Compare commercial & small business insurance quotes

There are many types of available business insurance coverages, and the more you have, the more it will cost. Most businesses begin with general liability coverage to protect against third-party claims. As you grow, you may want to add coverage for specific risks or perils, which would increase your premiums in exchange for greater protection.

Within each type of coverage, there are limits you can set. The higher the limit, the greater the amount of coverage, and the more it will cost you. Speak with your agent or broker about setting the appropriate limits for your business to avoid overpaying or being underinsured.

The deductible is the money you have to pay before your insurance provider will pay the rest. A higher deductible typically results in a lower premium. It’s a sign you’re willing to accept more risk because you’ll only submit a claim for more than the deductible. When setting your deductible, however, keep in mind you’ll be responsible for the up-front out-of-pocket expense, so make sure you can afford it.

The bigger they are, the harder they fall. That said, if you have a warehouse that's the size of 18 football fields, it will cost you much more than a boutique brick-and-mortar retail store with one location. The same goes for the number of people on your team – the more employees on staff, the greater the chance of making a professional liability or general liability claim against your business.

The construction industry, for instance, is fairly expensive to insure due to the high risk to its workers and third parties on-site. There’s also the expensive equipment used, which must also be insured. A private piano teacher, on the other hand, who teaches out of their home won’t face the same potential hazards and will ultimately pay less for their insurance. 

The more money your business is making, the more it will cost to insure because there’s more to protect if something happens. For instance, if a third party injures themselves in your facility and decides to sue, they may ask for more, given the size of your business. 

The cost of business insurance can vary significantly across provinces and cities.  For example, a business in British Columbia may need earthquake protection, which can increase property insurance costs. Another business may operate near water, meaning it has a higher risk of flooding. If your business is in a high-crime zone, it may also cost more to protect yourself against theft and vandalism. Before you buy or lease your place, check the cost of insurance.

Have you had many claims against your business in the past? Are you notorious for receiving professional liability claims against you? If so, you’ll likely pay more for commercial insurance. An insurance company uses your past as a predictor of what’s to come, and a troubled history could mean a turbulent future, meaning the insurer will charge extra to protect you.