Business insurance is catch-all term used to describe common types of insurance business owners require to cover third-party liability lawsuits or claims. We want to make sure you are covered for all of your business insurance needs!

Business Insurance policies can include a combination of the following:

• Commercial Property Insurance

  Commercial property insurance protects the building you use, and a long list of things inside including equipment, inventory, furniture, computers, etc.

• Commercial Auto Insurance

  Commercial Auto insurance is designed to protect you, your employees, and passengers.

• Commercial General Liability Insurance (CGL)

  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.

• Professional Liability Insurance or Errors and Omissions

  Errors and Omissions Insurance is a form of professional liability insurance, commonly referred to as E&O insurance.  This protects professionals from claims alleging financial loss due to a service you provided, as well as lawsuits alleging misconduct, an accusation of negligence, and failure to deliver services or meet deadlines as promised.

• Cyber Liability Insurance

  Cyber risk insurance is designed to help protect businesses from certain losses associated with cyber or privacy breaches.

• Directors and Officers Insurance

  Directors and officers (D&O) liability insurance protects the personal assets of the company's corporate directors and officers, and their spouses, in the event they are personally sued for actual or alleged wrongful acts in managing a company.

• Product Liability Insurance

  Product Liability refers to situations where a customer or 3rd party purchases a product and an issue with the product results in bodily harm or property damage.

• Business Interruption Insurance

  If you suffer a covered loss at your business location you may require Business interruption insurance which will help to pay for your loss of business income. If you suffer a loss and repairs require you to close your business for a period of time, you'll lose out on that income.

• Premises and Operations Liability

  Commercial liability exposures arise from the premises a business occupies and the operations conducted on those premises. Which means you could be held legally liable for bodily injury or property damage to third parties when those losses originate from the premises or operations of the occupier.

• Product Liability

  A consumer of goods has a right to expect that they be safe for use. When use of defective products results in injury or damage, consumers are entitled to commence a suit for damages. A products liability claim can arise when it is shown that the injury or damage occurred away from the premises of the seller, and the seller had clearly relinquished possession of the defective product

• Completed Operations Liability

  A completed operations exposure arises out of the work performed by a business when work is defective and causes injury or damage, the person who performed the work may be sued for the damages. Defective work can be a result of:

  • Bodily injury or property damage to persons using the completed work
  • Loss of use of property because of the failure of the completed work to serve its purpose o function.

  Common claims for completed operations liability include:

  • Improper performance of a completed task
  • Use of defective materials, parts or equipment
  • Work not as warranted, even though not performed erroneously or with inappropriate materials.
  • Damage to completed work arising out of the work or out of the materials or equipment furnished.
  • Failure of the contractor to withdraw, inspect, repair or replace any defective work which has been completed.

• Personal Injury Liability

  Businesses dealing with the public have an exposure to claims alleging personal injury. Personal injury claims do not deal with allegations of physical harm, but rather, with such matters as: Wrongful arrest, Wrongful eviction or entry by the landlord, Malicious prosecution, Libel & Slander, Unlawful interference with one’s property, Actions causing severe mental and emotional distress. The liability commonly derives from an intentional action that may have caused a specific but unintended violation or infringement of another entity’s rights.

• Liability for Property in the Businesses Care, Custody or Control

  There are two types of property that the insured could be responsible for real property and personal property

  Real Property

  • A business which operates out of a rented premises faces the potential for liability for loss to the building and any fixed equipment.

  Personal Property

  • A bailee for hire is one who has temporary custody of the personal property of another for a purpose other than sale and who is compensated as a condition of such custody.

  • A bailee for hire is expected to take the same care of the goods of others as would be taken by a prudent and diligent owner of such goods.
  • If the goods are lost or damaged the bailee must show proof they were not negligent in causing the loss.

• Employer’s Liability

  An employer may face liability for actions, wrongful acts of their employees, or bodily injuries suffered by employee in the course of their employment.

  • Even if an employer did not authorize the wrongful act, the business could be liable for conduct of employees.

• Contingent Liability

  Contingent liability arise when a business owner is held liable for the bodily injury, property damage or personal injury which has been directly caused by another party with whom the business owner has contractual relations. The owner of a company may not be found liable for the actions of a contractor, subcontractor, employee or agent but they will most likely be named a defendant in any legal proceedings. The owner may therefore be faced with legal costs incurred in providing a defence.

• Contractual Liability

  Contractual liability refers to the liability of others assumed by the insured under contract. Businesses can enter into contracts with third parties that may increase their liability exposures.

  • Purchase orders
  • Sales agreements
  • Hold harmless agreement
  • Construction

• Cyber Liability

  Most organizations share key elements of cyber risks – websites, social media, internal networks, email, data bases, applications, employees, mobile devices, suppliers and other third parties. Standard Commercial General Liability Policies exclude many of these exposures. Which is the reason why this coverage is important. The three main cyber threats are

  • Security breach
  • Disclosure of private information
  • Electronic media

  Examples of cyber liability exposure

  • A firm may have a serious security breach and resolve the issue without informing the privacy commissioner or its customers
  • An organization could release confidential information from an unexpected source, such as, offsite staff, third party supplier or even a rogue or disgruntled ex-employee.

• Professional Liability/Errors and Omissions

  The commercial general liability policy does not cover professional errors or negligence. Professional liability insurance or Errors and Omissions Insurance is designed to cover all sums which the insured legally becomes legally obligated to pay as damages because of injury arising out of the rendering of, or a failure to render, professional services in the practice of the insured’s profession. Professional liability policies are designed to specifically cover professionals who give advice, counselling or administer health care.

  • Physicians, dentists, pharmacists, engineers, architects, lawyers, accountants and insurance brokers, etc.
  • Barbers, hair stylists, beauticians, morticians, veterinarians, optical and hearing aid establishments and others also require special types of professional liability

Protecting your business is important to the long-term success regardless of the industry or the size of your business. Business insurance provides coverage for the financial costs associated with unforeseen events such as damage caused to third parties, accusations of professional negligence or defective products. Your business is unique and the coverage requirements will vary depending on your business needs.

Business insurance is not required to run a business however it is important to think about potential exposure you may be liable for in the event a claim or lawsuit is made. A lawsuit can include legal expenses and medical expenses that may threaten and put a financial burden on your business if you are not properly covered. If you are not sure if you require coverage, think of your profession, in Ontario certain professions require Professional Liability or Errors and Omissions Coverage.

Example of professions which require professional liability insurance include: lawyers, accountants, architects, real estate agents, appraisers, surveyors, mortgage brokers, and occupational therapists to name a few.

Yes, you are able to deduct the necessary cost of business insurance from your taxable income. Insurance costs you can deduct as business related expenses may include: professional liability insurance, commercial general liability insurance, cyber insurance, commercial property insurance, etc.