Running a business is often challenging. There is always much to think about and much to do with many risks to manage. So much dedication and work is required. It's a 24/7 commitment.
However, while the concerns and challenges of running a small business can be many, the rewards are terrific too. There can be personal rewards that come from running your own business. There can be financial rewards for you, the people you employ and the community in which you operate. There are also substantial rewards realized well beyond our more familiar neighbourhoods. Ontario and Canada also win when small- and medium-sized businesses thrive.
When it comes to small business insurance, Ontario brokers at Morison Insurance have the experience to provide a wide swath of information about operating a business, focusing on getting the right Ontario small business insurance to ensure your enterprise is adequately protected. In business insurance alone, there is plenty to consider: Are you covered for commercial liabilities, business interruption from property claims, professional liabilities, errors and omissions, cyber-attacks and other risks? Our brokers know the ins and outs of insurance for a small business in Ontario, and we are here to help. Your small business insurance protection is our focus.
When there are many things to remember while running your company, business owners may ask why insuring a small business is important. You can get protection for big and small risks that small businesses and their owners face daily with the right small business insurance. Ontario commercial insurance protection can come in the form of insurance coverages such as liability insurance, cyber breach insurance, critical employee insurance, business interruption insurance and more.
The insurance needs of businesses vary significantly from entity to entity. One business may need more liability insurance or cyber insurance than another. Another business may need greater protection for its assets, such as equipment, vehicles, inventory and other items. It's also important to keep in mind that if you are leasing a commercial property, it's likely that your landlord will require you to provide proof of insurance coverage in the form of a certificate of insurance. Suppliers and distributors you'd like to work with may also require certain types and amounts of small business insurance.
Morison Insurance will take the time to learn about your business and get you the right small business insurance. Ontario brokers can shop for your small business insurance from Canada's leading insurance companies and provide you with multiple quotes.
Depending on the type of business you operate and your specific needs, you may want or need many different types of small business insurance coverages. Ontario businesses are unique, so your coverage should be uniquely tailored to address the perils you're most likely to encounter during your business operations. Here are some of the types of coverage that are commonly recommended for small business insurance.
Commercial property insurance is integral to any small business insurance policy because it protects your business's physical assets. That can include equipment, buildings, building contents, stock and inventory. It protects from financial loss in the event of a wide range of destructive factors such as fire, theft, vandalism, water damage, storms and explosions.
The destruction types covered by your small business insurance policy vary depending on how your policy is written. For example, water damage is not always included as standard coverage, and there are different types of water damage coverage depending on where the water comes from.
Commercial general liability insurance protects a business from liability risks such as claims involving bodily injury and property damage to third parties. This type of insurance varies for different businesses and covers general liability risks. No business is immune to an expensive lawsuit against them for allegedly causing third-party bodily injury or property damage. Third-party liability claims can seriously impact a business financially. Ontario commercial general liability insurance is good insurance coverage to make sure you, as a small business owner, limit what you have to pay out of pocket for the potentially astronomical costs involved with being litigated against, including legal mediation, court fees, attorney fees and, should you be found liable in court, settlement costs.
Do you give advice to others during the course of running your business? Do you make recommendations, represent others, or advise on solutions to problems? Professional liability insurance covers consultants, lawyers, medical professionals, architects, financial advisors, personal trainers, real estate professionals and many others. Having this type of Ontario small business insurance is good if someone claims you have done something wrong and asserts that the alleged error caused them financial injury. That could include claims of poor or imprecise advice, professional negligence, or failure to deliver services as promised. Suppose someone takes you to court in an attempt to get compensation for such situations. In that case, your professional liability coverage will cover your litigation expenses up to the coverage limits listed on your policy for small business insurance.
Cyber insurance is getting a lot of buzz these days, and for good reasons. As everyone's use of technology steadily increases, the risk of computer hacking, cyber breaches, and cyber attacks continues to escalate. In fact, reports on cyber breaches are in the news almost daily. We are all vulnerable, but you may face additional risks as a business owner. Our small business insurance brokers will work with you to ensure you have coverage in case of cyber problems such as cyber privacy breaches. Especially if you are doing business online, e-commerce, or your business stores sensitive information, you should have cyber insurance coverage as part of your small business insurance in Ontario.
Some small business owners assume they don't need cyber liability coverage because they believe their small business is unlikely to be targeted by cybercriminals. Unfortunately, that's not the case. Small businesses present tempting targets because they're less likely than larger businesses to have stringent security measures in place and probably need an in-house IT team, too. That means criminals can get in, steal data and retreat to exploit it without spending much time. Commercial cyber insurance will help you deal with costs such as notifying customers of a privacy breach, paying ransom for stolen information and handling the expenses of being litigated against by those who have had their information stolen when it's included as part of your small business insurance.
What if you go to work one morning to find your business premises flooded? There is extensive and expensive damage, and you know you will have to close the business until repairs are done. Or, what if a key piece of equipment breaks down by an insured peril at your business, and you can't operate without it working? A major cyber breach could also mean closing your doors until the problem is addressed. In these kinds of instances, business interruption insurance can be a very good addition to your small business insurance. Ontario business interruption insurance will cover expenses such as loss of income, earnings or profit during the time when repairs are being completed. You may also obtain protection from financial demands—such as lease payments—that continue during the period when your business is not operating.
Suppose you run a manufacturing or fabrication business that relies on heavy machinery to get the job done. In that case, there's no doubt that you need those machines up and running reliably every day so you can continue to fulfill your contractual obligations and get orders out the door. The same principle applies to hospitality businesses that rely on kitchen appliances to help serve their customers. But even if you work in an office environment, you have equipment such as an HVAC system that needs to work correctly to keep your business productive.
If that equipment suffers an insured mechanical accident or is damaged, you could lose a lot of revenue without the right coverage on your small business insurance. Ontario equipment breakdown insurance addresses that problem by providing coverage to get your equipment back up and running quickly, either with repair or replacement. Commercial property coverage applies specifically to breakdowns of commercial equipment, which are often excluded from standard property insurance.
Suppose you have a business that uses substances that could cause pollution or contamination. In that case, environmental/pollution liability insurance is well worth considering for your small business insurance package. It may cover sudden and slow polluting events, including letting a toxic substance leak into soil or groundwater, leaving you vulnerable to fines, penalties, costly lawsuits and clean-up costs. But remember that even seemingly benign substances such as gravel or food ingredients have the potential to cause pollution if they end up somewhere they shouldn't be. For example, you run a landscaping business, and your employee accidentally lets a load of gravel fall into a waterway that is classed as a protected wildlife habit. Your environmental liability insurance may cover the costs associated with that error up to the coverage limits on your policy for small business insurance.
Commercial auto insurance covers your commercial vehicles—cars, trucks, fleets of vehicles—and protects you from vehicle-related liability and physical damage. This coverage is helpful for business owners, whether they run a farming operation, a trucking business, or a construction business, or if you, as a business owner, drive your car to deliver products to customers.
If you regularly use your vehicle for work-specific purposes such as product delivery, your personal auto insurance does not cover you adequately. It's necessary to have commercial auto insurance as part of your Ontario small business insurance package to protect you against financial losses if your vehicle is damaged or destroyed while you're using it for business or if you get involved in an auto-related liability situation and have legal action brought against you in court.
Commercial umbrella insurance, or excess liability insurance, is akin to heading out on a cold winter day and wearing an extra sweater under your coat to provide additional protection from the frigid outdoors. Commercial umbrella insurance is that extra sweater. That is to say, it is extra protection for your business—an extra layer of liability insurance coverage. This kind of coverage comes into play if you exceed the limits of your existing policies. For example, if your policy has already paid $1 million in a claim and there is still an outstanding amount, Commercial Umbrella Insurance can cover an additional amount. This type of insurance can provide extra peace of mind.
Ontario businesses tend to have differing levels of risk exposure, but every business has the potential to be sued for a wide range of reasons. Regarding coverage limits for small business liability insurance, Ontario brokers recommend a minimum of $2 million for a business with minor risk exposure. However, if your business is open to the public, you provide professional services and advice, or you serve alcohol to customers, among many other potential liability issues, you will likely need to enhance your commercial liability insurance with specialized liability coverages and an increased limit for your small business liability insurance. Ontario business owners are sometimes surprised to learn that it's necessary to have several million dollars worth of liability coverage, but it makes perfect sense when you consider that the cost of your legal defence, including attorney fees and court fees, and the cost of your settlement should you be found liable, can easily exceed $2 million and continue to rise from there. Without adequate liability coverage as part of small business insurance, Ontario business owners are faced with the possibility of paying out of pocket to make up the remainder of their litigation costs following a lawsuit.
Ontario small business insurance policies can start at $650; however, many factors influence how much your unique policy will cost for small business insurance. Ontario brokers at Morison Insurance will ask questions to ascertain how much your insurance policy will cost. The following factors and many others will be taken into consideration when establishing the cost of your premium:
Please note that these are not the only factors considered when determining the cost of insurance. To receive an accurate small business insurance quote, contact the brokers at Morison Insurance, who will help ensure your small business is properly covered.
Ontario small business insurance can vary a lot from policy to policy because, of course, no business is exactly the same, meaning insurance coverage should be unique as well. That means that what is covered or not covered depends on how your policy is designed and the types of coverage you opted for.
That being said, some things typically will not be included with Ontario small business insurance. Because it's a commercial insurance package, this coverage generally won't extend to your personal property or personal liability concerns. If it's not a part of your business operations, it needs to be covered by personal insurance. Like all types of insurance, your small business insurance will not cover malicious or intentional acts by you or your employees. It's also important to remember that your small business liability insurance applies to situations in which you have legal action brought against you in court. It does not offer you financial support for litigation in which you are the plaintiff.
In most cases, yes—home-based businesses do require small business insurance such as home-based business insurance. Ontario business owners who operate out of their homes sometimes assume it’s not necessary to have commercial coverage if home insurance is already in place. But it's well worth noting that your homeowners insurance will usually not cover damage to your business equipment, so if a destructive incident such as a fire occurs, you'll be left to handle the cost of repairing or replacing your business equipment, inventory and supplies by yourself.
If your business is sued, the personal liability coverage on your home insurance policy will not provide you with any insurance compensation to deal with litigation-related expenses. Furthermore, you would not have access to specialized liability coverages such as cyber liability and pollution liability. The most crucial part for a business that provides professional advice and services is professional liability coverage, which can be included with small business insurance. Ontario brokers at Morison Insurance advise clients that home insurance coverage is simply not enough to protect against serious financial setbacks that are related to commercial operations.
At Morison Insurance, our qualified and licensed brokers will shop around Ontario's top business insurance companies to help you find the best small business insurance quote. Ontario policyholders can rest assured that we work hard for our clients every day and have built relationships with all the province's top insurers. With our expertise in your corner, you can have peace of mind that you will get the best commercial insurance coverage for your unique needs. Get started today by calling 1-800-463-8074 or by filling out the form on this page. We look forward to helping insure your business.