Oftentimes, commercial insurance would be the biggest expense of business owners regardless of their industry. Insurance premiums heavily depend on the kind of insurance coverage you’re aiming for. Obviously, the most basic coverage has the lowest price and the all-in packages can go for a fortune. Majority would immediately go for basic coverage because of the price and some may think that the priciest one is the best but that’s not always the case. When looking for Toronto commercial insurance, there are a lot of factors to think about.
Mandatory Insurance Policies
The insurance coverage required for business owners will depend on the kind of business, here are some common guidelines follow.
- Property insurance – typically required by the bank that facilitates all your mortgages but this coverage may also be required by the landlord for those that rent their commercial spaces.
- General liability – commonly required by the vendors that whom you supply services to and at times by the state government in cases where anyone in the property might be injured due to your work.
- Workers compensation – required by the majority of state governments in order to protect the employees in case of accidents caused by their work. Worker’s compensation is typically required when the business has exceeded a certain number of employees.
- Commercial auto insurance – businesses that operate any kind of commercial vehicle are required by the majority of state governments to purchase commercial auto insurance.
- Commercial umbrella or excess liability – likely required by the people you provide work or service to as coverage for larger losses that may likely exceed some of the underlying insurance coverage.
Contracts and loans between your business and the bank or any other person will state all the insurance they require in your transaction.