insurance5 Industries that head the Canadian business landscape
business insurance

Five industries dominate the Canadian small business landscape.

More than half of Canadian small businesses are concentrated in five industries: construction (12.3%); retail (12.1%); professional, scientific and technical services (12.1%); health care and social assistance (9.5%); and other services (9.2%).

If you have a passion, chances are it fits into one of these markets.

Why not give it a go?

Ready to becoming an entrepreneur, chances are you might want to give a try to one of the Canadians leading industries for small businesses. Among these top industries
you can find retail businesses, construction businesses, professional, technical, scientific
services, as well as social and healthcare assistance.

Regardless of the business venture, you engage in or small business idea you have, you will
have to insure it to safeguard yourself from the losses that come along. There are many
insurance products that are available for your consideration and ultimate use. Knowing about
them is surely a great step to take towards enhancing the performance of your business.
We care for the safety and risk management of your business. That is why we have seen it
great and relevant to write an article that can guide you through stablishing the safety of your
own business.

What is considered a small business?

And what type of insurance is there available for small businesses?

Canada small business is defined as a privately-owned enterprise, sole proprietorship, or
partnership that employs fewer workforce and earns low annual revenue. These businesses
though small, form the bulk of the employers in any economy. They also impact a huge segment
of the population on the whole.

Below are the common kinds of insurance that are available for small businesses:

General liability insurance – it will guard you and your business from demands of physical
injuries and damages to property resulting from your operational activities.
Professional liability insurance – if you are a professional such a doctor or lawyer and you
make a negligent work mistake, this will guard you from a lawsuit placed by your client.
Employment practices liability insurance – This will help you when you incur economical
losses and a legal fee due to lawsuits lodged by your employees in relation to labor disputes.
Management liability insurance – This is a package of policies that are jointly intended to
guard against the legal dangers that arise due to a poor management of your business.
Cyber liability insurance – If you are scared about hackers stealing your company’s valued
information and money, this insurance will shield your businesses from this possible threat by
covering the monetary losses you might incur due to these cyber incidents.

What is Business Owner's Policy (BOP)? Do small businesses need it?

A business owner’s policy is an amalgamation of business liability and business property insurance. Jointly, this policy covers such hazards as robbery, fire, general property damages, and physical injuries. Its comprehensive nature makes it easier to administer and quite convenient to the small businesses that opt to go for it.

Small businesses do badly need BOP. They need it to take care of issues as losses and damages that may arise whenever they transact businesses with their clients. In that way, they also tend to minimize the damages and the pains of having to rebuild themselves from scratch if they incur huge losses.

What kind of insurance should retail businesses consider?

Smaller retail businesses are required to operate efficiently and more productively in order to be
able to compete against largely owned enterprises. Unlike bigger companies, small retailers
might not have the capacity to stand against possible big losses. They badly need insurance
plans that are able to safeguard them against pilferage and unnecessary losses of money and
property. You most likely should have General liability insurance to protect your business from
demands arising from people due to physical injuries that might occur within your retail store
and for damages caused to property. However, enumerated below are some other insurance
plans and programs that could be useful for retail businesses:

Property insurance – would cover your retail store from any physical damages (such as in the
event of fire) or even inventory loses suffered from a robbery.

Workers’ compensation insurance – would cover your retail business to pay for medical
expenses and the lost income to workers in the event of an injury arising while on duty.

Product liability insurance – If one of your retail products ever causes someone to get sick or
get injured this insurance would cover from the possible lawsuits and monetary losses.

Commercial vehicle insurance – As the name implies, this one provides cover to the vehicles
owned by your business and that are utilized for operational business activities.

Business interruption insurance – If your retail ever needs to stop functioning due to a
sudden disaster and it causes you to incur losses, this insurance will cover you.

What kind of insurance should construction businesses consider?

Construction work is generally prone to damages, injuries, and loss of lives. So, without a doubt
they should first inquire on general or commercial liability insurance, which we defined above.
As they are also more likely work with commercial vehicles, they should also inquire about
commercial vehicle insurance. This industry, however, also requires special kinds of insurance
that other businesses might not be required to have. These are some other insurances that may
suit construction businesses:

Pollution liability insurance – will cover for physical injuries as well as property impairments
arising from unsafe wastes at your construction place.

Inland marine insurance – Construction business would probably need to transfer materials
from one place to another. This insurance will cover your construction business equipment,
materials, and products on a daily basis.

Contractor license bonds or surety bonds – Is required to perform construction work.
Vouches for the financial stability of the construction companies concerned.

Workers compensation insurance -  Workers in construction places are more likely to get
injured at least once in the workplace, for which this insurance was designed to help you cover
for expenses suffered due to your employee’s injuries medical bills, coverage of wages and
among others.

What about professional, technical, and scientific services,

what insurances should these services consider?

Even though professional, technical, and scientific services might not deal with physical goods
they too are prone to risks of various kinds. Common examples of these are white-collar crime,
intellectual property infringement, and cyber-crimes. Due to this reason, they should consider
insurances such as General liability insurance, Professional liability, Errors and omissions
insurance, and also Cyber liability and data-breach insurance.

What kind of insurance should the healthcare and social assistance industry consider?

Healthcare and social assistance are both unique in the sense of dealing with services and products that are aimed at helping humanity at large. In light of this, their insurance plans tend to differ slightly from those of the other sectors. These industries should consider insurances such as Social health insurance, Private health insurance, Community insurance, Public insurance, General liability insurance, Medical professional liability insurance and also Property (contents) insurance.

Do all of these industries share some similarities when it comes to the insurance they are required to get?

YES! Regardless of their scope or areas of operations, these businesses tend to have to enroll
in some kinds of insurance plans. Below are the common insurance plans that cut across the
General liability insurance
Workers compensation insurance
Cyber liability insurance

Should all businesses involved with these industries get commercial general liability?
YES, they should! The ‘commercial general liability’ confers the following benefits to small
-Covers most common damages
This insurance plan covers most common damages like personal injuries, non-
professional/negligent acts, and property damages. Its use hence is a sure way of making your
operations smoother and more reliable on the whole. Why would you even forfeit the peace of
mind that comes along?
-Quite comprehensive
By virtue of being ‘general,’ this form of insurance is quite comprehensive in scope. It does not
require that you make separate arrangements to cover your business against risks of all kinds.
Rather, it tackles every other need you have typically ‘under one roof.’ Of course, this brings
along some convenience for you.
In some jurisdictions, it is mandatory for small businesses to enroll in a commercial general
liability insurance scheme. Thus, you have no way to get around it even if you plan to. To be on
the safe side of the law, why not just make arrangements to enroll in it once and for all?

What is commercial general liability? What it covers?

Commercial general liability covers the common dangers and risks that a business is likely to
confront in the course of its operations. It typically covers the following areas or risks:
Bodily injury
Property damage
Advertising injury
Copyright infringement
Reputational harm

Alright! Go for these plans now. You now know the kinds of plans that may be suitable for your
business or professional working environment. To find out which one may suit your unique
circumstances, you are welcome to give us a call.

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