As a small business in Canada, you know you need insurance. But you also understand that every penny counts, especially in trying times. Diving into small business insurance seems overwhelming and oh-so expensive. But we’re here to tell you that it doesn’t have to be that way!
We’ve compiled a list of the top five factors influencing the cost of Canadian commercial policies to simplify your journey to complete insurance protection.
What Influences The Cost of Small Business Insurance?
Five main factors influence the cost of your small business insurance, including:
#1 Your Business Type
The industry you’re in decides the kind of insurance policies you need and how much a comprehensive protection plan will cost.
#2 Your Company’s Worth
Your business insurance premium factors in many metrics, such as your company’s property, equipment, vehicles, inventory, and so much more. Why? Because the coverage needs to match your business’ present value.
But of course, this can change from industry to industry. As a marketing professional, you’re unlikely to use as many tools as a construction contractor. Therefore, you may not need to add equipment breakdown coverage into your insurance plan.
#3 Your Specific Risk Exposures
Your business is unique to others in so many ways, including its risk exposures. But, as a general rule, the more risks you’re exposed to, the more expensive your premium will be.
Many factors can impact the level of risks your business may face. One of the presiding metrics is your location. Areas with higher crime rates or adverse weather conditions often come with costlier insurance policies.
Insurers analyze the number, average cost, and type of claims typically made in your neighbourhood to determine how much they should charge.
#4 Your Service or Product Type
Some services and products are riskier than others. For instance, selling corrosive cleaning products presents more hazards than distributing paper or cuddly toys. Therefore, you’ll pay more for insurance than “safer” businesses.
#5 The Size of Your Business
If you employ a large number of people, you should expect to pay more for insurance. As your workforce grows, you’re exposing your business to higher chances of mistakes and, therefore, lawsuits. So, insurers bump up your premium price to compensate for the additional risk.
What Small Business Insurance Do You Need? Find Out Now With LiabilityCover!
Your business isn’t the same as anybody else’s. And while it’s vital to have a USP, we know it makes choosing insurance policies tricky. So, take the confusion out of the matter with LiabilityCover!
All you need to do is complete our short request form, and we’ll do the rest. Our advisors have years of experience connecting small businesses to their one true insurance match. We’ve established solid relationships with the country’s leading and licensed insurers to bring you complete coverage at the perfect prices.