Small business liability insurance in Ontario

Many people dream of starting their own business and being their own boss. If you’ve finally accomplished that goal, it’s important to protect everything you’ve achieved. The right insurance plan will give you peace of mind knowing what you’ve worked so hard to build is safe.

One of the most important types of insurance for a small business to have is liability. If an injury or damages occur, someone might decide to sue you. The costs can add up quickly, and if you’re a small business owner, you most likely won’t be able to cover those costs on your own. Even if the lawsuit is without merit, you’ll still need to involve your own lawyer. Liability insurance will help you with these costs and protect your business.

Every small business has different needs. A BrokerLink insurance broker will take the time to get to know your business and how it works. This is our favourite part of the job – it’s when we get to hear you talk about how you turned your passion into your livelihood! Since every business has unique needs, every policy will be slightly different. However, there are certain coverages most small business will need, and liability is one of those coverages. Keep reading to learn more about small business liability insurance and how it will protect you.


Types of business liability insurance for small businesses

Business liability insurance is a very broad term. There are different types of business liability insurance, and your broker will help you determine what you need. Here are a few types of business liability insurance that might be right for your business:

General liability insurance

This is a common form of liability insurance that most small businesses require. It helps business owners with claims resulting from their businesses causing injury or damage to a third party. The most common example: someone is injured on your business property and decided to sue you.

Professional liability insurance (errors and omissions)

This type of insurance is necessary if there are errors in your work and your client suffers financial losses due to those errors. Some of the types of businesses that might need this type of insurance include programmers, engineers, photographers, graphic designers and management consultants.

Cyber liability insurance

Every business is susceptible to a cyber-attack, even a small business. Some insurance companies offer insurance that will cover the costs of a lawsuit that might stem from a cyber-attack. A common example of a cyber-attack is a client data breach.

These are just a few of the types of coverage available to your small business. If it seems a bit overwhelming already, don’t despair. That’s what your insurance broker is for. They will explain everything and help determine what your business needs to be protected.

What is not covered by business liability insurance?

It’s important to know that liability insurance is just one type of insurance you’ll need to protect your small business in Ontario. Below are a few things not covered by business liability insurance:

  • Lost revenues due to business interruption
  • Damage to business vehicles
  • A loss from uninsured business operations

For more details on what is and isn’t covered under liability insurance, visit our Commercial General Liability Coverage blog post.

Who needs small business liability insurance in Ontario?

Do you have a small business in Ontario? If you answered yes, you need liability insurance! We know how expensive it can be to get your business off the ground. Buying insurance might be the last place you want to spend your money. But insurance will protect you from the things you don’t expect. Most small business owners don’t have the cash on hand to protect themselves from a lawsuit. The costs add up quickly. The right insurance plan will allow you to stay in business should the unexpected become a reality.

Factors affecting the cost of small business liability insurance in Ontario

At this point you’re probably wondering how much this is going to cost. Every business will have a different answer. The cost of insurance will depend on many factors, including:

  • Type of business
  • Years of experience
  • Income
  • How many employees you have
  • Where your business is located

A broker will discuss all these factors with you before presenting you with a quote.

How BrokerLink can help you get small business liability insurance in Ontario

There are a few things you should know about a BrokerLink insurance broker:

  1. We are insurance experts - Our brokers have been doing this for a long time. We know our stuff and you can have confidence in what we say.
  2. We’re independent - We will always do what’s best for our customers, not what’s best for the insurance company.
  3. We don’t do cookie cutter solutions - Every business is different. This is why you need an insurance broker who gets to know your business and provides a plan tailored just for you.

The advantage of going with a BrokerLink broker is clear. At the end of the day, you’ll have peace of mind knowing your business is protected.

Contact BrokerLink today for your small business insurance needs

In order to get started, simply call us at one of our locations. Whether you’re getting ready to launch your small business or you’re shopping around for your existing business, we’re here for you.


FAQs on small business liability insurance in Ontario

What is covered by business liability insurance?

That depends on your specific policy. With general liability insurance (one of the most common types of liability insurance for small businesses) you will be covered for third party property damage and third party bodily injury.

What factors determine the cost of liability insurance for a small business?

Many factors will determine the cost of liability insurance for a small business. Just to name a few: where your business is located, how many employees you have, your company’s revenue, how much experience you have and the type of business you have will all be considered.

My business is really small – do I still need liability insurance?

Short answer: yes! Even if a business is really small, you still face risk. Insurance isn’t just for the risks you’re thinking about, like theft or a fire. It’s about the risks that haven’t even occurred to you. Protect yourself from the unexpected with the right liability insurance plan.

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