Insurance for Toronto Cleantech Companies
Toronto cleantech companies need to control and reduce risks in their sector. Does your cleantech company have adequate business liability insurance as part of its risk management strategy?
Business liability insurance can be customized to specifically cover the risks that your Toronto cleantech company faces.
Wherever your cleantech business is located in Toronto, the Greater Toronto Area (GTA), or elsewhere in Ontario, your Western Financial Group business insurance broker will get you commercial coverage that uniquely protects your business and its risks.
Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best business coverage for your needs.
We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose for your Toronto cleantech firm’s specific needs.
What is clean technology?
Cleantech is a term for technologies, products, or services that have a goal of reducing environmental impact and using resources sustainably.
Toronto’s cleantech sector
Toronto is a major cleantech hub with the Toronto-Waterloo corridor considered one of the top cleantech startup ecosystems globally. Ontario has the largest cleantech sector in Canada.
Examples of cleantech companies that need customized business insurance
- Renewable energy (wind, solar, and geothermal)
- Electric vehicles (EVs)
- Carbon capture and storage
- Bio-based plastics
- Recycling
- Battery storage/recycling
- Alternative fuels
- Waste management
- Sustainable agriculture
- Lithium production
- Plastic pollution reduction
- Clean water technology
Why is business liability insurance important in your risk management strategy?
You’ll need to choose business liability insurance that identifies and manages the risks you face in Toronto’s cleantech industry to minimize any negative financial consequences as a result of lawsuits.
Examples of potential risks that your cleantech company can face include errors and omissions in your work, product issues, system failures, security breaches and data loss, cyberattacks, and severe weather.
Liability insurance is an essential part of your cleantech package. Here are the liability coverages that you need to help protect your Toronto clean technology from lawsuits.
Professional liability insurance
Professional liability insurance helps protect Toronto cleantech businesses from claims of negligence when they are performing their duties. It’s also called errors and omissions insurance. Remember that legal fees can be quite expensive and damage awards can be extremely high without professional liability insurance.
What does E & O insurance cover? Negligent acts, errors, or omissions related to your Toronto cleantech business’s services or products. It also covers failure to deliver a service as promised.
Cyber liability insurance
Cyber liability insurance will help protect your Toronto clean technology business financially should there be a cyber-attack. Did you know that depending on the size of the data breach and what information was taken, affected customers can hold you liable and sue you for damages?
Directors and Officers liability insurance
Does your Toronto cleantech firm have a board of directors? Directors and officers insurance provides financial coverage for legal expenses to help defend a board member or officer against legal claims. It typically covers misleading statements, reporting issues, and inaccurate disclosure.
This type of insurance also covers:
- Negligent acts and allegations of misrepresentation
- Breach of legal or fiduciary duties
- Decisions that result in adverse financial consequences for shareholders
- Wrongful dismissal and employee discrimination claims
- Failure to adhere to federal and provincial laws and regulations
Product liability insurance
Product liability insurance covers claims due to defects or problems with products that you make or sell. It protects your Toronto technology company or startup company against third-party legal liability arising from physical damage or bodily injury as a result of an alleged product failure or defect.
It’s important to have this type of insurance in place because it can be expensive to defend against a product liability lawsuit.
What product liability insurance covers:
- Design defects: There’s something wrong with the product’s design.
- Manufacturing defects: Something went wrong during manufacturing.
- Marketing missteps: There’s a mistake in marketing materials, such as improper labels.
- Insufficient warnings: The product doesn’t include sufficient warning/information about potential harm.
Commercial general liability (CGL) insurance
This is necessary liability insurance for Toronto clean technology businesses. Without commercial general liability insurance, you will be responsible for paying all the costs related to third-party (customer/supplier/member of public) injuries or damage to their property.
If you were sued, CGL insurance would cover the legal costs to defend the claim against your cleantech firm in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
What does commercial general liability insurance cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
Commercial umbrella insurance
You may want to consider commercial umbrella insurance for your Toronto cleantech business or cleantech startup company. Commercial umbrella insurance, also known as umbrella insurance, addresses liability coverage gaps. It’s used when the primary liability coverage, for example on your commercial general liability insurance or product liability insurance, has reached its coverage limit.
Remember that umbrella insurance applies only to expenses related to liability such as legal fees, court fees, and legal settlements.
What other insurance coverages do Toronto cleantech or cleantech startups need?
Commercial property insurance
Commercial property insurance provides financial support to replace or cover repairs to your Toronto cleantech company if it is damaged by a flood, fire, or severe weather. It covers vandalism and theft, too. It also covers your tech company’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.
Business interruption insurance
This type of insurance supports your Toronto cleantech business when it can’t operate due to a covered loss.
Examples of losses that can force your business to shut down:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Commercial auto insurance
If you are using your car for your job in Toronto’s cleantech industry, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package.
How much does Toronto cleantech insurance cost?
These factors are typically considered when determining the cost of your business insurance: Location(s), services/products provided, number of employees, years of experience, annual revenue, and any past claims.
What do I do if I have a claim against my Toronto cleantech business?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Here’s a business insurance checklist:
- Do you have the best business insurance rate that suits your sector?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you commercial insurance suited to the needs of your Toronto cleantech company. Our experts are available now to help you navigate the insurance journey to protect your Toronto business.
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