Is your business protected against the unexpected?
Starting a business in Ontario, whether it’s a tech startup in Barrie or a family-run shop in Orillia, is a bold move that comes with a unique share of risks. While you’re focused on growth, one unforeseen event like a data breach or a slip-and-fall lawsuit could be enough to drive you out of business without the right protection. As your local neighbours, McLean & Dickey have been providing peace of mind and unbiased advice since 1922 to ensure you are well-protected in the event of a claim.
Mandatory vs. Recommended: What Do You Actually Need?
In Ontario, the line between what is “legally required” and what is “practically necessary” can be blurry. Understanding this distinction is vital to tailoring an insurance experience to your specific needs.
What is Legally Mandatory?
Technically, the only insurance legally mandated by the province of Ontario for businesses is Commercial Auto Insurance for any vehicle used for business purposes. If you use a van for deliveries in Midland or a truck for contracting in Muskoka, a personal policy will not suffice.
What is "Practically" Mandatory?
Even if a policy isn’t a provincial law, it is often a requirement to operate your business. You will likely find coverage is mandatory to:
- Secure a Lease: Most landlords require $1M to $2M in Commercial General Liability (CGL) before you can move into a storefront.
- Win Contracts: Government and corporate clients often demand a Certificate of Insurance (COI) before signing any agreements.
- Maintain Professional Standing: Regulated industries, such as healthcare and legal services, require specific liability limits to keep a valid license.
The Core Four: Recommended Coverage for Every Small Business
Beyond legal requirements, we recommend these four pillars to ensure your assets are secure.
- Commercial General Liability (CGL): This is your primary shield against claims of third-party bodily injury or property damage occurring on your premises.
- Commercial Property Insurance: This protects your physical building, tools, inventory, and equipment from fire, theft, or vandalism.
- Professional Liability (Errors & Omissions): Essential for service-based businesses, this coverage protects against financial losses arising from negligence or failure to deliver a service as promised.
- Cyber Liability Insurance: Because most businesses use the internet, they are increasingly vulnerable to complex cyber threats. One hacked email can lead to a data breach that costs you your reputation and the trust of your customers.
How Much Does Small Business Insurance Cost?
Insurance is not “one-size-fits-all”. According to a 2024 report from the Canadian Federation of Independent Business (CFIB), 62% of small business owners consider insurance costs to be a significant expense, with many seeing a 10% increase in the last year.
Your premium is calculated based on several factors:
- Industry Risk: High-risk sectors, such as construction, naturally face higher premiums than office-based consulting.
- Annual Revenue: Higher revenue often suggests a larger customer base and greater liability exposure.
- Claims History: A history of frequent claims can signal higher risk, while a clean record helps lower your rates.
- Location: Businesses in high-traffic urban areas like Barrie may see different rates than those in rural parts of Muskoka due to varying risks.
Why Work With a Local Broker?
Just because we’ve been around for 100 years doesn’t mean we live in the dark ages. As an independent broker, McLean & Dickey works for you, not the insurance company. We provide unbiased advice and advocate on your behalf to negotiate the best possible settlement in the event of a claim.
Protect what matters most so you can enjoy the moments that matter most.