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Is It Illegal to Run a Business Without Insurance?

is it illegal to run a business without insurance

IS IT ILLEGAL TO RUN A BUSINESS WITHOUT INSURANCE?

It is not illegal, and it is not mandatory to have insurance to run a business in Newmarket or the rest of Ontario, but it is highly recommended. Additionally, your clients, associates, and suppliers may require that you have business insurance so that they feel comfortable working with you. On that note, the next question is: what is business insurance and what types of coverage do you need to adequately protect your clients, business partners, employees, and guests?

Ask a business insurance broker from Orr & Associates to explain things so you can figure out standard coverage in your location and industry. With the right coverage for your inventory, premises, and commercial fleet, you can focus on all the other details needed for your business to thrive.

What is business insurance?

Business insurance encompasses bundled or individual insurance policies that together protect you and your business from financial risks. Most businesses carry some kind of commercial insurance for various reasons, including:

  • Business liability protects you and your business against lawsuits due to negligence, errors, and mistakes.
  • With the right coverage, you can protect your business against sudden interruptions, such as construction or storm damage that forces you to close your doors.
  • Business insurance can also protect you from the fallout after data breaches leave you on the hook for the cost of notification, recovery, and cooperating with the authorities to catch the cybercriminals.

There are many other reasons it makes sense to purchase business insurance, including compliance requirements in certain industries and contractual obligations posed by vendors and lenders. As such, it makes sense to seek out an experienced insurance broker who will discuss the protection you need to confidently operate your business.

Get a business insurance quote today!

Types of business insurance

We recommend that you consider the following components of business insurance in Newmarket:

  • Professional liability insurance covers your business if someone sues you for:
    • Negligence
    • Failure to deliver services/products as promised
    • Misrepresentation
    • Example: You miss a deadline, causing your client to lose a major contract. Your client might sue you for the loss of revenue.
  • Commercial general liability (CGL) protects you against losses due to lawsuits regarding property damage or bodily injury. If someone slips on a slippery floor or trips over a loose floorboard at your place of business, they can sue you for expenses related to their injuries, including:
    • Medical expenses
    • Lost wages
    • Pain and suffering
  • Contents insurance will help pay for the cost to repair or replace covered items that are destroyed, lost, or damaged. If someone steals your work truck and you had expensive equipment inside, you can receive reimbursement for the truck and tools, if they aren’t recovered. Of course, this depends on how your policy is written, so talk to a qualified insurance broker to ensure you’re fully covered.
  • Cyber liability insurance can save you money if cybercriminals hack into your database and steal sensitive customer or company information. This can lead to expensive efforts to notify clients, catch the bad guys, and recover your data. Without cyber liability insurance, you’ll pay everything out of pocket.
  • Business interruption insurance covers your revenue and expenses if unexpected developments cause you to lose business. For example, due to covered fire damage, you have to close for renovations. Business interruption insurance can cover reimbursements written into your policy.

If you need assistance determining which coverage makes the most sense or which insurer to work with, we can help.

Orr & Associates helps large and small commercial organizations find business insurance in Newmarket. Call 1 (866) 521 5926 to speak directly with a business insurance broker. Or fill out our online form today for assistance with commercial insurance that will protect you and your business.