Business Insurance And Canadian Laws
It goes without saying that business insurance is confusing. Heck, insurance in general is confusing. Whether it be buying a homeowner’s policy or trying to insure a new vehicle, there are tons of hoops that you’ll have to jump through. Not only will you have to choose a reliable provider with affordable rates, but you’ll have to decide what policies you want as well as how much coverage you need. And, to make things even worse, the law requires certain individuals to have certain types of insurance. For instance, if you buy a new car and still owe for it, you’ll have to have comprehensive auto insurance, whereas if the vehicle is paid off, you can just opt for liability. Confusing, right? You bet it is and business insurance is all the more confusing.
Couple this with the fact that business insurance laws are going to vary from province to province, and it only makes matters worse. Luckily, that’s what this guide is for. It’ll walk through the requirements for Canadian tech business insurance.
Business Insurance Requirements For The Small Business
Whether you own and operate or simply run a small or large tech firm, it’ll be a good idea to have several different policies in place. This is because these policies not only protect you, your business, your employees, and your family’s financial future, but they are likely required by law. That being said, before you can truly understand what types of coverage policies you need, you must understand the legal requirements for your area. Not securing the right types of policies can have a wide range of negative effects on your business.
The worst is that you won’t be able to legally operate. The second worst being, that you’ll end up with a major lawsuit. Lawsuits that could cripple your company while also destroying the financial future of your family. Just because you get the right policies to get up and running it doesn’t necessarily mean that things stop there. As an IT provider, you’ll have to make sure that you are always complying with local laws and regulations regarding business policies and insurance. Confusing and downright frustrating, right? Don’t worry because there are reliable providers like ProfessionalsCoverage that understand the unique risks that IT companies face.
They can help you build policies and coverage packages that’ll provide you and your business as well as your employees and your family from just about anything seen and unforeseen. Simply put, working with a provider that understands your industry is a must when it comes to small business insurance.
The Policies Required By Canadian Law
To start off, you’ll find that most Canadian provinces are going to require workers’ comp insurance. As a small IT firm, it is entirely possible that you plan on operating without employees. You will not maximize your profits and take advantage of all the jobs out there, but you won’t have to worry about this type of coverage. However, if you do want to eventually expand and grow your business, you’ll likely need to bring on additional help or employees. If this is the case, you’ll need workers’ comp insurance for each of the individuals you bring on.
It doesn’t matter if you are located in Ottawa or Ontario, this type of coverage will be required, as it protects both you and your employees. It protects employees that are injured on the job. It pays for their medical expenses, lost wages, rehab costs, and it’ll cover any lawsuits on your behalf that are associated with the event. Typically, as soon as you hire your first employee, you’ll need this insurance in place.
As an IT professional, you’ll likely be working mostly off-site, which means you’ll be driving back and forth to the office, back forth from the home to the office, and back and forth from the job site to the office. Simply put, you’ll need a company vehicle. A company vehicle that will have to be covered by commercial auto insurance. Unfortunately, regular auto insurance coverage isn’t enough in Canada. If you are using a personal vehicle while on the job and get into an accident, you will not be covered by that regular policy. Canadian law states that you must have a commercial auto policy in place if you are going to use the vehicle for business-related purposes.
Not only will you have to cover yourself with these types of policies, but you’ll also need to cover anyone else that uses these company vehicles. This is a requirement in all provinces. That being said, the type and amount of coverage you might need can vary from area to area. In Ontario, the law might require you to have at least a million-dollar comprehensive coverage plan, whereas you might only be required to have 2 million worth of liability insurance in Ottawa. You’ll have to check the law or rely on insurance providers like ProfessionalsCoverage to provide such information.
This is why it is, once again, pertinent to work with a provider that is familiar with your industry and the unique risks that you face in your industry.
What About Canadian General Liability Insurance
In Canada, in many areas, general liability is a type of coverage that is optional. You’ll have to either check with a local provider or the local authorities to determine whether or not it is required for your business. That being said, this is a policy that you’ll likely not want to skimp on. And, there are some situations when landlords and clients can even require you to purchase the policy before agreeing to work with you. Some landlords might not be willing to rent you an office space unless you agree to purchase and enforce this policy.
Some clients might not be willing to hire your company unless you have this policy in place. Regardless, general liability insurance is an excellent policy to have in your arsenal, as it can protect you, your business, and your employees in a variety of potential and real situations. This is why most IT businesses just go ahead and choose to invest in policies like these.
General liability is a policy that will protect you in the event that a customer is injured on your property. It’ll protect you in the event that a customer’s property is damaged while on your property. And, it can protect your business against natural disasters as well as business interruptions. For instance, if you have a customer over in your shop for a consultation and an employee spills hot coffee on him or her, this policy will cover the medical-related expenses. It’ll also cover any lawsuit associated with the event.
If that same customer’s vehicle is scratched or damaged while sitting in the parking lot, this policy will pay to have the vehicle repaired. It’ll also cover lawsuits in these situations as well. If you have a fire, theft, vandalism, or tornado, this policy will cover the repair costs to the shop. Not only will it cover these things, but in some events, it’ll pay to have your business relocated to another shop so that you can continue about your daily business activities. This type of coverage is offered when you are likely to be out of operations for extended periods of time.
Getting Free Quotes And Comparing Policies
These are pretty much the policies that are required by Canadian law for IT businesses. However, it is entirely possible that there could be more, depending on where you are located. Unfortunately, you won’t know what’s required and what isn’t unless you work with a quality provider or agent. Or, you can contact the appropriate authorities and find out. Whatever the situation, you’ll want to make sure that you and your business are legally covered with the right policies.
You’ll also want to make sure you get quotes of these policies from different providers once you find out what is needed. This is because different providers charge different rates for coverage. Not only this, but they offer different types of coverage. Some coverage plans might offer more protection with some providers while also costing less. Some coverage plans might offer more protection but cost more. Make sure you know what you are buying as well as who you are buying it from!
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Helpful resources for IT professionals and their companies
- Why do I need IT insurance for my business?
- What types of insurance do I need for my IT business?
- Will I be legally required to get insurance to operate as an IT company?
- How do I get the cheapest rate possible as an IT business?
- As an online business, what liability insurance coverages will I need?
- How do I handle a lawsuit that is frivolous or completely fake?
- Want to cancel insurance for your IT Company? Here are reasons to consider!
- Using a change control board for tracking.
- Acceptable use policy – Every business needs it and here is how to write one!
- Want to start an IT consulting business? Awesome! Here is a small guide!
- How much insurance will I need to operate my tech company?
- I am a sole proprietor, how will business insurance work for my IT business?
- How do I choose the right legal corporate structure for my technology company?
Other types of IT Businesses we insure:
If your specializing is not mentioned below, have no worries. Our insurance markets can provide liability coverage for the majority of information technology related businesses.
- Telecom Cabling Installers Insurance
- Network Designer Insurance
- Cyber Security Insurance
- Business Intelligence Insurance
- Data Analysis Insurance
- Database Administration Insurance
- Web Hosting Service Insurance
- Network Security Company Insurance
- Mobile App Developers Insurance
- IT Staffing Agency Insurance
- IT Project Management Insurance
- IT Consultants Insurance
- Data Scientist Insurance
- Computer Repair Business Insurance
- Digital Marketing Agency Insurance
- SEO & SEM Consultants Insurance
- Software Developers Insurance
- Technical Writers Insurance