Business insurance is a vital pillar of the Canadian economy. According to the Insurance Bureau of Canada (IBC), it contributes a substantial $15 billion to the GDP and supports around 115,000 jobs. More than just numbers, it provides a safety net for businesses across Canada, helping to mitigate the risks involved in producing and delivering goods and services. This risk management tool is key to business confidence, as it reduces the fear of devastating financial setbacks from unexpected events.

You may be wondering, “How can insurance help protect my business?”. Well, we’ll try and answer that by outlining a few of the common insurance coverages and how they can potentially help you and your business.

Commercial property insurance can help cover a business’ physical assets

Commercial property insurance is a comprehensive solution that can help cover the building you own or lease and its contents, including equipment, furniture, fixtures, tools, and machinery. It helps protect your business assets, and it can be there for you even when your property is off-site or in transit.

This business insurance can be crucial in helping your business quickly recover from unexpected setbacks. It can help cover the cost of repairs or replacements, whether it’s fixing a vandalized door or replacing flood-damaged kitchen equipment in your restaurant. If your primary business location becomes unusable due to a covered peril, like a fire or severe weather damage, business insurance can help cover the costs associated with setting up a temporary workspace. It enables you to maintain business operations and customer relationships during the recovery phase, minimizing disruption and financial impact.

Commercial auto insurance can help safeguard your business vehicles

If you use vehicles regularly in your business, whether it’s a single truck for job site visits or a fleet of delivery vehicles for your restaurant, commercial auto insurance is important. It’s tailored to help protect your business vehicles, employees, and finances from the risks and costs associated with vehicle-related incidents. This business insurance can help cover medical bills and lost wages after accidents, provide replacement vehicles to keep your operations running, and can be extended to new vehicles in your fleet.

Deciding if you need commercial auto insurance boils down to a few key questions:

Who owns and drives the vehicle?

What’s its primary use?

What kind of vehicle is it?

If your vehicle is business-registered or is used for tasks like transporting goods or clients, then commercial auto insurance  may be right for you.

Business interruption insurance can help in the event you lose your business income

While insuring physical assets is common for business owners, many neglect to cover potential income loss from unexpected events. Business interruption insurance is a safeguard for a range of businesses, from small stores to large chains, against earnings lost due to unforeseen interruptions. For instance, if a manufacturer experiences a break-in and loses equipment, business interruption insurance could help cover things that are essential for maintaining your business’ market position and continuity like rent, payroll, temporary relocation, or expedited shipping for new equipment.

Commercial general liability (CGL) insurance can help protect against legal liability

Liability refers to your company’s legal responsibility for damages or losses incurred by a third party arising from your premises, operations, products, or completed services. This can range from someone getting injured at your premises to property damage occurring due to your business activities. Facing a liability claim can lead to expensive lawsuits, significantly impacting your business. Commercial general liability (CGL) insurance is designed to help protect business owners in cases where they are found responsible for such injuries or damages.

For instance, if you run a contracting business and are accused of damaging a client’s home or if a customer slips and gets injured in your store, CGL insurance is there to help cover the associated costs. It’s important to remember that legal issues can arise even when you believe you’ve done nothing wrong. Moreover, lacking liability insurance might limit your business opportunities, as certain events or customers may require proof of coverage. For example, if you’re participating in tradeshows or undertaking contract work on a client’s property proof of coverage may be necessary.

Pollution liability insurance may help in the event of environmental damage

Pollution, whether sudden or gradual, poses a significant risk not only to the environment and community but also to your project, reputation, and finances. Pollution liability insurance, also known as environmental impairment liability insurance, is tailored to help protect you from the hefty expenses associated with environmental damage. For instance, take a building contractor working on a home extension that inadvertently traps moisture in the walls, leading to extensive mould growth. When discovered, this could require costly mould removal and structural repairs.

Pollution liability insurance could help with things like:

  • Environmental damage due to contractor work
  • Cleanup or legal defence
  • Pollution incidents at owned or leased sites
  • Pollution risks during the transport of supplies or waste

Cyber insurance can help protect against digital threats

Cyber threats  continue to be a problem with many business operations moving online, making every industry vulnerable. Cyber insurance can play a key role in protecting your business from these risks. It can help cover losses from stolen or lost devices and documents, breaches in computer networks leading to data theft or ransom, and interruptions in business operations due to system corruption. Cyber insurance not only assists in immediate response and recovery but also provides proactive support. This can include cyber hygiene consultation services, risk management resources, and incident response planning, all aimed at fortifying your business against cyber incidents.

Ensure you’re protected

Have peace of mind with a comprehensive business insurance policy. At Federated, we actively collaborate with national and regional trade associations to help deepen our understanding of various Canadian industries. Let us tailor a business insurance solution that aligns with your business’ unique needs. Get a quote today.

If you’re not ready for a quote but would like to learn more, visit our business insurance page.

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information. Terms, conditions and exclusions apply to coverage. See policy for details.