Business insurance in Ontario

You can anticipate business insurance in Ontario to cost somewhere between $500 – $5,000 annually. That, of course, is a broad range. But it’s the best we can give you as far as concrete numbers.

That’s because commercial insurance costs in Ontario (and Canada-wide) are determined on a case-by-case basis.

Here are a few factors that insurance companies use to determine your annual business insurance costs:

• Claims history
• Annual revenue
• Location
• Industry

Why is industry important, you might ask? Because certain types of work present greater risks than others. A company that distributes baby toys, for example, is at greater risk of a commercial general liability claim than a company that distributes textiles, given the former is dealing with products handled by infants. With greater risk comes greater insurance cost.

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Yes there are.

Here are some types of coverage to consider:

• Commercial general liability 
• Cyber insurance
• Commercial property insurance
• Professional liability insurance
• Commercial vehicle insurance
• Directors & Officers insurance

The most popular types of commercial insurance are property and liability insurance. Property insurance covers your company’s physical assets and liability insurance protects you in the event you cause damage to someone else’s.

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Unlike ‘direct’ insurance companies, insurance brokers don’t issue policies to clients. Instead, we shop the market on their behalf, finding the best fit for our clients. Since we’re not tied to just one insurance company, we can place our clients with any of the providers we work with.

Different insurance companies have different appetites when it comes to risk. So while one insurance provider might turn your business away because it doesn’t like working with companies in a particular industry, company size, or other factor, as a broker we can place you with an insurance company that will insure you. Having access to different insurance players allows us to find the best match for your business.

Another advantage of working with a commercial insurance broker: Insurance companies change their tune quite often. Sometimes one bad year full of claims can turn an insurance provider away from a particular industry for good. When that happens, your commercial insurance broker can pivot for you to find someone that does.

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That’s subjective!

The best commercial insurance provider for Company A might not be best for Company B.

In order to find the best commercial insurance policy for YOUR business, we recommend that you shop around every few years to see what the market has to offer.

Pro tip: Always compare apples with apples. What does that mean? Not all policies are created equal. It’s easy to look at a $500/year policy and an $800/year policy and think the choice is a no-brainer. But that more expensive policy might have a lot more coverage. When comparing two policies, always make sure that the coverages are comparable.

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The cost of $2 million in commercial liability insurance coverage in Ontario varies widely depending on several factors.

These include your specific coverage needs, the risk your business carries, your industry, the insurer, and more. On average, Ontario business owners can expect to pay anywhere from a few hundred to thousands of dollars annually for this coverage.

The best way to get an accurate commercial insurance quote is to get in touch with our dedicated brokers.

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Working with a KBD commercial insurance broker offers several advantages.

First, we bring expertise and industry knowledge to the table, helping you navigate complex commercial insurance policies. It’s our job to tailor policies to your specific business needs, ensuring you have the right coverage.

As brokers, we also have access to multiple insurance companies, enabling you to shop around for competitive rates. We provide a personalized service, assisting you with claims, policy changes, and risk management.

Ultimately, a KBD commercial insurance broker saves you time, money, and offers you peace of mind so that you can focus on more important things – like running your business.

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Commercial insurance isn’t mandatory in Ontario, but we’d definitely recommend it.

Business insurance acts as a financial safety net in the event that you need to make a claim.

As a business owner in Ontario, you should have several types of insurance in place to ensure comprehensive protection.

Here are four common coverages most businesses should purchase:

• Commercial property insurance
• Liability insurance
• Business interruption insurance
• Cyber insurance

Be sure to speak with your commercial insurance broker to ensure you have the right coverages for your business and industry.

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When working with a commercial insurance broker in Ontario, asking the right questions ensures you’ll get the coverage that suits your business needs.

Here are some important things to consider:

• Policy recommendations: Ask about recommended insurance policies for your specific industry and business size.
• Coverage details: Ask about the extent of coverage, exclusions, and any optional add-ons.
  Premium costs: Understand your premium costs, including any potential discounts or ways to lower your premiums.
• Claims process: Learn about the claims process and how your broker will assist if you need to make a claim.
  Insurance company options: Ask about the insurance companies they work with to assess their reputation and financial stability.
• Broker fees: Be clear about the broker’s fees and how they’re compensated for their services.
• Policy Reviews: Inquire about periodic policy reviews to ensure your coverage remains up-to-date and relevant to your business.

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Absolutely!

Shopping around for business insurance is always a wise move, and here’s why:

1. Cost savings: Different insurers offer varying rates, so comparing options can help you find more cost-effective coverage.
2. Tailored coverage: Different providers offer policies with unique features and customization options to suit your business needs.
3. Service quality: You can assess the customer service reputation of insurers, as it can greatly impact your experience in the event of a claim.
4. Policy comparison: You can compare coverage limits, deductibles, and endorsements to make an informed decision.

The commercial insurance brokers at KBD can simplify the process and ensure you find the best fit for your business.

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There is no law requiring incorporated or registered businesses to carry insurance in Ontario.

Unlike car insurance, which requires Ontarians to carry a minimum of $200,000 in liability insurance, business insurance is not mandatory.

However, operating your business that way certainly comes with risks! It also looks unprofessional to some. For example, if you’re a contractor, many clients will ask for proof of insurance. If you don’t have it, that may raise some eyebrows.

For those reasons, we recommend getting a business insurance policy so that you’re protected, even if it’s not mandatory.

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While we recommend businesses protect themselves with as much insurance coverage as possible, we understand that smaller and startup businesses have other financial priorities and won’t necessarily be able to budget for an all-inclusive policy.

At the very least, small businesses in Ontario should have commercial general liability insurance. That’ll cost you $750-$1,500 annually, a small sum considering what could go wrong if you’re renting an office space in a landlord’s building, for example.

Every business is different though. If you’re unsure, call a broker and they’ll help you through the decision process.

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If you’re looking for Ontario business insurance, you have two options:

1. Call an insurance broker like KBD. We will set you up with a dedicated commercial insurance broker who will learn your file, and recommend appropriate coverages.
2. Get an online quote and finalize your policy with a broker later.

Can you do it completely online? That depends on your business.

Basic sole operator businesses (like fitness instructors) CAN get their insurance policy 100% online.

For the other 95% of businesses that own a building, sell products, have employees, and more, 100% online insurance is not yet available.

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No!

The minimum requirement to qualify for commercial insurance in Ontario is that your business is registered. Governments want businesses to be registered so they can collect taxes from them.

We recommend you go a step further and incorporate your business. Why? It removes your personal liability risk. If your business isn’t incorporated and does something that causes someone to sue, they’ll come after YOU rather than your company.

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There’s no one particular “cheapest business insurance company” in Ontario.

Finding the cheapest business insurance depends on your specific needs and location. To get started, you can contact our commercial insurance brokers to get a quote.

It’s essential to consider the coverage you require and not focus solely on cost, as inadequate coverage may cost your business more in the long run.

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In commercial insurance, different coverages exist to protect you against common risks.

Here are four common needs for business insurance in Ontario:

• Commercial property insurance: This covers your physical assets, like buildings and equipment, against risks such as fire or theft.
• Liability insurance: It’s essential for legal protection, covering legal expenses and damages in case your business is held responsible for injuries or property damage.
• Business interruption insurance: This helps you cope with unexpected downtime due to disasters, ensuring your business can keep running.
• Cyber insurance: This coverage protects your business from cyber attacks and cyber liability.

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Yes, commercial insurance typically includes a deductible, which is the amount a business owner must pay out of pocket before the insurance coverage kicks in.

Here are a few key points to consider when establishing your deductible:

• Varying deductibles: Deductibles can vary depending on the type of coverage and the insurance provider. They can range from a few hundred to thousands of dollars.
• Cost control: Choosing a higher deductible can lower your insurance premiums, but it means you’ll pay a larger lump sum if you need to make a claim.
• Policy specifics: The deductible amount is usually outlined in your insurance policy, so it’s essential to read and understand the terms to know what you’ll be responsible for in the event of a claim.

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Determining the right amount of insurance for your business takes a few key considerations:

• Risk assessment: We evaluate the specific risks your business faces, like natural disasters or industry-related liabilities.
• Asset valuation: Calculate the total value of your business assets, including property, equipment, and inventory.
• Liability exposure: Assess potential liability risks, such as customer injuries or product-related issues.
• Regulatory requirements: Consider any legal requirements or industry standards for insurance coverage.
• Business size: Smaller businesses may require less coverage, while larger enterprises might need more comprehensive policies.
• Budget: We’ll help you find a balance between adequate coverage and budget constraints, as higher coverage often comes with higher premiums.

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