What insurance coverage is right for your business?
Every business is unique. That’s why it’s so important to find the right business insurance coverage to fit your needs. Here are four common types of commercial or business insurance coverages in Canada.
This provides coverages for physical loss and damage to your business' tangible assets such as buildings, equipment, or inventory from fires, theft, or other covered events. For example, if you're a photographer, you might want commercial property coverage to help protect your studio or gear. If you're a contractor, you might want an equipment floater to protect the tools that travel with you.
1a. Business Interruption Coverage
Also known as Business Income Insurance, is an optional coverage that can be added to your commercial property policy. It compensates for lost income and extra expenses incurred if your business is temporarily closed due to a covered event. This coverage can help keep your business financially steady, even when the unexpected happens.
This protects your business from financial losses caused by third-party claims involving bodily injury, property damage, as well as personal and advertising injuries resulting from your products, services or operations. For example, if a customer slips and gets injured in your café, and you're found liable, CGL could cover related medical expenses, legal fees or settlement costs
3. Professional Liability Insurance
Also known as Errors & Omissions (E&O) Insurance, this protects your business against claims of negligence, mistakes, or failure to deliver promised professional services that cause financial harm to a client. For example, a marketing agency mistakenly uses an image without proper rights and the client faces legal action from the copyright holder. In this case, E&O Insurance may cover the agency’s legal fees and the associated financial damages awarded in the lawsuit.
This could be an essential safeguard against unexpected, covered incidents for businesses that rely on vehicles for operations such as making deliveries or carrying tools and equipment.
So why get commercial auto insurance instead of a personal auto insurance policy?
When you use a vehicle for commercial activities, there are unique risks involved. A commercial auto policy would address these risks and provide coverage for damages to your business vehicles, third party liability, and medical expenses for you and the employees that drive your vehicles if an accident were to occur.
Talk to an advisor today.
Insurance can seem complex, but learning the basics and getting advice from a licensed insurance advisor can help you focus on growth and success, knowing your business is protected from the unexpected.
Explore how you can get flexible coverage options with TD Insurance so that you only pay for the coverage you need.
Share this article
The content on this page is for general information purposes only and does not constitute legal advice. Any coverages described herein may be subject to additional eligibility criteria, limitations and exclusions. In the event you make a claim, potential indemnification is also subject to the receivability of the claim and the type of coverage you bought.
In the case of conflict between the content on this page and your policy wordings, your policy wordings shall prevail. Please speak to an Advisor or consult your policy wordings for further details.