Startup Business Insurance made simple

Learn all you need to know about startup business insurance

Best Startup Business Insurance Rates in Canada

General Liability
  • General Liability
  • Product Liability
  • Professional Liability
  • Commercial Property
  • Home-based
  • Other
Under 3 months
  • Under 3 months
  • 3 - 6 months
  • 6 - 12 months
  • 1 - 2 years
  • 2 - 3 years
  • Over 3 years
AB
  • AB
  • BC
  • MB
  • NB
  • NL
  • NS
  • NT
  • NU
  • ON
  • PE
  • QC
  • SK
  • YT
4 Results

Advertiser disclosure

Offers shown here are from third-party advertisers. We are not an agent, representative, or broker of any advertiser, and we don’t endorse or recommend any particular offer. Information is provided by the advertiser and is shown without any representation or warranty from us as to its accuracy or applicability. Each offer is subject to the advertiser’s review, approval, and terms. We receive compensation from companies whose offers are shown here, and that may impact how and where offers appear (and in what order). We don’t include all products or offers out there, but we hope what you see will give you some great options.

#1 Choice
Get a Quote

Zensurance

From $19
Per Month
850
Satisfaction Rating
  • Partner with 50+ providers
  • Get a quoute and buy online
  • Easy, manageable payments
Pros & Cons
Extra Details
Popular
Get a Quote

FoxQuilt

From $20
Per Month
835
Satisfaction Rating
  • Get a quoute and buy online
  • Easy, manageable payments
  • US & Canada coverage
Pros & Cons
Extra Details
Best Value
From $26
Per Month
823
Satisfaction Rating
  • Get your insurance in minutes
  • Easy, manageable payments
  • Industry-specific insurance
Pros & Cons
Extra Details
From $29
Per Month
813
Satisfaction Rating
  • Responsive insurance experts
  • Compare rates and coverages
  • Get the perfect insurance policy
Pros & Cons
Extra Details

Startup Business Insurance

Starting a business is a big step in anyone’s life and requires a great deal of effort and planning. Insurance is one of the most crucial factors to consider when establishing a company.

Insurance protects companies against numerous hazards and gives company owners peace of mind. In Canada, there are various insurance options available to start-ups, which are designed to meet their specific needs and requirements.

In this blog, we will discuss the various types of insurance that a start-up business in Canada should consider and the reasons why they are important.

What is startup business insurance?

Startup business insurance is a form of insurance that is tailored to the needs of small enterprises. It covers the different risks that come with conducting a company, including property damage, liability, and other losses.

In the case of an accident, theft, or another unanticipated catastrophe, this insurance may help protect the company from financial damages and legal obligations.

Various types of insurance for start-up businesses in Canada

various types of insurance that a start-up business in Canada should consider and the reasons why they are important.

1. Liability insurance

Liability insurance protects a company against third-party claims for personal harm or property damage caused by the company’s activities.

This insurance is important for start-ups as it covers the costs of defending against these claims and any damages awarded. 

This insurance is essential for businesses that have customers visiting their premises or have products that could cause injury or damage.

2. Property insurance

Property insurance protects a company’s tangible assets, such as its buildings, equipment, and inventory.

This insurance is important for start-ups that own or lease their premises as it covers the cost of repairs or replacement in the event of a fire, theft, or other covered loss.

3. Product liability insurance

Product liability insurance protects a business against claims made by customers who have suffered an injury or damage as a result of using a product produced or sold by the business

This insurance is critical for new businesses that produce or sell items since it covers the expense of fighting against these claims as well as any damages awarded.

Startup Business Insurance 2

4. Business interruption insurance

Business interruption insurance compensates a company for revenue lost as a consequence of a covered loss, such as a fire or theft.

This insurance is important for start-ups as it helps to ensure that the business can continue to operate even if its physical assets are damaged or destroyed.

5. Directors and officers liability insurance

Directors and officers liability insurance protect the individuals who serve as directors and officers of a business against claims made by shareholders, customers, or other parties. 

This insurance is critical for new businesses since it covers the costs of fighting against these claims as well as any damages awarded.

Why is it important for Canadian businesses?

1. Protects your business from financial losses

One of the most important reasons to get startup business insurance is to safeguard your company from financial damage.

In the event of an accident, theft, or another unexpected incident, insurance can help cover the cost of repairs, replacements, or compensation. 

This may assist to reduce the financial effect on your company and enable it to continue running.

2. Protects you from legal liabilities

Another important reason to carry insurance is to protect yourself from legal ramifications. You might be held accountable if someone is injured or damaged as a consequence of your company’s activities.

You may have peace of mind knowing that you’re protected if someone sues you for damages if you have insurance.

3. Helps you meet legal requirements

In Canada, it’s a legal requirement for businesses to have liability insurance. Failure to have insurance could result in fines or legal consequences. 

Having insurance ensures that you’re meeting your legal obligations and reduces the risk of being sued for damages.

Startup Business Insurance Comparewise 1

4. Provides coverage for property damage

In addition to liability coverage, startup business insurance can also provide coverage for property damage. 

This includes damage to your business property, equipment, and other assets. With insurance, you can be sure that you’re protected against potential financial losses in the event of property damage.

5. Peace of mind

Insurance provides you with the peace of mind that your company is covered against any threats.

This allows you to concentrate on operating your company and expanding your brand without having to worry about possible financial losses or legal risks.

Summary of startup business insurance

Starting a business in Canada requires careful planning and consideration of various risks. Having the correct insurance in place may help safeguard a startup from numerous hazards and offer company owners peace of mind.

Liability insurance, property insurance, product liability insurance, business interruption insurance, and directors’ and officers’ liability insurance are all options for a new firm.

By having the right insurance in place, start-ups can focus on growing their business and achieving their goals without having to worry about the financial consequences of a covered loss.

Other types of insurance

Business Insurance in AlbertaBusiness Insurance in ManitobaBusiness Insurance in British ColumbiaBusiness Insurance in New Brunswick
Business Insurance in Nova ScotiaBusiness Insurance in Newfoundland and LabradorBusiness Insurance in OntarioBusiness Insurance in Prince Edward Island
Business Insurance in QuebecBusiness Insurance in Saskatchewan

Discover Investment Opportunities

Make your money do more.

12 Results

Advertiser disclosure

Offers shown here are from third-party advertisers. We are not an agent, representative, or broker of any advertiser, and we don’t endorse or recommend any particular offer. Information is provided by the advertiser and is shown without any representation or warranty from us as to its accuracy or applicability. Each offer is subject to the advertiser’s review, approval, and terms. We receive compensation from companies whose offers are shown here, and that may impact how and where offers appear (and in what order). We don’t include all products or offers out there, but we hope what you see will give you some great options.

Young investors can trade stocks and ETFs, all for free.
Min Investment
$0
Target Return
Varied
Retire up to 30% wealthier with Questwealth Portfolio.
Min Investment
$1
Target Return
Varied
Get $20 CAD of BTC with promo code: COMPAREWISE
Min Investment
$100
Target Return
4-7%
Buy and sell gold, silver & platinum online at the best price.
Min Investment
$1
Target Return
Varied
Get up to $150 cash bonus: BONUS150
Min Investment
$0
Target Return
Varied
Flexibility with a great return.
Min Investment
$100
Target Return
5.20%
Get a $50 bonus when you sign up and deposit $250.
Min Investment
$50
Target Return
Varied
Buying and securing gold has never beeng more simple and affordable.
Min Investment
$1
Target Return
Varied
High return on a shorter term.
Min Investment
$500
Target Return
4.25%
Get a $100 welcome bonus, when you make your top-up*
Min Investment
$10
Target Return
Varied
A new passive income asset class, peer-to-peer lending.
Min Investment
$1
Target Return
Varied
Sign Up And Access 65+ Cryptocurrencies Instantly
Min Investment
$10
Target Return
Varied

comparewise

August 29, 2023
Fact Checked

Grow your finances today.

By submitting, you agree to comparewise’s terms of use and privacy policy.

FAQs about startup business insurance

What Is startup business insurance?

Startup business insurance is a form of insurance that is tailored to the needs of small enterprises. It covers the different risks that come with conducting a company, including property damage, liability, and other losses. This insurance may help protect your company against financial damages and legal responsibilities in the case of an accident, theft, or another unforeseen catastrophe. General liability, property insurance, and workers' compensation are common types of coverage. The insurance coverage may be tailored to meet the unique needs of a startup business, taking into account factors such as the industry, location, and size of the business.

Who needs startup business insurance?

Startup business insurance is designed for small businesses that are just starting out. It's recommended for any business owner who wants to protect their company and its assets from financial losses and legal liabilities. Insurance is particularly important for businesses that deal with the public or have a physical location, as they may be more exposed to potential risks. Examples of businesses that need startup business insurance include retail stores, restaurants, consulting firms, service providers, and technology companies, among others. Even businesses that operate online or from a home office can benefit from liability coverage, as they may still face legal liabilities or property damage risks. In summary, startup business insurance is a necessary consideration for any small business owner looking to protect their business from potential risks. It can provide peace of mind and help ensure the long-term success of the company.

How much does startup business insurance cost?

Startup company insurance costs vary based on various variables, including the size of the firm, the kind of coverage necessary, and the location of the business. Startup company insurance may cost anything from a few hundred dollars to a few thousand dollars each year. Some of the factors that affect the cost of insurance include:

Business Size 

Larger businesses typically pay more for insurance coverage due to the increased risk of losses.

Industry

 Certain industries, such as construction or manufacturing, may be considered higher risk and therefore cost more to insure.

Location

The location of the company may also impact the cost of insurance, since firms in high-crime regions or places prone to natural disasters may incur higher insurance prices.

Coverage Amount

The quantity of coverage necessary will also influence insurance costs. In general, larger coverage quantities result in higher insurance rates.

Deductible

The deductible, or the amount the business owner pays out of pocket before the insurance coverage kicks in, can also affect the cost of insurance. Lower deductibles result in higher insurance premiums. You should consult with an insurance consultant to establish the appropriate coverage for your company and to acquire an accurate insurance cost estimate. A professional can help you assess the risks associated with your business and recommend the most suitable coverage options.

How can a startup insurance policy support my company as I hire employees?

A startup insurance policy can support your company in several ways as you hire employees, including:

Workers' Compensation

As you hire employees, workers' compensation insurance can provide financial protection for your business if an employee is injured on the job.  This insurance may cover medical expenditures and missed earnings, as well as provide legal defense in the case of a lawsuit.

Employment Liability

This type of insurance coverage provides protection against claims related to employment practices, such as discrimination or harassment.  This coverage can help protect your business from the financial and legal costs associated with defending against these types of claims.

Employment Practices Liability

This type of coverage provides protection against claims related to wrongful termination, retaliation, or other employment-related practices.  This coverage can help your business defend against these types of claims and minimize the financial impact of potential legal settlements.

Health and Dental Insurance

As you hire employees, you may want to consider offering health and dental insurance coverage to attract and retain top talent.  This sort of coverage may be added to your startup insurance policy and may be given to your staff as a corporate perk.

Startup Business Insurance made simple

Learn all you need to know about startup business insurance

You may also like

Having accountant insurance gives you the opportunity to focus on quality ser...
Builder’s risk insurance, also known as construction insurance, protects buil...
A business interruption can occur at any time and for any number of reasons. ...
As a restaurant owner, you must safeguard your establishment from possible li...
Security service insurance is a protection that covers security personnel and...
Starting a business is a big step in anyone's life and requires a great deal ...
In today's fast-paced business environment, manufacturers, distributors, and ...
As a photographer, you face a variety of risks on a daily basis. Your livelih...
Paralegal insurance protects against legal mistakes. Being a paralegal is not...
Insurance is an essential aspect of protecting your financial well-being, yet...
Manufacturing is a critical and complex industry that requires a variety of r...
Legal expense insurance offers coverage for various types of legal expenses t...
As a lawn care business owner, you should be aware that proper insurance cove...
In Canada, many people run their businesses out of their homes. They might no...
As a handyperson, you may be wondering if you need business insurance. The an...
Commercial General Liability Insurance (CGL) is another name for General Liab...
As a freelancer, you have the flexibility to work when, where, and for whomev...
Have you ever thought about what would happen if your business's fleet of veh...
As an event planner, you are accountable for a large number of moving element...
A well-operated business relies on functioning, high-quality equipment that’s...