Is Your Toronto Business Underinsured or Not Insured

Is Your Toronto Business Underinsured or Not Insured?

July 2, 2024 / 5 mins read

Is your Toronto small business underinsured or without any commercial insurance coverage at all? Not having enough commercial insurance or not having any can leave your Toronto business exposed to a financial catastrophe should there be a fire, vandalism, or weather event.

Repair and cleanup costs at your Toronto small business would be coming out of your own pocket as the business owner. That’s a lot to take on financially as a small business owner.

Many Canadian small businesses are underinsured or not insured

A recent study by Deloitte found that up to 25% of Canadian small businesses are underinsured or lack commercial insurance coverage completely.

Small business owners are busy and they value insurance products that are easy to understand, convenient and personalized, the Deloitte study says, giving insurance companies an opportunity to get their business.

Western Financial Group is here to help your Toronto business with insurance. If your business is in Toronto, the Greater Toronto Area (GTA) or anywhere in Ontario, your Western Financial Group business insurance expert will make insurance easy for you as a business owner. We can customize it to your small business needs at the right value for you.

What your Toronto business can face without insurance or not enough

  • Having to pay medical bills or legal fees should someone get hurt at your Toronto business
  • Paying the cost of repairs out of pocket if your property is vandalized or damaged by a fire
  • Paying the costs on your own should someone’s property get damaged at your Toronto business
  • Being refused a bank loan because banks can require businesses to have some type of insurance coverage if they’re taking out a loan

Not having insurance or enough insurance is a risky decision for your Toronto small business.

Does my home or car insurance cover my business?

The personal insurance coverage you have for your home and car does not cover you for incidents, mishaps, and accidents related to your Toronto small business.

If you have a home-based business, your residential coverage may not provide enough coverage for any accidents or mishaps.

Am I legally required to get business insurance?

No, insurance is not generally required by law for small businesses in Canada but there are situations where it is needed.

Here when you need insurance for your Toronto business:

  1. When clients/customers ask for proof of insurance

Not being able to provide proof of insurance to clients or customers who ask for it will make them question your reliability and credibility as a Toronto small business.

Requests for proof of insurance can be common when signing contracts with clients or partnering with another business.

2. When you participate in a trade show

Typically, trade show venues ask participating businesses to show proof of insurance to take part.

Other events that may require participants to have insurance include farmers markets, fairs, conventions, and speaking engagements.

3. When you sign a commercial lease

A commercial lease usually has a clause requiring you as the tenant to have business insurance before you are able to finalize the agreement.

4. When you buy equipment

Commercial property insurance can help protect your Toronto business from unexpected issues with your equipment.

Commercial property insurance protects your Toronto place of business and its contents from damage or loss related to severe weather, natural disasters, theft, and vandalism.

5. Commercial vehicle insurance is needed: When you or your employees are on the road for work, commercial vehicle insurance may cover your vehicles in the case of an accident. Your personal vehicle insurance will not cover you in the case of an accident if the work is related to your Toronto small business.

What other kinds of insurance do Toronto small businesses need?

Business insurance is part of your small business plan

Business insurance planning helps to reduce the risk that your Toronto small business can face.

Here’s how to plan for your business insurance needs:

  • What insurance do you need for your Toronto business? What kinds of insurance coverages are common in your industry?
  • Speak to an insurance expert about commercial insurance for your business.
  • How much money do you have available per month for insurance?
  • Choose the coverage that best suits your business needs.

Here’s an insurance checklist for your Toronto small business:

  • 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?

What do I do if my Toronto business has an insurance claim?

  • 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.

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your Toronto small business the right business insurance package. Our experts are available now to help you navigate the commercial insurance journey to protect your Toronto small business.

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