Canadian Business Insurance: Insurance for Owners, Employees and Partners

Canadian businesses have assets that need to be insured: equipment, vehicles, office buildings, employees, partners, owners and inventory to name a few. Limiting a business’s risks means obtaining the right business insurance to reduce risks.

Businesses will always have some risk exposure, but protecting from exposure is possible with the right insurance in place.

A few questions businesses need to ask themselves when determining if they need insurance are:

  • Can the business survive if a partner or key employee dies?
  • Will the business have enough money to persist through an emergency?
  • Can the business afford legal fees if a liability lawsuit occurs?

Many businesses rely on lines of credit to persist through invoice periods, and few are prepared to deal with a partner or owner that dies or becomes disabled.

A disaster recovery plan is a must-have for all businesses, especially small businesses that are trying to stay afloat and compete in the market.

What Businesses Need Insurance?

Insurance is recommended for all small businesses, but the following small business activities mean that your need for insurance is even higher:

  1. Selling products through third parties online or in stores. Large scale distribution through wholesalers and retailers often requires product liability insurance. Specified limits for the policy will often be in the agreement. Businesses require that the manufacturer (you) have insurance in the event that your product injuries someone else. You’re also protecting your business from hefty liability claims in the process.
  2. Offer services to other companies. Errors and omissions insurance is often requested when you offer services to other companies. This type of insurance is required in the event that the advice or service you offer results in a financial loss for the client. These clients will want to know that if an error in your own judgment causes them a loss, they’ll be satisfied.

Virtually any business that sells a product or service can benefit from insurance. Insurance options that are available may include:

  • Commercial General Liability (CGL) – General liability insurance for businesses that are held responsible for injuries caused to a person or property.
  • Property Coverage – Insurance for property owned or rented that covers the structure of the building.
  • Equipment Breakdown Coverage – Coverage that’s available for mechanical, electrical and pressure equipment that is necessary for the day-to-day options of a business.
  • Small Business Insurance – Insurance that is designated for small businesses, primarily those that are home-based. Home insurance won’t cover business-related losses, so small business insurance fills the gap to ensure that a home-based small business has the coverage it needs to begin operations again if an issue arises.

Insurance acts as a means of lowering a business’s risks. Proper coverage will depend on your business type and needs. While insurance may not be required by law in many cases, vendors and retailers may require certain forms of insurance before doing business with your company.

You’ll also find insurance for:

  • Key person insurance
  • Critical illness insurance
  • Life insurance
  • Disability insurance
  • Property insurance
  • Vehicle insurance
  • Business interruption insurance
  • Contents insurance
  • Cyber liability
  • Product liability
  • Professional liability

Discuss your business’s needs with a company specializing in the insurance needs of small businesses.

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Melissa Thompson

Melissa is a mother of 2, lives in Utah, and writes for a multitude of sites. She is currently the EIC of and writes about health, wellness, and business topics.