The Best Commercial business insurance in Canada 2023

If you own or operate a business in Canada, you may want to consider getting commercial business insurance to protect your assets, employees, and customers from unforeseen risks. Commercial business insurance is a type of insurance that covers various aspects of your business operations, such as property, liability, auto, surety, and more.

Why do you need commercial business insurance?

There is no law in Canada mandating business owners to take out business insurance – unless, of course, it is for a commercial vehicle, which is a legal requirement for all Canadian drivers before they can be allowed to hit the road¹. However, there are many benefits and advantages of having commercial business insurance, such as:

• It can help you recover from losses or damages caused by fire, theft, vandalism, natural disasters, or other perils that may affect your business property or inventory.
• It can protect you from legal claims or lawsuits arising from bodily injury or property damage that you or your employees may cause to third parties while conducting your business activities.
• It can cover the medical expenses or lost wages of your employees if they get injured or sick on the job or as a result of their work-related duties.
• It can provide you with a guarantee that you will fulfill your contractual obligations to your clients, suppliers, or partners by issuing surety bonds.
• It can enhance your reputation and credibility as a responsible and trustworthy business owner who cares about the safety and satisfaction of your stakeholders.

How to get commercial business insurance?

The best way to get commercial business insurance is to work with a licensed and reputable insurance broker who can help you find the right coverage for your specific needs and budget. Insurance brokers are experts who can advise you on the types of coverages that are suitable for your industry, size, and nature of your business. They can also compare quotes from different insurers and negotiate the best rates and terms for you.

Some of the leading providers of commercial business insurance in Canada are Intact Insurance², Aviva Canada³, and The Co-operators. These insurers offer comprehensive and customizable solutions for various sectors and segments of the Canadian economy.

examples of commercial business insurance coverages?

Depending on your business needs and preferences, you can choose from a range of commercial business insurance coverages that can address different aspects and scenarios of your business operations. Some of the most common coverages include:

• Property insurance: This covers your physical assets against loss or damage caused by fire, theft, vandalism, or other perils. It can include buildings, equipment, furniture, inventory, computers, and more.
• Liability insurance: This protects you from legal claims or lawsuits arising from bodily injury or property damage that you or your employees may cause to third parties while conducting your business activities. It can include general liability, professional liability, product liability, cyber liability, and more.
• Commercial auto insurance: This covers the vehicles that you use for your business purposes against loss or damage caused by collision, theft, vandalism, or other perils. It can also cover the medical expenses or liability claims of the drivers or passengers involved in an accident.
• Surety bonds: These are contracts that guarantee that you will fulfill your contractual obligations to your clients, suppliers, or partners. They can include bid bonds, performance bonds, payment bonds, license bonds, and more.
• Business interruption insurance: This covers the loss of income or profits that you may suffer due to a temporary closure or disruption of your business operations caused by a covered peril. It can help you pay for ongoing expenses such as rent, utilities, payroll, taxes, and more.
• Business assistance services: These are value-added services that provide you with access to helpful advice, tools, and resources from professionals across different fields of expertise that you may not have on your payroll. They can include legal assistance, accounting assistance, human resources assistance, marketing assistance, and more.

How much does commercial business insurance cost?

The cost of commercial business insurance depends on various factors such as:

• The type and amount of coverage that you need
• The size and nature of your business
• The industry and location of your business
• The number and value of your assets
• The number and profile of your employees
• The level of risk exposure that your business faces
• The claims history and loss prevention measures of your business

Why Do You need commercial business insurance?

You may need commercial business insurance for several reasons, such as:

• It can help you recover from losses or damages caused by fire, theft, vandalism, natural disasters, or other perils that may affect your business property or inventory.
• It can protect you from legal claims or lawsuits arising from bodily injury or property damage that you or your employees may cause to third parties while conducting your business activities.
• It can cover the medical expenses or lost wages of your employees if they get injured or sick on the job or as a result of their work-related duties.
• It can provide you with a guarantee that you will fulfill your contractual obligations to your clients, suppliers, or partners by issuing surety bonds.
• It can enhance your reputation and credibility as a responsible and trustworthy business owner who cares about the safety and satisfaction of your stakeholders.

Commercial business insurance can also help you comply with certain laws or regulations that may apply to your industry or profession. For example, if you use vehicles for your business purposes, you are legally required to have commercial auto insurance. If you have employees, you may be legally required to have workers’ compensation insurance. If you provide professional services for a fee, you may be legally or ethically required to have professional liability insurance. Commercial business insurance can help you avoid fines, penalties, or legal actions for non-compliance.

How can you get commercial business insurance?

The best way to get commercial business insurance is to work with a licensed and reputable insurance broker who can help you find the right coverage for your specific needs and budget. Insurance brokers are experts who can advise you on the types of coverages that are suitable for your industry, size, and nature of your business. They can also compare quotes from different insurers and negotiate the best rates and terms for you.

You can obtain a list of licensed agents in your state through your state’s department of insurance or the National Association of Insurance Commissioners. You can also use online platforms or tools that can help you connect with insurance brokers or providers in your area.

Some of the leading providers of commercial business insurance in Canada are Intact Insurance, Aviva Canada, and The Co-operators. These insurers offer comprehensive and customizable solutions for various sectors and segments of the Canadian economy.

Can you compare different providers of commercial business insurance?

Different providers of commercial business insurance may offer different types of coverages, prices, discounts, and customer service. To compare different providers, you can use online platforms or tools that can help you get quotes from multiple insurers based on your business needs and preferences. You can also consult with an insurance broker who can help you compare different options and find the best deal for you.

Some of the online platforms or tools that can help you compare commercial business insurance providers in Canada are Ratehub.ca¹, Surex², and LowestRates.ca³. These websites allow you to enter some information about your business and get personalized quotes from various insurers. You can also compare the features and benefits of different policies and contact an insurance advisor for more details or to finalize your purchase.

Some of the factors that you may want to consider when comparing different providers are:

• The type and amount of coverage that they offer
• The price and payment options that they offer
• The discounts and savings that they offer
• The reputation and ratings that they have
• The claims process and customer service that they provide

What are the factors that affect the cost of commercial business insurance?

The cost of commercial business insurance depends on various factors such as:

• The type and amount of coverage that you need
• The size and nature of your business
• The industry and location of your business
• The number and value of your assets
• The number and profile of your employees
• The level of risk exposure that your business faces
• The claims history and loss prevention measures of your business

To get an accurate estimate of how much commercial business insurance will cost for your business, you should contact an insurance broker who can assess your situation and provide you with a quote.

example of a claim that commercial business insurance would cover

• Property insurance: If a fire breaks out in your office and damages your furniture, equipment, and inventory, property insurance would cover the cost of repairing or replacing them.
• Liability insurance: If a customer slips and falls on your premises and sues you for medical expenses and pain and suffering, liability insurance would cover the legal fees and settlement costs.
• Commercial auto insurance: If you get into an accident while driving your company car and cause damage to another vehicle or person, commercial auto insurance would cover the repair costs and liability claims.
• Surety bonds: If you fail to complete a project for a client according to the contract terms and they demand compensation, surety bonds would cover the amount that you owe them.
• Business interruption insurance: If a flood forces you to close your business for a week and you lose revenue and profits, business interruption insurance would cover the amount that you would have earned during that period.