Small Business Insurance

Tips to save on your business insurance policies

According to the Canadian Federation of Independent Business (CFIB), 68% of small business owners in Canada expressed concerns about the rising costs of business insurance coverage. If you're looking to save money on your premiums, here's what you ned to do:

Bundling policies

Own a home? Have car insurance or other policies already? You may be able to bundle your small business insurance with your other coverage options to save on your premium!

Risk management strategies

To avoid insurance claims as a business owner, implementing risk management strategies like security measures, employee training, data protection protocols, and other procedures is key.

Regular policy reviews

Your business can change significantly every four quarters. To ensure your policy reflects the current needs of your small business, make a habit of reviewing your policy terms and limits every time your coverage is up for renewal.

Pay your premium upfront

Insurance companies often add a surcharge to customer accounts that pay monthly, as it costs them money to process every payment. To avoid these fees, consider paying for your premium upfront.

How to choose the right insurance for your business

Your business is your livelihood, which makes choosing the right insurance all the more important. When it comes to insurance, there isn't a one-size-fits-all solution. Therefore, before purchasing coverage, you'll need to consider the following:

• Industry type: The nature and scope of your business practices will heavily influence what insurance you purchase, as each industry comes with different risks. For example, if you work in IT, you'll likely prioritize cyber insurance and errors and omissions coverage, while someone who owns a cafe may prioritize commercial property insurance and other liability insurance.
• Business size: If you work as a sole proprietor, you may only require minimal coverage. In contrast, someone working with employees in a commercial space may need a more comprehensive policy.
• Risk exposure: Do you work with clients? Store consumer data? Rely on equipment or vehicles to operate? Determining what kinds of risk you're vulnerable to will help determine the type of small business insurance you need.
• Legal requirements: Some professions and industries will require you to have insurance. For example, if you're a consultant, lawyer, doctor, or massage therapist, you may need to have professional liability insurance to be a licensed practitioner.

Budgeting for insurance

Premiums will vary based on the type of insurance policies you choose, your policy limits, and more. To properly budget for this expense, shop around with different providers to compare costs. Remember, balancing coverage and affordability is key.

Benefits of working with a broker

A licensed insurance broker can evaluate your needs, compare quotes from multiple providers, and customize your final insurance products. But that's not all. Brokers can also assist with any insurance claims that may arise and help you make updates to your coverage as your business grows, saving you time and money throughout the entire process.

Canadian laws & requirements for small businesses

There are no federal laws in place that state business owners must purchase insurance. However, provincial regulations may apply depending on where your business is located. For example, if you hire employees, you will need to purchase workers' compensation coverage. Additionally, depending on the type of professional services you provide, errors and omissions may be mandatory under your professional regulatory body. To verify what your specific requirements are, check your provincial workers' compensation board and other official websites for more information.