[{"content":" How it works We\u0026rsquo;ll find a broker that specializes in your business insurance needs.\n01 Tell us about your business Share what your business does and a few basic details, using the form above. 02 We refer you to a licensed insurer We pass your request to a licensed insurer or broker who writes cover for your type of business. 03 Review your options and decide They walk you through coverage, limits and price. You decide whether to buy, and there\u0026rsquo;s no obligation to. Coverage for businesses General liability Injury or property damage claims against your business. General liability insurance \u0026rarr; Professional liability Claims that your advice or work cost a client money. Professional liability insurance \u0026rarr; Commercial property Damage to your own equipment, stock or premises. Commercial property insurance \u0026rarr; Business interruption Lost income while a covered event keeps you closed. Business interruption insurance \u0026rarr; Directors and officers Claims about how your company is managed. Directors and officers insurance \u0026rarr; Cyber Costs after a data breach or cyberattack. Cyber insurance \u0026rarr; Builders risk Cover for a building while it\u0026rsquo;s under construction. Builders risk insurance \u0026rarr; Why go through Clearly Rate Licensed insurers only We only refer you to insurers and brokers licensed to operate in your province. See our Licensing \u0026amp; Disclosure page. No cost to you We\u0026rsquo;re paid by the insurer or broker, not by you, so asking for a referral costs nothing. Plain-English guides Our guides explain how coverage works before you talk to anyone, so you can ask better questions. Your information isn\u0026#39;t sold We share your details with a partner only after you agree, and we never sell them. See our Privacy Policy. ","date":"23 September 2026","externalUrl":null,"permalink":"/","section":"Compare business insurance quotes to save time and money.","summary":"How it works We’ll find a broker that specializes in your business insurance needs.\n01 Tell us about your business Share what your business does and a few basic details, using the form above. 02 We refer you to a licensed insurer We pass your request to a licensed insurer or broker who writes cover for your type of business. 03 Review your options and decide They walk you through coverage, limits and price. You decide whether to buy, and there’s no obligation to. Coverage for businesses General liability Injury or property damage claims against your business. General liability insurance → Professional liability Claims that your advice or work cost a client money. Professional liability insurance → Commercial property Damage to your own equipment, stock or premises. Commercial property insurance → Business interruption Lost income while a covered event keeps you closed. Business interruption insurance → Directors and officers Claims about how your company is managed. Directors and officers insurance → Cyber Costs after a data breach or cyberattack. Cyber insurance → Builders risk Cover for a building while it’s under construction. Builders risk insurance → Why go through Clearly Rate Licensed insurers only We only refer you to insurers and brokers licensed to operate in your province. See our Licensing \u0026 Disclosure page. No cost to you We’re paid by the insurer or broker, not by you, so asking for a referral costs nothing. Plain-English guides Our guides explain how coverage works before you talk to anyone, so you can ask better questions. Your information isn't sold We share your details with a partner only after you agree, and we never sell them. See our Privacy Policy. ","title":"Compare business insurance quotes to save time and money.","type":"page"},{"content":"","date":"14 September 2026","externalUrl":null,"permalink":"/posts/","section":"Blog","summary":"","title":"Blog","type":"posts"},{"content":"","date":"14 September 2026","externalUrl":null,"permalink":"/tags/business-insurance-101/","section":"Tags","summary":"","title":"Business Insurance 101","type":"tags"},{"content":"","date":"14 September 2026","externalUrl":null,"permalink":"/categories/","section":"Categories","summary":"","title":"Categories","type":"categories"},{"content":"","date":"14 September 2026","externalUrl":null,"permalink":"/tags/coverage-basics/","section":"Tags","summary":"","title":"Coverage Basics","type":"tags"},{"content":"","date":"14 September 2026","externalUrl":null,"permalink":"/categories/guides/","section":"Categories","summary":"","title":"Guides","type":"categories"},{"content":"Most business owners don\u0026rsquo;t lose sleep over insurance because they don\u0026rsquo;t understand it — they lose sleep because nobody ever laid out, in order, which policies matter for a business like theirs. Here\u0026rsquo;s that order.\nStart with what you\u0026rsquo;re legally or contractually required to carry Before anything else, rule out the coverage you don\u0026rsquo;t get to choose about:\nWorkers\u0026rsquo; compensation — mandatory in most provinces the moment you have employees, full-time or part-time. Commercial auto — required if the business owns, leases, or regularly uses vehicles for work, separate from a personal auto policy. Professional liability (errors \u0026amp; omissions) — not always legally required, but frequently required by contract if you work with clients, landlords, or larger companies who won\u0026rsquo;t sign without proof of it. If any of these apply to you, they\u0026rsquo;re not optional line items to weigh against your budget — they\u0026rsquo;re the floor.\nThen cover the risk that could actually end the business After the mandatory stuff, the next question isn\u0026rsquo;t \u0026ldquo;what\u0026rsquo;s available?\u0026rdquo; — it\u0026rsquo;s \u0026ldquo;what loss could I not absorb?\u0026rdquo; For most small and mid-sized businesses, that\u0026rsquo;s one of these:\nGeneral liability (CGL) — covers third-party bodily injury or property damage claims. If customers, clients, or the public ever set foot in your space or interact with your work, this is usually the first policy to buy. Commercial property — covers your building, equipment, inventory, and tools against fire, theft, and similar damage. The more physical stuff your business depends on to operate, the more this matters. Business interruption — covers lost income if a covered event (like a fire) shuts you down temporarily. Easy to skip, expensive to have skipped if you ever need it. A useful gut check: if the worst version of an incident happened tomorrow, would it cost you a bad quarter, or would it close the business? Prioritize coverage for the second kind of risk first.\nLayer in coverage for how your business specifically operates Once the essentials are in place, look at what\u0026rsquo;s unique to your business model rather than your industry in general:\nCyber insurance — if you store customer data, take online payments, or would be seriously disrupted by a systems outage. Directors \u0026amp; officers (D\u0026amp;O) — if you have outside investors, a board, or multiple owners who could be personally named in a dispute. Professional liability, again — even outside contractual requirements, if your business gives advice, designs something, or delivers a service where a mistake could cause a client financial loss. This is also where it\u0026rsquo;s easy to over-buy. A single-location retail shop doesn\u0026rsquo;t need the same cyber policy as a company processing thousands of transactions a day. Match the coverage to the actual exposure, not to a generic checklist.\nDon\u0026rsquo;t buy coverage you can\u0026rsquo;t explain back A good test before adding any policy: can you describe, in one sentence, the specific loss it would pay out for? If you can\u0026rsquo;t, either ask until you can, or leave it out for now. Coverage that exists because it was bundled into a package, rather than because it addresses a risk you identified, tends to be the first thing worth re-evaluating at renewal.\nIf you\u0026rsquo;d rather skip the research and just see what applies to your business, tell us what you do and we\u0026rsquo;ll match you with the coverage that fits — no jargon, no pressure to buy more than you need.\n","date":"14 September 2026","externalUrl":null,"permalink":"/posts/how-to-choose-the-right-coverage/","section":"Blog","summary":"Most business owners don’t lose sleep over insurance because they don’t understand it — they lose sleep because nobody ever laid out, in order, which policies matter for a business like theirs. Here’s that order.\n","title":"How to Choose the Right Coverage","type":"posts"},{"content":"","date":"14 September 2026","externalUrl":null,"permalink":"/tags/","section":"Tags","summary":"","title":"Tags","type":"tags"},{"content":" Why we exist Most small business owners aren\u0026rsquo;t insurance people, and they shouldn\u0026rsquo;t have to be. But the choices matter. The wrong policy, or a gap between two of them, can turn a bad day into a business-ending one, and it\u0026rsquo;s hard to know what to ask when you don\u0026rsquo;t know what\u0026rsquo;s on offer.\nWe want to close that gap. That means explaining insurance in plain language, being straight about what a policy does and doesn\u0026rsquo;t cover, and pointing you to licensed insurers who can take it from there.\nMore than 20 years in insurance Clearly Rate is built by people with more than 20 years of experience in the insurance industry. That experience shapes how we write. Every guide on this site tries to say what a policy is for, what it usually leaves out and what to ask before you buy, in the terms a business owner would use, not an underwriter. What we do Explain it plainly Guides to each type of business cover, from general liability to cyber, written for people who run a business, not an insurance desk. Point you to licensed insurers Tell us about your business and we refer you to licensed insurers, who provide the quotes and the advice. Keep it Canadian Canadian terms and a Canadian view of how cover works, knowing that rules and practice vary by province. What we don\u0026#39;t do We\u0026rsquo;re not an insurer, and we\u0026rsquo;re not a licensed insurance broker or agent. We don\u0026rsquo;t sell insurance, we don\u0026rsquo;t set prices, and we don\u0026rsquo;t give personal advice. The guides on this site are general information. Licensed insurers and brokers do the quoting and the advising, and they\u0026rsquo;re who you deal with once we\u0026rsquo;ve referred you. See our Licensing \u0026amp; Disclosure page for the full detail, including how we\u0026rsquo;re paid. Who it\u0026rsquo;s for Freelancers, consultants and sole proprietors Small teams and growing companies Contractors and trades Shops, restaurants and service businesses Startups and founders Charities and nonprofits with a board to protect How we work Plain language first. If a term needs explaining, we explain it. No numbers we can\u0026rsquo;t stand behind. Prices depend on your business, and only an insurer can quote one, so we don\u0026rsquo;t guess. Named, dated and reviewed. Every guide shows who wrote it, who reviewed it and when it was last updated. ","externalUrl":null,"permalink":"/about/","section":"About Clearly Rate","summary":"Why we exist Most small business owners aren’t insurance people, and they shouldn’t have to be. But the choices matter. The wrong policy, or a gap between two of them, can turn a bad day into a business-ending one, and it’s hard to know what to ask when you don’t know what’s on offer.\n","title":"About Clearly Rate","type":"about"},{"content":" Our commitment We\u0026rsquo;re working to make this website usable by as many people as possible, regardless of ability or the technology they use to browse it. We aim to meet the Web Content Accessibility Guidelines (WCAG) 2.1 at Level AA, and we treat this as ongoing work rather than something we finish once. This statement describes where we are today, honestly, including where we still have work to do.\nWhat we\u0026rsquo;ve built in A \u0026ldquo;skip to main content\u0026rdquo; link for people navigating by keyboard, so you can bypass the header on every page A consistent heading structure and page landmarks, so the site can be navigated with a screen reader or a keyboard A visible focus style on form fields and other interactive elements, so you can see where you are when navigating by keyboard Descriptive text on meaningful images and empty alt text on purely decorative ones, so a screen reader doesn\u0026rsquo;t read out something with no content Labelled form fields on our quote and contact forms A layout that adapts to different screen sizes and remains usable when you zoom in Colours chosen with readability in mind, and no reliance on colour alone to convey information Where we still have work to do We haven\u0026rsquo;t yet completed a full audit of the site against WCAG 2.1 Level AA, so there are likely gaps we haven\u0026rsquo;t found ourselves Some decorative icons aren\u0026rsquo;t yet marked up so that screen readers skip over them, which can add noise when reading a page Some on-page transitions, such as the header\u0026rsquo;s colour change on scroll, don\u0026rsquo;t yet respect a visitor\u0026rsquo;s operating system setting to reduce motion We\u0026rsquo;re working through this list, and we\u0026rsquo;ll update it as we make progress.\nThe law and this statement Some Canadian accessibility laws, such as the federal Accessible Canada Act and Ontario\u0026rsquo;s Accessibility for Ontarians with Disabilities Act (AODA), set requirements that depend on an organization\u0026rsquo;s size, sector and where it operates. Rather than work out exactly which requirements apply to us, we\u0026rsquo;re aiming at the WCAG 2.1 Level AA standard that most of those laws point to, as a baseline for every visitor regardless of where they\u0026rsquo;re browsing from.\nThis statement covers this website. It doesn\u0026rsquo;t cover websites we link to, such as an insurer\u0026rsquo;s or broker\u0026rsquo;s own site, which are responsible for their own accessibility.\nTell us about a barrier If you have trouble using any part of this site, or you use assistive technology and something doesn\u0026rsquo;t work the way it should, please tell us. Contact us through our contact page and mark your message \u0026ldquo;Accessibility,\u0026rdquo; and include the page you were on and what happened, if you can. We\u0026rsquo;ll do our best to respond quickly and to fix genuine barriers.\nChanges to this statement We review this statement as we make changes to the site. When we update it, we\u0026rsquo;ll change the \u0026ldquo;Last updated\u0026rdquo; date at the top.\n","externalUrl":null,"permalink":"/accessibility/","section":"Accessibility","summary":"Our commitment We’re working to make this website usable by as many people as possible, regardless of ability or the technology they use to browse it. We aim to meet the Web Content Accessibility Guidelines (WCAG) 2.1 at Level AA, and we treat this as ongoing work rather than something we finish once. This statement describes where we are today, honestly, including where we still have work to do.\n","title":"Accessibility","type":"legal"},{"content":"","externalUrl":null,"permalink":"/authors/","section":"Authors","summary":"","title":"Authors","type":"authors"},{"content":" What is builders risk insurance? Builders risk insurance, also called course of construction (COC) insurance, is property insurance for a building while it\u0026rsquo;s being built or renovated. It pays to repair or replace the structure and the materials that go into it after a covered loss, such as a fire, theft or water damage.\nIt\u0026rsquo;s not liability cover. If someone is injured or their property is damaged, that\u0026rsquo;s general liability insurance. And it usually ends when the project does, at which point the permanent commercial property insurance takes over.\nThe building under construction The structure as far as it\u0026rsquo;s built, including foundations and framing. Materials and supplies Materials on site, in transit or stored elsewhere, before they\u0026rsquo;re built in. Temporary structures Scaffolding, forms, fencing and site sheds used during the work. Extra costs after a loss Debris removal and professional fees, and on some policies delay costs, called soft costs. Who needs builders risk insurance? A good test: are you building or renovating something that isn\u0026rsquo;t finished yet, and that would cost real money to repair or replace if it were damaged?\nOwners and developers The person with the most to lose if the building is damaged before it\u0026rsquo;s finished. General contractors Responsible for the work in progress, and often asked by the contract to buy the policy. Renovations and additions Major work on an existing building, which a home or property policy may not fully cover. Tenant build-outs Fitting out a space you rent, where the improvements are yours to insure. Owner-builders and small landlords People managing their own build or renovation, without a contractor carrying the policy. Projects with a lender Construction lenders commonly require it as a condition of financing. What does a real claim look like? These examples are illustrative, not real cases. In each one, a covered loss damages a project before it\u0026rsquo;s finished, and the policy is what pays to repair it, after the deductible.\nA fire during framing A fire starts on site during framing and damages the structure and the lumber stacked beside it. Builders risk insurance responds to the damage to the building and to the materials. Injuries to people, or damage to a neighbour\u0026rsquo;s property, would be a general liability claim. Stolen materials Copper pipe and fixtures are stolen from a building site overnight. The policy can respond to stolen materials that are part of the project, depending on its conditions, such as site security. Tools that belong to a contractor usually need their own equipment cover. Water damage in winter A pipe bursts in an unheated building over a cold weekend and damages finished work. Water damage from a sudden burst is often covered, while flood and sewer back-up from outside usually have to be added. Ask how the policy treats water before you buy. Builders risk, course of construction and wrap-up: what\u0026rsquo;s the difference? The terms overlap, and one of them isn\u0026rsquo;t the same product at all.\nTerm What it means Builders risk Property insurance for a building and materials during construction or renovation Course of construction (COC) The same cover, under the name used by many brokers in British Columbia and Alberta All-risk builders risk A builders risk policy that covers any cause of loss unless it\u0026rsquo;s specifically excluded General liability Cover for injury or damage you cause to others, a different policy Wrap-up liability Liability cover for everyone working on a large project, not property cover Contractors\u0026rsquo; equipment cover Cover for a contractor\u0026rsquo;s own tools and machinery, which builders risk generally excludes Who buys it, and who insures what on a project? The construction contract decides who buys the builders risk policy, and it\u0026rsquo;s worth agreeing before work starts. This table shows the usual pattern.\nWho Builders risk (the building) Liability Tools and equipment The property owner Often buys it Their own liability policy Not applicable The general contractor Sometimes buys it, if the contract says so Carries general liability Insures their own equipment Sub-trades Usually named on the policy, if at all Carry their own liability Insure their own tools The lender Often asks to be named on the policy Not applicable Not applicable When does cover start, and when does it end? Cover is tied to the project, so timing matters. This is a general sequence, and your policy\u0026rsquo;s conditions decide.\nBefore work starts: cover usually needs to be in place before construction begins, and often before materials arrive. If work pauses or runs late: a policy may have an end date or limits on how long a project can sit idle, so tell your insurer about changes. When the building is occupied or in use: cover may change or stop once someone moves in, even before the work is finished. At substantial completion: builders risk generally ends when the project is finished and handed over, and the permanent property policy has to start at the same moment. A gap between the two is a common and expensive mistake. Ask your insurer what the policy says about occupancy, delays and the end date, and line up the permanent policy with commercial property insurance.\nProject-specific or blanket cover? Project-specific policy Blanket policy Covers One project Several projects over a period, often a year Suits A single build or a large renovation A contractor who does many smaller jobs Worth asking How the start and end dates are set How projects are reported and what the eligibility limits are What isn\u0026rsquo;t in the base policy, and how to add it Some common risks are excluded unless you add them. Availability and wording vary by insurer, so ask about each one.\nItem What it typically does Soft costs and delay Covers costs such as loan interest, permit fees or extra rent when a covered loss delays the project Flood and earthquake Covers damage from water coming in from outside or from an earthquake Mechanical or electrical breakdown Covers equipment that breaks down, which base policies generally exclude Contractors\u0026rsquo; tools and equipment Covered by separate equipment cover, not by builders risk Property in transit and stored off site Covers materials that aren\u0026rsquo;t on the site yet The difference between hard costs and soft costs matters here. Hard costs are what physically goes into the building: materials, labour and fixtures. Soft costs are the other costs of the project, such as permits, design fees, insurance premiums and interest. Base policies generally cover hard costs, and soft costs are often an add-on.\nHow much does builders risk insurance cost? There isn\u0026rsquo;t one price. What you pay depends on the project. The only reliable number is a quote for your own project, and Clearly Rate doesn\u0026rsquo;t set prices. The insurer does.\nWhat affects the price The value of the project, including hard costs and, if covered, soft costs Whether it\u0026rsquo;s a new build, a renovation or an addition Where the site is, and how it\u0026rsquo;s built How long the project will take Security on site The deductible and any extras Your claims history How to keep your premium down Give an accurate project value, since under-stating it can cause problems at claim time. Improve site security, for example with fencing, lighting and locked storage. Ask what a higher deductible would save, and whether you\u0026rsquo;re comfortable paying that amount yourself.\nIs builders risk insurance required? No general law requires it, but it\u0026rsquo;s commonly required in practice.\nSituation What\u0026rsquo;s usually required You\u0026rsquo;re financing the project Construction lenders commonly require it, and ask to be named on the policy You\u0026rsquo;re bound by a construction contract The contract usually says who has to buy it It\u0026rsquo;s a public or large project The owner or authority often sets insurance requirements Get ready: what an insurer will ask Having these to hand makes a quote faster.\nWhat the project is: a new build, a renovation or an addition The value of the project, including materials and labour Start and expected finish dates The address, and how the building is constructed Who the contractors are What security is on site Who needs to be named on the policy, such as the owner and the lender What builders risk insurance doesn\u0026rsquo;t cover It responds to physical loss or damage to the project. It generally won\u0026rsquo;t cover:\nInjury to other people, or damage to their property, which falls under general liability insurance Contractors\u0026rsquo; own tools and equipment, which need equipment cover Injuries to workers, which are handled through your provincial workers\u0026rsquo; compensation board Faulty design or workmanship, and the cost of fixing your own defective work Wear and tear Damage after the project ends, or once the building is occupied, unless the policy says otherwise Exclusions vary by insurer, so read the list before you buy.\n","externalUrl":null,"permalink":"/business-insurance/builders-risk/","section":"Business Insurance in Canada: Compare Coverage and Get a Quote","summary":"What is builders risk insurance? Builders risk insurance, also called course of construction (COC) insurance, is property insurance for a building while it’s being built or renovated. It pays to repair or replace the structure and the materials that go into it after a covered loss, such as a fire, theft or water damage.\n","title":"Builders Risk Insurance in Canada","type":"business-insurance"},{"content":" What is business insurance? Business insurance, also called commercial insurance, is a set of policies that pay for financial losses a business faces from things like customer injuries, property damage, professional mistakes, lawsuits and interruptions to operations. Each policy covers a different risk, so most businesses combine two or three.\nYour home or car policy won\u0026rsquo;t usually cover business activity. A business policy has a few parts worth knowing before you compare options.\nCoverage What the policy protects against. Limit The most it will pay for a claim. Deductible What you pay first. Premium What you pay for the policy, usually yearly. Types of business insurance in Canada These are the main types small businesses come across. Which ones apply to you depends on what you do, where you work and who you work for.\nGeneral liability Also called commercial general liability. A customer slips in your shop, or your crew damages a client\u0026rsquo;s floor: this is the cover that responds, and it typically also pays legal defence costs. It\u0026rsquo;s what commercial leases and client contracts ask for first, so it\u0026rsquo;s where most businesses start. Protects against Injury or property damage you cause to others Commonly needed by Most businesses that deal with the public or work on others\u0026#39; property Commercial general liability insurance \u0026rarr; Professional liability Also called errors and omissions (E\u0026amp;O) insurance. Even a claim without merit costs money to defend, and this coverage is built to pay for that. It doesn\u0026rsquo;t cover bodily injury or property damage, which falls under general liability. Protects against Claims that your advice or service cost a client money Commonly needed by Consultants, designers, IT and licensed professionals Professional liability insurance \u0026rarr; Commercial property Covers physical assets such as equipment, inventory, signage and improvements to a space, from causes like fire, theft or vandalism. If you rent, the building itself is usually your landlord\u0026rsquo;s to insure, while your contents and improvements are yours. Protects against Damage to or loss of your equipment, inventory and premises Commonly needed by Businesses with equipment, stock or a location Commercial property insurance \u0026rarr; Business interruption Helps cover ongoing expenses like rent and payroll while you\u0026rsquo;re closed. It usually depends on there being physical damage that your property policy covers, such as a fire. Protects against Lost income when a covered event forces you to close Commonly needed by Businesses that depend on a location or equipment Business interruption insurance \u0026rarr; Directors and officers Covers the people who run an organization when someone alleges mismanagement: investors, employees or regulators, for example. A sole proprietor usually doesn\u0026rsquo;t need it. Protects against Claims about how a company was managed Commonly needed by Incorporated businesses with a board or outside investors Directors and officers insurance \u0026rarr; Cyber Depending on the policy, it can pay for notifying customers, restoring systems and legal costs. Professional liability generally doesn\u0026rsquo;t cover a breach, so cyber is usually a separate policy. Protects against Costs after a data breach or cyberattack Commonly needed by Businesses that hold customer data or take payments online Cyber insurance \u0026rarr; For a specific project Some cover applies to a particular kind of work, not to every business.\nBuilders risk Also called course of construction (COC) insurance. It\u0026rsquo;s property cover for a project that isn\u0026rsquo;t finished yet, and it usually ends when the work does. It doesn\u0026rsquo;t cover injury or damage to others, which falls under general liability. Protects against Damage to a building and its materials while it\u0026#39;s being built or renovated Commonly needed by Owners, developers and contractors with a build or major renovation Builders risk insurance \u0026rarr; How much does business insurance cost in Canada? There isn\u0026rsquo;t one price. What you pay depends on several things about your business and the cover you choose. The only reliable number is a quote for your own business, and Clearly Rate doesn\u0026rsquo;t set prices. The insurer does.\nWhat affects the price Your industry and the work you do Annual revenue Number of employees Where you operate Your claims history The limits and deductible you choose How to keep your premium down Give accurate revenue and operations details, since mistakes can cause problems later at claim time. Ask what a higher deductible would save, and whether you\u0026rsquo;re comfortable paying that amount yourself. Ask whether combining coverages into one policy is available. Review your coverage each year as your business changes.\nIs business insurance required in Canada? For most businesses, no law says you must buy general business insurance. In practice, though, you\u0026rsquo;re often required to have it.\nSituation What\u0026rsquo;s usually required You lease commercial space The landlord typically requires liability coverage, and sometimes property coverage You sign contracts with clients Clients often set a minimum liability limit, commonly $1 to $2 million You work in a regulated profession A regulator or professional association may require professional liability You have employees Workers\u0026rsquo; compensation through your provincial board, such as WSIB in Ontario, is mandatory for many employers Workers\u0026rsquo; compensation is run by provincial boards, not sold by private insurers. Check with your board on whether it applies to you.\nWhat insurance does my type of business need? This shows what businesses of each type commonly consider. It\u0026rsquo;s general information, not advice about what you should buy.\nBusiness type Commonly considered Worth knowing Construction and contractors General liability, professional liability if you design or advise, property and equipment cover, builders risk for specific projects Clients and general contractors often ask for proof of insurance before you start Consultants and professional services Professional liability, general liability if clients visit you, cyber A mistake in your work is the main risk, not injuries Retail General liability, commercial property, business interruption, cyber Inventory and card payments raise the stakes on property and cyber Restaurants and food service General liability, commercial property, business interruption A closure after a fire or similar event can cost more than the damage Home-based businesses and sole proprietors General liability, professional liability if you sell services, property for equipment Home insurance usually excludes business activity, and sole proprietors face the same exposure as larger firms How to get business insurance 01 Tell us about your business Share what your business does, your estimated annual revenue and how many employees you have. 02 We refer you to licensed insurers We refer you to licensed insurers that write cover for your type of business. 03 Review your options with the insurer The insurer, or its licensed representative, walks you through coverage, limits and price. You decide whether to buy. It helps to have ready: a realistic estimate of your yearly revenue, your number of employees, a clear description of what you do, any policies you already hold, and any insurance requirements in your leases or contracts.\nWhat business insurance doesn\u0026rsquo;t cover Policies differ, so read the exclusions before you buy. Common ones include:\nIntentional acts, fraud and criminal acts Normal wear and tear and lack of maintenance Injuries to your own employees, which are handled through workers\u0026rsquo; compensation rather than liability insurance Professional errors under a general liability policy, and injury or property damage under a professional liability policy, because each covers a different risk Data breaches under professional liability, which usually needs a separate cyber policy Flood and earthquake, which are often excluded from standard property policies or available only as add-ons Business closures that don\u0026rsquo;t result from covered physical damage, such as those caused by a pandemic, unless a policy specifically includes them ","externalUrl":null,"permalink":"/business-insurance/","section":"Business Insurance in Canada: Compare Coverage and Get a Quote","summary":"What is business insurance? Business insurance, also called commercial insurance, is a set of policies that pay for financial losses a business faces from things like customer injuries, property damage, professional mistakes, lawsuits and interruptions to operations. Each policy covers a different risk, so most businesses combine two or three.\n","title":"Business Insurance in Canada: Compare Coverage and Get a Quote","type":"business-insurance"},{"content":" What is business interruption insurance? Business interruption insurance, also called business income insurance or loss of income insurance, replaces income your business loses and pays for expenses that continue while you can\u0026rsquo;t operate normally because of a covered loss, such as a fire. It\u0026rsquo;s usually added to a commercial property policy, not bought on its own.\nIt doesn\u0026rsquo;t pay for the damage itself. Repairing or replacing your building, equipment and stock is what commercial property insurance is for. This policy covers what the closure costs you.\nLost net income The profit you would have earned while you\u0026rsquo;re closed or working at reduced capacity. Costs that continue Rent or mortgage payments, loan payments, taxes and utilities that come due whether you\u0026rsquo;re open or not. Payroll Wages for staff you keep on so you can reopen with your team. Extra costs to reopen Expenses such as a temporary location that help you restart sooner. Who needs business interruption insurance? A good test: if you had to close for a month, could you still pay the rent, the loan and your staff? If not, this is worth asking about.\nShops and retailers When the doors are shut, the sales stop, but the lease and the wages don\u0026rsquo;t. Restaurants and cafés A kitchen fire can close you long after the flames are out. Offices and professional services A damaged office can pause billable work, even if the team can work from elsewhere. Manufacturers and workshops Damaged machinery or a supplier\u0026rsquo;s fire can halt production for weeks. Salons, clinics and gyms Appointments and memberships stop when clients can\u0026rsquo;t come in. Home-based businesses Home policies usually exclude business use, so income from a home business needs its own cover. What does a real claim look like? These examples are illustrative, not real cases. In each one, a covered loss closes the business, and the policy is what helps make up the income and expenses that would otherwise fall to the owner.\nA fire closes a café A fire in the kitchen closes a café while the space is repaired. Business interruption insurance responds to the income the café would have earned and to the rent and payroll that carry on, once any waiting period has passed. The damage to the kitchen itself is a commercial property claim. A supplier\u0026#39;s fire halts production A workshop\u0026rsquo;s only supplier of a key part has a fire and can\u0026rsquo;t ship for weeks. The workshop is undamaged, so its own policy wouldn\u0026rsquo;t normally respond. Contingent business interruption insurance is the extra that covers this, and it has to be in place before the fire. A break-in closes an office for a few days Thieves damage an office and take equipment. The business is closed while the door is repaired, and it rents a temporary space to keep serving clients. The extra cost of the temporary space can be covered as an extra expense, alongside the income lost during the closure. When does it pay out, and when doesn\u0026rsquo;t it? Most policies pay when a covered loss physically damages insured property and that damage stops you operating. Cause and wording matter. This table gives the general pattern, and your policy decides.\nSituation Usually pays? Why Fire, storm or other covered damage at your premises Usually Physical damage from a covered cause is the usual trigger Damage at a supplier\u0026rsquo;s or customer\u0026rsquo;s premises Depends Only if you\u0026rsquo;ve added contingent business interruption cover A power outage Depends Depends on the cause and where it happens, and may need a specific extra Access to your premises blocked after damage nearby Depends Some policies include civil authority cover for orders that follow nearby damage A pandemic or infectious disease closure Usually not Most policies exclude it, and it isn\u0026rsquo;t physical damage A cyberattack or data breach Usually not Usually needs a separate cyber insurance policy Slow sales or a market downturn Usually not It isn\u0026rsquo;t a loss from a covered event How long does it pay? Two time limits shape a claim, and both are worth understanding before you need them.\nWaiting period (time deductible): the time after a loss before payments begin. Income lost during it is yours to absorb. Indemnity period: the longest the policy will pay after a loss. How it ends differs by policy form. Some stop once the property is repaired or replaced, while others continue until the business is back to normal, up to a set limit. A short period can run out before you\u0026rsquo;ve recovered. Rebuilding a property, replacing specialized equipment, getting permits or winning customers back can all take longer than owners expect. Ask your insurer how each period is set, and what happens if repairs take longer than planned.\nHow much business interruption insurance do you need? There\u0026rsquo;s no single formula, and the right amount depends on your business. This is a way to think it through, not a recommended limit.\nEstimate the income you\u0026rsquo;d lose. Take your usual revenue for a period and subtract the costs that would stop if you were closed. Add the costs that continue. Rent or mortgage payments, loan payments, taxes, utilities and insurance. Add the payroll you\u0026rsquo;d keep paying. Include staff you\u0026rsquo;d want to keep so you can reopen with your team. Add the extra costs of getting going again. A temporary location, moving costs or faster shipping. Decide how long it could take. Think about repairs, permits, replacing equipment and winning customers back. Ask your broker or insurer for their business interruption worksheet, and check your figures with your accountant.\nWhat can be added? The base cover may not include everything you\u0026rsquo;d need. These are common extras. Availability and wording vary by insurer, so ask about each one.\nExtra What it typically does Extra expense Pays the additional costs of operating while you recover, such as a temporary location Contingent business interruption Covers lost income when a supplier, customer or partner is shut down by a covered loss Civil authority Covers lost income when an authority blocks access to your premises after nearby damage Rental income Covers rent you lose from tenants if you\u0026rsquo;re a landlord and a covered loss makes a unit unusable Utility services Covers lost income after an interruption to power, water or communications off your premises Longer indemnity period Extends how long the policy pays, for businesses that would take longer to recover How much does business interruption insurance cost? There isn\u0026rsquo;t one price. What you pay depends on your business and the cover you choose. The only reliable number is a quote for your own business, and Clearly Rate doesn\u0026rsquo;t set prices. The insurer does.\nWhat affects the price The value of your commercial property policy Your industry and how risky it is Your annual revenue Where the business is located The limit you choose, and how long the policy would pay The waiting period The number of employees Your claims history How to keep your premium down Base the limit on your own figures rather than a guess, since over-insuring costs more and under-insuring can leave a gap. Ask what a longer waiting period would save, and whether you could cover that stretch yourself. Ask about discounts for alarms, sprinklers and other protection, and keep your records in order, since well-documented income makes both a quote and a claim easier.\nIs business interruption insurance required? No general law requires it, but a lender or landlord may ask for it in some cases.\nSituation What\u0026rsquo;s usually required You have a mortgage or loan on the property The lender typically requires property cover and may ask about income cover, so check your loan terms You rent commercial space Your lease may set insurance requirements, so read yours You\u0026rsquo;d struggle to cover fixed costs during a closure Not a requirement, but a practical reason to ask about it Get ready: records to keep Cover is only as good as your ability to show what you would have earned. Keep these in order before you need them.\nFinancial statements and tax filings for recent years Sales records and invoices, including cash sales you can document Payroll records Supplier invoices and key contracts A list of your ongoing fixed costs A copy of these kept somewhere other than your business premises What business interruption insurance doesn\u0026rsquo;t cover It responds to income lost because a covered loss stops you operating. It generally won\u0026rsquo;t cover:\nClosures caused by a pandemic or infectious disease, or by a government order that isn\u0026rsquo;t linked to physical damage, which most policies exclude Income you can\u0026rsquo;t document, such as cash sales with no records Flood, earthquake and sewer back-up, unless you\u0026rsquo;ve added them to the underlying policy Strikes, contract terminations or penalties A supplier\u0026rsquo;s insolvency The illness of the owner Slow sales or a market downturn The physical damage itself, which is a claim under commercial property insurance Data breaches, which usually need a separate cyber insurance policy Claims by others that you caused them harm, which fall under general liability insurance Exclusions vary by insurer, so read the list before you buy.\n","externalUrl":null,"permalink":"/business-insurance/business-interruption/","section":"Business Insurance in Canada: Compare Coverage and Get a Quote","summary":"What is business interruption insurance? Business interruption insurance, also called business income insurance or loss of income insurance, replaces income your business loses and pays for expenses that continue while you can’t operate normally because of a covered loss, such as a fire. It’s usually added to a commercial property policy, not bought on its own.\n","title":"Business Interruption Insurance in Canada","type":"business-insurance"},{"content":" What is commercial general liability insurance? Commercial general liability insurance, often shortened to CGL and also called general liability insurance, pays when someone outside your business claims that it caused them bodily injury or damaged their property. It typically covers your legal costs to defend the claim, and any damages a court orders you to pay, up to your policy limit.\nThe person making the claim is a third party: a customer, a client, a supplier or another business. Your own employees and subcontractors aren\u0026rsquo;t third parties, so claims from them fall outside this policy.\nBodily injury Someone is hurt on your premises or because of your work or a product you sell, including their medical costs. Property damage Your work, your staff or a product you sell damages property that belongs to someone else. Personal and advertising injury Claims about libel, slander or false advertising in the way you promote your business. Tenant\u0026#39;s legal liability You or your staff damage the space you rent, for example a fire that starts in your unit. Who needs commercial general liability insurance? Most businesses that deal with the public or work on someone else\u0026rsquo;s property do. A good test: if a customer, client or visitor could be hurt, or their property damaged, because of what you do or where you do it, this coverage is relevant to you.\nContractors and trades Renovators, plumbers, electricians and other trades working in clients\u0026rsquo; homes and buildings. Retail and wholesale Shops and suppliers where customers walk in, or where products end up in customers\u0026rsquo; hands. Restaurants and food service Kitchens, cafés and caterers, where slips, burns and food-related claims can happen. Office-based and professional services Consultants, agencies and studios whose clients visit or whose staff work on client sites. Home-based businesses and sole proprietors Solo operators who meet clients at home or visit theirs. Home insurance usually excludes business activity. Health and wellness Clinics, salons, gyms and studios where clients are on your premises and in your care. What does a real claim look like? These examples are illustrative, not real cases. In each one, defending the claim costs money whether or not it succeeds, which is what the policy is built to pay for.\nA customer slips in a shop It\u0026rsquo;s a rainy day and the floor near the entrance is wet. A customer falls and is hurt, and later claims the shop should have put up a warning. The policy responds to the injury claim: legal defence costs, and damages if the shop is found liable, up to the limit. A contractor damages a client\u0026#39;s floor While moving equipment during a renovation, a crew cracks a client\u0026rsquo;s hardwood floor. The client says the contractor is responsible for the repair. The policy responds to the property damage claim. It generally wouldn\u0026rsquo;t pay to redo the contractor\u0026rsquo;s own work. A customer becomes ill after a meal A customer says they became ill after eating at a restaurant and holds the business responsible. The policy responds to the claim about the meal, including the legal defence. What limits and deductibles mean Two numbers on a policy decide how much protection you actually have, and a third decides what you pay first.\nPer-occurrence limit: the most the policy pays for a single claim or incident. Aggregate limit: the most it pays for all claims over the policy period, usually a year. Deductible: the amount you pay yourself on each claim before the insurer pays. A higher limit means more protection and usually a higher premium. A higher deductible usually lowers the premium but means you pay more out of pocket when a claim happens. If a claim could be larger than your limit, an umbrella policy adds cover on top of it. Many client contracts and leases set a minimum limit, so check yours before you choose one.\nGeneral liability vs professional liability They cover different risks, and many businesses need both.\nGeneral liability Professional liability Covers Bodily injury or property damage you cause to others Claims that your advice, design or service cost a client money Example A customer slips in your office and is injured A consultant\u0026rsquo;s plan fails and the client sues to recover the spend Commonly needed by Most businesses that deal with the public or work on others\u0026rsquo; property Consultants, designers, IT and licensed professionals For the other half of the picture, see professional liability insurance.\nHow much does general liability insurance cost? There isn\u0026rsquo;t one price. What you pay depends on how much risk your business carries and the cover you choose. The only reliable number is a quote for your own business, and Clearly Rate doesn\u0026rsquo;t set prices. The insurer does.\nWhat affects the price Your industry and the work you do Annual revenue The number of employees you have How long you\u0026rsquo;ve been in business The building or premises you work from, if any Your claims history The limit and deductible you choose How to keep your premium down Describe your work accurately, since gaps between what you do and what you told the insurer can cause problems at claim time. Choose a limit that matches your contracts rather than the biggest one available. Ask what a higher deductible would save, and whether you\u0026rsquo;re comfortable paying that amount yourself. Ask whether combining coverages into one policy is available.\nIs general liability insurance required? No general law requires it, but you\u0026rsquo;re often required to have it in practice.\nSituation What\u0026rsquo;s usually required You lease commercial space The landlord typically requires liability cover, often with a minimum limit You sign contracts with clients Many contracts set a minimum limit and ask for proof of cover before work starts You work on someone else\u0026rsquo;s property Property owners and general contractors commonly ask for proof of insurance before you start You sell at markets, events or venues Organizers and venues commonly ask for proof of cover When a landlord or client asks for proof You\u0026rsquo;ll usually be asked for a certificate of insurance: a short document from your insurer that confirms you have a policy, the type of cover, the limits and the dates it\u0026rsquo;s in force. Some contracts also ask you to name the landlord or client as an additional insured, which extends the policy\u0026rsquo;s protection to them for claims connected to your work. Ask your insurer how to request both, and check that the wording matches what your contract requires.\nWhat general liability doesn\u0026rsquo;t cover, and what does Commercial general liability responds to claims from third parties. It isn\u0026rsquo;t a catch-all. Here\u0026rsquo;s where common risks go instead:\nRisk What usually covers it Injuries to your own employees Your provincial workers\u0026rsquo; compensation board, such as WSIB in Ontario, not a private liability policy Damage to your own building, equipment or stock Commercial property insurance Claims that your advice or service cost a client money Professional liability insurance A data breach or cyberattack Cyber insurance Accidents involving your vehicles A separate auto policy Intentional or criminal acts Generally not covered by any liability policy Promises in a contract that go beyond your normal legal duty Usually excluded, so ask your insurer Exclusions vary by insurer, so read the list before you buy.\n","externalUrl":null,"permalink":"/business-insurance/general-liability/","section":"Business Insurance in Canada: Compare Coverage and Get a Quote","summary":"What is commercial general liability insurance? Commercial general liability insurance, often shortened to CGL and also called general liability insurance, pays when someone outside your business claims that it caused them bodily injury or damaged their property. It typically covers your legal costs to defend the claim, and any damages a court orders you to pay, up to your policy limit.\n","title":"Commercial General Liability Insurance in Canada","type":"business-insurance"},{"content":" What is commercial property insurance? Commercial property insurance, also called business property insurance, pays to repair or replace the physical assets of your business when they\u0026rsquo;re lost or damaged by a covered event, such as a fire, theft, vandalism or a storm. Depending on your situation, it can cover the building you own, the equipment and contents inside it, your inventory, and the improvements you\u0026rsquo;ve made to a space you rent.\nIt\u0026rsquo;s about damage to your own property. If your business damages someone else\u0026rsquo;s property or injures them, that\u0026rsquo;s a different policy: general liability insurance.\nBuildings you own The structure and permanent fixtures, if you own the property. If you rent, the building is usually your landlord\u0026rsquo;s to insure. Contents and equipment Furniture, computers, tools, machinery and other equipment that you own or are responsible for. Inventory and stock Goods you hold to sell, or to make your products, if a covered event damages or takes them. Tenant improvements Upgrades you\u0026rsquo;ve paid for in a rented space, such as flooring, lighting and built-in shelving. Who needs commercial property insurance? Most businesses that own, or are responsible for, physical assets do. A good test: if a fire, a theft or a burst pipe destroyed what you have in your space tonight, could you afford to replace it and keep going?\nShops and retailers Stock, shelving, tills and displays sitting in a space that\u0026rsquo;s open to the public. Restaurants and food service Kitchen equipment, fixtures and food stock, where a fire or a breakdown can close you. Offices and professional services Computers, furniture and records that keep client work moving. Contractors and trades Tools, materials and equipment stored in a shop, a yard or a vehicle. Home-based businesses Equipment and stock kept at home, which a home policy usually excludes when it\u0026rsquo;s used for business. Commercial building owners The building itself, and the fixtures that come with it. What does a real claim look like? These examples are illustrative, not real cases. In each one, a covered event damages property the business owns, and the policy is what pays to repair or replace it, after the deductible.\nA fire in a rented shop unit A fire starts in the unit next door and spreads. The shop\u0026rsquo;s stock, its shelving, and the flooring and lighting the owner paid for are ruined. Commercial property insurance responds to the damage to the stock, contents and improvements. The income lost while the shop is closed is a separate cover, business interruption, which has to be in place before the fire. Laptops and tools stolen Someone breaks into an office overnight and takes laptops and tools. The policy responds to theft from the premises, after the deductible. Property stolen from a vehicle, or taken to a client\u0026rsquo;s site, may fall outside a standard policy, which is why some businesses add cover for property away from their premises. A burst pipe over a weekend A pipe bursts while a workshop is closed, and water damages stock and equipment. A sudden burst pipe is usually treated differently from a flood or a sewer back-up, which often have to be added separately. How your policy defines water damage is one of the most useful things to read before you buy. What value should you insure for? When something is destroyed, the policy pays based on how it values your property. Two terms decide how much you get back.\nReplacement cost: what it costs to repair or replace the item with new property of similar quality, with nothing taken off for age or wear. Actual cash value: the replacement cost minus depreciation, so an older item is worth less. Premiums are usually lower on this basis, but the payout after a loss can fall short of what it costs to replace the item. The amount you insure for matters too. Many policies include a coinsurance clause, which expects you to insure at least a set share of the property\u0026rsquo;s value. If you insure for less, a claim may be paid at a reduced rate, even for a small loss. Ask your insurer whether your policy has one, and how it values your property.\nOwner, tenant or home-based: who insures what? Who insures what depends on your situation. Your lease and your insurer decide the details, so check both.\nYour situation The building Improvements you\u0026rsquo;ve made Contents, equipment and stock You own the building You You You You rent commercial space Usually your landlord Usually you You You work from home Your home insurance, which may not cover business use Your home insurance You, often with a separate business policy, since home policies usually limit business equipment and stock What isn\u0026rsquo;t in the base policy, and how to add it There are two kinds of commercial property policy. An all-risks policy covers loss from any cause that the policy doesn\u0026rsquo;t specifically exclude. A named perils policy covers only the causes it lists, such as fire, theft and vandalism. Either way, some common risks are excluded unless you add them as extras. Availability and wording vary by insurer, so ask about each one.\nExtra What it typically does Flood Covers damage from water coming in from outside, such as overland flooding Sewer back-up Covers damage when water backs up through drains, sumps or sewers Earthquake Covers damage caused by an earthquake and the landslides it can trigger Equipment breakdown Pays to repair or replace equipment such as heating, refrigeration and electronics when it breaks down accidentally Property away from your premises Covers equipment you carry to clients\u0026rsquo; sites or keep off-site Crime Covers employee theft, fraud and lost cash or securities, which standard property policies generally exclude Business interruption Covers lost income and ongoing expenses while you\u0026rsquo;re closed after a covered loss. See business interruption insurance How much does commercial property insurance cost? There isn\u0026rsquo;t one price. What you pay depends on what you insure and where. The only reliable number is a quote for your own business, and Clearly Rate doesn\u0026rsquo;t set prices. The insurer does.\nWhat affects the price The type of building you\u0026rsquo;re in, and its age and condition The age of the electrical and plumbing systems Where the property is located The value of your contents, equipment and stock Your industry and how risky it is Security measures such as alarms and sprinklers Your claims history The deductible and any extras you add How to keep your premium down Insure for the real replacement value, not more. Ask what a higher deductible would save, and whether you\u0026rsquo;re comfortable paying that amount yourself. Ask about discounts for alarms, sprinklers and other protection. Keep your equipment and building systems maintained, since damage from neglect is excluded.\nIs commercial property insurance required? No general law requires it, but you\u0026rsquo;re often required to have it in practice.\nSituation What\u0026rsquo;s usually required You rent commercial space The lease commonly requires you to insure your contents and improvements, and sometimes to carry liability cover too You own a building with a mortgage The lender typically requires the building to be insured You finance or lease equipment The lender or lessor commonly requires the equipment to be insured Get ready: list what you own A written list makes it faster to get a quote and much easier to make a claim.\nEach item or group of items, with what it would cost to replace today The building\u0026rsquo;s age and how it\u0026rsquo;s built, if you own it Photos or a short video of your space and stock Receipts, invoices and serial numbers for larger items A copy of the list kept somewhere other than your business premises What commercial property insurance doesn\u0026rsquo;t cover It responds to sudden, accidental loss of your own property. It generally won\u0026rsquo;t cover:\nWear and tear, or gradual deterioration Damage caused by neglect or poor maintenance Intentional damage Losses while a building sits vacant for a long time, since insurers limit cover for vacant properties and the limits vary Cash and securities, which usually need crime cover Flood, earthquake and sewer back-up, unless you\u0026rsquo;ve added them Injury to other people or damage to their property, which is a liability claim under general liability insurance Injuries to your own employees, which are handled through your provincial workers\u0026rsquo; compensation board Data breaches, which usually need a separate cyber insurance policy Exclusions vary by insurer, so read the list before you buy.\n","externalUrl":null,"permalink":"/business-insurance/commercial-property/","section":"Business Insurance in Canada: Compare Coverage and Get a Quote","summary":"What is commercial property insurance? Commercial property insurance, also called business property insurance, pays to repair or replace the physical assets of your business when they’re lost or damaged by a covered event, such as a fire, theft, vandalism or a storm. Depending on your situation, it can cover the building you own, the equipment and contents inside it, your inventory, and the improvements you’ve made to a space you rent.\n","title":"Commercial Property Insurance in Canada","type":"business-insurance"},{"content":" What we can help with Questions about the guides on this site Corrections, or something that looks out of date How the referral to licensed insurers works What we can\u0026rsquo;t help with We\u0026rsquo;re not an insurer or a licensed broker, so we can\u0026rsquo;t give you a quote, advise you on what to buy, or help with a claim or a change to a policy you already have. For those, contact your insurer or broker.\nIf you\u0026rsquo;d like a quote, tell us about your business and we\u0026rsquo;ll refer you to licensed insurers.\n","externalUrl":null,"permalink":"/contact/","section":"Contact us","summary":"What we can help with Questions about the guides on this site Corrections, or something that looks out of date How the referral to licensed insurers works What we can’t help with We’re not an insurer or a licensed broker, so we can’t give you a quote, advise you on what to buy, or help with a claim or a change to a policy you already have. For those, contact your insurer or broker.\n","title":"Contact us","type":"contact"},{"content":" What is cyber insurance? Cyber insurance, also called cyber liability insurance, pays the costs of responding to and recovering from a cyberattack, a data breach or an online scam, and of claims that follow. It\u0026rsquo;s a separate policy because property and liability policies usually don\u0026rsquo;t respond to these losses.\nPrevention still matters. Insurance helps pay for a loss, it doesn\u0026rsquo;t stop one. The Government of Canada\u0026rsquo;s Get Cyber Safe has practical steps for small businesses.\nResponse and recovery Investigators, restoring data and systems, notifying customers and credit monitoring. Lost income Income you lose and costs that continue while systems are down, subject to a waiting period. Legal costs and liability Defence costs and settlements if customers or others claim you failed to protect their data. Extortion and online fraud Ransom demands and being tricked into paying a fraudster, often as an optional extra. Who needs cyber insurance? A good test: do you hold customer or employee information, take payments online, or depend on your systems to operate? If so, this is worth asking about.\nOnline sales A website that takes orders and payments is a target, and an outage stops sales. Customer records Clinics and practices hold sensitive personal information that has to be protected and reported if lost. Card payments Shops and restaurants that take cards rely on payment systems that can be breached. Invoices and bank transfers Businesses that pay suppliers by transfer can be tricked by fake invoices and emails. Remote and home-based teams Staff working from home on their own devices and networks add ways in. Contracts that ask for it Larger customers may ask their suppliers to carry cyber cover. What does a real claim look like? These examples are illustrative, not real cases. In each one, a cyber incident hits a business, and the policy is what helps pay to respond, up to the limit.\nA fake invoice gets paid An employee receives an email that looks like it\u0026rsquo;s from a regular supplier, with new bank details, and sends a payment. The money is gone before anyone notices. Whether this is covered depends on the policy: it may be a cyber extra for social engineering, or fall under a commercial crime policy. Limits for it are often lower than for other cover. Ransomware locks the systems Ransomware encrypts a business\u0026rsquo;s files and demands payment. Cyber insurance can help pay for specialists to investigate and restore the systems, for extortion cover if it\u0026rsquo;s included, and for lost income after any waiting period. Customer records are stolen A hacker takes patient or customer records from a small practice. The policy can help pay to investigate, to notify the people affected and to defend a claim if someone sues, and the business still has its own reporting duties to meet. First-party and third-party cover: what\u0026rsquo;s the difference? Policies often describe cover in two parts. The names for the whole product vary, so look at what each part pays for.\nFirst-party cover Third-party cover Whose loss it pays Your own costs A claim made against you by someone else Typically includes Investigators, restoring data and systems, notifying customers, lost income, extortion Legal defence, settlements and judgments, regulatory defence Example Ransomware locks your systems and you need them restored A customer sues after their data is stolen from you What are your duties after a breach in Canada? Canadian privacy law sets duties for organizations that handle personal information. Under the federal privacy law, known as PIPEDA, an organization that has a breach of security safeguards that creates a real risk of significant harm to someone generally has to report it to the Office of the Privacy Commissioner of Canada, tell the people affected and keep a record of the breach. Some provinces have their own privacy laws with their own rules, and what applies to you depends on your business, where it operates and what information it holds.\nThis is general information, not legal advice, so check with a lawyer or the Privacy Commissioner\u0026rsquo;s guidance. Cyber insurance can help pay to respond, for example by notifying customers, but it doesn\u0026rsquo;t remove the duty.\nWhat to do if it happens Your policy and its response line come first, so check them before you spend. This is a general sequence, and your policy sets the rules.\n01 Contact your insurer promptly Many policies require prompt notice and come with a response line or team you can call. 02 Check before you spend, and keep records Insurers often want to approve costs such as investigators first. Save emails, screenshots, logs and invoices, and avoid deleting evidence. 03 Meet your reporting duties Check what you have to report and to whom, as above, and ask your insurer or lawyer for help if you\u0026rsquo;re unsure. Which policy pays for what? Different losses fall under different policies, and cyber insurance isn\u0026rsquo;t the answer to all of them. This table gives the general pattern, and your policies decide.\nSituation The policy that usually responds Notes A laptop is stolen Commercial property Loss of the device itself isn\u0026rsquo;t a cyber loss An employee takes money from your accounts Commercial crime Employee theft and fraud usually sit under crime cover You\u0026rsquo;re tricked into paying a fake invoice Cyber extra or commercial crime Depends on the policy A customer sues after their data is stolen Cyber (third-party cover) The claim is about failing to protect data Your systems are down after a cyberattack Cyber (lost income) Business interruption usually needs physical damage A mistake in your professional work costs a client money Professional liability A different claim from a breach Directors are sued over how a breach was handled Directors and officers A claim about how the company was run What limits and waiting periods apply? The amount a policy pays isn\u0026rsquo;t one number. It helps to understand four terms before you compare.\nLimits: the most the policy pays. Some policies have one combined limit shared across all cover, while others set a separate limit for each part. Sublimits: lower limits for particular extras, such as extortion or social engineering, which are often lower than the main limit. Retention: the amount you pay before the policy responds, like a deductible. Waiting period: for lost income, the time after an outage before payments start. Ask how each works on the policy you\u0026rsquo;re considering, and whether cover for response costs sits inside or outside the limit.\nWhat can be added? Some of the risks people worry about most are extras, not part of the base cover. Availability and wording vary by insurer, so ask about each one.\nExtra What it typically does Social engineering and funds-transfer fraud Covers money lost when you\u0026rsquo;re tricked into sending it Cyber extortion Covers the cost of responding to a ransom demand, including specialists Dependent business Covers lost income when a supplier or cloud provider\u0026rsquo;s outage stops you working Reputational costs Covers the cost of public relations help after an incident How much does cyber insurance cost? There isn\u0026rsquo;t one price. What you pay depends on your business, what it holds and the controls you have. The only reliable number is a quote for your own business, and Clearly Rate doesn\u0026rsquo;t set prices. The insurer does.\nWhat affects the price Your annual revenue Your industry and how risky it is The type and amount of data you hold Your security controls, such as multi-factor authentication and backups Your claims history The limits, retention and extras you choose How to keep your premium down Put basic protections in place and be ready to show them, since insurers often ask. Choose limits based on what you hold and what you\u0026rsquo;d lose, not on the lowest price. Ask what a higher retention would save, and whether you\u0026rsquo;d be comfortable paying that amount yourself.\nIs cyber insurance required? No general law requires it, but others may ask for it.\nSituation What\u0026rsquo;s usually expected A larger customer buys from you Contracts may require you to carry cyber cover You take card payments Your payment provider or processor may have security requirements, so check the terms You hold sensitive information Not a requirement, but a practical reason to ask about it Get ready: what an insurer will ask Having these to hand makes a quote faster, and accurate answers matter at claim time.\nWhether you use multi-factor authentication, and where How you back up your data, and whether you test restoring it How you keep software and devices up to date Whether staff get security training Whether you have a plan for responding to an incident What data you hold, and roughly how much Any past incidents What cyber insurance doesn\u0026rsquo;t cover It responds to losses from cyber incidents. It generally won\u0026rsquo;t cover:\nLoss or damage to computers and equipment, which is a claim under commercial property insurance Theft by employees, which usually needs crime cover Losses from known weaknesses left unfixed, or from not meeting security conditions in the policy, depending on the wording Incidents that started before the policy Lost income beyond the period the policy sets Upgrades to make your systems better than they were Injury to people or damage to their property, which falls under general liability insurance Exclusions vary by insurer, so read the list before you buy.\n","externalUrl":null,"permalink":"/business-insurance/cyber-insurance/","section":"Business Insurance in Canada: Compare Coverage and Get a Quote","summary":"What is cyber insurance? Cyber insurance, also called cyber liability insurance, pays the costs of responding to and recovering from a cyberattack, a data breach or an online scam, and of claims that follow. It’s a separate policy because property and liability policies usually don’t respond to these losses.\n","title":"Cyber Insurance in Canada","type":"business-insurance"},{"content":" What is directors and officers insurance? Directors and officers (D\u0026amp;O) insurance pays the cost of defending, and any settlement of, a claim that the people running a company made a wrongful decision in managing it. It\u0026rsquo;s built to protect their personal assets as well as, on some policies, the company itself.\nIt\u0026rsquo;s about how the business is run, not about injuries or damage. If a customer is hurt or their property is damaged, that\u0026rsquo;s general liability insurance.\nLegal defence costs Lawyers\u0026rsquo; fees and the cost of responding to a claim or investigation, even one without merit. Settlements and damages What a settlement or a court-awarded judgment costs, up to your policy limit. Protection for the individual Cover for a director or officer personally when the company can\u0026rsquo;t or won\u0026rsquo;t pay. Cover for the company On some policies, the company\u0026rsquo;s own costs when it\u0026rsquo;s named in the claim as well. Who needs directors and officers insurance? A good test: could someone other than you, such as an investor, an employee, a lender or a regulator, blame the people running the company for a loss? If so, this is worth asking about.\nStartups and founder-led companies Founders make big decisions fast, and co-founders and early investors can disagree about them. Private companies with employees Hiring, firing and workplace decisions can lead to claims that name the directors. Companies with investors or lenders People who put money in can claim it was mismanaged or misrepresented. Charities and nonprofits Volunteer board members can still face claims over funds, staff or conflicts of interest. Family and closely held businesses Disputes between owners and family members can turn into claims against the directors. Companies preparing to raise or sell Investors and buyers often ask about cover, and past decisions can come under scrutiny. What does a real claim look like? These examples are illustrative, not real cases. In each one, someone blames the people running the organization, and the policy is what helps pay for the defence, up to the limit.\nAn investor says the finances were misrepresented A startup raises money from an investor, then struggles. The investor claims the founders overstated the company\u0026rsquo;s prospects and sues them personally. D\u0026amp;O insurance can respond to the cost of defending the claim, and to a settlement if one is agreed. A former employee names the directors A former employee claims they were dismissed unfairly and names the directors along with the company. Depending on the policy, employment claims may be included in D\u0026amp;O insurance or need a separate employment practices policy, so it\u0026rsquo;s worth asking which applies. A donor questions how a charity spent its money A donor believes the board mismanaged funds or bought services from a business a board member owns. The volunteers on the board face a claim personally. D\u0026amp;O insurance can help pay for the defence, whether or not the claim succeeds. Who can bring a claim against directors and officers? More people than owners expect. This table shows the general pattern, and what a policy responds to depends on its wording.\nWho A typical allegation Investors and shareholders The company was mismanaged or its prospects were misrepresented Employees Wrongful dismissal, discrimination or harassment Creditors and suppliers Decisions made while the company was in financial trouble Competitors Unfair business practices or misuse of confidential information Customers Misleading statements about the business Regulators and governments Not following a statute or a filing requirement Donors and members (charities and nonprofits) Misuse of funds or a conflict of interest Who is protected, and when? The three parts of a policy Policies are often described in three parts, called Sides A, B and C. What each includes varies by insurer.\nPart Who it protects When it applies Side A The directors and officers personally When the company can\u0026rsquo;t or won\u0026rsquo;t pay for their defence or a settlement Side B The company When it pays for the directors and officers and is reimbursed Side C The company itself When the company is named in the claim. It\u0026rsquo;s limited on some policies, and only covers certain claims on others, so ask What can directors be personally responsible for in Canada? Directors can be personally responsible for more than decisions that turn out badly. Depending on the company\u0026rsquo;s governing law and province, examples include:\nPayroll deductions the company withheld and didn\u0026rsquo;t remit GST or HST it collected and didn\u0026rsquo;t remit Wages it owes to employees Environmental obligations Breaches of the duty to act honestly and in the company\u0026rsquo;s best interests This is general information, not legal advice, so check what applies to you with your lawyer or accountant. Also ask your insurer whether a D\u0026amp;O policy responds to these amounts, because cover varies.\nClaims-made cover: why timing matters Most D\u0026amp;O policies are written on a claims-made basis. That means the policy generally has to be in force when a claim is first made, not only when the decision was taken.\nThe retroactive date is the earliest date the policy will cover. A wrongful act before that date usually isn\u0026rsquo;t covered. When a director leaves, cover generally continues for claims made while the policy is in force, so it\u0026rsquo;s worth confirming how former directors are treated. When the company is sold, stops trading or lets the policy lapse, cover for later claims may end. Many insurers offer extended reporting, sometimes called a tail, which gives more time to report claims. Availability and terms vary. Ask your insurer about the retroactive date and about extended reporting before you buy, and again before a sale or a wind-down.\nHow is D\u0026amp;O different from other business policies? They answer different questions, and many businesses need more than one.\nPolicy It responds to claims about Example Directors and officers How the company was run An investor says the founders mismanaged the business Professional liability Your advice or service cost a client money A consultant\u0026rsquo;s plan fails and the client sues General liability Injury or property damage you cause to others A customer slips in your shop Employment practices How you hire, manage and dismiss staff An employee claims discrimination. Sometimes included in D\u0026amp;O, sometimes bought separately Cyber A data breach or cyberattack Customer records are stolen How much does directors and officers insurance cost? There isn\u0026rsquo;t one price. What you pay depends on your organization and the cover you choose. The only reliable number is a quote for your own business, and Clearly Rate doesn\u0026rsquo;t set prices. The insurer does.\nWhat affects the price The type and size of the organization Your industry and how risky it is Annual revenue and number of employees Outside investors or borrowed money The number of directors and officers The company\u0026rsquo;s financial health The limit and the deductible you choose Your claims history How to keep your premium down Describe your organization accurately, since gaps between what you told the insurer and the facts can cause problems at claim time. Choose a limit that fits your exposure and your investors\u0026rsquo; or lenders\u0026rsquo; expectations. Ask what a higher deductible would save, and whether you\u0026rsquo;re comfortable paying that amount yourself.\nIs directors and officers insurance required? No general law requires it, but others may ask for it.\nSituation What\u0026rsquo;s usually expected You take outside investment Investors may ask for it as a condition of investing You borrow from a lender A lender may ask about it, so check your loan terms You recruit board members Directors, including volunteers, often ask whether the organization has cover Get ready: what an insurer will ask Having these to hand makes a quote faster.\nWho owns the company, and who its directors and officers are Recent financial statements The number of employees Any known claims, disputes or incidents Your current and past policies, if you have them Details of any investors or lenders What directors and officers insurance doesn\u0026rsquo;t cover It responds to claims about how the organization was managed. It generally won\u0026rsquo;t cover:\nFraud, dishonesty or intentional and criminal acts Bodily injury or property damage, which falls under general liability insurance Errors in professional advice or service, which fall under professional liability insurance Data breaches, which usually need a separate cyber insurance policy Fines and penalties, in many cases Problems you already knew about before the policy started Exclusions vary by insurer, so read the list before you buy.\n","externalUrl":null,"permalink":"/business-insurance/directors-officers/","section":"Business Insurance in Canada: Compare Coverage and Get a Quote","summary":"What is directors and officers insurance? Directors and officers (D\u0026O) insurance pays the cost of defending, and any settlement of, a claim that the people running a company made a wrongful decision in managing it. It’s built to protect their personal assets as well as, on some policies, the company itself.\n","title":"Directors and Officers Insurance in Canada","type":"business-insurance"},{"content":"","externalUrl":null,"permalink":"/quote/","section":"Get your business insurance quote","summary":"","title":"Get your business insurance quote","type":"quote"},{"content":" What Clearly Rate is Clearly Rate is a referral service for small businesses looking for commercial insurance in Canada. We publish guides that explain how different types of business insurance work, and when you tell us about your business through a quote request, we pass that request to a licensed insurer or broker who can give you an actual quote and advice.\nWhat Clearly Rate is not We are not an insurance company, and we are not a licensed insurance broker, agent or advisor in any province. We don\u0026rsquo;t sell insurance policies, we don\u0026rsquo;t quote prices, and we don\u0026rsquo;t tell you what coverage or limits to buy. Those are the services a licensed broker or agent is trained, tested and regulated to provide, and they\u0026rsquo;re who you deal with once we\u0026rsquo;ve referred you.\nNothing on this site is insurance, legal or financial advice. Our guides describe how coverage generally works so you can ask better questions when you talk to an insurer or broker. They aren\u0026rsquo;t a recommendation for your specific business, and they don\u0026rsquo;t replace advice from someone licensed to give it.\nHow the referral works, and how we\u0026rsquo;re paid When you use a quote form on this site, we pass what you\u0026rsquo;ve told us about your business to a licensed insurer or broker so they can contact you directly. We are paid a referral fee by the insurer or broker, not by you, for that introduction.\nWe tell you this again, in plain terms, at the point you request a referral, before any of your information is shared. Our Privacy Policy explains how we handle that information and how we ask for your consent before sharing it.\nWho we refer you to We refer businesses only to insurers and brokers that hold the licence they need to operate in your province. We check this before we work with a partner, and we check again on an ongoing basis. If you\u0026rsquo;d like to know which insurer or broker your request was referred to, ask us through our contact page.\nWhat happens after we refer you From that point, you\u0026rsquo;re dealing directly with a licensed insurer or broker. They\u0026rsquo;re the ones who:\nAsk the questions needed to assess your risk Quote a price Recommend coverage and limits Issue, change or cancel a policy Handle a claim Clearly Rate isn\u0026rsquo;t involved in any of that, and we don\u0026rsquo;t receive a copy of your policy or the quote you\u0026rsquo;re given.\nWhere this service is available Clearly Rate refers businesses located in Canadian provinces and territories other than Québec. Québec regulates the distribution of insurance products differently from the rest of Canada, and we don\u0026rsquo;t currently refer businesses located there. If your business is in Québec, a damage insurance representative or broker registered with the Autorité des marchés financiers (AMF) can help you directly.\nHow referrals are regulated Selling and advising on insurance is licensed and regulated separately by each Canadian province and territory. A pure referral, where we introduce you to a licensed party and take no part in advising you or arranging your coverage, is generally treated differently from selling or advising on insurance, which is why a service like ours can operate without holding an insurance licence itself. That distinction is also why we\u0026rsquo;re careful to stop where we do: we explain, we don\u0026rsquo;t advise; we introduce, we don\u0026rsquo;t sell.\nThe bodies that license and regulate insurance brokers and agents in the provinces and territories we currently serve include:\nProvince or territory Regulator Ontario Financial Services Regulatory Authority of Ontario (FSRA) and Registered Insurance Brokers of Ontario (RIBO) British Columbia BC Financial Services Authority (BCFSA) Alberta Alberta Insurance Council (AIC) Saskatchewan Financial and Consumer Affairs Authority of Saskatchewan (FCAA) Manitoba Insurance Council of Manitoba New Brunswick Financial and Consumer Services Commission of New Brunswick Nova Scotia Insurance Council of Nova Scotia Prince Edward Island Office of the Superintendent of Insurance, PEI Newfoundland and Labrador Office of the Superintendent of Insurance, Service NL Yukon, Northwest Territories and Nunavut Each territory\u0026rsquo;s own Office of the Superintendent of Insurance The insurer or broker you\u0026rsquo;re referred to is licensed by the relevant body above for your province or territory. You can generally confirm a person\u0026rsquo;s or firm\u0026rsquo;s licence directly with that regulator.\nQuestions or a complaint If you have a question about this page, about a referral we\u0026rsquo;ve made, or about how Clearly Rate operates, contact us through our contact page and mark your message \u0026ldquo;Licensing.\u0026rdquo; A complaint about the advice, price or handling of a policy should go to the insurer or broker directly, or to the regulator for your province if they can\u0026rsquo;t resolve it for you.\nChanges to this page We may update this page as our partners, the provinces we serve, or the referral arrangement itself change. When we do, we\u0026rsquo;ll update the \u0026ldquo;Last updated\u0026rdquo; date at the top.\n","externalUrl":null,"permalink":"/licensing/","section":"Licensing \u0026 Disclosure","summary":"What Clearly Rate is Clearly Rate is a referral service for small businesses looking for commercial insurance in Canada. We publish guides that explain how different types of business insurance work, and when you tell us about your business through a quote request, we pass that request to a licensed insurer or broker who can give you an actual quote and advice.\n","title":"Licensing \u0026 Disclosure","type":"legal"},{"content":" About this policy Clearly Rate is a Canadian website that explains business insurance and refers small businesses and entrepreneurs to licensed insurers and brokers. We are not an insurer, and we are not a licensed insurance broker or agent.\nThis policy explains what personal information we collect through this website, why we collect it, who we share it with and what choices you have. We handle personal information in line with Canada\u0026rsquo;s federal private-sector privacy law, the Personal Information Protection and Electronic Documents Act (PIPEDA), and with the privacy laws of the provinces that apply to us.\nBy using this website you accept the practices described here. Where we need your permission for something, such as sharing your contact details with an insurer or broker, we ask for it separately and clearly at the time.\nWhat we collect What you give us. This may include:\nYour name, email address and the message you write, when you use our contact form Details about your business that you enter in a quote request, such as the type of business you run Your contact details and any other information you choose to give us when you ask to be referred to an insurer or broker What we collect automatically. When you visit the site, we and our service providers may collect technical information such as your IP address, browser and device type, the pages you view, the site you came from and your approximate location. This is collected through cookies and similar technologies (see \u0026ldquo;Cookies and analytics\u0026rdquo; below).\nWe don\u0026rsquo;t ask for more than we need. Please don\u0026rsquo;t send us sensitive information, such as health details, financial account numbers, government ID numbers or passwords, through the contact form or a quote request.\nWhy we collect it We use personal information to:\nAnswer your questions and messages Refer you to licensed insurers or brokers, when you ask us to Run, secure and improve this website and the guides on it Understand how the site is used, in aggregate Meet our legal obligations We won\u0026rsquo;t use your information for a new purpose without telling you and, where the law requires it, getting your permission first.\nSharing your contact details with insurers and brokers This is the main way we share personal information, and it only happens with your consent.\nWe ask first. When you request a referral, we tell you at that point what information we would share, why, and what kind of insurer or broker would receive it. We share your contact details only after you clearly agree, for example by ticking a box or pressing a button that says so. What we share. Your name, contact details and the business information you gave us in the request, so that the insurer or broker can contact you about your request. Who we share it with. Insurers and brokers that hold the licence they need to operate in your province. Before we refer anyone to them, we check that they do. What they do with it. The insurer or broker becomes responsible for the information once it has it, and handles it under its own privacy policy. We ask our partners to use it only to contact you about your request and to provide the insurance services you ask about. You can say no. You can still read our guides and use the rest of the site without agreeing to a referral. If you decline, we won\u0026rsquo;t share your details. Other sharing. We may also share personal information with:\nService providers who help us run the site, such as hosting, form handling, analytics and email. They may use your information only to provide their service to us. Authorities if the law requires it, for example in response to a court order. A successor, if our business is sold or reorganized. We would make sure your information stays protected and tell you. We don\u0026rsquo;t sell your personal information.\nYour consent We rely on your consent to collect, use and share your personal information, and the form of consent we ask for depends on how sensitive the information is. We ask for express consent before we share your contact details with a partner.\nYou can withdraw your consent at any time, subject to legal or contractual limits, by contacting us. Withdrawing consent doesn\u0026rsquo;t undo a referral we have already made, and an insurer or broker that already has your details will hold them under its own policy, so you would need to contact it directly as well. We\u0026rsquo;ll tell you how withdrawing affects what we can do for you.\nWe don\u0026rsquo;t send marketing emails unless you have agreed to receive them, and every message will include a way to unsubscribe, in line with Canada\u0026rsquo;s anti-spam law.\nCookies and analytics Cookies are small files that a website stores on your device. We use:\nEssential cookies and similar technology that the site needs to work Analytics tools that tell us which pages are visited and how people find the site, so we can improve it You can block or delete cookies in your browser settings, although parts of the site may not work as well without them. We may update this section as we add or change the tools we use.\nWhere your information is stored Some of our service providers store or process information outside Canada, including in the United States. Information held in another country is subject to that country\u0026rsquo;s laws and may be accessible to its courts, law enforcement and national security authorities. We choose service providers carefully and use contracts and other safeguards to protect your information.\nHow long we keep it We keep personal information only as long as we need it for the purposes described in this policy, or as the law requires. When we no longer need it, we delete it or make it anonymous.\nHow we protect it We use reasonable safeguards to protect personal information, including encrypted connections to this site and limiting who can access it. No method of transmission or storage is completely secure, so we can\u0026rsquo;t guarantee absolute security. If a breach of our safeguards creates a real risk of significant harm to you, we will tell you and report it as the law requires.\nYour rights You can ask us:\nWhat personal information we hold about you and how we have used and shared it To correct information that is inaccurate or incomplete To stop using or sharing your information, by withdrawing your consent To make a request, contact us using the details below. We may need to confirm who you are first, and we\u0026rsquo;ll respond within 30 days, as the law requires. If we can\u0026rsquo;t give you access to something, we\u0026rsquo;ll explain why.\nChildren This website is for business owners and isn\u0026rsquo;t directed at children. We don\u0026rsquo;t knowingly collect personal information from anyone under the age of majority in their province or territory.\nQuestions and complaints We are accountable for the personal information in our care. If you have a question or a concern about this policy or how we handle your information, please contact us through our contact page and mark your message \u0026ldquo;Privacy\u0026rdquo;. We\u0026rsquo;ll look into it and reply.\nIf you\u0026rsquo;re not satisfied with our response, you can complain to the Office of the Privacy Commissioner of Canada. If you live in Alberta, British Columbia or Québec, you may also be able to contact your provincial privacy commissioner.\nChanges to this policy We may update this policy from time to time. When we do, we\u0026rsquo;ll change the \u0026ldquo;Last updated\u0026rdquo; date at the top, and if the changes are significant we\u0026rsquo;ll tell you in a clear way, such as a notice on the site. If a change affects how we use or share information you have already given us, we\u0026rsquo;ll ask for your consent again where the law requires it.\n","externalUrl":null,"permalink":"/privacy-policy/","section":"Privacy Policy","summary":"About this policy Clearly Rate is a Canadian website that explains business insurance and refers small businesses and entrepreneurs to licensed insurers and brokers. We are not an insurer, and we are not a licensed insurance broker or agent.\n","title":"Privacy Policy","type":"legal"},{"content":" What is professional liability insurance? Professional liability insurance, also called errors and omissions (E\u0026amp;O) insurance, pays when a client claims that your advice, design or service cost them money. It responds to claims about the quality of your work, not to injury or damage to property.\nEven a claim without merit costs money to defend. That is what this coverage is built for, and it is why consultants, freelancers and licensed professionals are often asked to carry it before a client signs a contract.\nNegligence and errors A mistake, oversight or missed deadline in the work you delivered that led to a client\u0026rsquo;s financial loss. Defence costs Legal fees to defend a claim, even one without merit, from the first letter through to resolution. Settlements and judgments The cost of a settlement or a court-awarded judgment, up to your policy limit. Lost documents or data Claims arising from client documents or data lost, damaged or improperly disclosed while in your care. Who needs professional liability insurance? Anyone who gives advice, designs something or delivers a service where a mistake could cost a client money. A good test: if a client could argue that your work, not just your product, caused them a loss, this coverage is relevant to you.\nConsultants Business, management and specialist consultants whose advice clients act on. IT and software Contractors and developers whose work keeps a client\u0026rsquo;s systems running. Accountants and bookkeepers Anyone handling a client\u0026rsquo;s numbers, filings or deadlines. Designers and creatives Designers, writers and studios delivering work to a client\u0026rsquo;s brief. Engineers and architects Licensed professionals whose designs and sign-offs others rely on. Marketing and media Agencies and freelancers promising results from campaigns and content. What does a real claim look like? These examples are illustrative, not real cases. In each one, the cost of defending the claim is what the policy is built to pay for, whether or not the claim succeeds.\nA marketing consultant The consultant recommends an advertising strategy that underperforms. The client says the plan was negligent and sues to recover what they spent. The policy pays for the legal defence, and for a settlement if one is agreed, up to the limit. An IT contractor A configuration error takes a client\u0026rsquo;s system offline for a day, and the client claims lost sales. The policy responds to the claim about the work. A data breach would be a different matter, and usually needs a separate cyber policy. A bookkeeper A missed filing deadline leads to penalties that the client says were the bookkeeper\u0026rsquo;s fault. The policy covers the defence and any settlement, but it wouldn\u0026rsquo;t cover anything done on purpose. Professional liability vs general liability They cover different risks, and many businesses need both.\nProfessional liability General liability Covers Claims that your advice, design or service cost a client money Bodily injury or property damage you cause to others Example A consultant\u0026rsquo;s plan fails and the client sues to recover the spend A customer slips in your office and is injured Commonly needed by Consultants, designers, IT and licensed professionals Most businesses that deal with the public or work on others\u0026rsquo; property For the other half of the picture, see general liability insurance.\nHow much does professional liability insurance cost? There isn\u0026rsquo;t one price. What you pay depends on what you do, how much you earn and how much protection you want. The only reliable number is a quote for your own business, and Clearly Rate doesn\u0026rsquo;t set prices. The insurer does.\nWhat affects the price Your profession and the services you offer Annual revenue The limit and deductible you choose Your claims history The contracts you sign, which sometimes require a minimum limit How long you\u0026rsquo;ve been in business How to keep your premium down Describe your work accurately, since gaps between what you do and what you told the insurer can cause problems at claim time. Choose a limit that matches your contracts and the size of your projects. Ask what a higher deductible would save, and whether you\u0026rsquo;re comfortable paying that amount yourself.\nIs professional liability insurance required? No general law requires it, but you\u0026rsquo;re often required to have it in practice.\nSituation What\u0026rsquo;s usually required You sign contracts with clients Many contracts set a minimum limit and ask for proof of cover before work starts You work in a regulated profession Your regulator or professional body may require it, or run its own program You work for larger organizations Procurement teams commonly ask for proof of professional liability insurance What professional liability insurance doesn\u0026rsquo;t cover Professional liability responds to financial-loss claims about your work. It isn\u0026rsquo;t a catch-all. It generally won\u0026rsquo;t cover:\nBodily injury or property damage, which falls under general liability Intentional wrongdoing, fraud or criminal acts Disputes over fees you\u0026rsquo;re owed, on their own Data breaches, which usually need a separate cyber policy Problems you already knew about before the policy started Promises in a contract that go beyond your normal legal duty, such as guaranteeing a result Exclusions vary by insurer, so read the list before you buy.\nHow a claim gets handled 01 Report it straight away Tell your insurer as soon as you\u0026rsquo;re aware of a claim. Most policies require prompt notice, even for a claim you think is groundless. 02 The insurer takes on the defence Your insurer assigns defence counsel and covers the legal costs. 03 Settlement or judgment If the claim is settled or a judgment is awarded, your policy pays out up to your limit. You\u0026rsquo;re responsible for anything above it. Claims-made cover Most professional liability policies are written on a claims-made basis. That means the policy has to be in force when the claim is made, not only when the work was done. If you let a policy lapse, a claim about past work may not be covered. Ask about the retroactive date, which sets how far back your work is covered, and what happens if you close your business or retire.\n","externalUrl":null,"permalink":"/business-insurance/professional-liability/","section":"Business Insurance in Canada: Compare Coverage and Get a Quote","summary":"What is professional liability insurance? Professional liability insurance, also called errors and omissions (E\u0026O) insurance, pays when a client claims that your advice, design or service cost them money. It responds to claims about the quality of your work, not to injury or damage to property.\n","title":"Professional Liability Insurance in Canada","type":"business-insurance"},{"content":"","externalUrl":null,"permalink":"/series/","section":"Series","summary":"","title":"Series","type":"series"},{"content":" Agreement to these terms These terms apply whenever you use the Clearly Rate website, including reading our guides, submitting the contact form, or asking us to refer you to a licensed insurer or broker. By using the site, you agree to them. If you don\u0026rsquo;t agree, please don\u0026rsquo;t use the site.\nWe may update these terms from time to time, as described in \u0026ldquo;Changes to these terms\u0026rdquo; below.\nWho we are Clearly Rate is a referral service. We explain how business insurance works and, when you ask, we refer your request to a licensed insurer or broker who can quote and advise you. We are not an insurance company, and we are not a licensed insurance broker, agent or advisor. Our Licensing \u0026amp; Disclosure page explains this in full, including how we\u0026rsquo;re paid and which provinces we currently serve.\nWho can use this site This site is for business owners, and for people acting on behalf of a business, looking into commercial insurance in Canada. By using the site you confirm that you\u0026rsquo;re able to enter into a binding agreement, whether on your own behalf or your business\u0026rsquo;s, and that you\u0026rsquo;re of the age of majority in your province or territory.\nUsing this site You agree to use this site only for its intended purpose: reading our guides and, if you choose, requesting a referral. You agree not to:\nUse the site for anything unlawful, or in a way that could damage, disable or overburden it Attempt to gain unauthorized access to any part of the site, our systems or another user\u0026rsquo;s information Use automated tools to scrape or harvest content from the site, other than standard search engine crawlers Interfere with the site\u0026rsquo;s security features or attempt to reverse engineer any part of it Submit false or misleading information through a form on the site Use the site to send unsolicited advertising or other unwanted communications We can suspend or end your access to the site if we reasonably believe you\u0026rsquo;ve broken these terms.\nQuote requests and referrals When you submit a quote request or otherwise ask to be referred, you agree to give accurate information about yourself and your business, and you confirm you\u0026rsquo;re authorized to give it and to have us pass it on. Submitting a request doesn\u0026rsquo;t guarantee that any insurer or broker will contact you, quote you, or offer you coverage, and it doesn\u0026rsquo;t create a contract between you and Clearly Rate for insurance of any kind.\nOnce we make a referral, the insurer or broker you\u0026rsquo;re referred to is responsible for their own conduct, quotes, advice and any policy they issue. Our Licensing \u0026amp; Disclosure page explains where the line sits between what we do and what they do.\nNo insurance, legal or financial advice The guides and other content on this site are general information about how business insurance typically works. They are not insurance, legal, financial or professional advice, and they aren\u0026rsquo;t tailored to your business. Before making a decision, get advice from a licensed insurer, broker, lawyer or accountant, as appropriate.\nContent and intellectual property The text, design, graphics and other content on this site belong to Clearly Rate or our licensors, except where stated otherwise. We grant you a limited, non-exclusive, non-transferable licence to view and use this content for your own personal or business reference. You may not copy, reproduce, republish, distribute or create derivative works from our content for any commercial purpose without our prior written permission.\nOur name and logo are ours. You may not use them without our prior written permission, except to link to this site in a way that isn\u0026rsquo;t misleading or doesn\u0026rsquo;t suggest an endorsement that doesn\u0026rsquo;t exist.\nThird-party links and services This site links to third parties, including insurers, brokers, government and regulator websites, and other resources. We don\u0026rsquo;t control those sites, and we aren\u0026rsquo;t responsible for their content, accuracy, terms or privacy practices. Visiting a linked site is at your own discretion, and its own terms and privacy policy will apply.\nPrivacy Our Privacy Policy explains what personal information we collect, how we use it, and when and how we ask for your consent to share it with an insurer or broker. It forms part of these terms.\nDisclaimers This site and its content are provided \u0026ldquo;as is\u0026rdquo; and \u0026ldquo;as available,\u0026rdquo; without warranties of any kind, express or implied, to the extent permitted by law. We don\u0026rsquo;t guarantee that the site will be available at all times, that it will be error-free, or that the information on it is complete, current or accurate for your situation. Insurance products, prices and regulatory requirements change, and a guide\u0026rsquo;s \u0026ldquo;last updated\u0026rdquo; date tells you when we last reviewed it.\nLimitation of liability To the maximum extent permitted by law, Clearly Rate isn\u0026rsquo;t liable for any indirect, incidental, special or consequential damages arising from your use of this site or reliance on its content, including lost profits or lost business, even if we\u0026rsquo;ve been advised of the possibility. Nothing in these terms limits liability that can\u0026rsquo;t be limited under applicable law, such as liability for our own gross negligence or wilful misconduct.\nBecause using this site and requesting a referral is free, our total liability to you arising out of your use of the site is limited to the greater of one hundred Canadian dollars ($100 CAD) and the amount, if any, you\u0026rsquo;ve paid us to use the site.\nIndemnification You agree to indemnify and hold Clearly Rate harmless from any claim, loss or expense, including reasonable legal fees, arising from your misuse of the site, your breach of these terms, or information you submit through the site that is false, misleading or that you weren\u0026rsquo;t authorized to share.\nChanges to the site and these terms We may change, suspend or discontinue any part of the site, or update these terms, at any time. When we update these terms, we\u0026rsquo;ll change the \u0026ldquo;Last updated\u0026rdquo; date at the top, and if a change is significant we\u0026rsquo;ll say so in a clear way, such as a notice on the site. Continuing to use the site after a change takes effect means you accept the updated terms.\nGoverning law These terms are governed by the laws of the Province of Ontario and the federal laws of Canada that apply in Ontario, without regard to conflict-of-law rules. Any dispute that these terms don\u0026rsquo;t resolve informally will be handled by the courts of Ontario, and you agree to their jurisdiction.\nIf something doesn\u0026rsquo;t work as intended If a court finds part of these terms unenforceable, the rest still applies, and the unenforceable part will be read to reflect the parties\u0026rsquo; original intent as closely as the law allows. These terms, together with our Privacy Policy and Licensing \u0026amp; Disclosure page, are the entire agreement between you and Clearly Rate about using this site.\nQuestions If you have a question about these terms, contact us through our contact page and mark your message \u0026ldquo;Terms.\u0026rdquo;\n","externalUrl":null,"permalink":"/terms-of-service/","section":"Terms of Service","summary":"Agreement to these terms These terms apply whenever you use the Clearly Rate website, including reading our guides, submitting the contact form, or asking us to refer you to a licensed insurer or broker. By using the site, you agree to them. If you don’t agree, please don’t use the site.\n","title":"Terms of Service","type":"legal"},{"content":"","externalUrl":null,"permalink":"/quote/thanks/","section":"Get your business insurance quote","summary":"","title":"Thanks for your request","type":"quote"}]