19% of small businesses consider a temporary shutdown as their biggest liability, but 40% do not have business insurance
Article content
Almost 20 per cent of Canadian small businesses worry a temporary shutdown such as a fire could harm their business, but 40 per cent of them don’t have insurance to cover them in case such a situation arises, according to a new survey.
Other top concerns for business owners include damage to property and employee safety, according to TD Insurance and Maru Public Opinion.
Advertisement 2
Article content
“The unthinkable can happen and no business wants to close their doors to their customers,” Tang Trang, vice-president of product and pricing, Small Business Insurance, at TD Insurance, said in a news release. “It’s essential business owners find the right insurance policy that meets their unique needs and gets them back to serving their customers as quickly as possible.”
Business insurance can help owners protect themselves from a variety of potential issues, including liability claims, property damage, errors and employee death, according to the federal government.
It can also be important for those with a home-based business or who work from home.
Business insurance can cost anywhere from $600 to $1,200 per month, depending on several factors, including a company’s size and needs, according to Shopify Inc.
The TD survey said 36 per cent of small businesses mentioned cost as a reason they do not have insurance. It also said 21 per cent of business owners have no intention of meeting with a licensed insurance adviser and only 32 per cent of businesses regularly review their existing policy.
Article content
Advertisement 3
Article content
“It can be tempting to forego insurance to cope with economic pressures, but for a small grocery store whose customer slips and falls on its property or a bakery who has to shut down due to significant fire damage, the financial loss could greatly outweigh the cost of protecting your business from the unexpected,” Trang said.
For those concerned about temporarily losing their business to unforeseen circumstances, there are other ways to mitigate your risks beyond insurance.
“Establishing safety and emergency protocols and training employees on them regularly, conducting safety inspections and addressing any issues identified, and installing anti-theft devices for their vehicle are just a few steps small businesses can take to protect what they’ve worked so hard to build,” Trang said.
Sign up here to get Posthaste delivered straight to your inbox.
The Trans Mountain Pipeline expansion has given Canadian oil producers a level of stability not seen in years, as it gives them more options to export their product.
The Canadian oil’s discount to the West Texas Intermediate has changed an average of less than 10 cents U.S. per barrel since July, the most stability in Canadian oil since early 2022.
Advertisement 4
Article content
The stability is expected to continue as well, as the expanded pipeline should have capacity until 2028.
- Bank of Canada governor Tiff Macklem and senior deputy Bank of Canada governor Carolyn Rogers appears before the standing senate committee on banking, commerce and the economy.
- Ontario’s finance minister will deliver the fall economic statement.
- Today’s Data: U.S. real GDP for the third quarter, U.S. pending home sales for September
- Earnings: Microsoft Corp., Meta Platforms Inc., Eli Lilly and Co., Starbucks Corp., DoorDash Inc., Coinbase Global Inc., Ebay Inc., TMX Group Ltd.
Recommended from Editorial
With Halloween around the corner, Kim Moody, founder of Moodys Tax/Moodys Private Client, offers seven spooky tax tales guaranteed to scare people of all ages, from frightening real estate measures to the mysterious disappearance of successful Canadians. Read more here.
Advertisement 5
Article content
Hard earned truths
In an ongoing series about what the next generation needs to know to build wealth, we offer hard earned truth #4: Passive investing has changed the game. If you don’t take advantage, it could mean less money in your pocket. Find out more
McLister on mortgages
Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.
Financial Post on YouTube
Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.
Today’s Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at [email protected].
Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here
Article content
