What Insurance Do Toronto Cross Border Companies Need?
Do you do business south of the border? Do you have the right business insurance to address any cross border gaps in coverage? Is your Toronto business properly protected with insurance to do business in the United States?
Cross border insurance coverage for your Toronto business, either storefront or online, can be customized to meet the specific needs of your business.
Cross border insurance for your Toronto business needs to meet all applicable U.S. state insurance laws and regulations.
If you are the owner of a company in Toronto, Greater Toronto Area (GTA) or anywhere in Ontario that’s doing cross border business, your Western Financial Group business insurance expert will give you top-notch commercial insurance advice for doing business in the United States.
You may need a standard policy or specifically customized coverage for your Toronto business’s cross border needs. Western’s commercial insurance experts will work with you to meet your needs for liability coverage and any U.S. workers' compensation requirements when you do business in the United States.
We’ll take the guess work out of insurance requirements for your Toronto cross border company.
What is cross border insurance for Toronto companies?
It’s a commercial insurance policy meets U.S. insurance requirements and regulations. It helps protect your business against liability claims while doing business outside Canada.
Who needs cross border insurance?
- Retail
- E-commerce
- Entertainment
- Food and beverage
- Manufacturers, distributors, wholesalers
- Oil and gas
- Property management
- Construction
- Real Estate
- Power and utilities
- Among others
How much does cross border insurance cost for Toronto companies?
There isn’t one price that fits all Toronto companies that do business south of the border.
Factors usually considered to calculate your premium include:
- The type of business you’re in
- Number of employees
- Where you will do business in the U.S.
- Annual revenue
- Any past claims
- Do you have a U.S. office and employees based there
Examples of how cross border business insurance helps you
- A U.S. client’s property was damaged at your Toronto business’s American warehouse. If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your Toronto company in a U.S. court, as well as costs to cover damages to compensate third parties.
- Your U.S. client list and their financial information was hacked and stolen by cyber thieves. Your cyber liability insurance can help you recover financially from a cyber-attack and restore your computer system and notify clients.
What’s typically in a cross border insurance package?
Commercial general liability (CGL) insurance
Commercial general liability insurance is essential for your Toronto business that operates in the U.S., which can have a highly litigious climate.
If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your Toronto business in court, as well as costs to cover damages to compensate third parties.
What kind of risks does commercial general liability insurance help 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
Admitted insurance
Admitted insurance is coverage offered by insurance providers who are licensed to operate by state insurance departments.
Many jurisdictions require companies to have locally admitted policies in place if they have physical assets, such as buildings, stock, raw materials, in that jurisdiction including most of the U.S.
Professional liability insurance
This type of insurance is also called errors and omissions insurance. It helps cover claims against professional negligence, errors/mistakes, or failure to deliver a professional service. For example, if a client weren’t satisfied with the quality of the product or services you provided, your Toronto cross border business could be held liable.
Professional liability insurance can help cover your legal costs and related costs.
Directors and officers liability insurance
Directors and officers liability insurance protects your Toronto business’s board of directors from claims of negligence. Individuals serving on your board of directors, whether your business is a not-for profit, for profit, public, or private entity can be sued for the actions of the companies they serve.
This type of insurance typically covers:
- Misleading statements, reporting issues, inaccurate disclosure
- 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
U.S. Workers’ Compensation
U.S. workers’ compensation is state-mandated insurance that covers lost wages and provides medical benefits to employees who get a workplace injury or disease. As a Toronto-based cross border company, you will need this coverage for any American workers in the U.S.
Commercial property insurance
It provides financial support to replace or repair your company’s office or equipment storage warehouse if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.
Commercial property insurance also covers the building’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.
Cyber liability insurance
Do you keep client information online and take online payments? If so, your Toronto cross border business could be hacked by cyberthieves. Cyber liability insurance will help protect you financially from a cyber-attack.
Commercial vehicle insurance is important: When you or your employees are on the road travelling, 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 business.
You may need fleet insurance if your Toronto cross border business has 5 or more vehicles that are registered and/or leased to a single business owner or company.
Inland marine insurance
Inland marine insurance protects business property while it is being transported on land by train, truck, or a similar mode of transportation. Business property could include equipment, materials, high-value items, and other items that aren’t included in the company’s business. Some companies purchase inland marine insurance as an add-on to their business insurance coverage.
Do you have the right business insurance for your Toronto cross border 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 cross border 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.
Expanding your Toronto cross border business into the U.S. brings new challenges. Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your Toronto cross border company the right commercial insurance package to do business in the United States.
Our experts are available now to help you navigate the commercial insurance journey to protect your Toronto business while it’s doing cross border business.
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