Ontario Sole Proprietor Insurance

Sole Proprietor Insurance in Ontario

As the sole owner of your business, you have a lot on your shoulders. A sole proprietorship can bring significant rewards and a unique sense of accomplishment. Still, while you don’t have to share the results of your business success, you need someone to help you handle the risk of financial losses should something go wrong. Fortunately, there’s a solution that allows you to transfer that risk and get the financial compensation you need to keep your business operations up and running in the event of a loss: sole proprietor insurance.

With the right sole proprietor business insurance in your corner, you don’t have to go it alone. Speak to the experienced brokers at Morison Insurance today to learn more about starting a sole proprietor insurance quote. We will ensure your coverage is uniquely tailored to address the risks you will most likely be exposed to during your business operations. When you have insurance for sole proprietors, you can rest easily knowing you have the financial backing you need to avoid significant losses and forge ahead with your business, regardless of what happens.

What is Sole Proprietor Insurance?

Sole proprietor insurance is a type of business insurance coverage designed to address sole business owners’ insurance needs. As you know, that’s a vast category—after all, pretty much any type of business can be a sole proprietorship. That means there is a massive range of potential risks that are faced by any given sole proprietor based on the kind of business, the location, services and products offered, necessary equipment and dozens of other factors. There’s also a massive range of insurance coverages to match those risks. That is why no two sole proprietor insurance packages are the same—you need coverages that fit the perils you are most likely to encounter.

When you have sole proprietor insurance in Ontario, you can count on insurance compensation to help you deal with the costs of an insured peril. The two basic coverage categories are: liability insurance coverage and commercial property insurance coverage. Liability insurance can cover expenses such as attorney fees, court fees, and, should you be found liable, settlement costs up to the coverage limits on your policy. Commercial property coverage compensates for costs such as repair, replacement and building restoration up to your policy’s coverage limits.

Who Needs Sole Proprietor Business Insurance?

Regardless of the type of business they run, any sole business owner needs the protection of Ontario exclusive proprietor insurance. Every business of every description needs the right business insurance, and sole proprietors are no exception. As the sole owner of an unincorporated business, you are singularly responsible for the inherent risks in your business operations, and even your personal assets could be on the line should you suffer a catastrophic event or have legal action brought against you. The right sole proprietor insurance helps you mitigate the effect of those perils by allowing you to transfer the financial risk to your insurance company.

Is Sole Proprietor Business Insurance Mandatory in Ontario?

It’s not legally mandatory to have sole proprietor business insurance in Canada, and that’s the case with most types of business insurance—commercial auto insurance being the exception. But just because the government does not legally mandate sole proprietor business insurance, that doesn’t mean you can go without it. The cost of a lawsuit and settlement can be astronomical, not to mention the cost of restoring your business property and replacing everything inside should it be destroyed in a fire or natural disaster. Most business owners can’t absorb those costs on their own, and that’s a key reason why it’s so necessary to have sole proprietor insurance in Ontario.

It’s also really important to remember that others may require you to have certain types of insurance coverage. For example, to lease a commercial space you may be required to show the property owner proof of commercial tenant insurance. Many clients won’t work with a business owner, especially a consultant or service provider, who doesn’t have liability insurance, and you may not be able to sign contracts with suppliers, distributors and other businesses in the supply chain if you can’t provide proof of insurance. It can be difficult to operate a business without the right type of business coverage, including insurance for sole proprietors.

What Types of Coverage Are Available for Sole Proprietor Insurance?

Many types of business insurance may be necessary for your business, but the most relevant ones will depend on many factors. When you need sole proprietorship business insurance, the best course of action is to call your Morison Insurance Broker to start a sole proprietor insurance quote. We have the experience and expertise to ask the right questions, understand what you need, and find the best options for your sole proprietor insurance package. Here are some of the options you may need or want.

Commercial General Liability Insurance (CGL)

Commercial general liability insurance is the foundation of any business policy because every business is at risk of being sued for allegedly causing third-party bodily injury or third-party property damage. A common example of a commercial general liability claim is slip-and-fall accidents in which someone comes to your business property and injures themselves when they slip on a wet floor or icy walkway. They could sue you for bodily injury, and your commercial general liability insurance coverage could respond and cover the cost of litigation and settlement up to the coverage limits on your policy. Remember that even if you are not liable in court, you will need insurance coverage to handle legal costs such as attorney fees, court fees, legal mediation and more.

Professional Liability Insurance

If you offer consulting services and professional advice, design solutions, make educated recommendations, advocate for the needs of others or represent others in a professional capacity, you must have professional liability insurance. Also known as malpractice insurance or errors & omissions liability insurance. This form of liability protection gives you coverage against legal costs should you be accused of a wide range of issues, including providing inaccurate advice, breach of contract, wrongful business practices, failure to deliver services as promised, conflict of interest and professional negligence.

Cyber Insurance Coverage

In this day and age, most companies conduct at least some business online. That could be a web-based retail store, but it could also be as simple as accepting payments from your clients online or storing sensitive information on a server, such as a client’s financial information or identity documents. That type of activity leaves you vulnerable to cyber threats and, as a result, major liability issues. Cyber insurance coverage as part of your sole proprietor insurance program can include coverage to deal with lawsuits if you lose a client’s information, along with other potential expenses such as ransom payments for stolen data and the cost of informing your clients about a data breach.

Product Liability Insurance

If you create and sell your own products, you can only complete your sole proprietor insurance package with product liability coverage. Suppose you have legal action brought against you for a wide range of reasons related to your products, including design defects, manufacturing defects, marketing defects, improper labelling and much more. A product liability coverage could respond by providing the necessary insurance compensation for the resulting legal costs.

Commercial Property Insurance

Much like commercial general liability, commercial property insurance is a coverage that almost all businesses need. You may run a manufacturing or fabrication business that relies on specialized machinery and equipment, a retail business with thousands of items in stock, an esthetician business in which you need somewhere to provide your services, a consultancy that requires little more than a laptop and a home office, or hundreds of other possibilities. But in every case, you need specific equipment, items and physical space to operate your business your way. Property insurance can insure the building space your business occupies and the contents within, including inventory and equipment.

Commercial Automobile Insurance

If you use a vehicle for business purposes, you may need commercial automobile insurance coverage as part of your sole proprietor insurance package. This applies even if you have a vehicle you use for personal and commercial purposes.

Legal Expenses Coverage

Suppose you’ve ever wanted to ask a legal professional a quick question or get expert advice on a business matter from a legal perspective. In that case, legal expense coverage allows you to do exactly that. You can call a hotline to speak with a legal professional and get advice on a wide range of business issues, from client contracts to employment matters and much more. One of the best things about having legal expenses coverage as part of your sole proprietor insurance package is that it’s unnecessary to file an insurance claim to access legal advice. That means you can keep your premiums low and maintain claims-free status while receiving the help you need.

Other Types of Insurance for Sole Proprietors

• Commercial Umbrella Liability Insurance
• Pollution/Environmental Liability Insurance
• Business Interruption Insurance
• Equipment Breakdown Insurance
• Cargo Insurance

Do I Need Sole Proprietor Insurance for a Home-Based Business?

Absolutely, yes. Some sole business owners assume they don’t need sole proprietor insurance if they don’t have a commercial location and just operate their business out of their homes. This is not true. You may not need all the commercial property coverage that would be necessary if you owned or leased a commercial space. You can still be sued and have to defend yourself in court against various legal allegations, so sole proprietor commercial general liability insurance is necessary. You will also likely need some property coverage. However, it may be possible to include it on your home insurance policy, depending on factors such as the nature of your business.

Where Can I Start A Sole Proprietor Insurance Quote?

If you have questions about sole proprietor insurance in Ontario or want to speak with an experienced insurance broker about getting a sole proprietor insurance quote, contact the qualified brokers at Morison Insurance by calling 1-800-463-8074. Our team of knowledgeable brokers works for our clients, so you can rely on us to prioritize your best interests at all times. As a family-owned business in Ontario, we are proud to say that we treat our clients with the same care and respect we would expect from our own family members. Give us a call today to experience the Morison Insurance difference.