Entrepreneurship & Small Business

Ask me anything about Business or Commercial Insurance!

Sr. Member
Nov 2, 2014
840 posts
198 upvotes
Scarborough, ON
EPcjay wrote:
May 17th, 2016 11:33 pm
Hello,

I am planning to start a small business installing security cameras for people. I have the auto insurance covered already. Now I need to find out how much liability would be. It's a side business, so my guess is 4000$ gross a year. What price point am I looking at for liability?
2K and under for 2 million liability coverage.
Deal Fanatic
Nov 11, 2008
7019 posts
995 upvotes
RobertSmalls008 wrote:
May 20th, 2016 2:28 pm
2K and under for 2 million liability coverage.
damm it, that's half my gross :(
Sr. Member
Nov 2, 2014
840 posts
198 upvotes
Scarborough, ON
EPcjay wrote:
May 20th, 2016 3:40 pm
damm it, that's half my gross :(
Ha!

If you shop around you should be able to get it for around a grand, your risk exposure is limited.
[OP]
Sr. Member
User avatar
Jan 8, 2009
808 posts
66 upvotes
GTA
EPcjay wrote:
May 17th, 2016 11:33 pm
Hello,

I am planning to start a small business installing security cameras for people. I have the auto insurance covered already. Now I need to find out how much liability would be. It's a side business, so my guess is 4000$ gross a year. What price point am I looking at for liability?
Try asking your home insurance carrier if they can cover this under small home business otherwise minimum premium is about $750-$1000 a year.
Insurance & Financial Advisor

All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
Deal Addict
Oct 7, 2007
3170 posts
745 upvotes
Someone I know had a terrible experience with their business insurer where they wouldn't honour their obligation to provide insurance coverage when they were sued by one of their clients. To make a long story short, after much turmoil and legal expense the insured was able to get things to a place where they could move on but it became a situation where they were victimized twice. First by the client that sued them and then again by their insurer. Some people will look at this and say that the insured probably wasn't covered but I can assure you based on several independent legal opinions that this was not the case. This was an insured's worst nightmare where the insured buys the insurance and the insurance company just doesn't want to honour it.

My question is whether anyone has any recommendations for a good insurer to deal with for business purposes. It would be preferable to deal with one who has honoured claims in the past fairly and actually communicates openly with the insured instead of refusing to speak with them when an insurance matter arises.

Any assistance is most appreciated.
[OP]
Sr. Member
User avatar
Jan 8, 2009
808 posts
66 upvotes
GTA
choclover wrote:
May 25th, 2016 10:19 am
Someone I know had a terrible experience with their business insurer where they wouldn't honour their obligation to provide insurance coverage when they were sued by one of their clients. To make a long story short, after much turmoil and legal expense the insured was able to get things to a place where they could move on but it became a situation where they were victimized twice. First by the client that sued them and then again by their insurer. Some people will look at this and say that the insured probably wasn't covered but I can assure you based on several independent legal opinions that this was not the case. This was an insured's worst nightmare where the insured buys the insurance and the insurance company just doesn't want to honour it.

My question is whether anyone has any recommendations for a good insurer to deal with for business purposes. It would be preferable to deal with one who has honoured claims in the past fairly and actually communicates openly with the insured instead of refusing to speak with them when an insurance matter arises.

Any assistance is most appreciated.
All I can say is that commercial/business insurance should be tailor made to the specific risk. A broker/agent needs to review and get the client to open up about their business. It's all about potential risks that may be apparent or not.

I have not had a claim denied to any of my accounts, small or large.
Insurance & Financial Advisor

All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
Deal Addict
Oct 7, 2007
3170 posts
745 upvotes
Insurance-Broker wrote:
May 26th, 2016 1:25 pm
All I can say is that commercial/business insurance should be tailor made to the specific risk. A broker/agent needs to review and get the client to open up about their business. It's all about potential risks that may be apparent or not.

I have not had a claim denied to any of my accounts, small or large.
That is impressive and almost unbelievable based on my friend's experience. Which of your CGL insurers would you say is the most honourable? If this is difficult to answer, is there a place where prospective insurance customers can go to see what a particular's insurer's record is for being honourable (e.g. a review or rating system)?
Newbie
Feb 4, 2012
61 posts
9 upvotes
OAKVILLE
looking at $1 million errors and omission insurance.about to be a registered family mediator
court roster and private mediation.

thanks
come here first as it's kind of asking an old friend a question
Deal Addict
Oct 7, 2007
3170 posts
745 upvotes
salonist7 wrote:
May 26th, 2016 9:35 pm
looking at $1 million errors and omission insurance.about to be a registered family mediator
court roster and private mediation.

thanks
come here first as it's kind of asking an old friend a question
All I can say is try to research the insurer that you go with to find out if they are honourable when it comes to claims. When I was helping my friend with their insurance nightmare, I could not believe how some players in the industry work. My friend had such a terrible but eye-opening experience that they are thinking of either starting a website (because we couldn't find one anywhere) and/or writing a book to inform people and keep insurance companies from completely walking away from their obligations. Currently, we don't know of any way to find out if insurance companies deny claims as standard practice because how would one know? I suppose someone could take out an ad in the newspaper similar to a class action and find out that way but realistically how would one know if a business insurer decided to deny every single third party claim? Some insurance companies will pay more money to avoid paying the insured than if they just owed up to their obligations. Try looking up the insurance company in canlii.org as a minimum and see what kinds of legal claims they have been involved with. My friend is looking to renew their business policy with a new insurer and start the process all over again but is extremely concerned about how to ensure that the next insurer they go with is honourable.

If you also want to entertain yourself but get a flavour for what I am talking about, watch John Grisham's The Rainmaker. It actually rings quite a bit of truth when compared to my friend's situation.

Bottom line is that insurance is not worth the paper it is written on if the insurer is not going to come through when you need to exercise it.
Newbie
Feb 4, 2012
61 posts
9 upvotes
OAKVILLE
without that little slip, (even if it's worthless at the time.) oafm will not accredit you.no accreditation,means no court docket work in family mediation.
but this is all 6 months away.....a little time to do some due diligence
Newbie
Mar 2, 2017
1 posts
Hello. I have a two storey commercial and residential building. Store front. The main floor is rented to a business and two apartments on the second floor. One in front and another in the back. The property is very well maintained. My commercial tenant pays TMI. Commercial taxes and maintenance I have no questions about that but I'm unsure about the insurance part. The tenant has liability insurance to cover her business and I have property insurance for the entire building. Is the commercial tenant not suppose to be contributing partially or entirely towards the property insurance. For example, if something was to happen to my property as a result of the tenants negligence it would be a liability for her also no? So in other words. Isn't TMI , taxes maintenance and insurance. Which part applies to the "I" part? Liability insurance or both, property as well?
Thx
[OP]
Sr. Member
User avatar
Jan 8, 2009
808 posts
66 upvotes
GTA
Tenant will have their own insurance for their liability, their contents and even any improvement that they may make on the unit. You as landlord will insure the property itself. Now in the event that tenant causes a damage, your insurance company has the right to go after their insurance policy to recoup cost.
Insurance & Financial Advisor

All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
Sr. Member
Jul 15, 2009
515 posts
53 upvotes
Hey there - hopefully you are still checking out this thread.

I've started a corporation Jan 2017. I have two operating businesses under that corp; 1 is a wedding rental company, and 1 is a online/brick&mortar retail furniture sales.

For the rentals, I need insurance which will protect ~$10,000 in rental supplies while in storage as well as when rented out by customers. Is there specific insurance products which cover this type of business?
For the retail, I import the good myself from overseas. I need insurance while I am storing it in various warehouses (does each warehouse require to be identified?) & in showrooms. Anything special to keep in mind with this industry?

Thanks!
[OP]
Sr. Member
User avatar
Jan 8, 2009
808 posts
66 upvotes
GTA
You also need to get liability insurance as part of the package. It can all be done under one policy with operating business as listed. Will need details .
Insurance & Financial Advisor

All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
Jr. Member
Oct 27, 2013
152 posts
38 upvotes
MISSISSAUGA
Hi there.

I'm planning on investing in a commercial property that has 3 stores and 12 apartment units. I have two questions I hope you can help me out with.

1. Any recommendations on insurance companies for such a property?
2. What is the process for getting such a property insured? What info would they need, I assume site inspection needed, anything else?

Thanks

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