• Last Updated:
  • Jan 17th, 2018 12:13 pm
[OP]
Newbie
Jan 11, 2018
3 posts

Small Business Insurance

Hello,
I'm looking for recommendations for small business insurance. To give a little background, we're a 2 person business running exclusively online. We sell educational self paced courses and accept payments online only. We work out of our residence but have plans to hire a few employees and expand our product offerings to in class sessions in this next year.

Can someone recommend a good insurance company to get a quote that specialize in an "online" service business.

Thanks,
Ellen
10 replies
Jr. Member
Apr 20, 2009
162 posts
35 upvotes
Not sure where you're located. In Ontario, the only companies you can approach directly for small business insurance is Cooperators, RBC, and State Farm. I may have missed one or two others but the list is quite small. This type of insurance is almost always distributed through a broker, so you will need to contact a broker who can advise you on which insurers can insure your business and for how much. The broker will handle the application process for you and place the insurance with the appropriate insurer for you. You would not deal with the insurer.
Newbie
User avatar
Nov 18, 2012
21 posts
4 upvotes
Vancouver
eching wrote:
Jan 12th, 2018 12:04 pm
Hello,
I'm looking for recommendations for small business insurance. To give a little background, we're a 2 person business running exclusively online. We sell educational self paced courses and accept payments online only. We work out of our residence but have plans to hire a few employees and expand our product offerings to in class sessions in this next year.

Can someone recommend a good insurance company to get a quote that specialize in an "online" service business.

Thanks,
Ellen
I'm an accountant and I do work with someone whom I refer my small business clients to for business related insurance. Like absolut123 says, I think insurance businesses are limited by province typically. My guy is in BC. If i find out which province you are located, I can DM you his contact.
[OP]
Newbie
Jan 11, 2018
3 posts
Hi,

We’re based out of Ontario. I actually went through a broker for our policy but looking to switch out. I would think there are brokerages that might be more specialized in our line of business. I’m open to other brokerages and hoping to find more complete coverage. I feel our broker right now isn’t too well educated in the online tech space.

Thanks
Jr. Member
Apr 20, 2009
162 posts
35 upvotes
eching wrote:
Jan 12th, 2018 8:34 pm
Hi,

We’re based out of Ontario. I actually went through a broker for our policy but looking to switch out. I would think there are brokerages that might be more specialized in our line of business. I’m open to other brokerages and hoping to find more complete coverage. I feel our broker right now isn’t too well educated in the online tech space.

Thanks
I'm not able to recommend a small mom and pop broker for your situation, but I know the big guys like Marsh and Aon will be quite familiar with your situation.
Deal Addict
Jul 3, 2017
3218 posts
2165 upvotes
You didn't mention what sort of insurance you are looking for. Commercial general liability? Errors and Omissions?

Do your major clients require you to carry insurance, and if so, how much?

Do you do business in the United States? That generally increases business insurance cost because of the insurance company's concern about legal costs to defend spurious lawsuits.
Member
Jan 30, 2017
481 posts
23 upvotes
My beat friend handles all my insurance needs. He can cater to whatever you need really. Do you want me to pm you with his details?
Jr. Member
Jun 24, 2016
147 posts
41 upvotes
Toronto
Hi All,

Hope some one will guide me the right path.

I live in ON and running INC (small business) register ON/FED. Now i am looking for an insurance with below condition.

You agree to procure and maintain for the Term of the Subcontractor Agreement a commercial general liability insurance policy, as well as a professional liability insurance policy (errors and omissions) that will cover its liability pursuant to this Subcontractor Agreement, each in the amount equal to the greater of the value of the Subcontractor Agreement or two million dollars ($2,000,000).
Jr. Member
Apr 20, 2009
162 posts
35 upvotes
Usher9387 wrote:
Jan 16th, 2018 4:17 pm
Hi All,

Hope some one will guide me the right path.

I live in ON and running INC (small business) register ON/FED. Now i am looking for an insurance with below condition.

You agree to procure and maintain for the Term of the Subcontractor Agreement a commercial general liability insurance policy, as well as a professional liability insurance policy (errors and omissions) that will cover its liability pursuant to this Subcontractor Agreement, each in the amount equal to the greater of the value of the Subcontractor Agreement or two million dollars ($2,000,000).
E&O, has very specific underwriting depending on the field of work the insurer is being asked to cover. You will need to speak with a broker.
Deal Addict
Jul 3, 2017
3218 posts
2165 upvotes
E&O insurance can definitely be a problem. There was one year where all of the insurance companies in our business segment insisted that clients had to take E&O insurance in order to get CGL insurance. The problem was that the CGL insurance was around $2000/yr, while the E&O insurance was about $10,000/yr. We have no need for E&O insuranc, but the reasoning of the insurance companies in that particular year was this: The previous year there was a case in the U.S. where an insurance company had been dragged into a lawsuit on the grounds that they should have provided their client with E&O insurance even though they didn't. The claim was unsuccessful, but the insurance company had to spend money on legal fees to defend themselves. Therefore the industry-wide knee-jerk reaction was to require all clients who did any business in the U.S. to take out E&O insurance. We were adamant that we would not pay $10,000 for unnecessary insurance, they were adamant that we would not find anyone to give us CGL without E&O. In the end we simply took the risk and went without CGL insurance until they came to their senses and relented. No problem since then.
[OP]
Newbie
Jan 11, 2018
3 posts
Hi Exp315,

Yes commercial general liability, personal information etc. Not really errors and omissions since we provide online courses and education. No our clients don't required us to carry insurance since they are essentially just customers who sign up to access our course materials. That said, a majority of our customers are US based but essentially we sell our online educational course worldwide. Are there certain coverages we should make sure we have given the nature of our business? Want to make sure we have all our bases covered.

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