How much is small business insurance in Ontario?
Typically, Ontario small businesses might expect to pay between $450 and $2,000 annually for general liability coverage with a $2 million limit. This span accommodates the diverse nature of businesses, from sole proprietorships to more extensive operations with multiple employees.
Small business insurance in Ontario is not legally required, however, it is highly recommended. Operating a business without insurance is a significant risk. One loss event could force your business to close if you don't have small business insurance.
On average, an insurance policy that offers coverage for up to $2 million can cost about $30 a month in premiums.
A basic commercial general liability insurance policy with a $2M limit will cost approximately $450 per year for a small- or medium-sized company but the rates vary based on various factors. Below are some key factors that are considered when determining your insurance rate: Years of experience. Industry you work in.
General Liability Insurance
General liability insurance helps protect your business from claims that it caused bodily injury or property damage to someone else. For example, if a customer slips in your store, this coverage can help pay for their medical expenses.
A small business has one to 99 paid employees. A medium-sized business has 100 to 499 paid employees. A large business has 500 or more paid employees—these companies are not considered SMEs.
The minimum requirement for mandatory auto insurance in Ontario is $200,000 in Third Party Liability, Direct Compensation – Property Damage, Accident Benefits, and Uninsured Automobile coverage.
What's the average cost of a $1 million liability insurance policy? On average, Insureon customers pay $42 per month, or about $500 annually, for a $1 million general liability insurance policy. Additionally, 29% pay less than $30 per month, and 40% pay between $30 and $60 per month.
| Term Length | Average Monthly Cost |
|---|---|
| 10-Year Term | $29 |
| 20-Year Term | $44 |
A $5 million umbrella policy costs around $375 to $525 per year, on average. Every policyholder's umbrella insurance premium will vary based on their personal risk factors, so individuals who own more cars or properties will be more expensive to insure, as will people who are particularly likely to be sued.
Is business insurance taxable in Canada?
In short, yes. According to the CRA, the insurance premiums paid by a business to cover any property, equipment, or machinery used to operate the business are tax deductible – meaning they can be deducted from the business' taxable income.
There is no law in Canada mandating business owners to take out business insurance – unless, of course, it is for a commercial vehicle, which is a legal requirement for all Canadian drivers before they can be allowed to hit the road.
By law, you must carry a minimum of $200,000 in third-party liability coverage, but you can choose to increase the minimum amount.
- Private Mortgage Insurance. ...
- Extended Warranties. ...
- Automobile Collision Insurance. ...
- Rental Car Insurance. ...
- Car Rental Damage Insurance. ...
- Flight Insurance. ...
- Water Line Coverage. ...
- Life Insurance for Children.
General liability insurance is a core component of business insurance. It protects you from lawsuits filed by people outside your company alleging that your business caused bodily injury, property damage or harm to a reputation. All businesses should have general liability insurance.
In Ontario, the general corporate tax rate is 11.5%. The small business tax rate is 3.2%. This means that the combined federal and provincial taxes paid on active business income is 26.5% for corporations in general, and 12.2% for small businesses.
Business Name Registration: If you're registering a sole proprietorship or a general partnership, you'll need to register your business name with the Ontario government. The cost for this is $60, and it's valid for five years.
It defines small business by firm revenue (ranging from $1 million to over $40 million) and by employment (from 100 to over 1,500 employees). For example, according to the SBA definition, a roofing contractor is defined as a small business if it has annual revenues of $16.5 million or less.
- Liability.
- Accident Benefits.
- Direct Compensation – Property Damage.
- Uninsured Automobile Coverage.
| Region | As of Oct 2023 | As of Oct 2021 |
|---|---|---|
| Ontario | $1,796 | $1,645 |
| GTA | $2,391 | $2,208 |
| Other Urban | $1,711 | $1,564 |
| Rural | $1,404 | $1,285 |
What type of insurance is mandatory in Ontario?
In Ontario, all motorists are legally required to have auto insurance. Fines for vehicle owners, lessees and drivers who do not carry valid auto insurance can range from $5,000 to $50,000. Your driver's licence can be suspended and your vehicle impounded if you drive without valid auto insurance.
The continued impact of catastrophic events is a major factor driving up costs, along with the increasing cost of capital, financial market volatility and inflation. This is an expense carriers need to pass along to customers.
A $3 million umbrella policy costs around $275 to $425 per year, on average. Every policyholder's umbrella insurance premium will vary based on their personal risk factors, so individuals who own more cars or properties will be more expensive to insure, as will people who are particularly likely to be sued.
On average, a $10,000 whole life insurance policy will cost about $50-$100 per month, depending on your exact age, gender, health, state of residence, and tobacco usage (if any). For example, a 50-year-old female who does not use tobacco would pay $24.31 monthly.
Did you know that WSIB coverage isn't mandatory for every business in Ontario? The Workplace Safety and Insurance Act (WSIA) outlines which industries need to have coverage and which industries don't. Businesses that do need to have WSIB coverage pay premiums in exchange for workplace insurance.
