What Business Insurance Do I Need in Toronto?


Aug 19, 2020

What Insurance Coverage Do I Need for My Business in Toronto?

Like any metropolitan city, being a business owner in Toronto has its pros and cons. Being downtown can guarantee foot traffic and business - among numerous other opportunities and benefits. At the same time though, simply being exposed to more people can also lead to more risks, more claims and more lawsuits - even if they're not your fault. That's why, having business insurance in Toronto is, not only prudent, but highly necessary. This is especially the case when it comes to business growth as investors and consumers will look for business insurance. We break down some common considerations for what kind of business insurance you need in Toronto:

What Business Insurance Should I Have? What Does Business Insurance Cover?

Commercial General Liability Insurance (CGL)

Commercial General Liability insurance, or CGL, provides protection against:

-Bodily Injury and Property Damage

-Personal and Advertising Injury

-Medical Payments

-Tenants Legal Liability

-And in some cases, can include Employers Liability and Non-Owned Automobile Liability coverages.

All companies including home-based businesses should be carrying a CGL policy as it covers defense and damages against a lawsuit if your products or services cause or are alleged to have caused bodily injury or property damage to others. You can't predict or protect yourself from a lawsuit arising. Litigation may be someone's only option to eliminate their liability or cover their medical expenses. It also allows for peace of mind and credibility.

Property Insurance

Commercial Property insurance coverages protect a company's physical assets against loss or damage from a broad range of causes. If you own, lease or rent any building, unit, inventory, equipment, furniture or installed fixtures, you may want to consider protecting your investment or your contractual obligations. Property of others that is in the care, custody and control of your business would also be covered which further protects your company.

Errors and Omissions (E&O)

Errors and Omissions Insurance (E&O), or professional liability insurance protects your company against claims arising from failure to provide the expected service level. For example, if you made a mistake and miscalculated a total or accidentally sent the wrong client private information. It can also cover claims arising from financial loss from wrongful acts that would not be covered under CGL insurance. Business, IT and Medical professionals -insurance brokers, freight forwarders, architects, engineers, lawyers, health care practitioners, developers, management consultants and other professional service providers - can benefit from this kind of coverage.

Business Interruption Insurance

Business Interruption or Business Income insurance is not a stand-alone coverage but rather, is an extension of business property insurance that can cover profits, fixed costs including ordinary payroll and extra expenses when a business property claim arises to cover the profits a company would have earned had the loss not occurred. This can be extremely important coverage for businesses of any size, as extra expenses can interrupt the ability for a business to continue servicing its customers and meet contractual obligations. Without this coverage extension, your business may have to permanently close if a claim arises.

Product Liability

Let's say you own a clothing store and unfortunately, a customer gets a rash from a ring that you sell them. The legal fees alone could severely harm your business and profits without the right insurance. Owners can be found responsible for the injury or damage if it can be traced back to your business as the source of the issue. Even if you simply distribute a harmful product manufactured by someone else, you can be found liable.This is especially true if you're reselling from outside Canada (importing/exporting) since it will be harder to recover from and trace back to the original producer.

Often product liability claims exist because:

  • The product injured the consumer's body

  • The product injured the consumer's property

  • The food or beverage product made the consumer ill


Cyber Liability Insurance can provide coverage for cyber incident response costs, cybercrime including social engineering, cyber extortion, network damage, system interruption and privacy liability. This coverage is increasingly important for if you store private or sensitive information about employees or clients in digital or paper format. Cybercrime is on the rise and standard policies do not cover these risks and liability.

D&O Insurance

D&O Insurance will protect your organization's corporate officers and directors from lawsuits brought on by stakeholders such as customers and suppliers.

Learn more about how to protect your company's digital assets with Cyber Insurance.

You may find that not all of these coverages apply to you; every business is different! There's no one size fits all solution for business insurance in Toronto. These are just common and recommended insurance coverages to consider. That's why, it's recommended you speak to a broker who can look at your situation and access what type of business insurance do you need. At Foxquilt, our insurance expert brokers can look over your individual needs and tailor smarter business insurance solutions specifically to your unique business needs. By joining the Foxquilt community of business owners in Toronto, you even access exclusive savings on your rates! Get an online quote for your business today.

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