Running a business in a big city has many benefits – more access to resources, networking opportunities, and increased foot traffic. With these benefits come additional risks.
It makes sense that with more steps in your supply chain and clients interacting with your business, you are more likely to encounter a liability claim. Adjusting insurance coverage to protect a company from all angles is a priority for most business owners. Are you one of them?
Business insurance is a policy package that is specially designed to protect business owners in the city against claims related to their professional services.
What Does Business Insurance Cover?
At its core, a firm insurance policy for Toronto business owners is comprised of three policies:
- Commercial General Liability Insurance: The most popular insurance policy and for a good reason. Commercial General Liability Insurance, also referred to as CGL, protects against claims related to third-party property damage and bodily injury. Regardless of what type of business you run, CGL is an important policy to consider, as it may cover the legal expenses and medical fees associated with these types of claims should they be brought against you and your business.
- Commercial Property Insurance: As the name suggests, Commercial Property Insurance provides coverage for loss or damage to the physical assets of your store. This coverage includes your business’s physical property, in addition to furniture, equipment, and technology. We have a feeling you will want to protect your property from those unplanned damages that happen in a city that floods every time it rains hard.
- Business Interruption Insurance: If your property is damaged or there is an equipment breakdown, business interruption insurance will cover the net income lost during the time it takes to replace and repair your property. Your landlord isn’t likely to waive your monthly payments because of a business interruption. In addition to income, business interruption service also helps you cover necessary overhead costs like rent and electricity while you get your business back up and running.
Together, these three policies provide comprehensive coverage for your business. But wait, there’s more.
Extra Coverage For Your Business
For your business to stand out in the city, it needs to be unique, and as you know, unique features mean unique risks. For businesses that require additional coverage, there is the option to add to your insurance policy. Here are a few standard policies favoured by business owners in Toronto:
- Equipment Breakdown Insurance: When you buy equipment for your business, chances are you’re buying it to last, not to replace within a few months. But there are some aspects of your business that you can’t control, and your equipment breaking down is one of them. Equipment breakdown insurance covers the cost to replace or repair damaged equipment damaged due to an electrical or mechanical breakdown. If you rely on any equipment (computers, too!) to conduct business, then this is a policy for you.
- Product Liability Insurance: If you sell, supply, or manufacture products, this one’s for you. Product liability insurance provides coverage for claims alleging property damage or bodily injury due to a product you have sold or supplies. These types of claims may range from a skin reaction to a manufacturing defect.
- Liquor Liability Insurance: Not all business operations include liquor, but for those that do liquor liability insurance is a must. Liquor liability insurance provides coverage for bodily injury or property damage caused by an intoxicated person who was served alcohol on your premises. So, if you’re going to be offering complimentary champagne as part of your spa services, we suggest proofing your business with liquor liability insurance.
- Cyber Liability Insurance: Contrary to what film and television would have you believe, cyber hackers aren’t necessarily interested in targeting the government and banks. Small- to medium-sized businesses are far more susceptible to cyber-attacks. Cyber liability insurance covers the costs associated with loss and damages to your electronic data. It may come in the form of a business e-mail compromise or point-of-sale system attack.
- Professional Liability Insurance: Also called Errors & Omissions (E&O) insurance, professional liability insurance protects against claims alleging negligence resulting in a financial loss for your client or failure to deliver a service as promised. This type of insurance is critical for those who make a living providing advice, such as consultants, architects, and lawyers.
You know your business better than anyone else. Speak with your broker about customizing your policy to meet your specific business needs.
What Does Business Insurance In Toronto Cost?
When you run a business in a major city, such as Toronto, it is easy to imagine all of the things that could go wrong. By protecting yourself with business insurance, you’re doing the most you can to protect your business from detrimental unplanned events.
Just as your business is unique, so too is the cost of insurance for it. When determining the price of your insurance premium, the size of your business, industry, and annual revenue is taken into consideration. On average, a small-business owner can expect to pay $450.00 a year on a $2 million liability insurance policy.
Many other variables will affect the price you pay, and it is always wise to overestimate how much coverage you need. Speak to your broker about customizing your policy to meet your specific business needs.
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