance and value online platform experience, they are for you.
Stand-out features
- Tailored to your business
- Embedded online experience
- Competitive pricing
- Streamlined and intuitive
- Highly-rated service
- Instant policy documents via email
9.3
Price From
$29/month
Term
1 year
Types
7
Summit Best For
Who it's for
Summit Insurance is great for businesses in Alberta, BC, Manitoba, Ontario and Saskatchewan who value world-class support for their business. With this brand, you get a dedicated account manager and after-hours phone line.
Summit Features
Stand-out features
- Super-responsive support
- Get the best value on your premium
- Dedicated account manager
- Craft the perfect insurance policy
- Commercial insurance experts
- Serves all industries
Who it's for
Summit Insurance is great for businesses in Alberta, BC, Manitoba, Ontario and Saskatchewan who value world-class support for their business. With this brand, you get a dedicated account manager and after-hours phone line.
Stand-out features
- Super-responsive support
- Get the best value on your premium
- Dedicated account manager
- Craft the perfect insurance policy
- Commercial insurance experts
- Serves all industries
9.0
Price From
$35/month
Term
1 year
Types
3
Square One Best For
Who it's for
SquareOne is perfect for home-based entrepreneurs who want to protect their property and business from interruption and liability for business conducted at home.
Square One Features
Stand-out features
- Quote in less than 5 minutes
- As little as $7/month
- Coverage tailored to your business
- Over 3,000,000 customers
Who it's for
SquareOne is perfect for home-based entrepreneurs who want to protect their property and business from interruption and liability for business conducted at home.
Stand-out features
- Quote in less than 5 minutes
- As little as $7/month
- Coverage tailored to your business
- Over 3,000,000 customers
How to compare business insurance
Comparing different business insurance options will help you get the best coverage at the most competitive price. Here’s a guide to help you make an informed decision:
Assess your business needs
- Identify Risks: Start by pinpointing the specific risks your business faces.
- Determine Coverage Types: Based on your risk assessment, determine which types of business insurance you need.
Research insurance providers
- Get Multiple Quotes: Get quotes from multiple insurance providers to compare prices and coverage options.
- Check Provider Reputation: Research each insurance provider’s reputation. Look for reviews and ratings online, and check with industry associations for complaints or issues.
Compare coverage options
- Policy Limits and Deductibles: Carefully compare the policy limits and deductibles offered by each provider.
- Exclusions and Endorsements: Pay close attention to the exclusions listed in each policy. These are the events or situations not covered by the insurance.
Evaluate cost
- Premiums: It’s important to compare premiums, but remember that cheap business insurance isn’t always the best option.
- Payment Options: Find out about payment options. Some insurers offer discounts for annual payments or for bundling multiple policies.
Seek professional advice
- Consult an Insurance Broker: If you’re unsure about your business insurance needs, consider consulting an insurance broker to assess your risks, compare policies from multiple providers, and help you find the best business insurance in Canada.
- Review Policy Annually: Your business insurance needs may change over time as your business grows and evolves. Review your policy annually to ensure it still provides adequate coverage.
Who needs business insurance?
It doesn’t matter what you’re into, nearly every business needs business insurance. It doesn’t matter. Here’s a more detailed look at who benefits most from having business insurance:
- Small Business Owners: If you run a small business, business insurance is can protect your personal assets and the future of your company.
- Startups: New businesses are often vulnerable to unexpected costs. insurance can provide a crucial safety net during the early stages of growth.
- Freelancers and Independent Contractors: Even if you work independently, you can still be held liable for damages or injuries caused by your work. Business liability insurance can protect you from these risks.
- Businesses with Physical Locations: If your business operates from a physical location, such as a retail store, office, or warehouse, you need property insurance to protect against damage from fire, theft, or natural disasters.
- Businesses with Employees: If you have employees, you may be required to carry workers’ compensation insurance, which covers medical expenses and lost wages for employees injured on the job.
- Businesses that Use Vehicles: If your business uses vehicles, you need auto insurance for business vehicles to cover accidents and other vehicle-related incidents.
- Businesses that Provide Professional Services: If you provide professional services, such as consulting, accounting, or legal advice, you need professional liability insurance to protect against claims of negligence or malpractice.
- Online Businesses: If your business operates entirely online, you need insurance to protect against cyber risks, such as data breaches, hacking, and online fraud.
When to get business insurance
The best time to get business insurance is as soon as you start your business. However, there are specific milestones and changes in your business that should prompt you to either purchase or update your coverage.
Here are key moments when you should consider getting or revising your business insurance:
- At Startup: As soon as you launch your business, it’s important to have insurance in place. This protects you from potential liabilities and ensures that you’re covered from day one.
- When You Relocate or Expand: If you’re moving to a new location or expanding your operations, it’s time to reassess your insurance needs.
- Hiring or Laying Off Employees: Changes in your workforce can affect your insurance requirements. Hiring new employees may necessitate workers’ compensation and liability coverage, while layoffs might reduce your needs.
- Introducing New Products or Services: When you add new offerings, your risk exposure changes. Ensure that your business insurance covers any new liabilities associated with these products or services.
- Purchasing New Equipment: If you invest in new equipment, make sure it’s insured. This is particularly important for businesses that rely heavily on specialized tools or machinery.
- Significant Changes in Income: If there is a significant increase or decrease in your revenue, it’s wise to review your coverage.
- Renewal Time: When it’s time to renew your policy, take the opportunity to compare rates and coverage options.
- After Major Events: If you’ve experienced a significant event, such as a lawsuit or a natural disaster, review and possibly increase your coverage to prevent future losses.
7 types of business insurance
Choosing the right types of business insurance can feel overwhelming. To simplify the decision-making process, here’s a comparison table highlighting seven essential types of coverage:
| Type | Coverage | Best for |
|---|---|---|
| Errors and Omissions (E&O) | Protection against claims of negligence or inadequate work | Professionals offering services (e.g., lawyers, consultants) |
| Professional Liability | Protection against claims of negligence or malpractice. | Professionals providing services (e.g., doctors, accountants) |
| General Liability | Bodily injury, property damage, and advertising injury caused by your business operations | Most businesses, especially those with physical locations or direct customer interaction |
| Business Interruption | Lost income and expenses if your business is temporarily shut down due to a covered event | Businesses that rely on a physical location or equipment to operate |
| Equipment Insurance | Costs to repair or replace damaged or stolen equipment. | Businesses that depend on specialized or costly equipment |
| Commercial Property | Damage to your business property (buildings, equipment, inventory) due to fire, theft, or other covered events | Businesses that own or lease physical property |
| Business Auto Insurance | Costs related to accidents involving business-owned or used vehicles | Businesses that own, lease, or use vehicles for business purposes |
What does business insurance cover?
Business insurance offers broad protection, but the specifics depend on the policy. Here’s a breakdown of what business insurance typically covers:
- Property Damage: Protects physical assets like buildings, equipment, and inventory from fire, theft, vandalism, and some natural disasters.
- Business Interruption: Replaces lost income and covers operating expenses if your business is temporarily closed due to a covered event.
- Liability Claims: Covers legal costs, settlements, and damages if your business is sued for causing bodily injury or property damage to others.
- Professional Errors: Protects against claims of negligence, errors, or omissions in the professional services you provide.
- Employee Injuries: Covers medical expenses, lost wages, and rehabilitation costs for employees injured on the job.
- Vehicle Accidents: Covers damages and injuries caused by accidents involving business-owned vehicles.
- Cyber Liability: Protects against data breaches, hacking, and other cyber incidents that compromise sensitive information.
- Natural Disasters: Covers damage caused by natural disasters like floods, earthquakes, and hurricanes (depending on the policy and location).
- Theft and Vandalism: Covers losses resulting from theft and vandalism, including damage to property and stolen assets.
How to get business insurance
Getting the right business insurance involves careful planning and research. Here’s a step-by-step guide to help you secure the coverage you need:
- Identify the specific risks your business faces. Consider factors such as your industry, location, size, and operations.
- Based on your risk assessment, determine which types of business insurance you need.
- Look for reputable insurance companies that specialize in small business insurance and understand the unique needs of Canadian businesses.
- Get quotes from multiple insurance providers to compare prices and coverage options.
- Compare the coverage options offered by each provider, including policy limits, deductibles, exclusions, and endorsements.
- Consult an insurance broker or agent who can assess your risks, compare policies from multiple providers, and help you find the best business insurance in Canada for your specific situation.
- Your business insurance needs may change over time as your business grows and evolves. Review your policy annually to ensure it still provides adequate coverage and make adjustments as necessary.
- Many insurance providers offer discounts for bundling multiple policies. To save money, consider purchasing your general liability, property, and commercial auto insurance from the same provider.
- Get a Business Owner’s Policy (BOP) in place. A BOP combines several essential coverages, such as general liability, property, and business interruption insurance, into a single policy.
What is the best business insurance in Canada?
Determining the best business insurance depends on your specific business needs and priorities. However, some companies stand out for their services:
| Business insurance | Price | Processing time | Insurance types | Business types |
|---|---|---|---|---|
Zensurance | Starts from $19 per month. Reduces business insurance costs by up to 35% | Can get business insurance quotes and purchase a personalized policy in minutes. Most applications are completed within 24 hours | Offers 13 solutions, including General Liability, Professional Liability/E&O, Commercial Property, Cyber Liability, and more | Serves small businesses across various industries. Caters to over 300,000 Canadian small business owners |
Summit | Varies depending on coverage. | Offers a quick easy process. | Commercial general, professional liability, commercial property, cyber, and builder’s risk insurance | General Liability, Professional Liability/E&O, Umbrella/Excess, Inland Marine insurance and more |
Foxquilt | Aims to provide savings of up to 35% on premiums. Offers customized policies, so you only pay for what your business needs. The cost depends on the number of employees, business cash volume, past claims, and desired coverage limits. | Purchase online 24/7. Quick and easy to get a quote online | Primary coverages include general liability, workers’ compensation, professional liability/E&O, business owner’s policy, umbrella/excess, and inland marine. They also offer crime business insurance, builder’s risk business insurance, cyber insurance, and surety & bonds. | Designed specifically for small to medium-sized businesses and sole proprietors |
How long does it take to get business insurance?
The time it takes to get business insurance can vary, influenced by several factors such as the complexity of your business, the type of coverage you need, and the insurance provider’s processes.
Securing business insurance swiftly is vital to protect your company from potential liabilities. Here’s a detailed overview of the process and what to expect:
Application and information gathering
- It can take a few hours to a few days.
- The initial step involves assessing your business risks and gathering necessary information. This includes details about your business operations, location, revenue, number of employees, and claims
Obtaining quotes
- It can take between 1 to 3 business days.
- Once you’ve gathered the required information, you’ll need to obtain quotes from multiple insurance providers. Online platforms like Zensurance and Foxquilt allow you to get quotes quickly, sometimes within
Underwriting and policy customization
- This can take just within a few days to a few weeks.
- After you select a quote, the insurance provider will underwrite your application to assess the risk. This may involve additional information requests or inspections, and the more customized your policy needs to be, the longer this step may take.
Policy issuance and activation
- This can take just within a few hours to a few days.
- Once the underwriting process is complete and you’ve agreed to the terms, the insurance provider will issue your policy.
How much does business insurance cost?
Here’s a breakdown of the average costs for some common types of business insurance in Canada:
- General Liability Insurance: This can range from $400 to over $1000 per year, depending on the size and nature of the business. Small businesses in Ontario might expect to pay between $450 and $2,000 annually for general liability coverage with a $2 million limit.
- Professional Liability Insurance: The average annual professional liability insurance cost for a small business is between $500 and $1500.
- Cyber Insurance: Typically starts around $1,500 per year.
What affects business insurance costs?
Here’s a breakdown of key factors that affect the cost of business insurance in Canada:
- Type of Business and Industry: High-risk industries, such as construction or manufacturing, tend to have higher premiums than low-risk sectors, such as accounting or consulting, due to the greater chance of property damage and workplace injuries.
- Business Size: Insurers calculate premiums using metrics such as employee count, payroll, revenue, and assets. Larger businesses will be more expensive to insure because they have more exposures that can lead to claims.
- Business Location: A business’s location impacts its insurance rates due to region-specific risks, such as natural disasters and crime.
- Claims History: A business with a history of claims is perceived as riskier, often resulting in higher premiums.
- Coverage Types and Policy Limits: The more coverage you need, the higher your premium will be.
- Deductible: The higher the deductible, the lower the premium.
- Experience and Track Record: An insurer will view a business with longevity as an indication that it is inclined to operate more safely and create fewer claims.
- Value of Items Used for Professional Activities: List the exact value of your property to help you choose the right coverage.
- External Factors: Increasing frequency and severity of severe weather events can drive up insurance costs.
- Industry Regulations: Certain industries have specific regulations that mandate particular insurance coverage.
What do you need to get business insurance?
Here’s a list of what you need to get a business insurance:
Basic business information:
- Company Name.
- Business Address.
- Contact Details.
- Business Structure.
- Years in Operation.
Business description:
- Nature of Business.
- Industry.
- Products/Services.
Financial information:
- Annual Revenue.
- Financial Statements.
- Company Assets and Liabilities.
Coverage details:
- Type of Coverage Needed.
- Policy Limits.
- Deductible.
Property information (if applicable):
- Details About Your Office.
- Building Information.
- Safety Features.
- Updates.
Employee information:
- Number of Employees.
- Employee Roles.
- Payroll Information.
Risk management and safety:
- Safety Procedures.
- Quality Control Manuals.
- Standard Contracts.
Claims history:
- Past Claims.
- Current Insurance.
Cyber security information (if applicable):
- Website Address.
- Data Storage.
- Data Encryption.
- Backup and Security
Professional qualifications (if applicable):
- Licenses and Certificates.
- Resumes
Pros and cons of business insurance
Here’s a look at the advantages and disadvantages to help you decide if it’s the right move for your business:
Pros of business insurance:
- Financial Protection: Protects your business from potentially devastating financial losses due to lawsuits, property damage, or other unforeseen circumstances.
- Business Continuity: Cover lost income and operating expenses if your business is temporarily shut down due to a covered event.
- Enhanced Credibility: Customers feel safe working with insured companies, it shows that your business is responsible and prepared for potential risks.
- Attracting and Retaining Talent: Health insurance coverage can make your company more attractive to new employees.
- Peace of Mind: Knowing that you are protected allows you to focus on growing your company without constantly worrying about potential risks.
- Asset Protection: It safeguards your personal assets from being used to cover business debts or lawsuits.
- Competitive Edge: This can give you an edge over other companies without insurance.
- Helps secure loans: Insurance can provide security and assurance for lenders when offering business loans, potentially improving the terms or likelihood of approval.
Cons of business insurance:
- High Cost: Insurance premiums can be a substantial ongoing expense for businesses, especially small businesses with limited budgets.
- Complexity: Exploring the various types of insurance and understanding policy terms and conditions can be complex and time-consuming.
- Exclusions and Limitations: Policies have exclusions and limitations, meaning certain events or losses may not be covered.
- Time Investment: Applying for insurance, comparing quotes, and managing policies can take time away from other important business activities.
- Paperwork: Filing claims and renewing policies often involves paperwork and administrative tasks which can be tiring.
- Potential for Overinsurance: Businesses may purchase more coverage than they actually need, leading to unnecessary expenses.
- Hidden Fees: Some policies may have hidden fees or charges.
- Policy Restrictions: Insurance policies can come with limitations or conditions that may restrict certain business activities.
- Difficulty in Claim Settlements: Disagreements may arise with the insurance provider during claim settlements.
How to file a business insurance claim
Knowing the steps involved in filing a business insurance claim can help ensure a smooth and efficient experience. Follow this guide:
Assess the situation and mitigate damages:
- Your first priority is always safety. Make sure everyone is safe and remove yourself from danger.
- Take immediate steps to prevent further damage to your property or assets.
Review your insurance policy:
- Before you file a claim, review your insurance policy to understand what is covered.
- Be aware of any deadlines for filing a claim. Most policies have time limits for reporting an incident.
Notify your insurance company immediately:
- Contact your insurance company or broker as soon as possible after the incident.
- Provide basic information about the incident, including the date, time, location, and a brief description of what happened.
Document the incident:
- Document the damage or loss with photos and videos.
- Collect any relevant documents, such as receipts, invoices, contracts, or police reports.
- If property is damaged or stolen, create a detailed inventory of the items, including their value and date of purchase.
Complete the claim form:
- Your insurance company will provide a claim form. Fill it out accurately and completely, providing all requested information.
- Attach all relevant supporting documents, such as photos, videos, receipts, invoices, and police reports.
Cooperate with the insurance adjuster:
- An adjuster may be assigned to investigate the claim.
- Respond to the adjuster’s requests promptly and provide any additional information they need.
- Allow the adjuster to inspect the damaged property or interview witnesses, if necessary.
Obtain estimates for repairs or replacement:
- Obtain estimates from reputable contractors or vendors for the cost of repairing or replacing damaged property.
- Submit these estimates to your insurance company as part of your claim.
Review and understand the settlement offer:
- The insurance company will review your claim and provide a settlement offer.
- Review the offer carefully to ensure it adequately covers your losses.
- If you disagree with the offer, you can negotiate with the insurance company.
Accept the settlement and receive payment:
- Once you agree to the settlement, sign the release form provided by the insurance company.
- The insurance company will issue payment according to the terms of the settlement.
Keep records:
- Keep records of all communications with the insurance company.
- Retain copies of all documents related to the claim.
How to renew business insurance
Here’s a guide to help renew your business smoothly smoothly:
- Mark Your Renewal Date: Note the expiration date of your current policy and set reminders in advance of the renewal deadline.
- Review Your Current Policy: Before your renewal date, take the time to thoroughly review your current policy.
- Assess Your Business Needs: Evaluate any changes that have occurred in your business since the last renewal.
- Shop Around for Quotes: Don’t automatically renew your existing policy without shopping around for quotes from other insurers.
- Consult with Your Insurance Broker: Reach out to them to discuss your renewal options.
- Negotiate with Your Current Insurer: If you’re happy with your current insurer but want to explore potential savings, negotiate your premium.
- Update Your Information: Provide your insurer with any updated information about your business, such as changes in revenue, employee count, or business operations.
- Review the Renewal Offer: Carefully review the renewal offer from your insurer, paying attention to any changes in coverage, premiums, or terms and conditions. If you have any questions or concerns, contact your insurer or broker for clarification.
- Accept the Renewal Offer or Switch Insurers: If you’re satisfied with the renewal offer, accept it and pay your premium to maintain continuous coverage. If you find a better offer from another insurer, switch policies and notify your current insurer that you will not be renewing.
- Document Your Renewal: Keep a copy of your renewed insurance policy and any related documents for your records.
How to switch business insurance providers
To ensure a smooth transition, follow these steps:
- Evaluate Your Current Coverage: Perform a thorough evaluation of your current coverage, noting its strengths and weaknesses. Identify any gaps or areas where your business might be over- or underinsured.
- Determine Your Business Needs: Identify any unique risks or challenges your organization faces. Ensure your new insurer can tailor their offerings specifically to meet these demands
- Research Potential Providers: Seek personalized service, read reviews and compare coverage types and offerings across providers
- Compare Quotes and Policies: Compare the coverage options offered by different insurers to determine whether they align with your business goals and vision. Look for better terms and additional coverage options.
- Avoid a Lapse in Coverage: Make sure you sign a new policy before cancelling your existing plan.
- Ensure Proper Cancellation of Current Plan: Inform your current provider that you want to cancel your plan. You may have to sign a cancellation form to verify the cancellation date.
- Understand Potential Fees: There can be fees associated with cancelling or switching your plan early, so weigh the risks against the rewards wisely.
Zensurance
Price From
$11/month
Term
1 year
FoxQuilt
Price From
$20/month
Term
1 year
Summit
Price From
$29/month
Term
1 year
Square One
Price From
$35/month
Term
1 year
