You probably wouldn’t run your household without home coverage. You know what a fire, a break-in, or a water loss can do to your savings and your routine.
A lot of Ontario owners treat their company differently. They assume “small” means “safe,” or that a landlord, contract, or waiver will handle the ugly stuff. This post gives you a plain-language way to see what’s actually at stake, plus a checklist you can use before renewal.
Quick definition
Home coverage is built around your building, your personal belongings, and personal liability. Commercial coverage is built around how you make money: your space, your equipment, your customers, your contracts, and the chance a claim ties you up.
Why it matters: when a company loss hits, it can stop revenue while bills keep moving.
The Home vs. Business Reality Check
Here’s the simple difference most people miss:
A home claim usually ends with repairs and replacement.
A company’s claim often includes downtime, missed sales, and legal costs.
Your reputation can take a hit at the same time your cash flow does.
Quotable line: “A business loss doesn’t just break things—it breaks momentum.”
A mini-framework you can run in 10 minutes.
Use this “Same-Week Test” to measure exposure fast. If you can’t answer these clearly, you’re guessing.
1) What keeps costing money if you can’t operate next week?
Rent, loan payments, leases, payroll, utilities, booked subcontractors, and software subscriptions don’t politely pause.
2) What could you be blamed for, even if you did nothing wrong?
A customer slip, a mistake allegation, a delivery person injury, or a third-party property damage claim can trigger defence costs early.
3) What do you rely on daily that you can’t replace quickly?
Think of of tools, laptops, point-of-sale systems, specialized machines, stock, or client property in your care.
Concrete example: You rent a unit in a strip plaza. A small kitchen fire in the neighbouring unit causes smoke damage, and the landlord shuts the row for cleanup. The landlord fixes the building, but you lose a week of bookings (example number) and still pay wages and rent. Building repairs don’t pay your invoices.
Quotable line: “If your doors are closed, your expenses are still open.”
A reusable template: the Coverage Snapshot
Copy/paste this into an email to your broker. It speeds up quoting and helps avoid surprises later.
Business Coverage Snapshot (Ontario)
What you do (one sentence):
Where you work: home / rented unit / multiple sites / at client locations
Who visits: customers/deliveries / subcontractors
Equipment list: 5–10 key items + current replacement cost
Stock/inventory: average value + how it’s stored
Client property: anything you hold (keys, devices, vehicles, files)
Example number: cost of a 7-day shutdown (lost sales + ongoing bills)
Contracts: any insurance wording required (yes/no)
Vehicles used for work (yes/no)
Staff: employees/seasonal/subs (who represent you)
Quotable line: “Good paperwork before a loss beats rushed paperwork after it.”
5 common mistakes (and the fix)
1) “My landlord’s policy covers me.”
Fix: The landlord’s policy protects the building owner. Your contents, income, and liability are separate.
2) Limits based on what you paid years ago.
Fix: price replacements today. Inflation and supply issues change costs.
3) No plan for income loss.
Fix: ask what happens after a covered event stops operations, and what proof is needed.
4) Describing operations too loosely.
Fix: Be specific about services, products, and where work happens. Mismatches cause delays.
5) Forgetting about client property.
Fix: If you store, transport, or work on someone else’s property, confirm it’s addressed in writing.
Where to start with an Ontario broker
If you want a plain-English overview of options, start here: business insurance. If you want the local angle—common contract requests, typical risks, and what owners usually overlook—start here: business insurance in Ontario.
Pick one simple action today: fill out the Coverage Snapshot, then keep it with your lease and key contracts. If you ever need to make a claim, you’ll be glad you did.
For more information: insurance broker business