How to Run and Insure a Business Event

Refer a friend to ICD and earn a $10 gas card or grocery voucher

Contact your ICD broker for details.

Contest Rules

How to Run and Insure a Business

Over the course of the pandemic, many Canadians realized that they didn’t want to have to rely on an employer for their income. As a result, many started side hustles, and some even struck out on their own as part of the “Great Resignation.”  

If you are one of the many Canadians who have started a business in the past couple of years – or even if you have owned a business for a while and need a bit of a refresher – here are a few things that you should consider when running and insuring your business.  

Ensure that your legalities are covered 

Before starting any type of business, you need to ensure that you are complying with provincial and federal legislation including getting your business registered and having all of the necessary insurance.  

Decide on your business structure

When you start your business, you will have to decide whether you want it to be a sole proprietorship, a partnership, or a corporation. This will depend largely on how comfortable you are with the liability of the business and the tax deductions you expect to make.  

It is a good idea to get advice from a business lawyer and your accountant when making this decision.  

Business license 

Not every business requires a business license, but depending on your municipality, you may be required to have one. Contact your municipality for more information on this.  

HST 

If your business’s gross earnings will be greater than $30,000, you will need to register for an HST number and remit federal sales taxes to the government. While businesses earning less than this amount are not required to collect and remit HST, it may still be in your best interest to do so. If you are unsure whether your business’s gross earnings will be more than $30,000, it is a good idea to get your HST number and collect the tax just in case.  

Employees

If you are going to hire employees, then you will need to know about the various payroll deductions such as EI and Workers Compensation. You may also want to consider offering private health insurance and group retirement benefits.  

Business insurance

You will need to have insurance to protect your property and your customers. You should carry the following types of insurance for your business: 

  • Commercial general liability insurance – while this type of insurance is not legally required, it is very strongly recommended as it will help protect you in the event of a lawsuit. Commercial general liability insurance protects against a wide range of risks including property damage, bodily injury, personal and advertising injury, and more.  

  • Product liability insurance – this is another useful type of insurance to have if you are selling or renting physical products. Although you will do your best to always have safe products, this insurance can protect you if someone sues and claims that your product caused them injury.  

  • Commercial property insurance – this insurance protects your business assets. Items such as machinery and company vehicles are substantial investments, and this insurance will cover them (and your other business property) against theft, fire, or natural disaster.  

  • Errors and omissions insurance – This coverage protects you against “advice-based claims” and professional errors and omission.  This is perhaps the most overlooked coverage and is useful to those businesses who may offer advice to a client.  Industry segments such as consultants, interior designers and accountants among others would most certainly have a need for this type of insurance.  

Understand supply and demand 

You can use supply and demand to your advantage by raising or lowering your rates depending on the demand – this is particularly true if you are supplying seasonal products or services.  

Have great customer service

Ensure that you get repeat customers by offering a great customer experience every time. Some ways to do this may include offering a guide or video to answer common customer questions, as well as responding quickly to calls and texts.  

Contact ICD Insurance today. 

If you are starting a business or require insurance for an existing business, we can help by offering the necessary insurance and putting together an insurance package to make sure that your business is fully protected. Call us today to speak to a broker.