What is commercial insurance and who needs it?
You work hard to make your enterprise as successful as possible. Thankfully, you don't need to work as hard to protect your business from risks that could hurt your bottom line or, worse still, close your business down. All you need is the right commercial insurance policy.
Commercial insurance protects your business in the event of a liability claim, injury, fire, employee malfeasance, or other peril. If an unforeseen hazard or event damages your business or the property where it's located, your commercial insurance policy will pick up the tab.
Who should buy a commercial business insurance policy?
Anyone who owns a small- or medium-sized business should buy commercial insurance. Here are some of the types of businesses that need a good commercial insurance policy:
- Convenience stores.
- Internet start-ups.
- Massage clinics.
- Film and TV production companies.
- Trucking companies.
- Small engine repair shops.
- Septic and sewage companies.
- Professional services firms (accountants, attorneys, realtors, etc.).
What are average rates for commercial insurance?
The cost of commercial insurance varies based on the type of business being insured. To find the cheapest commercial insurance for your needs, your best route is to speak with a broker that specializes in business insurance and has knowledge of the best commercial insurance companies. Brokers can help you compare commercial insurance policies.
Who are the largest providers of commercial insurance in Canada?
According to the Insurance Bureau of Canada, the largest commercial insurance companies in Canada are:
- Intact Group
- Desjardins Group
- Aviva Group
- Co-operators Group
- Wawanesa Mutual Insurance Company
- Lloyds Underwriters CAB
- TD Insurance Group
- TSA Group
- Economical Group
- Northbridge Group
How do I compare commercial insurance quotes online?
To get your quotes, just click the 'Get Started' button above and fill out our short form. We'll connect you with the right commercial insurance provider and you can speak with an expert. Commercial insurance is complicated, and it's important to understand all the angles when it comes to protecting your business.
Why should I shop for commercial insurance online?
It always pays to shop around for insurance. Shopping online helps you zero in on the policy that fits your business and saves you money.
But, surprisingly, many small business owners don't realize that checking quotes online can result in big savings. Commercial insurance prices can vary widely from insurer to insurer, which is why comparing rates is the only way to get the best deal.
Luckily, no matter what kind of business you run, we can help you find the cheapest commercial insurance rates in your area.
How can I save money on commercial insurance for my small business?
Insurance for businesses is vital in Canada, especially for small ones.To get the cheapest commercial insurance possible, try these four tactics:
1. Shop around
Different insurers charge different rates for the same coverage. You have to shop around for the best rate if you want to save money on commercial insurance.
2. Get tailored coverage
Make sure you're getting the right coverage for your business. We’ll connect you with an insurance expert who will work with you and make sure you're only paying for coverage you need.
3. Reduce the risk factors
Take steps to lower your business' risk profile. Install a high-quality security system, locate your business on a safe street, and ensure all equipment and operations meet, or exceed, industry safety standards. Insurers offer discounted rates to business owners who mitigate safety and security risks.
4. Go with a group rate
If your business is already part of a guild or association, you might be eligible for special group insurance rates. Want to find out if you qualify for a group rate? Contact the group that your business is affiliated with or ask an insurance expert for details.
What kind of events will a commercial insurance policy cover?
What is covered by a commercial insurance plan? There are many different types of commercial insurance coverage. The coverage you need depends on your business. That’s why we connect you with an insurance expert who can help you secure the right policy.
The coverage in your new policy will include the following:
Covers damages to your business's premises and any property related to business operations (equipment, computers, tools, inventory, etc.). Some equipment requires special coverage. Ask an insurance specialist for details.
Every business needs liability insurance. This type of insurance provides your business with protection against liability claims that may result from accidents, mistakes, or injuries that occur at your business.
Medical payments/workers compensation
Coverage for medical expenses that result from an injury for which you or your company is liable. It also pays workers compensation if one of your employees sustains an injury or contracts an illness related to their job.
Business income coverage
This coverage compensates you for lost business income due to an insured peril that impairs your company operations. Business income coverage often provides payments for payroll plus other operating expenses.
Commercial auto coverage
Do your employees drive company-owned vehicles or use their own vehicles for company business? Commercial auto insurance covers your employees while they're on the road.
If you move goods or cargo from one place to another, transit coverage is a must. It offers a broad range of protection while your property travels from point A to point B.
What does commercial insurance not cover?
Commercial insurance doesn't cover damages resulting from intentional acts by someone involved in the business. For example, if you or an employee assaults a customer, your policy won't pay claims arising from the incident.
Many commercial insurance policies also have what's called a "workmanship" exclusion. According to this exclusion, damages that result from faulty goods, bad designs, or problematic services aren't covered.
How much commercial insurance coverage do I need?
As with any type of insurance coverage, the answer is, it depends. And with a commercial insurance policy, it really depends. That's because businesses vary a lot in terms of how much they're worth and how great the potential liability claims against them are.
That's why, in general, it's a good idea to break your commercial insurance policy into its constituent parts. From there, you can figure out how much coverage you might need for each part. Once you're done, add up all the parts and make sure you have enough coverage for at least that amount.
To arrive at a property coverage amount, calculate how much equipment, inventory, and other property your business owns, then decide how much liability coverage is necessary. This amount will vary. A small florist shop, for example, probably doesn't need as much coverage as a medium-sized manufacturing company does.
Just make sure your liability coverage is substantial. Many experts recommend at least $2-$5 million. Talk to a commercial insurance specialist to determine how much coverage your business needs.
How can I have a hassle-free claims experience?
Be prepared before you have to make a claim. Calculate the coverage you need and adjust it accordingly. Have you hired more workers? Up your workers' compensation. Ramping up sales and inventories? Increase your property coverage.
And, of course, remember to always document these changes and to take pictures of your business facility. Maintaining a detailed record will help your insurance adjuster quickly verify the details of your claim.