8 Things That Are Scarier Than Halloween (For Business Owners)

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1. A Customer Lawsuit for Professional Errors

Mistakes happen to everyone. However, for professional service organizations, consultants, accountants, and other independent professionals, making a mistake (even unintentionally) or neglecting to do something as promised to a customer can lead to an expensive lawsuit. 

Professional liability insurance (or errors and omissions insurance) is essential protection for those providing professional services. 

2. Cyber-Attacks and Data Breaches

A cyber-attack or data breach that compromises your business’s and customers’ confidential information can destroy your business and reputation, gut your finances, and lead to legal liabilities. 

Cyber insurance is vital coverage every small business owner in any industry should have as part of their overall policy to help manage the fallout of cyber incidents, protect their finances, and restore their compromised systems.

3. Not Having Enough Coverage to Pay For a Loss

Having commercial insurance to protect your business from damages and losses is critical. 

Equally important is making sure you have adequate coverage limits to account for the risks you face. As a policyholder, you get to choose the coverage your policy contains. But if you choose a low coverage limit to save on the premium and then suffer an expensive loss like a fire that destroys your business property, contents, and inventory, and those damages cost more than your policy’s coverage limit, you’ll be out-of-pocket to pay the balance. 

Moreover, if a tragedy such as this happens to your business and you’re forced to close for weeks or months for repairs, and you didn’t include business interruption insurance in your policy, you won’t be covered for lost income, lease and loan payments, employee payroll, and more.

4. Customer Injuries on Your Premises

Here’s another frightening thought: Imagine a customer who is injured on your business property from a trip and fall, requires medical attention, and is unable to work because of the injury. You can be held liable for their medical and rehabilitation expenses and lost income.

General liability insurance is what covers third-party bodily injury and third-party property damage claims against your company.

5. Natural Disasters

Wildfires, floods, tornadoes, ice storms and other natural disasters can easily wipe out small businesses and force them to close. Natural disasters and severe weather events are increasing across Canada. According to the Insurance Bureau of Canada, insured damages caused by severe weather and natural disasters caused over $8 billion in 2024 – the highest total in Canadian history(!).

Commercial property insurance covers damages to business properties, their contents and inventories caused by natural disasters.

6. Theft or Vandalism

Theft, shoplifting, and property vandalism are alarming problems that most businesses face.
According to the Retail Council of Canada, Canadian retailers lost $9.1-billion to theft in 2024.

Commercial property insurance also covers damages to businesses caused by theft and vandalism.

7. A Product Liability Claim

Speaking of retail, a product liability claim against a retailer, online seller, or e-commerce business can also trigger expensive lawsuits. 

Any business or online seller selling products (including food) can be liable if that product injures a customer or damages their property, even if you didn’t manufacture or create the product yourself.

Product liability insurance is a must for any individual or small business selling, distributing, or manufacturing products sold to the public to protect against this type of claim.

8. Not Having Business Insurance

Inarguably, not having business liability insurance at all is the grand bull moose of horrors for sole proprietors and business owners if something – anything – goes wrong. 

A fire or water damage to your business property, theft of products, tools or equipment, a cyber incident, an accidental injury to a customer or damage to third-party property; you’re on your own to pay for damages and losses like these without business insurance.

In the 2025 Zensurance Small Business Confidence Index survey of Canadian small business owners, we asked business owners without liability insurance why they don’t have coverage. Some of the answers those uninsured business owners gave were:

• They don’t think they need it
• Insurance is too expensive
• They haven’t thought about it
• They claim they have no liability risks

Those answers are genuinely haunting.

Get the Right Liability Insurance for Your Business and Be Unafraid

Here’s a far better option: Get low-cost business insurance from Zensurance, and don’t worry about things that go bump in the night (or day).

Fill out our online application for a free quote in less than five minutes.

Our licensed, knowledgeable team of brokers know the ins and outs of small business insurance. We’ll take the hassle of shopping for liability coverage off your hands, tell you what you need and what you don’t, and customize the right policy to suit your needs.

– Updated October 24, 2025.