Protecting your Ontario-based business from liability claims should be of utmost importance to any business owner. But many entrepreneurs don’t know where to start. Here at LiabilityCover, we guide professionals like you through the insurance process to ensure you can withstand future lawsuits.
In the subsequent sections, we’ll introduce you to the various types of Ontario business insurance and answer your burning questions.
Business Liability Insurance for Companies of All Sizes in Ontario
Otherwise known as commercial insurance, business liability insurance protects business owners in Ontario from financial losses caused by unexpected incidents like bodily injuries, property damage, and mistakes.
Insurance coverages exist in many types, the most common of which are general liability and errors and omissions. However, we can help you find the perfect policy, regardless of the kind you’re searching for.
What Does Business Insurance Cover?
The term “business liability insurance” is used to refer to a myriad of policy types that offer different forms of financial protection.
To ensure complete protection, you may need more than one of these coverages:
- Commercial general liability insurance — The coverage extends to third-party property damage and bodily injury claims. It typically covers legal defence and settlement costs.
- Professional liability insurance — Sometimes known as errors and omissions insurance, it gives you financial protection for claims of negligence, failure to deliver a service as promised, and misconduct.
- Product liability insurance — It’s similar to professional liability. However, it covers any products you sell or distribute rather than your services. Specifically, the policy protects against design, marketing, and manufacturing issues, including insufficient safety warnings and incorrect labelling.
- Commercial property insurance — The coverage provides financial protection for loss or damage to your business property and its contents following a covered event. Usually, the events covered are fires, thefts, and vandalism.
- Cyber liability insurance — Since most businesses conduct at least a portion of their operations digitally, we recommend cyber liability insurance to most owners. After all, cyberattacks can be costly. The policy offers financial protection against data breaches and other network security problems.
- Directors and officers liability insurance — If your company has executive-level staff, we suggest purchasing a directors and officers liability insurance policy. Your officers and directors can be personally named in lawsuits. The coverage provides protection should such events occur. Examples of covered situations include claims alleging employee discrimination and breach of fiduciary duties.
Do You Need Business Liability Insurance Coverage in Ontario?
Ontario boasts more than 440,300 small businesses, 9,000 medium businesses, and 1,200 large businesses. But no matter the size of your enterprise, purchasing insurance is essential for surviving for years to come.
Our experience tells us that small businesses are particularly susceptible to risks. Without sufficient insurance, they risk folding under the financial pressure of lawsuits.
At LiabilityCover, we help businesses in all industries obtain the protection they need, including:
- Restaurants and food trucks
- Sports and fitness establishments, instructors, and trainers
- Beauty professionals
- Contractors
- Vendors
- Home businesses
How Much Does Business Liability Insurance Coverage in Ontario Cost?
If you run a small business in the province, you should budget roughly $650 for a standard commercial general liability insurance policy with a $2 million limit.
However, the exact cost of your premium depends on a multitude of factors, including but not limited to the below:
- Number of employees — Insurers believe the more employees you have, the more chance your business has of making mistakes. Some insurance companies place a higher value on this metric than others.
- Your industry — Some industries come with more risk exposures than others. For example, if you are a builder in Ontario, you’ll pay more for a comprehensive insurance package than an advertiser in the same area.
- Your business location — Certain parts of Ontario are more prone to crime than others. Your premium will be more expensive if your business sits in a high-crime area.
- Your experience — Experience brings a lower risk of making mistakes. Therefore, your premium increases the longer you’ve been a part of your industry.
- Your revenue — If your business is highly profitable, anybody who sues you will request more damages as they know your revenue can take the hit. Thus, your insurance price rises.
- Your claims history — A track record of insurance claims raises your premium price.
Why Choose LiabilityCover for Your Ontario Business Insurance Needs?
We have years of experience connecting business owners like you to the best insurance providers in Canada. No matter your coverage needs, our excellent working relationships with the country’s leading insurers guarantee you get complete protection.
Our process is straightforward, and we always give you the time and information needed to make well-informed decisions. Let us find the perfect protection for you.
Frequently Asked Questions
How Do You Get Business Insurance in Ontario?
With LiabilityCover, all you need to do is follow these steps:
- Complete our secure request form.
- We analyze your insurance needs.
- Our team connects you with a licensed insurance brokerage or agent.
- The broker contacts you to guide you through the rest of the process.
Is Business Insurance a Legal Requirement in Ontario?
For most businesses, obtaining insurance isn’t a legal requirement in the province. However, various governing bodies may request particular insurance coverage to operate legally depending on your profession. Our expert team will analyze your policy needs and connect you with a broker specializing in offering insurance to others in your industry if you’re unsure.
Where Do Small Businesses Thrive in Ontario?
We can help small businesses in all parts of Ontario. But the largest cities, and therefore the best for these companies, are as follows:
- Ottawa
- Toronto
- Kitchener
- London
- Windsor
- Niagara
- Hamilton
- Barrie
- Guelph
- Kanata
- Milton
- Kingston
- Oshawa
- Brantford
- Belleville
- Sarnia
- Peterborough
- Thunder Bay
- Sault Ste. Marie
- Sudbury
- Ajax
- Whitby
- Burlington
- Brampton
- Markham
- Aurora
- Oakville
- Orangeville
- Vaughan
- Mississauga
Which Parts of Ontario Have The Highest Crime Rates?
The areas of Ontario most prone to crime include:
- Thunder Bay
- Brantford
- Sault Ste. Marie
- London
- Windsor
- Kitchener-Waterloo-Cambridge
- Greater Sudbury
- Kingston
- Peterborough
- Catherines-Niagara
Your business insurance may cost more if you operate from these locations.
