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We understand that Canadian small business owners need to be strategic in their spending. We want to help you better understand the cost of business insurance and some of the factors that help determine your premiums, so you can make an informed decision on what coverage to get.
As a small business owner, you understand that every penny counts—especially when you’re just starting out. Getting your dream business off the ground takes a great deal of time, but also a good chunk of change. You have to prioritize costs, and insurance can often fall to the bottom of the list, but this can be dangerous. Not having the appropriate amount of insurance coverage for your small business could be its downfall. If you experience an expensive loss in your startup stage and don’t have insurance coverage, you may not be able to afford the financial consequences of the loss while still keeping your business afloat. The cost of business insurance can be more affordable than you think—TruShield is able to offer small business policies starting at as little as $42/ month.
First things first, what does your business do? Do you work with your hands to build, install or fix things? Do you provide a specialized service or consult? Do you sell products in a store or online? The industry your business operates in will be a deciding factor in what kind of insurance you need, and how much it will cost. If you’re a consultant and you store sensitive client information, you may want to consider cyber risk and data breach coverage. If you regularly use a vehicle to deliver products or services to clients, you should consider commercial auto insurance.
The second question you need to ask: how much is your business worth? The cost of your business insurance will factor in things like the building you operate out of, any inventory you may have, equipment you use, vehicles you operate regularly, and more, depending on the type of business you own. Your insurance coverage needs to match the current value and operations of your business. This can vary from industry to industry. If you’re a graphic designer, you may not have any tools or equipment that require coverage other than your computer. Contractors, on the other hand, will likely have a lot of expensive tools and equipment that they need covered in the event of a loss.
You also need to look at the specific risks involved with a business like yours. The risks that a bakery owner faces will be very different than the risks an electrician faces in their day-to-day. A lot of factors can affect the level of risks involved with your business. For example, its location: if your business is located in a city with a high prevalence of crime, your premiums may be higher to reflect that risk.
The types of products you sell, the types of services you provide, and the size of your business are all contributing factors to how much your insurance will cost. There are no averages because policies can vary, but we can provide some sample scenarios to give you a better idea of what a small business insurance policy would cover in Canada. Each of the following examples fits a different industry, faces different risks and has different insurance needs. Please keep in mind that even if your small business is similar to one of the following sample scenarios, additional factors may apply that could make your coverage needs different.
Skilled trades and contractors - Electrician
Evan the electrician
| Occupation: | Electrical contractor – residential maintenance |
| Age: | 34 years old |
| Business tenure: | 5 years |
| Annual estimated revenue: | $490,000 |
| Estimated value of business contents: | $11,000 |
| Estimated value of tools and equipment: | $32,000 |
Evan has owned his own electrician business for the past five years. He has a great reputation with his clients and works mostly with builders, developers and property owners.
What type of insurance coverage does Evan need?
Based on the information above, we estimate the cost of Evan’s business insurance would be around $197 monthly for a comprehensive policy with TruShield Insurance.
Professional and creative services - Designer
Danielle the designer
| Occupation: | Graphic & web designer |
| Age: | 28 |
| Business tenure: | 3 years |
| Annual revenue: | $52,400 |
| Estimated value of business contents: | $22,000 |
Danielle has been a freelance graphic designer for 3 years, and has built up a strong reputation and portfolio of work. She has core clients she works with on a regular basis, but pitches for new business regularly. She works from home, and her business contents consist of her desktop computer, laptop, DSLR camera, photography equipment, design software and accounting software.
What type of insurance coverage does Danielle need?
Based on the information above, we estimate the cost of Danielle’s business insurance would be around $115 monthly for a policy with TruShield Insurance.
Retail business owners - Baker
Benjamin the baker
| Occupation: | Baker and shop owner |
| Age: | 33 years old |
| Business tenure: | 7 years |
| Annual estimated revenue: | $336,000 |
| Estimated value of business contents: | $78,000 |
Ben has owned his own bakery for 7 years. He’s become well known all over town for his cupcakes and pastries. Ben’s insurance needs are tied to his storefront location, his equipment, his inventory and his delivery truck.
What type of coverage does Benjamin need?
Based on the information above, we estimate the cost of Benjamin’s business insurance would be $122 per month for CGL and commercial property coverage.
It’s important to remember that what one small business needs may not be what yours needs. Every business is different, and requires a different policy to protect it. Understanding the various types of coverages available to small business owners can be overwhelming, but we’re here to help. Our request a quote tool can give you a quick estimate on how much your business insurance would cost – all you have to do is answer a few questions about your business. You may also be eligible to buy your policy online. We’re also always available by phone at 1.844.429.9480.
Commercial general liability insurance is designed to protect you and your business from a loss if you're found legally liable for bodily injuries or property damage to a third party caused by the product you sell or the service you provide.
Commercial property insurance doesn't only protect the building you use, but a long list of things inside including equipment, inventory, furniture, computers and other electronics.
Business interruption insurance will help to pay for your loss of business income if you suffer a covered loss at your business location. If you suffer a loss and extensive repairs require you to close your business temporarily, you'll lose out on crucial business income.
Commercial auto insurance is designed to cover you, your employees and your passengers.
Product liability refers to situations where a customer purchases a product, and an issue with the product causes a bodily injury or property damage to a 3rd party.
Cyber risk insurance is designed to help protect small businesses like yours from certain losses associated with cyber or privacy breaches.
With car insurance from TruShield you get coverage you can count on to get you back behind the wheel after an accident.
Protect your home and everything in it with home insurance from TruShield
Whether it's a business trip, a family adventure or a quick getaway, we offer comprehensive travel insurance packages to keep you and your loved ones safe while you're away.
Commercial General Liability
Commercial general liability insurance is designed to protect you and your business from a loss if you’re found legally liable for bodily injusries or property damage to a third party caused by the product you sell or the service you provide.
Commercial Property Insurance
Commercial property insurance doesn’t only protect the building you use, but a long list of things inside including equipment, inventory, furniture, computers and other electronics.
Business Interruption Insurance
Business interruption insurance will help to pay for your loss of business income if you suffer a covered loss at your business location. If you suffer a loss and extensive repairs require you to close your business temporarily, you’ll lose out on crucial business income.
Commercial Auto Insurance
Commercial auto insurance is designed to cover you, your employees and your passengers.
Product Liability Insurance
Product liability refers to situations where a customer purchases a product, and an issue with the product causes a bodily injury or property damage to a 3rd party.
Cyber Risk Insurance
Cyber risk insurance is designed to help protect small businesses like yours from certain losses associated with cyber or privacy breaches.
Car Insurance
With car insurance from TruShield you get coverage you can count on to get you back behind the wheel after an accident.
Home Insurance
Protect your home and everything in it with home insurance from TruShield
Travel Insurance
Whether it’s a business trip, a family adventure or a quick getaway, we offer comprehensive travel insurance packages to keep you and your loved ones safe while you’re away.
