How Much Does Business Insurance Cost In Canada?

How Much Does Business Insurance Cost In Canada?

How much does business insurance cost in Canada and more simply put how much does business insurance cost are some of the most frequently asked questions ALIGNED Canadian insurance brokers receive?  Unfortunately the answer to the question “How much does business insurance cost in Canada?” is not simple as there are many factors that go into insurance pricing.  Moreover, each business is different and therefore the answer to how much does business insurance costs in Canada? is different for each business.  However, the answer to “How much does business insurance cost in Canada?” is determined by top Canadian P&C insurance companies based on a number of common factors which we’ve outlined and explained below which we hope will demystify how business insurance costs are calculated.

What Are The Factors That Explain How Much Does Business Insurance Cost In Canada?

Exposure Base – How much risk a business has is the #1 factor in business insurance pricing because having twice as much property to insure or twice the number of sales creates twice the amount of exposure to a loss for insurers and hence the higher the total insurable value you report for your commercial property insurance or the higher the revenue you report the higher your business insurance costs will be.

Amount of insurance purchased: No different than any other product the more insurance you buy the more expensive it is.  More simply put a directors and officers insurance policy with a $2,000,000 per claim limit costs more than the same directors and officers insurance policy with a $1,000,000 per claim limit provided it’s for the same business through the same insurance company.

What type of insurance product: Each insurance product provides coverage for specific things and the probability of those things differs from product to product.  As a result, the underlying rating for each insurance product differs too and therefore the price for the same amount of insurance coverage differs from product to product.  Example $1,000,000 of cyber insurance can cost $4,500 while $1,000,000 of Errors & Omissions insurance for the same company may only cost $2,500.

There are numerous other factors that help explain how much does business insurance costs in Canada like location, geography, quality of risk management, industry, loss history, micro & macro economic-financial trends etc. etc. which our Canadian Insurance brokers would be happy to discuss in more detail. However, ultimately business insurance pricing is very complex and the best way to find out how much business insurance costs for your organization is to get a business insurance quote from ALIGNED Insurance.