Canada's Top 5 Small Business Insurance
Starting a small business is exciting and terrifying at the same time. When it comes to some business-related endeavors, like product development or branding, you are eager to get started, but you are less interested in other related pursuits. If insurance was one of them and was near the bottom of your list of things to do, we wouldn't be surprised (or offended).
In the long run, having the appropriate insurance for your business could end up saving you hundreds of thousands of dollars. As important to the success of your company as a product that sells is insurance.
What does insurance for small businesses in Canada cover?
Various insurance programs designed to protect business owners from potential risks like property damage, bodily injury, negligence, and cyberattacks are collectively referred to as "small business insurance." The most prevalent types of business insurance are:
Costs associated with claims or legal actions alleging third-party property damage or bodily injury as a result of your company's operations are covered by commercial general liability insurance.
Professional liability insurance provides coverage for claims or lawsuits involving allegations of negligence, misconduct, or failure to deliver a service as promised.
Product liability insurance offers protection in the event that one of the goods you sell or manufacture leads to third-party injury or property damage claims.
Cyber Liability Insurance provides protection against online crimes that could compromise data.
What is the price of insurance for a new Canadian company?
The typical annual premium for general liability insurance is around $500, according to Progressive and Insureon. But the price of insurance differs greatly depending on the size of your business, your sector, your insurance provider, and the kind of policy. A transportation company, for example, will pay considerably less than a freelance graphic designer. Comparing prices from several different service providers is the best course of action.
The five types of small business insurance available in Canada
The market for small business insurance can seem complicated, with a plethora of intricate offers. General liability insurance and workers' compensation insurance are required, but you should compare your options to find the best deal for your company. Here are 10 common insurance policies for small businesses.
General liability insurance
general liability insurance provides comprehensive, all-encompassing protection. The majority of policies protect your business against slander and libel lawsuits as well as allegations of property damage and bodily injury.
Workers’ compensation insurance
You might be liable for their costs and compensation if one of your employees gets hurt on the job. However, if you have workers' compensation insurance, your insurance company will cover that.
Workers' compensation insurance may pay for the cost of medical care, lost wages, disability, and even funeral costs. Every state, with the exception of Texas, mandates that companies with non-owner employees carry this kind of insurance.
Commercial property insurance
Your business can replace any lost or damaged commercial property with the help of commercial property insurance, also referred to as hazard insurance or business property insurance. This can include any movable property that your company owns, such as stock, furniture, equipment, or real estate (such as an office building).
Employment practices liability insurance
When a worker files a claim alleging discrimination or wrongful termination against the company's owner or executives, employment practices liability insurance, also known as employers' liability insurance, defends the business.
Cyber liability insurance
Data breaches and ransomware attacks can actually hurt your customers and your business because they lock you out of your device or encrypt your data until you pay a ransom. Attacks of this nature are increasing. Liability insurance protects you if you have to alert customers to a breach, covers the cost of free credit monitoring for those clients, and compensates them in the event of a claim.
The top 5 small business insurance providers in Canada
Sun Life Financial
Sun Life Financial (SLF), one of the earliest insurers, was established in 1865 and has its headquarters in Toronto. It offers health insurance plans, investment products, and wealth management services. The business also has customers in Asia and the United Kingdom in addition to North America.
Sun Life Financial had close to 126,000 advisors and over 40,000 employees as of the end of 2019. Nearly $850 billion US in Canadian assets were under Sun Life's management. Insurance-related products, such as insurance premiums and segregated fund deposits, which are life insurance products housed inside mutual funds, generated close to $38 billion Canadian ($29 billion US) in revenue in 2019.
iA Financial Group
Industrial Alliance Insurance and Financial Services uses the trade name IA Financial Group (IAG.TO). The company offers a wide range of insurance and financial services to both businesses and private clients.
The typical annual premium for general liability insurance is around $500, according to Progressive and Insureon. But the price of insurance differs greatly depending on the size of your business, your sector, your insurance provider, and the kind of policy. A transportation company, for example, will pay considerably less than a freelance graphic designer. Comparing prices from several different service providers is the best course of action.
Manulife Financial Corp
Intense offers abound in the small business insurance market, giving the impression that it is a complicated market. General liability insurance and workers' compensation insurance are required, but you should compare your options to find the best deal for your company. Here are 10 common insurance policies for small businesses.
Manulife has operations outside of the United States in Canada, Asia, and Europe through its subsidiary John Hancock. The company had nearly 98,000 agents and 38,000 employees by the end of 2019. The total value of the assets Manulife managed was $1.2 trillion Canadian ($920 billion US).
Founded in 1887, The Manufacturers Life Insurance Company sold its first international policy in Bermuda in 1893. In 2002, a company branch received approval from the China Insurance Regulatory Commission (CIRC) to open a branch in Guangzhou.
Great-West Lifeco
Great-West Lifeco, Inc. is a financial services company with its headquarters in Canada. It acts as the holding company for six subsidiaries that provide insurance to customers in Asia, Europe, and North America. Great-West Lifeco offers a variety of insurance policies, including those for life, health, and disability.
The company had advisor relationships, 24,000 employees, and 30 million customers by the end of 2019.
Progressive
Despite providing many different small-business insurance services, Progressive Commercial is best known for its commercial auto insurance. Options for coverage include:
general liability
Workers' compensation
Commercial vehicles.
Insurance for commercial property.
Professional liability.
Cyber insurance
Liability insurance for employment practices.
The policy of business owners.
Conclusion
Even though shopping for commercial insurance can be stressful, the risk to your company is reduced as a result, giving you peace of mind. Now, you can pick an insurance provider based on your market niche and industry.
