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Ontario Business Insurance

Protecting your livelihood with Ontario business insurance

At Acera Insurance, our goal is to provide business insurance that Ontario business owners can count on. Opening and running your own company takes time and a lot of hard work. With small business insurance, Ontario companies can operate with a safety net under them, providing the financial support they need should something go wrong. When you request a business insurance quote from Acera Insurance, our brokers will work to provide you with affordable coverage that can help keep your business on track.

Explaining Business Insurance in Ontario

What is business insurance?

Business insurance is a type of insurance that is purchased by enterprises and organizations of any size to protect against losses resulting from typical events that can occur during the day-to-day operations. There are so many different types of business insurance, including coverage for legal liability, property damage and risks related to employees. Each organization will need different levels of insurance based upon its potential risks, and every industry faces a different level of risk.

Business insurance, or commercial insurance, is a broad term that refers to a grouping of different commercial insurance coverages. These coverages are intended for businesses, not individuals, but sole proprietors can also benefit from business insurance.

Businesses may seek insurance coverage to protect their physical premise from damages, or to protect themselves from the financial repercussions of a lawsuit. That’s just the tip of the iceberg. Let’s go over the different types of business insurance that business owners may want to consider.

Is it mandatory to purchase business insurance in Ontario?

It depends on your industry and type of business insurance, but for many businesses, commercial insurance is not mandatory. Certain types of insurance, such as personal liability insurance, may be required if your business deals in a professional service or offers advice, and operates within a particular industry.

Lawyers and medical professionals typically require some form of liability insurance to operate.

Even without it being a requirement, businesses can greatly benefit from purchasing commercial insurance. Commercial insurance can keep your business’ wheels spinning for as long as they need to, and if an event occurs, which could threaten the livelihood of your business, then you will have the resources needed to recoup and get back to business as usual.

Business insurance Ontario companies need

You have assets that need financial protection. When you call us for business insurance our Ontario brokers will offer a variety of policy options that include comprehensive support. When it comes to choosing business insurance coverage, Ontario companies will need to first focus on protecting assets such as their building, vehicles and equipment. Then, consider liability insurance to reduce risks when claims are made against your company. Commercial insurance coverage that Ontario companies often need also includes business interruption insurance as well as coverage for the special operations of your company. We make it easy for you to get every type of coverage you need.

Types of Business Insurance in Ontario

Ontario General Liability Insurance

In Ontario, general liability insurance, or commercial liability, is one of the most basic types of liability insurance for any business — large or small. Every Ontario business is exposed to the risk that a third-party could file a claim against them, alleging bodily injury or property damage because of your business activities or injuries that were suffered on business property.

Lawsuits can be expensive. Businesses purchase general liability insurance to protect themselves from expenses resulting from a third-party liability claim, such as medical expenses, legal costs, settlements and more. 

How much general liability insurance do I need in Ontario?

The amount of general liability insurance you require depends on several things, like the size of your business and its type, the kind of customers you would ordinarily serve, the number of employees and more. Most businesses, even smaller businesses, opt for at least $1 million in coverage – if not $2 million. What this amount means is that your insurer will pay out this amount for claims made during the term of your policy, which in most cases is a year. This is true regardless of how many claims you make.

Ontario Professional Liability Insurance

Like commercial liability insurance, professional liability insurance (or errors and omissions, as it’s also referred to as) serves a kind of liability insurance that covers medical bills, legal expenses, settlements and more – but for a different nature of claim. This coverage helps to protect businesses that offer professional services or advice — such as contactors, consultants, analysts and more. A loss due to an error or misinformation could be very costly for a client, who then might sue.

Professional liability insurance protects businesses against costs if they are sued for negligence, errors, omissions, misrepresentation and more. 

Who needs professional liability insurance in Ontario?

Not every business in Ontario needs professional liability insurance, but some businesses may even be required to carry it in order to comply with industry regulations. Here is a list of some occupations that could require professional liability insurance:

  • Consultants
  • Architects
  • Advertising agencies
  • Accountants
  • Auditors
  • Designers
  • Insurance professionals
  • Real estate agents
  • IT professionals

With some industries, you are more likely to have professional liability insurance referred to instead as errors and omissions insurance. With healthcare professions, it’s more frequently referred to as medical malpractice and, with lawyers and law professionals, it’s often referred to as professional indemnity insurance. There are small variations in what it covers between industries, but ultimately, it’s all the same.

Ontario business interruption insurance

Any good business owner’s policy should contain business interruption insurance. Also referred to as continuation insurance, this type of coverage is designed to compensate a business if a physical location needs time to do repairs or restoration following an unexpected (insured) loss. For example, a retail store that was burned down in a fire may need ongoing costs to compensate for things like employee wages, rent, utilities and lost income until they can safely reopen once their building 

Business interruption insurance may also provide costs to temporary relocate for longer periods of business closure. For some businesses, this can be a lifesaver. Many small businesses cannot afford to reopen following an unexpected and uninsured loss. 

How long does business interruption insurance last?

A business interruption policy can cover a business for its indemnity period, which is the period covered for loss of business. Business interruption policies have two forms of business interruption indemnities:

Limited: This policy is designed to pay only until the property has been replaced or the damages have been repaired. As soon as normal business operations can resume, the policy stops paying – even if your business has not regained its previous earnings. Limited form policies are less expensive than extended policies, but they may not offer enough coverage in the event of a loss. 

Extended: This type of coverage is designed to pay until your business can resume operations as normal, with pre-interruption levels. This amount is subject to the maximum period of indemnity that your policy declares.

Keep in mind that while limited costs less than extended coverage, if you were ever forced out of business for several months, there comes the risk of a limited period for which your insurance will cover you and how much it can pay total in one month. Also, during a period of closure, competitors might take some of your customers — so a resume in business could mean you won’t be operating at the same level of sales as you were prior to the loss.

Ontario cyber liability insurance

Cyber liability insurance is a type of coverage designed to protect your business if it suffers financial losses because of a security breach or ransomware event. Nearly all businesses will use technology or digital-based data at some point in their operations — so it’s a matter of “when” cyber security becomes an issue, not “if.”

More and more businesses are facing threats due to cyberattacks, with small businesses typically at the greatest risk for significant losses.

If your business faces a cyberattack, there could be devastating financial consequences. A cyber liability insurance plan insures your business for things such as

  • Business interruption
  • Litigation costs 
  • Settlements
  • Cyber extortion or “ransomware”
  • Forensic investigation
  • Settlements

Even if your business only uses technology to record financial transactions, it’s imperative that you find the right insurance to meet your needs. Cyber liability can offer tremendous support to businesses of all shapes and sizes.

What isn’t covered by cyber insurance in Ontario?

Cyber insurance has its limits, the same way as any business insurance policy does. You may find your average cyber insurance policy will not cover loss of value due to the theft of intellectual property, potential future lost profits and so on. 

Cyber insurance is a relatively new product in the insurance world, so there’s a lot of variation in the way policies are written from one insurer to the next. Prior to the pandemic, most insurers of cyber insurance were tightening up their guidelines for underwriting. Then, huge volumes of the workforce went from a secure public office to their home private network. 

Cyber insurance has protected workers along every step of this shift and can continue to do so in a post-pandemic world.

Ontario commercial property insurance

Whether your business owns or leases a property, whether it has a dozen branches across Ontario or just the one office, or whether it has only a few office supplies or dozens of desks, equipment and computers, commercial property insurance can insure your business against common physical hazards— such as fires, storm, theft, vandalism, wind, hail and so on. The actual hazards that property insurance may cover can vary depending on the extent of your policy.

Property insurance policies for commercial businesses may cover common hazards up to a specified limit and each claim is subject to a deductible. If a claim is submitted, the policy may either provide reimbursement for the actual damage value or the replacement cost, depending on what the policyholder has purchased. 

Cost of Ontario Business Insurance

Think of business insurance as a risk exchange. A business exchanges a certain amount of money, known as a premium, each month in exchange for their insurance coverage. The more coverage that is purchased, the more that their insurance will cost them. As you might expect, there’s a lot of other things that go into premiums as well.

How much does business insurance cost in Ontario?

The amount each business will pay for their commercial insurance will vary based on a few different factors. Insurers take into consideration the following factors — and more — when calculating your business insurance premium:

  • Industry
  • Size of business
  • Physical location
  • Equipment and tools
  • Materials 

Affordable commercial insurance that Ontario businesses can appreciate

When you talk to our Ontario commercial insurance brokers, you will learn just how affordable it can be to protect your business. Work closely with our business insurance brokers in Ontario to get a custom policy that fits the unique workings of your company. We’ll help you to keep your assets and risks in line while reducing any costs to you.

The truth is that small businesses have a higher propensity for financially devastating loss than you would think! More than half of small businesses will face a lawsuit in their lifetime, and just as many might be the victims of theft, storm damage and more. This is why it’s crucial for your business to have comprehensive commercial insurance.

Affordable commercial insurance is just a few clicks away. Acera Insurance gets you commercial insurance quotes so that you can see just how much your business might pay for its insurance. If you’re unsure of what you need, an Acera Insurance commercial insurance broker can serve as your guide and help you understand the coverage you truly need. 

Get business insurance quotes for your organization today. Our quotes are provided free-of-charge, and you can use them to see just how affordable your policy will be. We’re happy to go over your rates in further detail and answer any questions you may have about your coverage.

Get to know our Ontario commercial insurance brokers

Not all commercial insurance companies in Ontario are the same. Acera Insurance, as one of Ontario’s largest independently owned insurance brokers, has been serving commercial insurance solutions supported by a team of insurance professionals for decades. All our expertise, all our extensive training – that’s all dedicated solely to you, our clients. We do our best when we think outside of the box and push past traditional insurance services to adapt to the constantly changing needs of our clients. 

Benefit from a wide array of amazing insurance products and various services for your business, whether you’re a massive multi-million dollar construction company or a solo venture selling e-commerce goods. We have solutions for however you operate, and we’re dedicated to you from the very first step.

When you choose to work with Acera Insurance, you get the results you need. Contact our commercial insurance brokers to learn more about the services we offer and request a free online business insurance quote today.

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