Risk Alert: 70% of Self-Employed Canadians Don’t Have Business Insurance

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According to Statistics Canada, 13.2% of Canadians (about 2.6 million) were self-employed in 2023 working in various industries.

A self-employed individual is defined as an independent working professional, such as a freelancer or contractor. Self-employed individuals earn income by working for themselves instead of being employed by a company.

What Risks Do Uninsured Self-Employed Canadians Face?

From a business liability insurance perspective, uninsured self-employed professionals are exposed to expensive damages and lawsuits that could run into hundreds of thousands of dollars. A single claim or lawsuit against them could force them into bankruptcy.

A few examples of claims against our self-employed professional and small business owner clients illustrate the risks and potential costs they would have had to pay out-of-pocket had they not invested in business insurance, including:

• A wildfire that destroyed a spa that cost over $150,000 to rebuild
• A contractor accidentally ruptured a customer’s water pipe, which cost over $18,000 to repair
• A marketing consultant who made a mistake that cost their customer $30,000
• A snow removal contractor who was sued for over $100,000 because of a slip-and-fall injury
• A hairstylist accidentally injured a customer, costing them $10,000 to settle the claim

Side note: A Zensurance 2023 national survey of Canadian consumers found that most (69.3%) would sue a small business owner if injured in a slip-and-fall accident, and 84.7% would sue for damages if involved in an auto accident with a business vehicle.

How Does Business Insurance Protect Self-Employed Canadians?

Business insurance protects self-employed individuals by providing financial cover against unexpected incidents that could impact their income and reputations, including:

• Liability protection to cover accidental damages or mistakes caused by your services or operations, such as general liability insurance and professional liability insurance
• Income protection to replace lost income if you’re forced to temporarily close or evacuate your community due to a natural disaster, such as business interruption insurance
• Cyber protection to shield your assets if you suffer a cyber-attack or data breach that compromises your customers’ confidential information, such as cyber liability insurance
• Equipment protection to repair or replace tools and equipment (including electronics) you need to do your job if stolen, vandalized, or damaged by fire or water, such as tools and equipment insurance

• Liability protection to cover injuries to customers or damages to their property caused by a product you sold, such as product liability insurance

How Self-Employed Canadians Can Get Low-Cost Business Insurance Fast

Zensurance is trusted by over 350,000 self-employed professionals and small business owners in hundreds of industries across Canada for comprehensive, low-cost business insurance.

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

Let our knowledgeable, friendly brokers help protect your finances and livelihood by shopping our network of over 50 Canadian insurance providers and customizing the policy to suit your specific needs and budget.

There are some things you can’t control. But you can control how prepared you are to deal with expensive accidents, incidents, or mistakes and safeguard your finances and future.

– Reviewed by Alexandria Anthony, Team Lead, Property and Hospitality, and Brandon Bowie, Team Lead, Professional Lines, Zensurance.