The short answer
Small business insurance is usually a package of separate protections: liability for harm you cause to others, cover for the contents and equipment you own, cover for income lost after a covered event, and add-ons that fit your trade. A licensed broker builds the package from how you work, where you work and who you hire. Your contracts, lease and lender may require specific parts.
- Owners starting a business who need proof of cover for a lease or a first client
- Sole proprietors and home-based operators unsure whether personal policies reach their work
- Shops, studios and offices with equipment, stock and customers on site
- Businesses that just hired their first employee or signed their first large contract
- Owners whose business has changed since the policy was first written
3 licensed brokers in the network handle this. In Alberta, Canada, a request for small business insurance can be offered to up to three of them, chosen because they are licensed for this line and place. They are test brokers while we are in demo.
See the brokers → Outside Alberta, Canada you can prepare and save a request today; sending opens place by place. Brokers answer with their own quotes. Broker.insure does not quote, advise or take commission.
01 / What it covers
The parts worth understanding
Commercial general liability
Responds when a third party says your business caused injury or damage to them or their property. It is usually the policy a landlord or client asks to see first.
Contents and equipment
Pays to repair or replace what the business owns, such as tools, computers, stock and fixtures, after a covered event like fire or theft. Check whether it pays replacement cost or a depreciated value.
Business interruption
Replaces income and certain ongoing costs while a covered loss keeps you closed. It only responds when the cause is something the policy covers.
Professional or errors cover
For businesses that give advice or deliver a service, this deals with claims that the work was wrong, late or incomplete. General liability does not usually answer these.
Cyber and data
Costs after a breach of customer information, a ransomware demand or a payment-system compromise. Relevant once you hold client details or take cards.
Tools of the trade and vehicles
Equipment that travels, and vehicles used for work, are often excluded from a basic package and need their own arrangement.
02 / Get ready
Bring this, and expect these questions
Gather
- A plain description of what the business does, including any activity you do only occasionally
- Business legal name, structure and how long it has operated
- Annual revenue estimate and, if you have one, last year's actual figure
- Number of employees, owners who work in the business, and any contractors you pay
- Address of each location, whether you own or lease, and the lease clauses about insurance
- A list of equipment, stock and improvements you have made to the space
- Any contract, licence or lender requirement that names a specific insurance
- Claims or incidents in the past several years, even small ones
- Your current policy and renewal date if you have one
A broker will ask
- What exactly do you sell or do, and what do customers or clients do at your location?
- Do you work at customers' sites, and do you subcontract any of the work?
- Do you store, hold or work on things that belong to other people?
- How many people work for you, and are any of them paid in cash or as contractors?
- Who has asked to be named on your policy, and what wording did they request?
- If you had to close for a month, which costs would continue?
- Do you sell online, ship products or take payments by card?
- Has the business had a claim, a complaint or a policy refusal?
Not sure of an answer? Leave it. "Not known yet" is a fine answer, and a broker will help you fill it in.
03 / Build your request
Answer a few questions. Get your own list.
Pick what fits. Your answers shape the list beside them, and they are saved to your request as plain facts a broker can read. "Not sure yet" is always a fine answer.
04 / Three situations
See which one sounds like yours
A cafe owner signing a new lease
The landlord's lease asks for proof of liability cover with the building owner listed as an additional insured before keys are handed over. The owner is also installing an espresso machine and a walk-in cooler.
First steps. Send the broker the insurance clause from the lease early; the wording matters as much as the cover. Ask how the new equipment is protected and whether spoiled food after a power failure is included, since that is often a separate item.
A freelance designer working from a spare room
She assumed her home policy covered her laptop and client files, then read a clause excluding business property. A new client has asked for a certificate showing she carries cover for design mistakes.
First steps. Ask the home insurer in writing what, if anything, extends to business use, then tell the broker which gaps remain. Describe the type of client work and who owns the finished files so errors cover can be fitted to the actual risk.
A two-person renovation crew hiring their first helper
Two brothers have worked as partners for years and now plan to hire a labourer for the summer. They sometimes hire a plumber for specific jobs and have never asked what that does to their policy.
First steps. Tell the broker plainly who is an employee, who is a partner and who is a subcontractor, and bring any subcontractor certificates you hold. Ask what workers' compensation requirements apply in your province, since that system is separate from private insurance.
05 / Words you will hear
The jargon, in plain words
- Commercial general liability
- Cover for claims that your operations, products or premises injured a visitor or damaged their property. It is usually the first policy a small operator is asked to show.
- Additional insured
- Someone named on your policy so they are protected for claims that come out of your work. Landlords and clients often ask to be added.
- Package policy
- A bundle that combines property, liability and often lost-income cover for smaller businesses, normally with set options rather than the many choices of separate policies.
- Certificate of insurance
- A short document from the insurer or broker showing that a policy exists, its dates and who is named. It is proof of cover, not the contract itself.
- Replacement cost
- What it takes to buy an item new today, not what it was worth after years of wear. Your policy states which basis applies to stock and equipment.
06 / Common mistakes
What trips people up
- Insuring the business under a personal policy and learning at claim time that business use was excluded.
- Describing the business in broad terms, then having a claim declined because the activity was not listed.
- Underestimating the value of stock, equipment and improvements, so a loss does not rebuild the business.
- Ignoring what a lease or contract requires until the day proof is demanded.
- Treating contractors as invisible, even though their work, injuries or mistakes can come back to you.
- Never revisiting the policy after growth, a move, a new product or a first hire.
Ready when you are
Turn this into one clear request.
Save it, add what you know, and choose when to send it. A licensed broker who handles small business insurance takes it from there.
07 / Questions people ask
Straight answers
What insurance does a small business need?
There is no single list, because it depends on what you do, where you work and who you hire. Most businesses start with liability and cover for property they own, then add income protection, professional or cyber cover where the work calls for it. Leases, contracts, lenders and some provinces can make particular cover mandatory, so a broker will check those first.
Is business insurance required by law in Canada?
It depends on the province, the trade and the contract. Some things are commonly required, such as workers' compensation in many provinces and commercial auto cover for work vehicles. General liability is often a contractual requirement rather than a legal one. A licensed broker in your province can tell you what applies to your situation.
What is a business owner's policy?
It is a package that bundles several covers, typically liability and property, in a single policy, which is often simpler to arrange than buying each piece separately. The name and contents vary by insurer, so ask exactly what is included, what is optional and which limits apply to each part before comparing packages.
Does my home insurance cover my home business?
Usually only in a limited way. Many home policies exclude business equipment, business liability or customers visiting the home, or cap what they will pay. Read the wording or ask your insurer in writing, then tell your broker what is left uncovered. Some home-based businesses need a separate policy or an endorsement added.
Do I need insurance if I work alone?
Often yes. Being the only person does not remove the chance that a client is injured, property is damaged or your work causes a loss. Clients, landlords and platforms also commonly ask for proof of cover before they sign. A broker can explain which parts matter for a one-person operation in your trade.
How do I show proof of insurance to a client?
Your broker or insurer issues a certificate of insurance listing the policy, the cover and the dates, and it can name the client as an additional insured when the contract requires it. Send the contract wording to your broker, since the certificate needs to match what was asked, and allow time for it to be issued.
Specialists
Sites for a specific line of work
General information, not insurance advice. Broker.insure is a directory and request service: it is not an insurer and does not quote, bind or advise. Policy terms, availability and what is required where you live depend on your situation and on licensed professionals. Updated 2026-10-31.