How to Start in Canada

How to Get Business Insurance in Canada

How to get business insurance in Canada: the coverages to consider, how to buy through a broker or agent, and what policies do not cover.

Written November 6, 2026 · 8 min read

Applies in: CA

The short answer

Business insurance is bought risk by risk, not as a single product: list what your business can break, lose or be sued for, then match a coverage to each risk with a licensed broker or agent. The Insurance Bureau of Canada's buying guide puts it plainly: insure for the specific risks your business faces. A one-person consultancy and a contractor with a fleet do not need the same policy, and the cheapest quote is not comparable unless the limits, deductibles and exclusions match. Start with the risks, not the price.

Step 1: List the risks your work actually creates

Walk through the business and write down what could go wrong, in the Insurance Bureau of Canada's categories:

  • Property. The premises, whether rented or owned, and what is in them. Where the business operates makes a difference to the risks it faces.
  • Liability. Bodily injury or property damage to someone else resulting from a business interaction. Liability cover can also pay legal defence costs.
  • Professional mistakes. If clients pay for your advice, design or service, a mistake can cause them financial loss without anyone being hurt or anything being damaged. That is professional liability — also called errors and omissions (E&O) — and general liability does not cover it.
  • Stock and equipment. Inventory, tools, computers and machinery. A standard property policy may include some equipment cover; specialized machinery may need its own breakdown cover.
  • Business interruption. Income lost while the business is shut down after an insured loss, and the continuing expenses that do not stop.
  • Vehicles. Any vehicle used by the business needs cover under an automobile or fleet policy. Personal auto cover does not necessarily cover business use.
  • Crime. Employee dishonesty and theft. A fidelity bond protects against employee theft.
  • Cyber and data. Any business that accepts payment electronically or keeps employee records has cyber and data risk.
  • Specialty risks. Manufacturers, importers, exporters and professional consultants are among the businesses that may need specialized cover — for example, product liability if you make, distribute or sell something that could harm a customer, or trade credit insurance if a customer might not pay.

Write the list before you talk to anyone. It is the document the broker works from, and it stops you buying cover for risks you do not have while missing the one you do.

Step 2: Check what you already have

Two gaps catch new businesses most often:

  • Home insurance is not business insurance. Most homeowners' policies only offer a small coverage limit for books, tools and instruments necessary for a business, profession or occupation, and only while those items are in the home. Tools in a van, stock at a market, or a client injured at your home office are different questions.
  • Personal auto is not commercial auto. Auto insurance is mandatory across Canada, but mandatory personal cover does not necessarily mean business use is properly covered. If the vehicle carries tools, stock or clients, tell the insurer.

Also check what your contracts already require. A lease, a client agreement, a municipal permit or a trade licence may set a minimum liability limit — $2 million is a common ask — and may require the other party to be named as an additional insured. Those requirements belong on your risk list before you ask for quotes.

Step 3: Talk to a licensed broker or agent

Insurance in Canada is sold by licensed intermediaries, regulated province by province:

  • A broker works independently on your behalf and compares policies from several insurers. In Ontario, brokers are licensed by the Registered Insurance Brokers of Ontario (RIBO).
  • An agent represents one insurance company and sells its policies. In Ontario, agents are licensed by the Financial Services Regulatory Authority of Ontario (FSRA), which also regulates insurers' conduct.
  • In other provinces, the regulator differs — the Canadian Council of Insurance Regulators publishes a jurisdictional overview with the regulator for each province and territory. Check that whoever sells you the policy holds a current licence in your province.

Bring the risk list, the business details (structure, revenue, employees, premises, vehicles, and what you actually do), and any limit your contracts require. The representative's job is to determine the applicable coverages, premiums, deductibles and available discounts — and to explain the exclusions. If a broker or agent will not explain an exclusion, that is information too.

The Insurance Bureau of Canada also runs a Business Insurance Helpline — 1-844-227-5422 — for general questions about business insurance cover, if you need help understanding a coverage before you buy.

Step 4: Compare quotes like for like

Get more than one quote, and compare them on the same basis:

  • Same limits. A $1 million liability limit is not comparable with a $2 million limit, and your contracts may require the higher one.
  • Same deductibles. A lower premium with a deductible you cannot afford is not cheaper.
  • Same exclusions. Read what is not covered in each quote. The Insurance Bureau of Canada is explicit: no policy covers everything that could go wrong, and insurance is intended to protect against loss or damage from unforeseeable events. Wear and tear cannot be insured; terrorism losses are not covered by a standard policy; pollution cover may not be available.
  • Claims-made versus occurrence. Some professional liability policies cover claims made during the policy period; others cover events during the period whenever the claim arrives. Ask which yours is, and what happens when you switch insurers.
  • Business interruption form. Gross earnings, profits form or extra expense — the three forms pay differently, and the right one depends on whether you can keep operating after a loss.

Decide based on the cover you need, your tolerance for risk, and how much you are willing to pay either in premiums or in losses you cover yourself. That is the Insurance Bureau of Canada's own framing, and it is the honest one: a low premium is not a saving if it leaves the one risk you actually face uncovered.

Step 5: Buy, then review every year

  • Read the policy when it arrives, not when you claim. Check the named insured, the premises, the vehicles, the limits and the exclusions against your risk list.
  • Tell the insurer when the business changes: new premises, new vehicles, new employees, new services, new contracts with insurance requirements. A policy written for last year's business may not cover this year's.
  • Review annually with your representative. As the business evolves, the need for certain coverages increases or changes — ask questions, and make it your policy to understand the cover you hold.
  • Keep the paper trail. Quotes, the policy, endorsements, renewal notices and correspondence about claims. If a claim is disputed, the paper trail is the evidence.

Workers' compensation is separate

Business insurance does not cover your employees' workplace injuries — that is the provincial workers' compensation system. Each province and territory has its own board, its own registration and its own rates, and registration is required once you hire. See our guide to registering for workers' compensation in Canada for the provincial routes. Do not assume a liability policy substitutes for it.

Figures we did not include, and why

No premium figures appear in this guide. Premiums are quoted per business, based on trade, revenue, province, limits and claims history, and no official page states a premium figure. Any published premium range would be out of date or inapplicable to a different trade. The only figures given are the ones the Insurance Bureau of Canada and the regulators publish: the $2 million liability limit commonly required by contracts, and the IBC helpline number. Get quotes for your own business before you budget.

Figures are current as of November 2026. Confirm coverages, limits and exclusions on the insurer's policy wording before you buy — the wording, not the quote summary, is what pays a claim.

Related guides

Getting business insurance in Canada, in five steps

  1. List the risks your work actually createsProperty, liability, professional mistakes, vehicles, cyber and interruption — insure for the specific risks your business faces, not a generic bundle.
  2. Check what you already haveA home policy covers business tools only to a small limit, and only while they are in the home. Do not assume you are covered.
  3. Talk to a licensed broker or agentA broker compares policies from several insurers; an agent sells for one insurer. Both must be licensed in your province.
  4. Compare quotes like for likeSame limits, same deductibles, same exclusions — and read what is not covered before you compare the price.
  5. Buy, then review every yearReview the policy with your representative as the business changes, and whenever you add staff, vehicles, premises or new services.

Questions people ask

What types of business insurance do most small businesses consider?

The Insurance Bureau of Canada lists the usual set: commercial property, liability, professional liability (errors and omissions), stock and business equipment, extra expenses, business interruption, automobiles and fleets, crime, specialty risks, and cyber security. Which ones you need depends on the work: a consultant needs professional liability, a contractor needs commercial auto, a business that takes electronic payments or keeps employee records has cyber risk.

Is business insurance legally required in Canada?

No law requires general liability insurance for most businesses, but contracts often do: clients, property managers, landlords and permit programs commonly ask for proof of liability cover, often at a $2 million limit. Auto insurance is mandatory across Canada for vehicles, including business vehicles. Workers' compensation is a separate system run by each province's board, and registration is required once you have employees.

What is the difference between an insurance broker and an insurance agent?

A broker works independently on your behalf and compares policies from several insurers. An agent represents one insurance company and sells its policies. In Ontario, brokers are licensed by the Registered Insurance Brokers of Ontario (RIBO) and agents by the Financial Services Regulatory Authority of Ontario (FSRA); other provinces have their own regulators. Check that whoever sells you the policy is licensed in your province.

What does business interruption insurance cover?

It can compensate for loss of income while your business is shut down following an insured loss, and cover continuing expenses. It is typically an add-on to a commercial property policy, and comes in three forms: a gross earnings policy, which pays only until property or stock is replaced or damage is repaired; a profits form policy, which pays until the business resumes its normal pre-loss level, subject to limits; and an extra expense policy, for businesses that can keep operating while affected — for example, by moving to a temporary location.

What does a business insurance policy not cover?

No policy covers everything. The Insurance Bureau of Canada notes that wear and tear cannot be insured, losses from acts of terrorism are not covered by a standard policy (specialty cover is available), and pollution coverage may not be available depending on the business. Policies also have limits, deductibles, exclusions, conditions and definitions — read them before you buy, and ask your representative to explain anything unclear.

My business runs from home. Does my home insurance cover it?

Probably not enough. The Insurance Bureau of Canada notes that most homeowners' policies only offer a small coverage limit for books, tools and instruments necessary for a business, profession or occupation, and only while those items are in the home. A home-based business usually needs its own commercial cover or a home-business extension, and liability for business visitors is a separate question from the building itself.

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