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
Why do I need business insurance?
What Should You Know About Small Business Insurance in Ontario?
- 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?
Number of employees
The services you provide and products you sell
Value and amount of equipment owned
Annual and projected revenue
Years of experience
Historical insurance data
What does small business insurance cover?
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
Want insurance insights that are specific to small businesses?
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!
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!”Excerpts from: 5 Star Reviews: What people have to say about ALIGNED Insurance and More Google reviews about ALIGNED Insurance
“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.”
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