Does My Toronto Business Need a Certificate of Insurance?
How do you prove that your Toronto business is insured when you are signing a lease, contract, or a partnership? How do you show a major client that your company has business insurance? Does your Toronto business have a certificate of insurance (COI)?
A certificate of insurance proves that your Toronto business is adequately insured and protected against liability claims. Yes, your Toronto business does need a certificate of insurance to show it’s insured against potential liability losses or claims.
If you are the owner of a small business or a company in Toronto, Greater Toronto Area (GTA) or anywhere in Ontario, your Western Financial Group business insurance expert will give you top-notch commercial insurance advice at the right value for you.
What is a certificate of insurance (COI)?
A certificate of insurance may also be known as a certificate of liability insurance or proof of insurance.
A certificate of insurance (COI) provides proof of your existing business insurance policy to a third-party requesting it, such as a supplier, customer, or commercial landlord.
What information is in a COI?
A certificate of information is a document that provides a summary of your Toronto business’s insurance liability coverage on your insurance policy. It’s typically one page.
It includes the most important information about your business’s insurance coverage, including:
- Your policy’s expiration date
- Your policy’s effective date
- What type of business coverage you have, such as commercial general liability (CGL) insurance or commercial property insurance, errors and omissions insurance
- Whose name is on the policy
Why your Toronto business needs a certificate of insurance
- Credibility: It provides proof of business insurance, giving your Toronto business credibility and making it easier for you to enter into partnerships to make your business grow. You will also be able to show your commercial landlord that your business is insured. It’s especially important if the work that your business does has a high risk of loss or damage.
- Bidding on a project: It can be an advantage to prove that your business is insured and this could catapult you over your bidding competitors, who may not be insured.
Did you know? If you hire subcontractors to work on projects, then you need to request proof of insurance from them. If a subcontractor makes a mistake that results in a third-party injury or third-party property damage and they aren’t insured, you may be sued for damages.
Why contractors should have a certificate of insurance
Contractors should be able to prove they have insurance coverage because clients may not work with contractors who are uninsured. It’s usually important for a client to know that a contractor working on their property has business insurance to cover unexpected third-party property damage or injury.
Top tip: If your Toronto business is requesting a certificate of insurance from another business, make sure the name of the business that you are working with matches the certificate. Remember to check that the COI has not expired.
How much does a COI cost?
A certificate of insurance doesn’t cost anything. Insurance brokerages offer it for free. Ask for yours as proof of your business insurance.
How long does it take to get a certificate of insurance?
It can take a few days to a few weeks for your Toronto business to get its COI.
Note that your business insurance policy must be active in order to get a certificate of insurance.
Under what circumstances could my Toronto business be required to have a COI?
A COI is typically a requirement anytime a third-party supplies you with goods for your products or enters your business property to perform a task that’s outside of your control, such as electrical work. Or your business is hired for a large project where the risk of something going wrong is higher than usual.
Is a business insurance policy also a COI?
No, your business insurance policy is a legal document that outlines the agreement between you and your insurer.
A COI is a one-page document summarizing the insurance policy for your Toronto business.
Here’s what else you need to know about insurance for Toronto businesses:
- Commercial general liability insurance
- Commercial property insurance
- Course of construction insurance
- Pollution insurance
- Errors and omissions insurance
- Business interruption insurance
Here’s an insurance checklist for Toronto small businesses:
- Do you have the best business insurance rate that suits your business?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for your business?
- Do you know the value of your equipment and tools and are they properly insured?
- Are you or your employees using personal vehicles for your work?
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your Toronto small business the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your Toronto or Ontario business.
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