Manage your policy and information directly with our self-serve options.
Haven't set up your account?
Quickly pay your invoice online using our secure payment system.
Manage on the go, download the BrokerLink Insurance App
9 minute read Published on Sep 5, 2026 by BrokerLink Communications
Did you know that Canada is a small-business country? As of December 2023, Canada had 1.10 million employer businesses and 98.1% were small businesses. By December 2024, Statistics Canada reported 1.36 million employer businesses and 3.48 million non-employer businesses.
As a small business owner, your number one priority is making sure your business thrives. A big part of that is protecting what you’ve built, so one “bad day” doesn’t turn into a long-term financial hit. That’s where having the right small business insurance policy comes in. Read on to learn more about the types of insurance you should probably have as a small business owner and how they can help protect your business.
Business insurance is coverage that provides certain protections for your business in the event of a claim. As a business owner, you face a variety of risks and the right business insurance plan can offer protection against those risks. Business insurance helps cover the costs your business might not be able to absorb on its own, like a lawsuit, a fire, a burst pipe, theft or even a data breach, when the event is covered by the policy.
It’s also important to know what business insurance is not: it’s not a guarantee that “anything bad that happens” is covered. Every policy has exclusions, limits, sub-limits, waiting periods and conditions. The goal is to choose coverage that matches how your business actually operates.
While commercial insurance is sold across Canada, the details can vary by province and territory and by the insurance company. A local insurance broker can help you understand what applies where you live and where you work.
Just like there are many different types of businesses, there are many different types of business insurance. Therefore, every business owner will have a different insurance plan based on their needs. Below are a few of the most common types of business insurance coverage:
Commonly referred to as CGL, commercial general liability insurance protects business owners from third-party bodily injury and property damage lawsuits. It helps cover your legal defence costs, settlements and judgements, as well as the third party’s medical expenses or repair costs. Here are a few real-world examples of when a CGL would apply:
You dent a homeowner’s front door while moving equipment
A customer slips and falls in your shop and sues you
While policy limits vary by industry and insurer, many Canadian small businesses carry $2 million to $5 million in liability coverage, depending on contracts, foot traffic and risk level.
In Canada, CGL insurance isn’t legally mandatory in the same way auto insurance is, but many provinces and municipalities have effectively made it mandatory through licensing, permitting or workers’ compensation rules. For example, some regulated trades or licensed contractors must show proof of liability insurance to get or keep a licence. Further, landlords may ask for proof of liability insurance before you can sign a commercial lease and clients (especially larger companies, municipalities and general contractors) may require you to carry a specific limit before you can start work.
Commercial property insurance provides coverage for loss or damage to the physical assets of your business, such as your property, stock and equipment, from covered perils like fire, theft, severe weather and certain types of water damage. If you run your business from home, it’s still important to purchase business insurance, as home insurance policies don’t cover business-related loss or damage. You may need a business endorsement or a separate policy, especially if you have clients visiting, store inventory or use specialized equipment.
A named-perils policy covers only the perils listed. An all-risk (often called “all-risks”) form covers many causes of loss except what’s specifically excluded. Your broker can explain which form you’re being quoted.
You never know what life has in store. If you ever need to put your business operations on hold because of loss, damage or destruction to your premises, like in the case of a flood or fire, you’ll be relieved to have invested in business interruption insurance. Severe weather losses have been hitting records in Canada. In 2024, insured losses from severe weather exceeded $1.7 billion for businesses, according to the Insurance Bureau of Canada (IBC).
Business interruption insurance is an optional add-on to your existing business property insurance policy that covers your lost income, as well as continuing operating expenses (e.g., rent, certain payroll and loan payments), during the temporary shutdown.
Whether you use one or more cars, vans or a truck or two for your business, you must have commercial auto insurance with at least minimum standard coverage, which includes third-party liability and (in almost all provinces/territories) accident benefits, while other mandatory requirements will vary depending on where you live. Even if you’re using a personal vehicle for business, you must carry a commercial auto policy because personal car insurance typically won’t cover any claims related to business-use.
You may also want to add optional collision or comprehensive coverage or even non-owned auto coverage. A broker will be able to recommend specific coverage based on your vehicles.
Professional liability insurance or errors and omissions insurance, is a type of coverage that’s necessary for those who give professional advice or provide services as part of their business. Professional liability insurance protects against claims alleging negligence or failure to deliver a service as advertised. Here are a couple of real-world examples to illustrate when professional liability insurance is necessary:
An accountant makes an honest error that costs his client thousands of dollars
A customer is not satisfied with the services provided by a consultant and decides to sue
Many professional liability policies are “claims-made,” meaning the claim typically needs to be made (and reported) during the policy period. If you choose to cancel your coverage, you may need to add “tail” coverage to protect your business from any late-reported claims.
If your business takes payments, stores customer info, uses email daily or relies on systems to operate, cyber threats are real, especially for small businesses. According to research from the Business Development Bank of Canada (BDC), about 73% of small businesses have already dealt with a cybersecurity incident. Cyber insurance can help protect your business from losses caused by data breaches, cyber attacks and ransomware, by covering related costs for things like:
Forensics and breach response
Client notification
Credit monitoring
Lost income
Legal fees
Depending on what you do, you may also want to ask about:
Crime (employee dishonesty) insurance: helps if money or inventory is stolen internally.
Equipment breakdown coverage: for sudden mechanical/electrical breakdown of equipment (often separate from property).
Contractor equipment/installation floater: for tools and materials on job sites or in transit.
Directors & Officers (D&O) insurance: for incorporated businesses with directors/officers or boards.
This is where a lot of frustration happens, so it’s worth being direct. Many policies do not cover:
Wear and tear/maintenance/gradual deterioration
Intentional acts and certain illegal activities
Flood/earthquake/sewer backup, unless you add endorsements or purchase separate coverage
It also doesn’t cover employee injuries or illness, as that’s generally handled through a provincial workers’ compensation insurance system (e.g., WSIB or WCB). Since workers’ comp is administered by the province or territory, rules can vary depending on where you live. For example, WorkSafeBC notes employers are generally required to have coverage unless exempt, while Ontario’s WSIB coverage isn’t mandatory for every business (though some industries are required and optional coverage is available).
Different industries tend to face different types of risk. The table below shows common examples of business risks by industry and the types of insurance that are often used to help manage them:
Industry
Common risks
Coverage typically recommended
Retail/e-commerce
Customer injuries
Theft
Damage to stock
Fire or water damage
Cyber attacks
Commercial general liability
Commercial property
Business interruption
Cyber liability
Contractors/trades
Injury to third parties on job sites
Accidental damage to client property
Stolen tools
Materials in transit
Weather damage
Vehicle-related claims
Contractor tools or installation floater
Commercial auto
Commercial property (if you have a shop or storage)
Professional services/consultants
Claims related to:
Advice or errors
Client financial losses
Data breaches
Email fraud
Office downtime
Professional liability (E&O)
Hospitality/food services
Equipment breakdown
Spoiled food/inventory
Alcohol-related liability (if applicable)
Commercial property (with spoilage coverage)
Liquor liability where required
Finding the right insurance can be challenging and so is pricing, because there’s no single rate card. Premiums are usually driven by things like:
Industry/business class
Revenue and payroll
Location and premises details
Claims history
Coverage choices and deductibles
Current safety measures
Many micro-businesses and especially low-risk professional services may see starter packages in the low hundreds annually, while contractors, retail and hospitality often land in the mid-hundreds to a few thousand because of things like payroll, revenue, vehicles, property values and higher liability limits.
Finding the right insurance can be challenging. Here are a few tips to consider:
When you’re looking for insurance or meeting with an insurance broker, you’ll need information about your business handy, such as the size of your business, your revenue, details about the premises, the nature of your business and how many employees you have.
We’re not saying you should become an insurance expert, but take a bit of time to learn about the types of business insurance. Jot down any questions you have so you can ask your broker.
Think about your budget and what you could afford in the event of a claim.
If there’s anything that doesn’t make sense, talk to your broker! That’s what they’re here for.
There isn’t a single “right” insurance policy for every business. What works for you depends on how you operate, who you deal with and what would cause real disruption if something went wrong. The steps below outline a simple way to help you think it through:
They usually involve:
The people you deal with
The property you rely on
Your ability to keep the business running
The data and systems you use every day
Instead of trying to insure everything, write down a short list of situations that would seriously disrupt your business if they happened.
Your industry is a good starting point, but it’s not the whole picture. A consultant working from home has very different needs than a contractor with vehicles and tools, even if they earn similar revenue. Think about things like whether:
Your customers come to you or you work on client property
You use vehicles for work
Your contracts require specific insurance limits
Liability limits are often driven by contract or landlord requirements first. From there, consider your worst-case scenarios to help you decide how high a limit you want, such as:
How severe an injury claim could be
How expensive legal costs might be
How long you could manage if your income stopped
Higher deductibles often mean lower premiums, but the trade-off is taking on more of the cost if you have a claim. Therefore, deductibles should be set at a level you could pay fairly quickly without putting pressure on rent, payroll or cash flow.
Make sure you’re comparing the same limits, sub-limits, exclusions, endorsements and (for business interruption) waiting periods and coverage length. A cheaper policy can end up costing you more later if important coverages are missing or capped too low. It’s also important to research an insurance provider’s reputation and claims process, so you know what kind of support to expect if you have a loss.
Insurance should change as your business changes. It’s a good idea to review your policy at least once a year, as well as anytime you:
Add new services
Hire employees
Buy new vehicles or equipment
Take on bigger contracts
Increase your revenue
Change how you handle customer data
But the most important thing to know is that you don’t have to choose it alone! An insurance broker can help you find the right insurance policy at a price that’s fair. A broker can also help you spot coverage gaps, like cyber, tools, sub-limits or business interruption waiting periods, before you find out the hard way.
Get in touch with BrokerLink today by phone or email to speak with one of our licensed business insurance experts who can help you find the right small business insurance plan that’s customized to fit the unique needs of your Canadian small business. You can also visit us in person at any one of our locations throughout Canada or try out our free online quote tool that can provide you with a competitive quote in minutes from the comfort of your home!