Starting Out? 3 First Steps for Small Business Insurance Ontario

The first three steps are easy. Document your business assets and activities, and select the coverage that mirrors the risks you face; consult with a broker before you start. It is this way that most new owners receive small business insurance Ontario sorted without spending excessive funds or leaving something important out.


What’s the first step when you’re just starting out?


Take some paper and write down all the things you have, all the things you do, and all the things that can go wrong. There is no need to get bogged down in insurance terms for now. Simply write it in the style you would use to tell a friend.


Say you’re opening a small bakery. You have some butter, some flour, and some ovens and a pantry with a display counter. There are also customers walking in and possibly a delivery van. Now there are the risks to be seen: someone slips at the door, the fridge breaks down, or the van gets in an accident.


Now assume that you are a home office bookkeeper, with a spare room office. You're on your laptop, no inventory. Your greatest danger is if a client tells you that your error cost them money. Two companies, two vastly different lists. For this reason, your list is first.


What should you actually cover?


When completed, correlate each risk with a type of coverage. Let's see how the familiar ones compare:


  • Business protection: protects you if someone is injured or damages the property of another.

  • Property protection: protects your equipment, stock and work space.

  • Professional insurance: involves coverage for any loss that the advice or work you provide to a client caused for them.

  • Vehicle protection: will cover a car or van that you use for the business, not a regular auto policy.


You don't necessarily need all four. The bakery requires coverage on its property and business and likely coverage on its vehicles. The bookkeeper may only have to purchase professional insurance and may only require a small amount of property cover for the laptop and files.


It is a surprise to many new owners. Business activities are not typically covered by your home insurance policy. If you work at home, discuss this matter with your broker before assuming protection.


Winter also plays a role here. In Ontario, we receive ice and snow for months and a slip on an icy step is one of the most frequent claims which can be made by the customer against the store. If individuals come into your space, treat this risk as a serious one.


Why talk to a broker before you open?


A broker reviews your list and looks around for coverage that matches it. Only an agent from an insurance company can sell you the insurance products of that company. A broker can offer you more than one choice, which means that you are able to compare.


We at PJ Insurance Broker are helping small business owners throughout Ontario to better comprehend their various commercial insurance, small business and professional insurance alternatives. If desired, we also review your home and auto insurance, as many new homeowners combine their personal and business possessions in the beginning. This way, there will be no mistakes.


Work from the call: What your business is, where your business is located, if it is a rental or owned, how many employees you have, what your annual income is, and the approximate cost of your equipment and stock. But if you're a beginner and don't have all that, it's okay. Make your best guess and tell it is an estimate.


Review your lease also. So many landlords require proof of insurance before handing over the keys. Some clients will also request it, particularly if you are going to be working on their property. This knowledge will make your last minute rush unnecessary.


When should you buy it, and what happens after?


Purchase before taking your first position, signing a lease, and opening a business.Purchase before you open, sign a lease, and start your first job. Coverage won't help with past events, so the time when you're busy is when you're in the most vulnerable position.


Watch out for comparisons. A lower price may cover lower limits or coverage. Compare the quotes side by side and determine what each quote includes, what is covered by the deductible and what it does not cover. Effective small business insurance Ontario comparisons can only be made if you compare the same.


Once purchased, inform your broker. If you find someone else, change jobs, purchase new equipment or add a service, let them know. Those changes may impact your coverage and it is easier to alter a policy than it is to debate a claim later.


Depending on a company's activities, some businesses in Ontario are also required to be registered with WSIB. This is in addition to your insurance policy so inquire early.


Call PJ Insurance Broker for North York to discuss small business insurance Ontario for your new business.


PJ Insurance Broker
📍 50 Lotherton Pathway #109, North York, ON M6B 2G7, Canada
📞 +1 437-836-4959

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