Compare Business Insurance

It’s impossible to provide pricing for a business insurance policy without seeking quotes first. However, here is some information that will be considered when determining the price of your business insurance policy: the type of product or service you offer; your annual business income; your location; the value of your equipment; information related to the premises where your business is located; the coverages you’ll need, etc.

Business interruption insurance covers you if ever loss or damage prevents you from continuing your operations for a certain period of time. This coverage therefore enables you to maintain your income during the period that your operations are interrupted after a loss. As a general rule, you’ll be able to choose between all-risk protection or specific-risk protection. You’ll also have to choose whether you prefer to have a limited indemnity, which will cover any lost income until the damage is repaired and/or goods replaced, or an extended indemnity, which will protect your income until the business has recovered to a normal level of activity. Certain additional coverages may be offered to cover the costs of subcontractors or for a temporary relocation.

No law in Canada requires all businesses to take out insurance. On the other hand, your customers may require you to have it and certain regulated industries impose it. Either way, no matter what type of business you run, it’s impossible for you to operate with no risk. If you work from home or rent premises, professional liability insurance may be in order. You will then need to consider your more specific needs in relation to the probable risks and the ability of your business to continue its operations despite a loss. If it isn’t possible to continue operations in a given situation, you can obtain an insurance policy to mitigate this risk. Whether it’s for loss of income, physical property, relocation or other, the insurer will provide you with coverage tailored to your business and your needs.

You aren’t required to purchase insurance for your small business. However, there could be financial benefits to doing so. Business insurance will provide coverage for your assets. If you maintain inventory, it could be covered by your insurer if you’ve taken out a business insurance policy. This insurance can also cover your liability, cybersecurity risks and even lost income. Depending upon the needs of your business, an insurance agent or broker can direct you to the appropriate coverage.

Your liability insurance may cover your subcontractors in the context of a task that they carry out on behalf of your company. This way, in the event that your business awards a contract to a supplier and they commit a breach under said contract, your commercial general liability could respond, depending upon your insurance policy and the contract that binds you to your supplier. However, your insurance will not cover their business for operating losses or equipment failure.

Business insurance premiums can be deducted from your business income. What isn’t deductible, however, are life insurance premiums that go beyond the basic coverage provided by the company’s group insurance plan. Discuss this with your accountant when doing your corporate taxes; they can confirm the deductions to which you’re entitled.

An incident could have a major impact on your business operations. Regardless of the size of your business, your work equipment could become lost or damaged, a situation that could prevent you from completing your current contracts. Securing a business insurance policy will help you mitigate this risk. If you have a small storefront business and the same situation arises, you’ll probably have to close for a while to do some work and replace the damaged items. Losses following an event such as water damage or a fire can be enormous, and may even lead to the closure of a business that is uninsured.

Business insurance isn’t required by law. However, if you’re considering taking out a loan, the financial institution may require proof of insurance. Business insurance demonstrates that you are serious in your approach.

Several insurers offer business insurance, including Intact, Aviva, Essor, Promutuel, Cooperators, Beneva, Desjardins and many others. You can shop around for your insurance by calling some insurers or using an insurance comparison tool. You can also contact a broker who can get quotes from different insurers to get you the best prices.

Just because a business interacts exclusively with its customers on the internet doesn’t mean that it doesn’t run any risk. If you only sell goods online, you’re not protected from a loss affecting your warehouse, nor from a lawsuit for liability related to a product sold online. Even service companies are at risk; the latter could be victims of a computer attack causing an interruption of activities or compromising their customers’ personal information. Companies can protect themselves against this risk by taking out cyber risk coverage. In both cases, whether you sell goods or services from a physical location or online, you run the risk of receiving a demand letter from a customer. To protect against this risk, it may be appropriate to take out business liability insurance.

In the event that you’re self-employed and work from home, your residential insurance may cover a portion of your professional property, but there’s generally a limit of around $2,000 specified in the contract. You are not required to take out insurance, but in the event of a claim affecting your equipment (such as your desk, computer, stationery, books, etc.), that limit may not be sufficient to replace the damaged goods. Don’t forget that the liability coverage provided in your residential insurance contract only covers risks related to your personal use of your residence; you’ll therefore have no protection in the event of loss of income. In short, you’re not required to have insurance, but it’s up to you to assess the potential losses that a loss could cause you and then see if the costs associated with business insurance are worth it.

Since business insurance is tailored to your needs, it’s not necessarily included in this type of policy. On the other hand, if you wish to have insurance against internal theft, some insurers can offer it to you. Be sure to confirm with your agent or broker whether you can benefit from this coverage, but be realistic about your expectations; every claim has a direct influence on your premiums. This coverage is attractive in the case of a major loss, but making a small claim may not be worth it. To avoid the temptation to claim for petty theft, you could opt for a higher deductible.