How much business insurance do I need?

Canadian entrepreneurs often ask how much business coverage they should get. 1 million or 2 million? The answer as with many things insurance is: It depends. As your business coverage goes up so does your premium. If you can absorb the cost, the general advice is to get as much coverage as you can afford. Many business owners who have to file a claim and went for the cheapest option often wish they had gotten broader coverage. Evaluate the potential risks your business is exposed to and your budget.

Do I need business insurance if I work from home?

The short answer is YES. While some personal home insurance policies could cover some personal items you use for work such as a laptop, a printer, a monitor or some tools, many times there are exclusions in your home policy that don’t cover home business items. In case of damage to your home or loss of equipment that prevents you from working, the loss of income will not be covered by your home insurance.

How much does business insurance cost?

Most small businesses pay anywhere from $500 to $5,000 per year for business insurance. The wide range in cost is explained by the wide diversity of business types and risk factors of specific trades or industries. Other factors that affect your business insurance cost are the amount of coverage, previous experience in the industry or insurance claims made in the past. Here’s a resource for more information on business insurance costs.

Does business insurance cover personal use?

Generally speaking, business insurance does not cover personal use, meaning you cannot replace home insurance with business insurance. However, there are exceptions. If you operate your business from home, you can protect this space with business property insurance. If you use your vehicle for business purposes, it may be covered under your commercial auto insurance policy. However, home insurance does not typically cover the physical assets associated with your business, such as stock or inventory, or liability issues that occur in your homes, such as a slip and fall injury. It can be confusing, which is why we recommend speaking with a broker to understand the limitations and restrictions of your business insurance policy.

To protect both your home and business, consider keeping business separate from your personal life by protecting your assets with a business insurance policy and home insurance policy.

How much is business insurance?

For a small- to medium-sized business, you can anticipate spending $450.00 annually on a basic CGL policy with a $2,000,000.00 limit.

When you fill out our online application, we will ask some questions about your business to help better understand your needs. The following factors are taken into consideration when determining the best policy options for you:

  • Years of Experience
  • Annual and Projected Gross Revenue
  • Number of Employees
  • Previous Insurance Claims
    We know you’re busy, so let us do the shopping around. Complete our online application for an accurate estimate of your insurance premium.

What are the different types of business insurance?

The term ‘business insurance’ is often used as an umbrella term to describe a variety of insurance policies that come together to form a comprehensive business insurance policy package. These policies typically include:

  • Commercial General Liability Insurance (CGL)
  • Professional Liability Insurance
  • Business Property Insurance
  • Business Interruption Insurance
  • Cyber Liability Insurance
  • Directors & Officers Liability Insurance
    No insurance policy is one size fits all, and no one knows your business risks better than you do. We recommend speaking with your broker about customizing your insurance policy to suit your unique business needs.