Many Canadian Small Businesses Struggle With Insurance: 3 Facts That You Must Know
More Canadian small businesses than ever are recognizing the need for adequate business insurance coverage, though some still struggle to obtain or renew a policy. Interestingly, 40% say they don’t have business insurance at all.
That’s because, even though small businesses are confident they’ll bounce back post-pandemic, the insurance industry is still in a hard market cycle, which means the majority of businesses, and especially those in some specific sectors, still need to do more to improve their risk profile, invest in solid risk management strategies, ensure their Insurance to Value is up-to-date, and get out in front of their renewals.
Your broker can help you identify your risk and exposures, reveal coverage gaps and help you formulate a robust risk management strategy. In the event there is a claim, your broker will guide you through the process step-by-step at the time you need it the most.
1) Many Have Been Priced Out To Take Insurance: Although it is illegal for Canadian businesses to operate without insurance, many have been priced out of purchasing insurance. CFIB's Senior Vice President of National Affairs stated that it would be in everyone's interest (business owners and insurance providers) to preserve those ties and work together rather than excluding a significant portion of the economy from this necessary service. It’s pleasing to know that the insurance industries have tried to step up to find solutions to that but unfortunately, the situation remains the same for too many small Canadian businesses.
2) Many Have Been Priced Out To Take Insurance: Although it is illegal for Canadian businesses to operate without insurance, many have been priced out of purchasing insurance. CFIB's Senior Vice President of National Affairs stated that it would be in everyone's interest (business owners and insurance providers) to preserve those ties and work together rather than excluding a significant portion of the economy from this necessary service. It’s pleasing to know that the insurance companies have tried to step up to find solutions to that but unfortunately, the situation remains the same for too many small Canadian businesses.
3) Business Owners Are Not Able To Find The Insurer: Businesses like Hospitality, Transportation, Agriculture etc were more likely to report a premium hike of 25% or even more in the past few years. However, nearly 10% of all these business owners say “They were not able to find an Insurer willing to offer Coverage for their business needs”
4) Pandemic Has Increased The Risk Of General Liability: The pandemic, besides being undetectable to deadly, has also worsened the conditions of Small Canadian Businesses Insurance needs. According to 40% of small business owners, COVID-19 has raised their general liability risk. A survey was conducted by the Canadian Federation of Independent Business (CFIB), which kept governments and the insurance industries updated about the requirements of Small Canadian Enterprises. Insurance is essential for the long-term survival of all Canadian Businesses, regardless of size or industry.
Regardless of the Size or Industry, Business Insurance covers the financial expenses related to unanticipated occurrences like injury to third parties, claims of professional negligence, or faulty goods.
We are always happy to help you Insure your Business. Contact us for any insurance related queries.
