Can I Deduct My Business Insurance in Toronto

Is Insurance Tax Deductible for My Toronto Business?

March 13, 2025 / 5 mins read

Your Toronto business is insured to protect it from unexpected events like fire, vandalism, and lawsuits. Is it a tax deductible expense?

Yes, business insurance premiums are usually tax deductible for Canadian business owners.

Wherever your small business is located in Toronto, the Greater Toronto Area (GTA), or elsewhere in Ontario, a Western Financial Group business insurance broker will get you commercial coverage that uniquely protects what you do.

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 to choose from and giving you policy coverage options that suit your Toronto business’s specific needs.

What insurance can I deduct for my business?

The Canada Revenue Agency has determined that a business owner can deduct commercial insurance premiums for insurance on any buildings, machinery, and equipment that are used for the business.

Note that if you use your car for both business and personal use, you can deduct only the part of the expenses that you paid to earn income for your Toronto business.

What types of business insurance are tax deductible?

Here are some examples of insurance that is typically deducted by business owners:

Did you know? You can deduct any reasonable current expense you incur to earn income. Remember to double check, however, with a tax expert about specific deductions for your Toronto business.

To claim business insurance as a tax deductible for your Toronto business, you will need to keep accurate records and receipts yearly.

It’s important to protect your Toronto business with insurance. An insurance broker has many benefits when it comes to commercial insurance:

An insurance broker works with multiple insurance providers to find the best insurance policy for your Toronto business’s needs, unlike an insurance agent. An insurance agent works for one insurance company, selling its products, which can result in limited choice.

An insurance broker, like Western Financial Group, will present you with several insurance quotes and you will choose the coverage that best suits your Toronto business.

How an insurance broker benefits your Toronto business

An insurance broker saves you time and money: They are insurance shoppers, making policy comparisons and taking care of the details. Their job is to find the best policy coverage at the right price for your business.

They negotiate with insurers on behalf of your Toronto small business.

You have more options: A business insurance broker helps you compare products from multiple insurers to choose a solution that makes sense for your Toronto small business.

Personalized service and support: You should be able to reach your insurance broker by phone, email, or text without significant delays. Your broker should be available to answer your questions, provide ongoing support, and advocate on your behalf should you make a claim.

Expertise: A knowledgeable insurance broker can provide valuable advice about what insurance coverages you need for your business. Make sure your broker understands what you need and at what price.

Neutral advice: Your business insurance broker provides unbiased advice because they aren't tied to one insurer. This helps ensure you get the best insurance policy for your situation.

Help with a claim: You are not alone during the commercial claims process. Making a claim shouldn’t leave you with more questions as a business owner. Western’s team is here to answer any questions you may have and provide you with accurate and transparent information about your claim.

What do I do if I have a claim against my Toronto small 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 an insurance checklist:

  • Do you have the best Toronto business insurance rate that suits your work?
  • 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 the right insurance coverage for your Toronto small business. Our experts are available now to help you navigate the business insurance journey to protect your Toronto business.

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