2. Coverage for mistakes or allegations of skilled negligence
If you provide advice and services to your clients – as a consultant, accountant, or freelance designer does – and also you make a mistake, fail to deliver a promised service, or give poor advice that causes financial or physical harm to a client, you would are in big trouble.
A client could accuse you of skilled negligence or misconduct, sue you for damages, and seek compensation. Defending yourself in a lawsuit – even a frivolous one – can potentially cost tens of 1000’s of dollars, plus the price of an out-of-court settlement or judgment against your organization.
Professional liability insurance provides financial protection against such claims and lawsuits.
3. Coverage for damage to your organization property
Your business property – be it a store, office, private business or other structure – could possibly be damaged by fire, water, a natural disaster, theft or vandalism. The cost to repair or replace damaged items, their contents, and your inventory can quickly cost 1000’s of dollars.
Commercial property insurance covers these kinds of perils and helps your small business get better quickly. In addition, many business property insurance policies include so-called business interruption insurance. It comes into effect following an insurable loss (akin to fire damage) to cover your lack of income and overhead costs while your small business is temporarily closed for repairs.
4. Coverage for damage to business vehicles
It is common knowledge that operating a vehicle in Canada without automobile insurance is illegitimate. But if you’ve got a business vehicle or use your automobile or truck for business purposes, did you understand that non-public auto insurance may not cover you for those who get into an accident? Many personal auto insurance policies don’t cover vehicles used for business purposes, or liability coverage limits is probably not sufficient for those who are involved in an accident.
Commercial auto insurance covers vehicles used for business purposes – any vehicle or trailer used to move people, packaged goods, raw materials, or transportation equipment. One of probably the most significant benefits of economic vehicle insurance over personal vehicle insurance is the next level of coverage for damages.
5. Data breach and cyberattack coverage
Small businesses are big targets for cybercrime. According to a 2024 Insurance Bureau of Canada (IBC) survey, only 31% of small and medium-sized businesses prioritize cybersecurity and 73% have reduced their spending on this area in comparison with 2023. This puts many firms in danger. For example, a 2021 IBC report found that 41% of small businesses affected by cyberattacks faced costs of greater than $100,000.
