As we cruise to the end of another year and business owners and independent professionals plan for 2025, it’s essential for them to factor in the necessary business insurance coverage they’ll need.
Unexpected incidents, accidents, damage caused by severe weather, fire, theft, and other events beyond one’s control can affect the finances and reputation of any small business owner or self-employed professional.
Last January, we shared the 10 most prominent insurance claims we resolved in 2023.
Although we received more than 10 insurance claims over the course of 2024, the outline of the claims below is among the more noteworthy ones we dealt with this year. The details of each illustrate how the business insurance these clients purchased from Zensurance helped protect their financial well-being and enabled them to recover quickly:
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1. Equipment Damage Claim
Client’s industry: Construction
Incident: A wheel loader was involved in an accident on a job site.
Relevant insurance coverage: Tools and equipment insurance
Last spring, one of our contractor clients was using their wheel loader at a job site when it lost traction and flipped over (a wheel loader is a large piece of heavy machinery used on construction sites). Fortunately, the loader’s operator was not injured, nor was anyone else on the job site. However, the loader sustained significant damage.
Our client’s tools and equipment insurance covered the claim, paying $40,000 to repair the loader.
2. Ransomware Attack Claim
Client industry: Technology
Incident: A ransomware attack.
Relevant insurance coverage: Cyber insurance
Our client runs a software development company. They noticed suspicious activity was occurring in their network and that their servers were under attack by unknown hackers. It was later determined that suspicious files were installed on their servers, encrypting their files, and a ransomware attack was launched against them.
Our client’s cyber liability insurance paid over $170,000 to remove the malicious software, restore their servers, and cover the ransomware payment.
3. Robbery Claim
Industry: Finance
Incident: A robbery at gunpoint.
Relevant insurance coverage: Commercial crime insurance
Our client owns and operates a currency exchange shop. During business hours, the premises were robbed at gunpoint by an unknown assailant. Thankfully, no one was injured. However, the thief made off with a significant amount of money.
Our client’s commercial crime insurance policy covered over $35,000 in stolen cash.
4. Auto Collision Claim
Industry: Construction
Incident: An auto accident.
Relevant insurance coverage: Commercial auto insurance
Another of our general contractor clients owns a commercial vehicle. While en route to a job site, another motorist rear-ended his pickup truck, causing extensive damage.
His commercial auto insurance paid over $10,000 to repair his damaged vehicle.
5. Property Damage Claim
Industry: Food and hospitality
Incident: A break-in.
Relevant insurance coverage: Commercial property insurance
Our client owns a bakery. One night, thieves broke into the bakery, ransacked the property, and caused significant damage to their kitchen appliances and baked goods inventory.
Their commercial property insurance policy paid over $10,000 to replace the damaged baked goods and repair the refrigerators.
6. Water Damage Claim
Industry: Construction
Incident: A flood causing water damage.
Relevant insurance coverage: Tools and equipment insurance and an installation floater
Another of our contractor clients saw his tools and supplies for a construction project damaged following a heavy rainstorm. The tools and supplies were stored in the back of his truck’s bed. The rainstorm caused the street to flood, trapping his vehicle. The water got into the truck bed and damaged his tools and supplies.
His tools and equipment insurance policy and installation floater covered over $25,000 total to replace his waterlogged tools and the ruined construction supplies. Another company insured the client’s vehicle.
7. Third-Party Bodily Injury Claim
Industry: Beauty
Incident: Accidental injury to a customer.
Relevant insurance coverage: General liability insurance
Our client owns and operates a barbershop. While cutting a customer’s hair, he accidentally sliced into their ear, requiring the customer to seek medical attention.
Our client’s general liability insurance includes coverage for third-party bodily injury claims. His policy covered $10,000 to pay for the injured customer’s medical and rehabilitation expenses.
8. Third-Party Property Damage
Industry: Landscaping
Incident: Accidental damage to a customer’s vehicle.
Relevant insurance coverage: General liability insurance
One of our landscaping clients in Ontario was working at a customer’s property when they accidentally damaged the customer’s vehicle. Interestingly, the vehicle owner waited more than two years to file a claim against our client for damages.
The statute of limitations for filing a property damage claim against a contractor or small business in Ontario is two years. Since more than two years had passed before the landscaper’s customer filed a claim for damages, it was dismissed, and no insurance payout was required.
9. Business Interruption Claim
Industry: Property and hospitality
Incident: A wildfire in B.C. forced an Airbnb host to close and cancel their bookings.
Relevant insurance coverage: Business interruption insurance
Our client is a rental property owner in B.C. who rents his property on Airbnb. A wildfire near their property raged out of control, and the civic authorities ordered the region to evacuate. Our client had no choice but to cancel several guest bookings, which resulted in lost income.
Fortunately, our client had business interruption insurance as part of their overall Airbnb liability insurance coverage. Their policy paid over $5,000 to cover the income they lost.
10. Errors and Omissions (E&O) Claim
Industry: Accounting
Incident: An error made by an accountant on their customer’s tax return.
Relevant insurance coverage: Errors and omissions (E&O) insurance
Our client is a tax accountant who hasn’t made an error in any tax filing for 20 years. However, the day finally came when she made a mistake – an error on one of her customers’ income tax returns. The error led to her customer receiving a fine of $8,366.58 from the Canada Revenue Agency (CRA).
Thankfully, her E&O insurance policy paid her customer’s $8,366.58 CRA fine.
Commercial Insurance Protects Your Small Business and Finances
Unforeseen events can happen instantly, risking your business and financial stability.
No matter your industry, location, or how careful you are, every small business owner and independent professional should be prepared for the unexpected. A comprehensive business insurance policy is critical for protecting your finances when unexpected things go wrong.
Fill out our online application to get a free quote tailored to your unique needs.
Zensurance is Canada’s leading business insurance brokerage, helping hundreds of thousands of small business owners get affordable, customized coverage to run their businesses confidently.
– Reviewed by Brandon Bowie, Team Lead & Senior Broker – Professional Lines, Mohammad Samin, Senior Claims Advisor, and Reagan Elly, Senior Claims Advisor, Zensurance.
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