Businesses are not generally required to have commercial insurance by law. However, a business may be required to have certain insurance coverage by their professional association, a landlord, a client, a lender/financer, or any other contract.
Insurance can help reduce the financial burden to yourself and your client in an unexpected event. If you couldn’t afford the costs of a lawsuit or replacing damaged property, we recommend having commercial insurance.
The cost of business insurance in Canada varies greatly depending on these factors:
- Your industry
- Your business operations
- Your annual revenue
- The number of employees you have
- Where you’re located
- Where you operate
- Your insurance history
- What you’ve done or do to mitigate risks
- Your insurance options such as coverage, deductible and policy limits
There are many more factors that go into determining rates depending on the insurance coverage you purchase. Your broker can help you minimize your insurance costs where possible.
Yes, you should have commercial insurance if you own a business and operate from your home. Your home insurance won’t cover your business property or liability should something happen.
If you’re simply working from home, you may not require separate insurance but you should speak to your broker to ensure you’re covered.
You may require commercial insurance even if you run your business part time. Your home insurance usually won’t cover any business property or liability. It’s important to discuss your company with your broker.
If you have business interruption insurance, you may have some coverage if your business is forced to close due to a covered claim or insured peril. Talk to your broker about your individual policy to understand which scenarios are covered.
The type of insurance you need for your business will depend on your industry, business operations, annual revenue and many other factors. Part of a commercial insurance broker’s job is to help you determine which protections your business requires.
The amount of insurance you’ll need for your business will depend on your individual situation. Your broker will help you determine which coverages and limits you require.