What Insurance Do Toronto Financial Services Firms Need?
Toronto financial services firms face unique risks as managers of their clients’ investments and wealth. Financial services businesses must be protected from any liability claims, such as accusations that can range from providing negligent advice to a client slipping and falling on their premises.
Lawsuits can cost thousands or millions of dollars. Financial services firms in Toronto need business liability insurance that is specifically tailored to their needs.
Wherever your financial services business is located in Toronto, the Greater Toronto Area (GTA), or anywhere in Ontario, a Western Financial Group business insurance broker will get you commercial coverage that uniquely protects your business.
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 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 financial services firm’s specific needs.
Toronto’s financial services sector
Toronto is Canada’s business and financial capital. Toronto is the second largest financial services centre in North America.
- Banking and credit unions
- Wealth management
- Financial advisers
- Mutual funds
- CPA firms
- Insurance companies
- Private equity firms
- Mergers and acquisitions firms
- Investment firms
Liability insurance is an essential part of your financial services insurance package. Here are the liability coverages that you need to help protect your Toronto financial services company from lawsuits.
Professional liability insurance
Professional liability insurance helps protect Toronto financial services firms from claims of negligence when they are performing their duties. It’s also called errors and omissions insurance.
For many financial services businesses, it is mandatory to carry professional liability insurance.
Financial services professionals can be subject to claims of misrepresentation or claims of negligent advice and they need to protect themselves with professional liability insurance.
In the case of a negligence claim, for example, a Toronto financial services professional with this type of insurance would have the policy pay for some or all of the claim costs.
Note: It’s important to understand the specifics of your professional liability coverage to ensure adequate protection as a Toronto financial services professional.
Directors and officers liability insurance
Directors and officers insurance provides financial coverage for legal expenses to help defend a board member or officer against 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
Commercial general liability insurance
This is necessary liability insurance for financial services firms in Toronto. Without commercial general liability insurance, you will pay costs related to third-party (customer/supplier) injuries or damage to their property out of your own pocket.
If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your Toronto financial services firm in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
What kind of risks 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
Cyber liability insurance
You keep sensitive financial information belonging to your clients and your financial services firm could be hacked by cyberthieves. Cyber liability insurance will help protect the firm financially should there be a cyber-attack.
Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages.
Commercial umbrella insurance
You may want to consider commercial umbrella insurance for your Toronto financial services business. Commercial umbrella insurance, also known as just umbrella insurance, addresses liability coverage gaps. It’s used when the primary liability coverage, for example on your commercial general liability insurance, has reached its coverage limit.
The protection that umbrella insurance provides applies only to expenses related to liability such as legal fees, court fees, and legal settlements.
What other insurance do Toronto financial services businesses need?
Commercial property insurance
Commercial property insurance provides financial support to replace or cover repairs to your Toronto financial services firm if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.
Commercial property insurance also covers the firm’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 you when your Toronto financial services firm can’t operate due to a covered loss.
There are a number of losses that can force your financial services firm to shut down. Some examples are:
- 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 the financial services 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 financial services insurance cost?
The following factors are usually considered when determining the cost of your business insurance:
- Location(s)
- Services provided
- Number of employees
- Years of experience
- Annual revenue
- Any past claims
What do I do if I have a claim against my Toronto financial services 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 as a Toronto financial services business. Our experts are available now to help you navigate the business insurance journey to protect your Toronto business.
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