What Is Commercial Insurance?
Commercial insurance is a form of protection available to all types of businesses. It covers you against financial losses because of threats and unforeseen events that could happen when running a company. There are many types of coverage. Get protection for disruption, financial loss, property damage, injuries to employees, liability, and more.
Assess your requirements based on potential risks. Choose a plan that is best for your business type, industry, and perils.
Why Do You Need Commercial Insurance?
Business insurance protects your investment in your company. You’ve put in countless hours of work and invested your hard-earned money. You’ve done everything you can to make your business a success. Insurance ensures you stay successful and that you are protected.
In 2019 alone, there was more than $10 billion in claims by Canadian businesses. The reality is the vast majority of businesses will not survive a major loss without the right commercial policy. Without a plan, you would have to pay for all losses out of pocket.
No business owner wants the future of their company to be in jeopardy. Insurance ensures your business is covered! It protects you from a variety of things, including :
- Unforeseen events
- Injuries to customers, employees and others at your place of business
- Fire, theft, vandalism
- Liability claims
- Other perils
Additional Benifits Of Commercial Insurance
Buying commercial insurance also helps your business in a number of additional ways :
- Credibility
- Build trust with customers
- It could be a requirement to earn new business
- It provides you with peace of mind in knowing you have coverage
Business owners can overlook these benefits. Being insured properly also plays a key role in the overall development and growth of your company.
How Business Insurance Works In Canada
Commercial insurance works similar to other insurance products. It is a contract between your business and your insurer. You pay a premium in exchange for the insurer covering you against threats. When you file a claim, you get compensation for losses based on your plan limits.
You will pay the deductible amount listed in your plan. Policies typically are effective for one year and you can renew annually. You can adjust your coverage at any time.
Is Business Insurance Required By Law?
The short answer is no, in most cases. Most businesses can operate without insurance in Canada, but it doesn’t mean that you should. If you do, you’ll leave yourself open to financial vulnerability.
Some businesses require more protection than others. Make sure you know what the mandatory insurance requirements are in your industry and location. At a minimum, you should have liability insurance to protect against legal action. However, it is recommended to take out additional protection to have peace of mind in knowing you are covered should you experience a loss.
Common Types Commercial Insurance
There are many types of commercial insurance policies that are designed business type, industry, and risk exposure. Every organization has unique challenges. Get an assessment to understand the types of coverage that will help protect your operations.
An advisor can help you assess your coverage requirements. With knowledge of your vulnerabilities, you can then choose the best solution for your specific situation.
Here are some the most common types of commercial policies you can get :
- Commercial general liability insurance
- Commercial property insurance
- Commercial auto insurance
- Cyber liability insurance
- Business interruption insurance
- Errors and omissions insurance
What Factors Affect The Cost Of Business Insurance?
How much you will pay for business insurance in Canada is based on a variety of factors. The larger your company, the greater exposure you will have to larger financial losses. Here are the main factors that will affect your premiums :
- Your business size : Bigger companies pay more for insurance. For example, a national grocery chain with locations across Canada would pay more than a local grocer with one location in Toronto. The more assets you must protect, the more it will cost to insure them.
- Your industry : Some industries are inherently more dangerous than others. Claims are more common, and the dollar value is greater. Industries where the chances of injury or financial loss is great will also bump up your premiums.
- Type of policies : There are many types of policies available. The more you have, the most it will cost. Many companies start out with basic plans and add more overtime as they grow.
- Insurance limits : The limits you set for your plan will affect your payments. The higher the limits, the more you will pay.
- Deductible : Like your limits, what you set it at will impact your premiums. Increasing your deductible will help you save. Whatever amount you choose, remember, this is what you will pay out of pocket if you file a claim.
- Company annual revenue : The more money you bring in, the more it will be to insure you. There is more to protect.
- Location : Where you operate has a direct impact on potential threats to you. The weather, crime rate, population, and other location-based factors influence you plan needs.
- Number of employees : The more people you have, the more you need to protect. It also increases your exposure to liability.
- Your insurance history : Past insurance claims are an indicator of future action. If you’ve had multiple in the past, you are more likely to file a claim in the future.
How Much Does Commercial Insurance Cost In Canada?
Commercial insurance rates are different for every business. Each company has a unique combination of insurance needs. Costs are dependent upon the answers to these questions:
- What do you do? What products and services do you offer?
- What industry do you operate in?
- How much are you worth?
- How big is your company? How many employees do you have?
- Where are you located? Do you have more than one location?
- What are things could impact your business the most?
- What type of protection do you require?
To get an accurate estimate, shop around for quotes. We’re happy to help you with this process.
Commercial Insurance FAQs
There are a lot of consideration in play, so it really depends on your specific situation. Your risk tolerance as an owner, financial situation, your business type, and many other factors will help you determine the type of insurance and how much you should get. You want to avoid not having enough. But you also want to make sure you don’t over-insure and spend money unnecessarily.
Our advisors will ask you pointed questions during the quote process to help you narrow down your coverage requirements.
Commercial insurance rates are different for every business. Each company has a unique combination of insurance needs. Costs are dependent upon the answers to these questions:
- What do you do? What products and services do you offer?
- What industry do you operate in?
- How much are you worth?
- How big is your company? How many employees do you have?
- Where are you located? Do you have more than one location?
- What are your biggest threats?
- What different type of coverage should you get?
To get an accurate estimate, shop around for quotes. We’re happy to help you with this process.
What is not covered largely depends on the types of protection you include in your plan. It is meant to protect you from incidents involving third-parties such as customers, vendors, suppliers and the general public. Plans do not include :
- Deliberate damage : You purposefully damage your business.
- Intentional criminal acts : You engage in criminal activity resulting in a financial loss.
- Cost estimate or guarantees : You seek to recuperate a loss because you a cost estimate or guarantee.
- Other perils specifically excluded in your policy : Policies will outline perils that are not covered.
Shopping for insurance is quick and easy. Simply start a quote, enter the requested information and review your options. Shopping online allows you to identify types of coverage that may be ideal for your business type.
It can also help you find ways to save money on your policy. Then you’ll connect directly with one of your experts to help you finalize your quote and choose the right plan.
Every business has its own challenges and insurance needs. After you have completed your quote, you will be connected with a licensed insurance professional who can help determine exactly what protection you need. Your insurance advisor will conduct a thorough assessment and help you lock in the best coverage and rate.
You can. But you have worked too hard to let your business suffer because you didn’t have insurance. Insurance protects you from common threats and unforeseen events. Commerce disruptions, climate change, injuries on your property, fire, theft, cyber liabilities can all alter your future. They could cripple your business without the forms of protection in place.
No. You can get it without a business license. However, you may be required to show proof of insurance to get a license in some professions. Speak with an advisor or your industry governing body to get clarification.
Why Choose ThinkInsure For Commercial Insurance?
Getting insurance with ThinkInsure has many advantages. We know your business is different. Our experts ask the right questions to help you get custom insurance.
Affordable Business Insurance Solutions
More choice is better. Compare quotes and get coverage from a large selection of Canadian insurance companies. Find the insurance you need at the best price.
Get Flexible Insurance Options
We partner with over 50 insurers. We’ll find custom tailored commercial insurance solutions designed to address your business situation.
Get Expert Advice And Satisfaction
Customer satisfaction is our top priority. We strive to make insurance easy for you. We'll answer your questions and provide expert advice.
