No matter your industry, every small business in Canada faces liability risks. From accidents and professional mistakes to theft, extreme weather, and unexpected disruptions, it doesn’t take much for things to go sideways.
That’s exactly why having the right business insurance and not just the cheapest policy can mean the difference between a temporary setback and a serious financial hit.
In this article, we’re breaking down 8 real-life business insurance claims our Canadian clients filed in 2025 and how their coverage stepped in when it mattered most.
These examples show how the right policy helps protect your finances, reputation, and ability to stay open for business.
Related Posts
Sign Up for ZenMail
"*" indicates required fields
Categories
1. Theft of Tools and Equipment
Client’s industry: General Contractor
Our client is a general contractor who was managing a large renovation project for a residential customer.
Overnight, thieves cut the locks to the gate entrance of the security fence surrounding the site, and scaled up ladders to access the second floor of the premises that was under renovation.
Once inside, they stole all of the contractor’s tools and equipment that had been stored on-site.
Through our client’s tools and equipment insurance, the contractor recovered over $40,000 to replace the stolen items without derailing the project or their cash flow.
2. Commercial Vehicle and Contents Theft
Client’s industry: Wholesale
Our client owns a wholesale business that specializes in selling beauty supplies to salons and beauticians. After loading up their truck for a delivery the next morning, the vehicle was parked in the client’s parking lot overnight.
During the night, thieves broke into the truck, hotwired it, and drove away along with all the inventory inside. Although police later recovered the vehicle, every product inside had been stolen.
Our client’s business contents insurance reimbursed more than $250,000, helping them restock quickly and avoid major revenue losses.
3. Smoke Damage to Business Property
Client’s industry: Yoga Instructor
Our client operates a yoga studio.
When a building across the street caught fire, emergency services shut down the entire area. Once access was restored, the studio and equipment – including yoga mats – had sustained smoke damage.
Their commercial property insurance covered over $15,000, including cleanup costs, replacement of damaged contents, and lost income during the forced closure.
4. Lawsuit Alleging Professional Negligence
Client’s industry: General Contractor
Our client, a general contractor, was hired to complete renovation work alongside other trades.
After the project wrapped up, they received notice of a lawsuit alleging responsibility for an oil fitting failure that caused interior property damage.
The contractor filed a claim under their commercial general liability insurance.
After investigation, the insurer confirmed our client had no involvement in the oil fitting work.
The claim was successfully defended and dismissed, saving the contractor thousands in legal costs and stress.
5. Equipment Electrical Malfunction
Client’s industry: Beauty and Wellness
Our client owns a tanning salon specializing in UV tanning.
One tanning bed experienced an unexpected electrical malfunction and began smoking. Although no fire occurred, the smoke damage forced the salon to close temporarily.
Their equipment breakdown insurance covered more than $20,000 to replace the damaged equipment and clean the salon.
Business interruption insurance within their policy also paid out over $30,000, replacing lost income during the closure.
6. Commercial Vehicle Damage
Client’s industry: Retail
Our client owns a retail business and uses a vehicle for customer deliveries.
While parked and unoccupied, another driver lost control and crashed into the vehicle, causing significant damage.
Their commercial auto insurance covered over $22,000 in repairs and provided a rental vehicle, keeping their deliveries on schedule.
7. Accidental Third-Party Property Damage
Client’s industry: General Contractor
During a major renovation, our client forgot to drain water pipes before disconnecting them from the home’s water tank.
Water poured out, causing extensive damage to the customer’s home.
The commercial general liability insurance covered more than $100,000 in repair costs, protecting both the contractor’s finances and reputation.
8. Accidental Injury to a Third Party
Client’s industry: Pet Care
Our client is a professional dog groomer. While trimming a customer’s dog with severely matted fur, they accidentally caused a minor injury to the animal.
Our client immediately sought veterinary care for the dog. Their professional liability insurance within their dog walker insurance policy reimbursed the $1,000 veterinary expense, resolving the situation quickly and professionally.
Frequently Asked Questions About Business Insurance Claims in Canada
What is the most common business insurance claim in Canada?
The most common business insurance claims in Canada include theft of tools or equipment, property damage, third-party liability claims, and commercial vehicle incidents. Many claims happen unexpectedly even to careful business owners.
How quickly are business insurance claims paid out?
Claim timelines vary depending on the situation, but many straightforward claims are resolved within days or weeks once documentation is provided. Having the right coverage and working with an experienced Zensurance broker can significantly speed things up.
Is business interruption insurance really worth it?
Absolutely. Business interruption insurance can replace lost income if your business is forced to close temporarily due to an insured event, such as fire, smoke damage, or equipment failure. Many commercial property insurance policies automatically include business interruption insurance or you can add it to your policy (you must have commercial property insurance to get business interruption coverage).
Protect Your Finances: Get the Right Business Insurance Now
No matter how careful you are, unexpected incidents happen. What matters is whether your business is financially prepared when they do.
Affordable, properly structured business insurance helps Canadian small business owners recover faster and keep moving forward.
Get a free business insurance quote online right now in under five minutes.
Our licensed brokers compare coverage from 50+ insurers, customize it to your needs and budget, and can issue policy documents and a certificate of insurance in as little as 48 hours.
– Reviewed by Reagan Elly, Senior Claims Advisor, and Brandon Bowie, Senior Broker & Team Lead, Professional LInes, at Zensurance.
Recent Posts
8 Real Business Insurance Claims Canadian Small Businesses Filed in 2025
Accidents, mistakes, theft, and bad luck don’t discriminate. Here are 8 real business insurance claims small business owners in Canada filed in 2025 – and how the right coverage helped them recover fast and keep moving forward.
11 Expert Tips for Renewing Commercial Auto Insurance in Canada
Is your commercial auto insurance policy up for renewal? These expert tips help Canadian small business owners and independent professionals save money, avoid coverage gaps, and renew their commercial vehicle insurance confidently.
Essential Insurance Policies Every Canadian General Contractor Needs in 2026
General contractors, construction companies, and skilled trades professionals need the right insurance coverage to protect against liability, property damage, and financial loss – especially as construction and renovation season ramps up in 2026.