Commercial Insurance Ontario

Small business is the heart of the Ontario economy. From Ajax to Kitchener, from Toronto to Windsor, small business owners are the driving force behind the province of Ontario. These facts recently compiled by the Ontario Chamber of Commerce speak for themselves:

Small businesses are the backbone of the Ontario economy, playing a pivotal role in local communities throughout the province. In Ontario, over 400,000 small businesses provide crucial jobs and sustain many livelihoods. They constitute 98% of all Ontario businesses and contribute to 30% of Ontario’s provincial GDP. Furthermore, small businesses employ over 3,000,000 Ontarians, accounting for two-thirds of all private-sector workers in the province.”
Owning or managing a small business in Ontario means juggling various responsibilities. From frontline business operations to the intricate workings behind the scenes, focusing on immediate tasks while also strategizing for the future is second nature to you.
Given the complexities, ensuring the safety and longevity of your business is paramount. That’s why, when it comes to protecting your small Ontario enterprise, partnering with business insurance brokers who are experts in the field is invaluable.

About Small Business Insurance in Ontario

Navigating the realm of Small Business Insurance Ontario can be intricate. When inputting about small business insurance in Ontario into search engines like Google or Bing, you may not always find the specific answers you seek. This is largely because large insurance companies invest significant resources in buying keywords, even for products and topics they might not necessarily offer or have in-depth knowledge about.

However, there’s a silver lining. Trusted information sources exist for queries related to Small Business Insurance Ontario and associated terms. One such reliable source is the team of expert small insurance brokers at ALIGNED Insurance. The small business insurance broker professionals at ALIGNED Insurance specialize in business insurance. With a wealth of knowledge about Small Business Insurance Ontario, they serve the entire province, operating from their Toronto and Waterloo (national operations centre) locations.

Why do I need business insurance?

Regardless of your specific business type, safeguarding it against operational risks, liability claims, and lawsuits is paramount. Business insurance serves as a shield against such unforeseen events. Even with the best precautions and solid procedures in place, accidents can occur, leading to potentially significant financial implications for your business.

Whether you’re part of a vast or a smaller industry, whether you’re engaged in high-risk activities or not, insurance plays a pivotal role in mitigating financial loss when mishaps occur. For instance, imagine you’re cleaning a client’s window and accidentally shatter it; this could lead to a property damage claim.

Without insurance, the financial burden to address such damages could be overwhelming. Small Business Insurance in Ontario helps shoulder some of these repair and replacement costs, ensuring your business’s longevity. Especially when collaborating with small insurance brokers, tailored advice and affordable coverage can make all the difference. A small business insurance broker can guide you to the right coverage, preventing potential financial setbacks or even bankruptcy.

What Should You Know About Small Business Insurance in Ontario?

Understanding the marketplace from which you are making a purchase is crucial. Knowledge equips you with the power to make informed purchasing decisions and negotiate effectively. This is especially true when considering small business insurance in Ontario. There are essential facts about this marketplace that are beneficial for everyone to know.

Ontario stands as the largest P&C insurance marketplace in Canada
Nearly 25% of insurance premiums at the national level come from Ontario auto insurance, accounting for over $10 billion annually.
Ontario boasts more P&C insurance head offices than all other provinces combined.
Ontario auto insurance operates on a no-fault system, whether for personal or business purposes. This means that each insurance exclusively covers the physical damage to their own vehicle.
On average, small insurance brokers in Ontario deal in 70-80% personal lines. Notably, aside from ALIGNED Insurance, very few are entirely focused on business insurance.
The expansive nature of the Ontario insurance marketplace makes it fiercely competitive. Thousands of business insurance brokers operate within its confines, and tens of thousands of licensed small business insurance brokers serve the region. Each broker and brokerage offers unique services. It’s essential to evaluate the small insurance broker or brokerage you opt to collaborate with, ensuring they align perfectly with the needs of you and your organization.

What is the average cost of small business insurance?

It depends on the type of coverage you have and how much coverage you have. A robust, comprehensive insurance policy will be more expensive than a basic package. On average, small to medium-sized businesses can expect to pay around $650 to $2,500 each year for small business insurance depending on numerous factors. Larger companies and higher risk operations typically have to pay more for insurance premiums, but note each business insurance policy is priced individually.

However, several factors that impact insurance costs, including:

Number of employees
The services you provide and products you sell
Business location
Value and amount of equipment owned
Annual and projected revenue
Years of experience
Historical insurance data
Your deductible

What does small business insurance cover?

Small Business Insurance in Ontario provides coverage for a range of risks that could result in financial loss for your business due to third-party liability claims and lawsuits. This insurance helps safeguard your business by covering certain costs related to these lawsuits or claims up to the specified policy limit.

For instance, should a customer experience a slip-and-fall accident at your premises, small business insurance would handle the medical bills and potential settlement or judgment awards. Here’s an outline of the typical coverages in a small business insurance package:

Commercial general liability insurance
Professional liability insurance
Product liability insurance
Commercial auto insurance
Commercial property insurance
Equipment breakdown insurance

Seeking insurance insights tailored for small businesses? Gaining a clear understanding of your business insurance is vital. The landscape of the Ontario insurance marketplace continually evolves. As a small business owner, staying updated on the latest coverages might not always be feasible. This is why we consistently publish informative articles related to Small Business Insurance in Ontario on our blog. Here are two articles that you might find useful:

Operating a small business from your Ontario home? Some entrepreneurs, particularly small insurance brokers, believe that their home insurance policy might negate the need for commercial general liability insurance. While in certain situations, a home insurance policy might cover liabilities associated with running a small business, this is only true if your insurance company has provided written confirmation.

However, many personal insurance policies explicitly exclude business-related liabilities. For example, if a client visits your home for business reasons and suffers an injury or incurs property damage, your Ontario-based small business might not have coverage if the client chooses to file a lawsuit.

Is your small business insured for professional liability? Also termed as errors and omissions, professional liability insurance is crafted to shield your Ontario small business when a customer believes that your company didn’t deliver professional services adequately.

To illustrate, if a client sues claiming that a strategy you devised and recommended adversely impacted their business, professional liability insurance can help cover court and/or settlement costs. This type of insurance is especially valuable for service-providing entities like law firms, accounting agencies, consulting businesses, real estate agencies, and financial advisory firms.

Want insurance insights that are specific to small businesses?

It’s important to understand your business insurance. The Ontario insurance marketplace is always changing and evolving. And as a small business owner, you can’t always keep on top of the newest coverages. This is why we regularly publish informative articles about small business insurance on our blog. Below, please find two examples of articles you may find helpful.

Run a small business in your Ontario home?

Some entrepreneurs, particularly small insurance brokers, believe that their home insurance policy might negate the need for commercial general liability insurance. While in certain situations, a home insurance policy might cover liabilities associated with running home-based businesses, this is only true if your insurance company has provided written confirmation.

However, many personal insurance policies explicitly exclude business-related liabilities. For example, if a client visits your home-based business and suffers a bodily injury or incurs property damage, your Ontario-based small business might not have coverage if the client files a lawsuit.

Is your small business covered for professional liability?

Also termed as errors and omissions, professional liability insurance is crafted to shield your Ontario small business from business interruption or a lawsuit when a customer believes your company didn’t deliver professional services adequately and/or provided incorrect or incomplete guidance, advice, recommendations etc.

To illustrate, if a client sues, claiming that a strategy you devised and recommended adversely impacted their business, professional liability insurance can help cover court, settlement, and/or legal fees. This type of insurance is especially valuable for service-providing entities like law firms, accounting agencies, marketing, property management, design firms, consulting businesses, real estate agencies, and financial advisory firms.

9 Key Strategies for Purchasing or Renewing Small Business Insurance in Ontario

Last but not least, whether you are renewing coverage or buying insurance for the first time, these 9 small business insurance tips from the Insurance Bureau of Canada can help you focus on what’s most important.

Speak to an insurance professional about the specific insurance needs of your business.
Shop around to find the right policy to fit your unique needs.
Review your policy at least once a year.
Understand your policy. Know what your policy covers and your policy’s limits and deductibles. If you have questions, contact your insurance representative.
Make sure your policy’s limits are appropriate. Check to see if you have the right amount of coverage for what you own and operate.
Look into purchasing legal liability insurance. If someone were to slip and fall on your business premises, you’d want to be sure you had adequate liability coverage.
Ensure that you have appropriate auto insurance coverage. A personal auto insurance policy will not cover the commercial use of a vehicle.
Look for ways to lower your premiums. Some insurers offer discounts if you take action to reduce risk. Ask your insurance representative about what you can do to lower your premiums.
Consider errors and omissions coverage. If you are offering advice to clients, you will want to make sure you are covered if your advice goes awry.”2

Our National Operations Centre is based in Cambridge, Ontario and across the country, we support the needs of hundreds of small business owners. Talk to one of our small business insurance experts today to get the best coverage options lined up for your Ontario business.

DYK? We’re a small business too!

Like so many other Ontario small businesses, ALIGNED Insurance is built on an entrepreneurial dream.

We believe that aligning insurance experts to business needs is one of the most important things we do to support our clients throughout the province of Ontario.

Through our operations headquarters in Cambridge, Ontario and locations in Toronto, Calgary, and Vancouver, we support thousands of clients across this great country.

Here’s what some of our clients have to say about us…

Our team of experienced small business insurance brokers are experts in helping with all types of liability insurance products for small businesses and any other type of insurance that’s needed. Here’s what a few people have to say about why they choose to work with an ALIGNED Insurance broker.

“The ALIGNED team was great to work with! Easy communication, quick results and a great price on what we needed for insurance. Highly recommended!”

“Super helpful people just to get a quote over the phone. Helped me a lot with my project and potential start up.”

“Could not help directly with our insurance needs but gave us a great referral and follow up. Would recommend!”

“I’ve worked with a number of Insurance Brokers in the past 10 years and ALIGNED has surpassed them all. They are knowledgeable, friendly and a great asset to have in your corner.”
Excerpts from: 5 Star Reviews: What people have to say about ALIGNED Insurance and More Google reviews about ALIGNED Insurance

You’ve come to the right place. Our website is designed to address the most frequently asked questions from small business owners like you in Ontario. Day after day, we field queries from Ontario’s small business community.

To provide you with the answers you’re looking for and to direct you to the most relevant insurance products for small enterprises, we’ve curated a specialized section on our website that is entirely devoted to small business insurance. Here, you can find expert advice from small business insurance brokers and small insurance brokers tailored to the unique needs of your business.

Check out these products that are built for small businesses:

Sources: ¹ Ontario Chamber of Commerce: Small Business Week 2019;
²IBC.ca: Insurance tips for small business

Popular Insurance Products

Have A Question? Let us know!

Buy Insurance Online Now!

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