Frequently Asked Questions About Business Insurance
Get straight and simple answers to all your business insurance frequently asked questions.
These FAQs were gathered from Canadian business owners like you.
Most small businesses pay anywhere from $500 to $5,000 per year for business insurance. The wide range in cost is explained by the wide diversity of business types and risk factors of specific trades or industries. Other factors that affect your business insurance cost are the amount of coverage, previous experience in the industry or insurance claims made in the past. The easiest and fastest way to know how much your policy could cost is to get a business insurance quote here.
The most basic type of business insurance known as a commercial general liability (CGL) covers two main areas: 3rd party personal injury and property damage. This basically means that if as a result of your normal business operation someone gets hurt or something is damaged, your business insurance can help cover the costs. On top of this, if you have unique protection needs, you can add a wide range of optional coverages such as cyber liability, errors & omissions or medical malpractice just to name a few.
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.
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.
Most small businesses opt for a $2M policy, but every business faces different risks so definitely work with your insurance provider to find the right policy for your business. Also, consider your budget and how much you can afford to pay in premiums as policies with more coverage usually cost more.
Get in touch with your local insurance broker or request an online quote from a digital brokerage like Zensurance. A digital brokerage has a number of benefits over local brokers including speed, ease of use and lower costs. All insurance brokers, digital and traditional, have a fiduciary responsibility to protect your best interests and should help you find the right policy for your business.
A general liability policy covers legal expenses and settlements related to bodily injury or property damage to a third-party. The most common scenarios usually involve accidents and injuries: trip-and-falls are the leading cause of injury hospitalization in Canada.
General Liability Insurance costs are calculated based on a few different factors such as industry, projected revenues, and the number of years in operation. Insurance companies have collected decades’ worth of data to predict the risk associated with different industries, business sizes, and many other factors to help them calculate your yearly premium cost.
Yes, we are able to customize our insurance packages so that you get only the coverage you need.
Yes. While most customers prefer to pay up front to avoid any additional financing charges, we do offer flexible payment options including monthly payment solutions for policies that cost more than $500.
Every business is unique. At Zensurance, we have curated several solutions that include comprehensive coverages and we are confident you will get the coverage you need through one of these packages. If not, we’re happy to look at alternative options.