Everything You Need To Know About Startup Business Insurance In Ontario

Commercial Insurance Insurance
Starting a business takes some risk. But the good thing is that you can curb those risks by getting startup business insurance in Ontario.
The first thing to know is that each business is unique. The coverages may look exactly alike, but because they are covering unique sets of risks, insurance companies see them differently. And that’s why each startup business insurance policy will have a different price even though they may look similar on paper.
The second thing to know is that startup business insurance is meant to compensate you in the event of a loss. It’s not meant to make you richer than when you started. Instead, it is designed to put you back where you were.
Lastly, remember that all insurance policies include a deductible. This means that if a leak damages your inventory, for example, and costs $1000 to replace, it wouldn’t be wise to make a claim and pay a $1000 deductible.
speak with a broker

Who do you contact?

You can buy insurance from a broker, an agent, or a website or online quoter. Each one will give you a completely different buying experience.

  • Broker – A broker represents many companies and usually works under a brokerage.
 The cool thing about brokers is that we have an obligation to our licensing body that our duty first is to our client. We need to disclose to our clients if we have any conflicts of interest.
In Ontario, our licensing body is the Registered Insurance Brokers of Ontario.
  •  Agent – An agent works for one insurance company which means their obligation, first, is to their employer.
  •  Online quoters – Online quoters have brokers at the back end. In most cases, they will need a phone call and some back and forth. Make sure to do some research on the company. Find out who the brokerage is behind that online quoter.
 In the end, choosing to work with a broker or an agent will dictate your policy’s flexibility and your coverage options. So, ask them if they are a broker or an agent.
man looking at his watch

How long will it take to get business insurance in Ontario?

Timing can vary greatly.
You can get your startup insurance policy within the day or in two to three weeks, depending on your specific situation. If your policy is complex or if the underwriter has more questions, you may even have to wait up to four weeks.
Some insurance companies have online tools for brokers. These online tools help us get you a policy within an hour if your situation is simple.
But if your business is more complex, we can’t quote your policy online. In this case, it may take around two weeks.
This is why you need to start the process of buying insurance as soon as you can. Don’t wait until you get a vendor that requires you to have a certificate of insurance. By then, it might be too late.

How much is startup business insurance in Ontario?

The cost of business insurance in Ontario varies greatly. On average, it may cost around $2100. But it could also range from $1000 to $5000.

Some insurance companies will need an upfront payment. While others charge monthly with interest.

What details does the insurance company have to know?

When you first buy business insurance, you will need to disclose all aspects of your business. These are some of the information they will need:
  • Business size and locations
  • Number of employees
  • Revenue and revenue sources
  • Equipment and contents 
Remember to update your insurer as things change as soon as you can. Updating your insurer is most especially important as a startup because there are typically more changes in your business’ operations.
(If you fail to update your insurer of any changes and have to make a claim, your insurer may not cover you!)
Be upfront about all aspects of your business. Don’t be too worried about the price because your broker will take care of finding you a competitive policy.
Make sure to give your insurer correct information when buying startup insurance. Otherwise, all you’ll have is a piece of paper until you make a claim and they don’t cover you. It’s better not to get insurance than to insure based on incorrect information.
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Need help getting startup business insurance in Ontario?
PrimeService can help you.

Contact us anytime at (905) 886-7277 and a licensed broker will be happy to help you!

By Katia Barretto