How Much Is Small Business Insurance Canada?

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Small business insurance Canada | How much does it cost?

It’s a question we hear often. And that question is “How much is small business insurance?”. There are many variables that come into play when it comes to the cost of small business insurance. Similar to asking “How much is a car?” answers can range dramatically based on the car make, model, year, features, etc.

We’ll explain how small business insurance costs are generally determined in this article. First things first, we’d like to share the below table to give you a rough idea of the cost of small business insurance Canada.

The real data illustrated below is a snapshot of average insurance costs of ALIGNED small business insurance clients across Canada. While these costs are subject to change, they provide some insight into how much small insurance Canada may cost.

Annual Revenue Average # of Small Business Insurance Policies How Much Is Small Business Insurance?
$0-$100,000 1.3 $400-$1,000 annually
$100,000-$250,000 1.47 $1,000-$2,500 annually

We understand that cost is an important factor when you are looking at small business insurance Canada products. Our small business insurance experts understand the marketplace and can help you find the best value for your organization.

Common factors that impact the cost of small business insurance Canada

Despite increasing demand for simplified small business insurance Canada pricing, figuring out specific costs isn’t a simple task. This is why insurance actuaries are highly trained in determining the cost of small business insurance Canada products.

Like doctors, insurance actuaries spend 6-10 years after their undergraduate degree working through intensive and extremely challenging formal professional education coordinated by The Canadian Institute of Actuaries. 

However, all actuaries do use similar factors to help them figure out how much is small business insurance Canada.

Here are 3 small business insurance cost factors…

  1. Projected annual revenue: This is the single most important factor to determine small business insurance Canada cost. It is the most objective measure of how much activity is happening in the small business. Activity in a business correlates strongly with business risk. For example, the more customers your small business has, the higher the probability of a claim happening.
  2. Source of revenue: Often pulled or assumed from a description of operations, this is a key element in calculating small business insurance costs. This is because different streams of revenue are more or less risky and therefore have different rates applied to them. For example, two restaurants have $200,000 in annual sales. Restaurant #1 sells no alcohol, but restaurant #2 generates 50% of its revenue from alcohol sales. Despite both restaurants having the exact same annual revenue, restaurant #2 has considerably higher insurance premiums. This is because alcohol revenue has a different insurance rate than food revenue.
  3. Type of small business insurance Canada product: There are numerous types of insurance products that ALIGNED small business insurance brokers can help you with. Each small business product provides coverage for very specific and different things. Because of these differences, each insurance product has a different cost. By way of example, $1,000,000 of small business general liability insurance has a very different cost than $1,000,000 of small business property insurance.

Why is understanding how much is small business insurance Canada important?

Costs always matter. There are a lot people and companies that would like you to believe that small business insurance products and their pricing are simple. And yes, there are some products that are simpler than others. 

However, as a small business owner, it’s important to be wary of small business insurance that seems too simple and easy. In all likelihood, when things are too simple they may be too good to be true. With small business insurance Canada, as with all things in life….you ultimately get what you pay for.

DYK? You can buy small business insurance Canada products online with us!

If cost is on your mind, you can get a quote and bind your small business insurance products at the time that’s most convenient for you. We know that small business owners don’t have time to waste and that’s why we offer many 100% online products.

Whether you own a retail store, work as a yoga instructor or are a private investigator, you can get your small business insurance online now.

Buy Insurance Online Now!

We offer online insurance products for multiple industries, just fill out a simple application form and get a quote today!