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Business Insurance
Everything a Canadian business needs to know about commercial insurance, and 17 insurers compared to find the right cover for yours.
Get a quoteIn short
Business insurance, also called commercial insurance, is the set of policies that protects a company from the costs of lawsuits, property damage, lost income, vehicle accidents, cyber attacks, fraud and professional mistakes. Most Canadian businesses start with general liability and property cover, then add business interruption, professional liability, cyber and commercial auto as their operations require. Some cover, such as auto liability and workers' compensation, is required by law.
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Every business carries risks its owner can't absorb alone: a lawsuit from a customer, a fire that closes the doors for months, a ransomware attack, a vehicle accident, a client who says your advice cost them money. Business insurance turns those risks into a known, budgeted cost.
This guide explains how commercial insurance works in Canada: the coverages that matter, what the law and your contracts require, what drives the price, and how to buy it well. Start with the coverage and industry guides below, or read on for the full picture.
Explore coverage
Most programs are built from the first six. The rest are specialist lines we add when the operation calls for them.
Third-party injury and damage claims, defended and paid, for almost any business.
Learn moreProtect your building, equipment, inventory, and income.
Learn moreE&O cover for firms paid for advice, designs and professional services.
Learn moreRansomware, breach response, network downtime, fraud and cyber liability.
Learn moreCars, vans and pickups used for work, plus employees' own cars on company business.
Learn moreReplaces lost income and pays ongoing costs while insured damage keeps you closed.
Learn morePackages by industry
Start from a package built for your sector, then let our advisors tailor it to your business.
The complete guide
Business insurance is not one policy. It is a program built from separate coverages, each answering a different question: what happens if someone sues you, if your premises burn, if you can't trade for six months, if a client says your advice cost them money, or if a fraudster empties your account.
Personal policies don't fill the gap. Home insurance typically limits or excludes business property and business liability, and a personal auto policy is not built for commercial use. Once you have customers, staff, premises, vehicles or contracts, you need commercial cover written for the business itself. Even a sole proprietor working from home usually needs it; see home-based business insurance.
Most programs combine three kinds of protection:
These are the lines most Canadian business insurance programs are built from. Each has its own in-depth guide.
| Coverage | What it covers | Who usually needs it |
|---|---|---|
| Commercial general liability | Third-party bodily injury and property damage from your premises, operations and products | Almost every business, and most leases and client contracts require it |
| Commercial property | Your building, improvements, equipment, furniture and stock | Owners and tenants with physical assets |
| Business interruption | Lost profit and continuing expenses after an insured loss forces you to close | Any business that couldn't survive months without revenue |
| Professional liability (E&O) | Claims that your advice, design or service caused a client financial loss | Consultants, professionals, agencies and technology firms |
| Cyber | Incident response, ransomware, data restoration, business interruption and privacy liability | Any business holding client data or relying on its systems |
| Commercial auto | Liability and damage for vehicles used in the business | Any business that owns, leases or uses vehicles for work |
| Commercial crime | Employee theft, forgery, funds transfer fraud and social engineering | Businesses handling client funds, payments or payroll |
| Directors' and officers' | Personal liability of board members and executives for their decisions | Corporations, non-profits and businesses with outside investors |
Specialist lines sit on top: product recall, liquor liability, cargo, builder's risk, surety bonds, media liability and more. The full list is above.
The right program depends on what you do. A consultant's biggest risk is a mistake in their advice. A restaurant's is a kitchen fire. A trucking company's is the road. Our sector guides set out each industry's exposures in detail.
| Sector | Usually starts with | Sector guide |
|---|---|---|
| Construction and trades | CGL with completed operations, tools and equipment, commercial auto, surety bonds | Construction & contractors |
| Professional services | Professional liability, cyber, CGL and office contents | Business & professional services |
| Retail and e-commerce | CGL, stock and contents, product liability, crime and cyber | Retail |
| Restaurants and hotels | Property, business interruption, CGL, liquor liability and spoilage | Hospitality & lodging |
| Manufacturing and wholesale | Property, product liability, recall, equipment breakdown and cargo | Manufacturing & wholesaling |
| Trucking and logistics | Truck liability, cargo, physical damage and cross-border filings | Transportation & logistics |
| Property owners and managers | Building property, rental income, CGL and professional liability | Realty |
| Auto services | Garage liability, customers' vehicles in your care and environmental cover | Automotive |
Can't see your business? We publish guides for nearly 190 industries and professions, from accountants to woodworkers.
Budgets are real, so buy in order of consequence. A simple rule: cover what the law requires, then what your contracts require, then what would put you out of business, then everything else.
Our new business insurance checklist walks through this in more detail, and small business insurance explains how packages combine the first layers at a lower cost.
Most business insurance is not legally mandatory, but some is, and much more is required in practice by contracts and regulators.
For most businesses, the strictest insurance requirements aren't in a statute. They're in the contracts you sign. Leases, client agreements, tenders and supplier terms routinely set liability limits, name the other party as an additional insured, waive subrogation and require proof before work starts.
Government work is a good example. The federal Standard Acquisition Clauses and Conditions include a general liability clause asking for $2,000,000 with Canada as an additional insured, and a professional liability clause for consulting contracts. Larger private clients often ask for more.
Proof comes as a certificate of insurance. Read the insurance clause before you sign, and send it to your broker. Matching it is routine before the contract starts and expensive after a claim. Our guide to why contracts ask for certificates explains the wording.
Insurance exists because certain losses are common, expensive and hard to absorb. A few Canadian figures show why the main lines matter.
| Risk | What the data shows | Coverage that responds |
|---|---|---|
| Severe weather | Insured severe-weather losses in Canada topped $2.4 billion in 2025 (CatIQ, via IBC) | Commercial property and business interruption |
| Cyber attacks | 16% of Canadian businesses were impacted by a cyber security incident in 2023, and only 22% had cyber insurance (Statistics Canada) | Cyber and privacy breach |
| Fraud | More than $704 million in reported fraud losses in 2025, and most fraud is never reported (Canadian Anti-Fraud Centre) | Commercial crime |
| Rising rebuild costs | Non-residential construction costs rose 3.5% year over year in Q2 2026 (Statistics Canada) | Property limits set to replacement cost |
There is no honest single price for business insurance, because the premium is built from your own risk. The Insurance Bureau of Canada lists the main questions as the coverage you need, your liability exposure, your property's replacement cost, your location, your claims history and market conditions, and notes that insurers also consider the risk management you have in place.
In practice that means revenue and payroll for liability lines, construction, occupancy, fire protection and location for property, vehicles and drivers for auto, and the controls you can document for cyber and crime. Your deductible and limits are the levers you control directly.
The market is currently in buyers' favour. Marsh's Global Insurance Market Index put Canadian commercial insurance rates down 6% in the third quarter of 2026, with property down 8%. That makes this a good time to fix gaps and raise limits.
There are three common ways to buy business insurance in Canada, and they suit different businesses.
| Route | How it works | Best for |
|---|---|---|
| Independent broker | A licensed broker compares several insurers, matches wording to your contracts and advocates for you at claim time | Most businesses, especially with premises, vehicles, staff or contract requirements |
| Direct insurer | You buy from one insurer's own sales team, so you see one company's products and price | Simple risks where you already know the coverage you need |
| Online instant quote | A fast price from a short form, often for a narrow set of classes | Very simple operations, such as a sole consultant or small office |
Insurabiz is an independent brokerage that works only in business insurance. We compare our panel of 17 insurers, so the recommendation follows your risk rather than one insurer's appetite. See how we get paid and how comparing quotes works.
Our claims team works alongside you and the adjuster from first notice to settlement.
A policy describes the business you had when you bought it. Tell your broker when anything material changes: a new location, a vacant building, new vehicles, a new service line, staff, or a big new contract. In Ontario, the statutory conditions in fire policies require a change material to the risk, within your control and knowledge, to be reported to the insurer in writing.
Renewal is the natural checkpoint. Start 90 days out, update values and payroll, and compare the market. Our renewal preparation guide sets out the timeline.
Good to know
Sources
This page is general information, not insurance or legal advice. Coverage depends on your policy wording and the insurer. Speak with a licensed broker about your situation.
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