Business Insurance

Business Insurance

Business insurance provides financial protection should a claim or lawsuit be filed against you or your business.

Zen Man protected by business insurance
Partnership with over 50 leading Canadian insurance companies
Partnership with over 50 leading Canadian insurance companies

Hi, I’m Trevor from Zensurance, and I’d like to briefly explain business insurance for Canadian business owners.

We’ll quickly review what business insurance is, what it covers, and how much it could cost.

Many business owners wonder: Why do I even need business insurance?

Well, running a business is hard work, really hard work; it’s an investment of your time; it’s an investment of your money and your passion. It only makes sense to protect those investments with business insurance. Think about it, your livelihood and the livelihood of your employees could depend on being insured or not. When you think about it from that angle, the premium you pay starts to feel very small when compared to the stress of potentially having to start everything all over again on your own.

With that out of the way, let’s move on to what exactly is business insurance.

Well, business insurance is really just an umbrella term that refers to the whole bundle of insurance policies that apply to a business. It can include things like commercial property insurance, commercial general liability insurance, errors and omissions insurance, and so on. When you insure your business in Canada, you really start off with commercial general liability insurance, and you build coverages on top of that.

Commercial general liability insurance is the most basic type of insurance, and it really covers your business against

claims of injury or property damage to third parties.

People always ask: How much am I going to have to pay for business insurance?

That’s a great question, and there’s a number of things that the insurance companies will look at when determining your premium. Things like the size of your business, the revenue from your prior year, what industry you’re working in, and any years of experience you’ve had running similar type businesses. There’s a number of other things that they may use to determine premium as well.

To find out how much insurance would cost for your business, it’s very simple, and you can even do it online. Here’s what you’ll need to do:

  1. Visit us at zensurance.com.
  2. Click on get a quote, and simply start to type out the name of the industry you work in. If you’re not able to find an industry, simply type out “other,” click “Next,” and you’ll be presented with a few other questions to fill out.
  3. Some of the other questions you’ll be asked to fill out would include things like How much you made last year, What’s your projected revenue is for this year (don’t worry, an estimate is fine), How many years of business you’ve been in operation, How many people you employ and so on.

And that’s it! Based on your industry, we’re going to recommend the best policy for you, and you’ll get a great price estimate. In case additional information is required, one of our talented insurance brokers will be in touch with you to clarify any questions.

It’s that easy, and it’s that simple!

If you have any more questions on business insurance in Canada, we have several ways to help you:

  1. Use the chat feature on our website;
  2. Send us an email at info@zensurance.com; or
  3. Call our customer care number at 1 888 654 6030.

What is Business Insurance?

Business insurance protects business owners from losses due to unforeseen events that may occur during day-to-day business operations, including third-party property damage, errors, or bodily injuries.

There are many types of insurance available for business owners. The type of coverage you need relies on several factors, including industry, size, and revenue.

Common types of business insurance include general liability insurance, errors and omissions insurance, and commercial property insurance.

Why Choose Zensurance?

We help Canadian business owners save time and money by providing
a convenient and affordable way to buy business insurance.

Claims Examples

Coverage

General Liability

Problem: Your client slips on the stairs on their way into your office, resulting in a sprained ankle.

Outcome: The client successfully sues your business for bodily injury. Your CGL coverage covers the legal expenses and medical fees, totalling $15,000.

Coverage

Property Protection

Problem: There is a fire in your office building, which results in damage to your office furniture and computer equipment.

Outcome: Your Commerical Property Insurance coverage covers the cost ($45,000) to replace the damaged items.

Coverage

Directors Liability

Problem: Your non-profit organization fails to repay a loan from another organization for a charity event. 

Outcome: Your organization is sued for breach of trust for failing to repay the funds. Your D&O Insurance covers the settlement fees.

Business Insurance, Explained.

What does Business Insurance cover?

Business insurance is used as an umbrella term to describe common types of insurance business owners require to cover third-party liability lawsuits or claims.

Explore the following business insurance policies for specific coverage information:

What is the cost of Business Insurance?

For a small- to medium-sized business, you can anticipate spending $650 a year on a $2M General Liability policy.

The following factors are typically taken into consideration when determining the cost of your premium:

  • Business size and location;
  • Years of experience;
  • Annual and projected gross revenue;
  • Number of employees; and,
  • Insurance claims history.

In the online quote application, we ask your business some questions to understand your coverage needs better.

Who needs Business Insurance?

Regardless of size or industry, insurance is critical for your business’s long-term survival. Business insurance provides coverage for the financial costs associated with unforeseen events such as damage caused to third parties, accusations of professional negligence or defective products.

Your business is unique, and coverage requirements will vary. Speak with a broker to find a policy to suit your specific business needs.

Is insurance required to run a business?

Business Insurance is not required to run a business; however, it can protect you from costs associated with claims or lawsuits (e.g., legal fees, medical expenses) that may otherwise threaten your business’s survival. When it comes to deciding whether or not to insure your business, consider your profession.

For example, accountants must carry professional liability insurance to practice in Ontario.

What does Business Insurance not cover?

Business Insurance provides coverage for incidents involving third-parties and does not typically include coverage yourself or your employees. Nor does it cover contractual liability, intentional criminal acts, cost guarantees, or cost estimates you provide.

Is Business Insurance tax deductible?

Yes – you can deduct the necessary cost of business insurance from your taxable income.

Insurance premiums you can deduct as business expenses may include commercial general liability insurance, professional liability insurance, commercial property insurance, cyber insurance, and more.

Frequently Asked Questions about Business Insurance

How much business insurance do I need?

Canadian entrepreneurs often ask how much business coverage they should get. 1 million or 2 million? The answer as with many things insurance is: It depends. As your business coverage goes up so does your premium. If you can absorb the cost, the general advice is to get as much coverage as you can afford. Many business owners who have to file a claim and went for the cheapest option often wish they had gotten broader coverage. Evaluate the potential risks your business is exposed to and your budget.

Does business insurance cover personal use?

Generally speaking, business insurance does not cover personal use, meaning you cannot replace home insurance with business insurance. However, there are exceptions. If you operate your business from home, you can protect this space with business property insurance. If you use your vehicle for business purposes, it may be covered under your commercial auto insurance policy. However, home insurance does not typically cover the physical assets associated with your business, such as stock or inventory, or liability issues that occur in your homes, such as a slip and fall injury. It can be confusing, which is why we recommend speaking with a broker to understand the limitations and restrictions of your business insurance policy.

To protect both your home and business, consider keeping business separate from your personal life by protecting your assets with a business insurance policy and home insurance policy.

Do I need business insurance if I work from home?

The short answer is YES. While some personal home insurance policies could cover some personal items you use for work such as a laptop, a printer, a monitor or some tools, many times there are exclusions in your home policy that don’t cover home business items. In case of damage to your home or loss of equipment that prevents you from working, the loss of income will not be covered by your home insurance.

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Getting business insurance shouldn’t be complicated!

At Zensurance, we simplify the process of getting insurance so that you get the coverage you need, quick and easy!

Our friendly support team is always ready to answer questions, we’re just a click or a phone call away.