Is your small business properly protected with insurance? | CFIB

No matter what industry you are in, you need to protect your business, your employees and your bottom line. Being savvy about insurance and working with an insurance provider suited to your business and industry can make all the difference in safeguarding your investments.

Every business owner should:

Avoid the risk 

As a business owner, you're used to taking calculated risks — but skipping insurance shouldn't be one of them.

Choosing not to get coverage or hesitating out of fear of picking the wrong policy can end up costing you far more in the long run. Think of insurance like an umbrella. Although it doesn’t stop the rain, it protects and shelters you from its full impact. Insurance can give you peace of mind to focus on running your business, knowing that when challenges arise, you’re protected.

Get informed

Whether you're just getting started or looking to adjust your coverage, these trusted resources can help you make insurance decisions.

Learn about the different types of business insurance available:

• Financial Consumer Agency of Canada's Types of Business Insurance
• Insurance Bureau of Canada’s Key Types of Business Coverage.

Need clarity on insurance words and terms? 

The Insurance Bureau of Canada’s glossary provides definitions to help you navigate all things insurance.

5 Cost-Saving Insurance Tips Every Small Business Should Know

By implementing some of the measures listed below, SMEs can better ensure they select the most suitable coverage to protect their business.

1. Seek expert advice. Consult with an insurance professional (such as a broker) who specializes in your industry to get tailored recommendations and insights.
2. Shop around and ask about discounts. Compare quotes and policies from multiple insurers to find the best coverage at competitive prices. Ask about discounts for safety features or low claims history. Consider bundling policies to reduce costs. Check if you belong to an industry or sectoral association that may offer discounted rates.
3. Review and make sure you understand your insurance coverage. Our survey found that only 36% of SMEs did a market review in the past 12 months. Review your coverage periodically to ensure it still meets your business needs and make changes when necessary. Additionally, carefully read and understand the fine print, including exclusions and conditions of your insurance coverage.
4. Invest in risk management policies and tools to reduce the likelihood of claims, which can lead to lower premiums and better coverage options.
5. Train and certify employees in relevant areas to reduce risk and demonstrate a commitment to safety and quality.
   
   

Watch CFIB’s Webinar: Best practices that could save you money on your commercial insurance.

Have a Business Continuity Plan

Are you ready to survive a disaster or sudden loss of key people? Do you have a plan outlining where you will operate and how you will:

• communicate with customers and staff
• replace equipment and stock
• continue to generate revenues and pay bills
• retrieve information and documents

If you don’t have a plan, the Business Development Bank’s Business continuity plan and templates is a great resource. In addition to this, as a CFIB member you can access the Member Portal where an Emergency Preparedness Guide is available to you!

If you do have a plan, when was the last time you reviewed it to ensure you are prepared for unexpected events?

Having insurance and a disaster plan shows employees that you are prepared. Although you can’t always prevent disasters, putting policies, procedures and protections in place will help mitigate the fallout from major events.

Need to resolve insurance disputes or concerns?  

The General Insurance OmbudServices (GIO), is an independent not-for-profit organization with the sole purpose of helping Canadian consumers and small businesses resolve disputes or concerns with their property and casualty insurers.

The GIO’s services are available free of charge, in both English and French, to any property and casualty insurance policyholder in Canada, including business insurance. The majority of issues they deal with concern claims, interpretation of policy coverage, and policy processing and handling.

Some matters are beyond the scope of GIO services. These include:

• The cost of insurance and rates
• Availability of insurance
• Dispute settlement procedures as required by law or designated regulatory authorities
• Matters that have been, or are, before the courts

GIO’s experienced Consumer Service Officers (CSOs) will review a matter to determine if it falls within their mandate, and if it does, they will provide independent and impartial advice 

Learn more: 

• What GIO is and how they can help  
• How to make a complaint to GIO  
• Frequently Asked Questions about GIO’s complaint process   

You can contact GIO at 1-877-225-0446, by e-mail at info@giocanada.org, or by completing the web form.

Have questions or need help accessing one of our templates? CFIB members can contact our Business Resource Advisors at 1-833-568-2342 or by e-mail at hrnow@cfib.ca
 
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