Business Insurance In Toronto, Explained

Do you run a business in Toronto? Excellent; you’ve come to the perfect place. We specialize in providing commercial insurance to business owners throughout the city, enabling them to stand firm in the face of turmoil.

If you aren’t familiar with the various policies you need, never fear! We have years of experience in the insurance game. With us, it’s easy to determine the coverage you need, as you’ll no doubt find out below.


Commercial Insurance Coverage for Businesses of All Kinds in Toronto

In Toronto, business liability insurance or commercial insurance protects business owners like you from losses resulting from unforeseen incidents (i.e., fires, property damage, bodily injury, etc.).

There are plenty of insurance coverages for businesses that could benefit your longevity and chance of survival during hard times.


What Does Business Insurance Cover?

In reality, “business insurance” isn’t just one coverage type. Instead, it’s used as an umbrella term for a plethora of commercial insurance sub-types.

It can be daunting to select the policies that’ll benefit you with so many to choose from. So, we recommend using the coverage options below as a starting point:

  • Commercial general liability insurance coverage (CGL) — This is a fantastic starter policy. It gives you financial coverage for claims of third-party property damage or bodily injury from business-related negligence or accidents. Usually, legal defence and damages are covered, no matter the lawsuit’s outcome.
  • Professional liability insurance coverage — Sometimes called errors and omissions insurance, it protects your Toronto-based business from customers claiming financial loss due to your services or advice. The policy also defends against lawsuits alleging failure to deliver a service as promised, negligence, and misconduct.
  • Commercial property insurance coverage — Whether you own or lease your workspace, commercial property insurance gives you the money needed for physical loss or damage to the building and its contents. Equipment, furnishings, fixtures, electronics, and immoveable improvements you made are covered under most policies. Keep in mind that locations left vacant or unoccupied for more than 30 days aren’t typically protected.
  • Directors and officers insurance coverage — If you have a board of directors, this policy is beneficial as it protects the individual member and their assets during lawsuits alleging:
    • breach of fiduciary or legal duties.
    • misrepresentation.
    • negligent acts.
    • wrongful dismissals and discrimination.
    • failure to adhere to federal or provincial laws.
    • and more.
  • Cyber liability insurance coverage — Cyber liability insurance covers all the costs related to cybercrime. If you use digital systems to store customer information or a point-of-sale system, the policy is a must-have.
  • Product liability insurance coverage — It covers claims alleging third-party property damage or bodily injury caused by a physical item you sell, distribute, or manufacture. The most common problems protected under the policy are incorrect labelling and insufficient safety warnings. We recommend this policy for anybody selling products, including food and beverages.


Do You Need Business Liability Insurance Coverage?

Purchasing insurance is essential for the survival of any business, regardless of your industry. Unexpected incidents occur all the time and often come with costly settlements and legal fees. Commercial insurance helps fight these claims and cover your business when losses or lawsuits arise.


How Much Does Business Liability Insurance Coverage Cost in Toronto?

A basic commercial general liability insurance policy with a $2 million limit for a small business in Toronto costs approximately $650 per year. However, many factors influence the price, including:

  • Your revenue — The more money you make, the more you have to lose during a lawsuit. Third parties are likely to request more damages and settlements when they know your revenue can withstand the monetary hit.
  • Your industry — Some industries come with specific occupational hazards. For example, a builder is exposed to more risks than a graphic designer.
  • Your company’s size — Most insurers see more employees as more risk, especially when it comes to dealing with third parties. There are simply more people to make mistakes.
  • Your experience — You’re less likely to make mistakes as an experienced Toronto business owner. Therefore, you benefit from lower insurance prices.
  • Your claims history — If you have a track record of commercial insurance claims, expect your premiums to increase.
  • The policy type — Complex, highly tailored policies always cost more than basic ones. Likewise, higher coverage limits equal more expensive premiums. With that said, we recommend never lowering your limit to decrease your premium.
  • Your location — Areas prone to crime or extreme weather conditions often face higher business liability insurance premiums.

Regardless of your situation, we’ll connect you with an insurer with the right experience and price point for your business and budget.


Why Choose LiabilityCover for Business Insurance Coverage in Toronto?

Insurance is our middle name. Our clients benefit from our years of experience and unbreakable working relationships with the best insurance providers in Canada.

Whether you need quick quotes or detailed advice, we’re here to satisfy all your business liability insurance needs. Let us keep your Toronto company safe and sound.


Frequently Asked Questions


Where Do Small Businesses in Toronto Thrive?

We’ve noticed a plethora of small businesses thriving in multiple neighbourhoods throughout Toronto, including:

  • Annex
  • Bloorcourt
  • Baby Point
  • Bloordale Village
  • Cabbagetown
  • Chinatown
  • Canary District
  • Castlefield Design District
  • Corktown
  • Corso Italia
  • Danforth
  • Davenport Village
  • Distillery District
  • Dundas West
  • Etobicoke
  • Eglinton West
  • East York
  • Entertainment District
  • Financial District
  • Forest Hill Village
  • High Park
  • Junction Triangle
  • Kensington Market
  • Koreatown
  • King West
  • Liberty Village
  • Leslieville
  • Markham
  • Mount Pleasant
  • Ossington
  • Oakwood Village
  • Pape Village
  • Queen West
  • Regent Park
  • Riverside
  • Rosedal
  • St. Clair West
  • Stockyards District
  • Thornecliffe Park
  • Toronto Islands
  • Vaughan
  • Woodbridge
  • Yonge & Dundas


Is Commercial General Liability Insurance Enough to Protect Your Business in Toronto?

Depending on the type of business you operate in Toronto, a commercial general liability insurance policy may not be enough to ensure complete protection. The coverage extends to third-party damages and bodily injury, but nothing beyond that.

Earlier, we discussed other policies that may benefit your Toronto-based business. But if you’re still unsure, just give us a call on our toll-free number or complete the secure request form.


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