With the end of the year approaching, now is the best time to check that your business is protected before renewals, audits, year-end contracts and the winter weather season arrive. A quick review today can prevent an expensive surprise in January.
Here is why it matters |
|
|---|---|
| 73% | of small businesses have experienced a cyber incident |
| 22% | of Canadian small and mid-sized businesses carry any cyber insurance |
| $2.4B+ | in insured severe-weather losses across Canada in 2025 |
| 52% | of small businesses have no plan for responding to a cyber incident |
The 10 risks to review before year-end
Not every business needs every coverage, but every business should know where it stands on each of these.
| # | Risk | What it looks like | Usually covered by |
|---|---|---|---|
| 1 | Customer or third-party injury | A client slips on your wet floor | Commercial General Liability (CGL) |
| 2 | Damage to your property | Fire, theft, burst pipes, vandalism | Commercial property |
| 3 | Lost income after a shutdown | Closed for weeks after a fire or flood | Business interruption |
| 4 | Cyberattack or data breach | Ransomware, phishing, funds-transfer fraud | Cyber liability |
| 5 | Professional mistakes | A client says your advice or work cost them money | Errors & Omissions (E&O) |
| 6 | Employee theft or fraud | A trusted employee diverts funds | Crime / fidelity coverage |
| 7 | Vehicle accidents | An employee drives their own car on an errand | Commercial auto and non-owned auto |
| 8 | Equipment breakdown | Your refrigeration unit or server fails | Equipment breakdown |
| 9 | Severe weather and natural events | Windstorm, hail, flood, wildfire | Property add-ons (flood and earthquake are often separate) |
| 10 | Employee injury | A worker is hurt on the job | Workers’ compensation (WorkSafeBC in B.C.) |
Tip: Many policies exclude or limit some of these. Ask your broker to confirm what is actually included, what the limits are, and what your deductibles look like.
The four core coverages, in plain language
Insurance wording can be confusing. Here is what the four most common commercial coverages actually do.
General Liability (GL) |
|
|---|---|
| The short version | Pays when your business is blamed for hurting someone or damaging their property. |
| What it covers | Legal defence costs and settlements, up to your limit |
| Typical claims | A customer trips on your premises, or your contractor damages a client’s floor |
| Does not cover | Your own property, your employees’ injuries, or professional advice |
Commercial Property |
|
|---|---|
| The short version | Pays to repair or replace what your business owns. |
| What it covers | Buildings you own, plus contents, inventory, equipment and signage |
| Typical claims | Fire, theft, water damage, windstorm |
| Watch for | Check that your limits reflect today’s replacement cost, not what you paid years ago. Rebuilding and replacing costs have risen, and underinsurance is one of the most common gaps. |
Cyber Liability |
|
|---|---|
| The short version | Pays for the cost of responding to a cyber incident. |
| What it covers | Can include breach response, forensic investigation, client notification, data restoration, extortion demands and some lost income |
| Typical claims | Ransomware, a phishing email that leads to a fraudulent payment, stolen client data |
| Watch for | Standard GL and property policies often exclude or limit cyber losses |
Errors & Omissions (E&O) |
|
|---|---|
| The short version | Pays when a client says your professional advice or service caused them a financial loss. |
| What it covers | Defence costs and damages for mistakes, missed deadlines and negligent advice |
| Typical claims | An accountant’s filing error, a consultant’s recommendation that backfires, a design flaw |
| Important for | Anyone who sells expertise rather than only products |
Side by side
| Coverage | Protects against | Doesn’t usually cover | Ask yourself |
|---|---|---|---|
| General Liability | Injury or damage you cause to others | Your own property; your advice | Do customers or contractors visit or work with us? |
| Property | Damage or loss to your assets | Flood and earthquake (often separate) | Are our limits based on today’s replacement cost? |
| Cyber | Data breaches, ransomware, online fraud | Physical damage | Could we operate if our systems were down for a week? |
| E&O | Mistakes in professional advice or work | Bodily injury; property damage | Does a client rely on our expertise? |
Certificate of insurance: what it is and when you’ll be asked for one
A certificate of insurance (COI) is a one-page document, issued by your broker or insurer, that summarizes your coverage. It is the standard way to prove to someone else that you are insured.
Who typically asks for one
Who |
When |
|---|---|
| Landlords and property managers | Before you sign or renew a lease |
| General contractors and project owners | Before you step on a job site |
| Larger customers and vendors | Before they sign a supply or service contract |
| Event organizers and municipalities | For markets, festivals and permits |
| Lenders and franchisors | As a condition of financing or the franchise agreement |
What’s on a certificate?
| Item | Details |
|---|---|
| Business details | Your business name and address |
| Coverage types | Each coverage type, such as GL, auto, property and umbrella |
| Policy information | Policy numbers, effective dates and expiry dates |
| Limits | Coverage limits |
| Certificate holder | The party requesting proof |
| Contract wording | Any additional insured wording or waiver of subrogation, if required by contract |
Good to know
| Point | What it means |
|---|---|
| Information only | A COI is for information only. It does not change, extend or add to your policy. |
| Additional insured | Being named an additional insured usually requires an endorsement on the policy, not just a line on the certificate. |
| Minimum limits | Contracts often set minimum limits. If your limits are lower, you may not qualify until they are increased. |
| Ask early | Certificates are quick for simple requests, but custom wording can take longer. |
| Track expiry | An expired certificate can hold up a contract or payment, so track your renewal dates. |
Quick risk-prevention checklist
The best claim is the one that never happens. Use this 10-minute checklist before the holidays.
| Done | Check |
|---|---|
Premises |
|
| ☐ | Walkways, stairs and entrances are clear, well lit and salted or sanded in winter |
| ☐ | Smoke detectors, sprinklers and fire extinguishers are tested and tagged |
| ☐ | Water shut-off valves are located and staff know how to use them |
| ☐ | Alarm and cameras work, and the contact list is up to date |
Shutdowns and holidays |
|
| ☐ | Heat stays on at a safe minimum if the building will be closed |
| ☐ | Valuables, cash and laptops are locked away or taken home |
| ☐ | Someone is assigned to check the premises during longer closures |
Money and people |
|
| ☐ | Payment changes and wire requests are verified by phone with a known number |
| ☐ | No single employee controls both approving and sending payments |
| ☐ | Contractors and subcontractors have their own insurance and you hold current certificates |
| ☐ | Drivers have valid licences, and personal vehicles used for work are reviewed with your broker |
Records and contracts |
|
| ☐ | Client contracts and written terms are signed and stored |
| ☐ | Inventory, equipment and renovation values are updated for the insurance record |
| ☐ | A list of key contacts and policy numbers is saved somewhere you can reach if the office is not accessible |
Changed anything this year? A new location, a new service, more staff, higher revenue or new equipment can all affect your coverage. Tell your broker so your policy keeps pace.
October is Cybersecurity Awareness Month: your first 3 cyber habits
This year’s Canadian Centre for Cyber Security theme is “Your best defence is you.” That is good news for small businesses: the most common attacks target people, not software. You do not need a big IT budget to make yourself a harder target. Start with these three habits.
| Habit | What to do |
|---|---|
| 1. Pause before you click or pay | Treat unexpected emails, texts and links with suspicion, even if they look familiar
Verify payment requests and banking changes by phone, using a number you already have Watch for urgency, such as “pay today” or “your account will be closed” Make it safe to speak up. Staff should be able to report a mistake right away without blame. |
| 2. Lock the door: multi-factor authentication and strong passwords | Turn on multi-factor authentication (MFA) for email, banking, accounting and cloud tools. Email comes first, since it can reset everything else.
Use a unique password for each account, and consider a password manager Remove access promptly when employees or contractors leave |
| 3. Back up and have a plan | Back up critical data regularly, keep one copy offline or separate, and test that you can restore it
Write down a one-page plan: who to call, what to shut down, and who tells clients Keep your broker’s claims number with the plan. Early notice can reduce the damage. |
Book your free policy check-up
Not sure whether you are covered for these 10 risks? Reliance Insurance will review your current policies with you at no cost and no obligation.
What we’ll look at together
| Area | What we’ll review |
|---|---|
| Your coverage | Whether your GL, property, cyber and E&O coverage matches how your business operates today |
| Gaps | Limits, deductibles and exclusions that could leave a gap |
| Changes this year | New locations, staff, services, equipment or contracts |
| Certificates | Certificate of insurance requirements from your landlord, clients or contractors |
| Savings | Opportunities to simplify or reduce what you are paying for |
How to get started
| Step | Action | Details |
|---|---|---|
| 1 | Contact your broker | Contact your Reliance Insurance broker to book a time, in person, by phone or online |
| 2 | Bring your policies | Bring your current policies and any contracts that set insurance requirements |
| 3 | Get a clear summary | Walk away with a clear summary of where you are protected and what to consider before year-end |
Reliance Insurance supports clients across Canada through a national network of offices and globally through our broker network partners.