Commercial insurance protects firms from money loss caused by unforeseen risks like legal claims, cyber threats, employee injuries, and unexpected closures. The cost of this insurance relies on factors like:
Canada’s commercial industry began with the fur trade in the 1600s and grew into farming, manufacturing, and services. Cities expanded by the 1900s and enterprises of all sizes thrived.
Commercial insurance in Canada has helped companies recover from major threats throughout history.
After the Great Fire of Toronto in 1904, insurance helped businesses rebuild and protected Canada’s economy. This event led to better fire safety rules and stronger firefighting systems which shaped modern risk management.
Canada’s commercial insurance market is becoming more competitive, offering businesses more policy choices and better terms. Companies are also focusing on ethical practices to strengthen their reputation and long-term success.
The rise of freelance work is creating new opportunities but also exposing businesses to unique issues that require tailored insurance solutions. These include:
AI-related risks: Air Canada’s chatbot failure exposed new liabilities, increasing demand for AI insurance
stricter regulations: new privacy and sustainability laws raise compliance costs and change insurance needs
freelance economy risks: more independent workers create new liabilities, requiring specialized coverage
Brokers should help businesses handle AI risks like automation failures and biased algorithms. Since rules are unclear, firms need coverage for these new hazards. Keeping up with changes will help brokers find the best protection for clients.
Commercial risk is the chance that a business loses money from several hazards. Some examples:
Insurers evaluate business risk through a process called underwriting. They look at different factors to decide how risky a business is to insure, including:
Insurers can create policies that fit a business’ requirements while protecting themselves from large losses by reviewing these factors.
Commercial general liability (CGL) insurance is the most used by many businesses. It safeguards businesses from claims of injury, property damage, and personal injury related to their operations.
Firecracker manufacturers might require fire insurance and tech companies may need AI and cybersecurity coverage. The right insurance depends on the type of business, but even unlikely risks should be considered.
For small businesses CGL insurance is essential. This insurance covers claims if someone gets hurt or property is damaged because of the business. For example, if a customer slips in a store, it can help pay for medical bills and legal costs.
Some individuals and groups that need coverage are:
These businesses and independent contractors tackle various dangers and need commercial insurance to protect their work, assets, and financial stability.
For most businesses, public liability insurance is the most basic form of coverage. It covers injury or property damage claims and is important for businesses that deal with the public.
Businesses can adjust their insurance to fit their specific risks and needs. Custom options include:
Workers' compensation insurance is critical and legally required for businesses with employees, as mandated by regional law, such as British Columbia's Workers Compensation Act.
Yes, this insurance is different from other types, like personal insurance. It secures enterprises, employees, and operations from risks such as:
Commercial insurance also offers custom coverage based on a company’s preferences. To stay updated on the subcategories listed here, save this page for future reference.
