Bundling Business Insurance: Can It Save You Money?

Bundling small business insurance is a simple, budget-friendly way for Canadian entrepreneurs and business owners to get the protection they need without juggling multiple policies. 

Instead of buying separate coverage for liability, property damage, or business interruption, a bundled business insurance policy combines several key protections into a single package. 

In this article, we’ll break down what a bundled business insurance policy is, why some owners prefer to bundle, the types of coverages you can include, and how to decide whether bundling makes sense for your small business.

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What Is Bundling Business Insurance?

For small businesses, bundling insurance involves purchasing multiple required policies together from a single insurance provider, similar to how individuals might bundle home and auto coverage. Instead of buying each business insurance policy separately, they are acquired as a package.

Why Do Business Owners Bundle Commercial Insurance Policies?

There are a host of reasons why a business owner may opt for a bundled policy rather than buying separate policies. Some of the benefits of purchasing a bundled policy include:

• Cost-Savings: Bundling policies often offer modest discounts on your annual premium.
  
  Simplified Management: Purchasing a bundled business insurance package through Zensurance means you only have one insurer, bill, and annual renewal date to deal with.
• Avoids Insurance Gaps: A bundled policy helps ensure your business isn’t exposed to risks that aren’t accounted for in a policy because it combines the coverages you genuinely need to have, and it eliminates adding other coverages you may not need, thereby saving you money.

What Types of Business Insurance Can You Bundle?

A customized bundled business insurance policy can combine multiple coverages, such as:

• General Liability Insurance to cover third-party bodily injury and property damage claims against your business. It also covers allegations of defamation and false advertising, product liability insurance to cover injuries or damages to customers caused by a product you sell, and tenants’ legal liability to repair or replace others’ property you rent or lease that you accidentally damaged.

• Commercial Property Insurance covers damages or losses to your business premises, contents, and inventory caused by fire, water, natural disasters, theft, and vandalism. 

• Business Interruption Insurance reimburses you for lost income following an insurable loss, such as a fire that forces you to close your business for repairs. It may include coverage for your business’s overhead expenses, such as utility bills, lease payments, and employee payroll. You have to have a commercial property insurance policy to add this type of coverage to your policy.

• Professional Liability Insurance safeguards your finances and reputation from claims or lawsuits against you alleging professional negligence, substandard work, providing incorrect advice, and failing to deliver a service as promised. 

For example, some business owners purchase a Business Owner’s Policy (BOP) to save money. A BOP typically includes general liability, commercial property, and business interruption insurance in a single package.

How to Decide If You Should Bundle Your Business Insurance

Determining whether your business should go with a bundled business insurance policy comes down to evaluating your business and its liability risks. Among the things to consider are:

• Your industry, products and services, number of employees, and business contents and property that require protection.

• Your business’s risk profile. For example, if your commercial property has a high volume of customer traffic that may expose you to slip-and-fall claims, or if you face the risk of business interruptions due to fire or storm-related damage, bundling policies may be worthwhile.

• Whether a bundled policy allows you to increase your coverage limits, adjust the deductibles, and add endorsements to account for additional protection you might require.

• If you lease a commercial property, some landlords may require specific coverages and coverage limits. A bundled policy may not meet your contractual requirements.

How to Get the Low-Cost Small Business Insurance Bundle You Need Online

Zensurance is Canada’s leading small business insurance brokerage. We help hundreds of thousands of small business owners, entrepreneurs, and independent professionals get the comprehensive coverage they need at affordable rates.

Start by completing our online application for a free quote in under five minutes.

Our team of insurance brokers will shop our partner network of over 50 insurers to find the right policies to address your risks, help you find the cost savings you deserve, and issue your policy documents and a certificate of insurance in 48 hours or less.