Business insurance in Ottawa: the main types of coverage, and when you need them
Whether you run a renovation company in Barrhaven, a consulting firm in Kanata or a café in the Glebe, the right business insurance depends on what you do, what you own and what your contracts require. This guide explains the main types of coverage in plain language, with tips for Ottawa businesses, and links to a detailed guide for each one.
Start with three questions
Most business insurance programs are built by answering three questions:
- What could someone sue you for? An injury, damage to their property, or a costly mistake in your work or advice.
- What would it cost to replace what you own, and to keep paying the bills while you rebuild?
- What do your contracts, lease, permits or regulator require? They often set the minimum limits and wording you need.
The main types at a glance
Small businesses often combine several of these in one package policy. Each row links to a detailed guide.
| Type of coverage | What it’s for | Often needed by | Guide |
|---|---|---|---|
| Commercial general liability (CGL) | Injury to others and damage to their property caused by your business, products or completed work | Almost every business, especially with a commercial lease, client visits or work on site | Liability guide |
| Professional liability (errors and omissions, E&O) | A client’s financial loss caused by an error, omission or advice in your professional services | Consultants, tech and IT firms, designers, agents and other advice-based businesses | Liability guide |
| Contractor insurance | A package for trades: liability, tools and equipment, materials and work in progress | Renovators, trades, landscapers and snow-removal operators | Contractor guide |
| Umbrella or excess liability | Extra liability limits above your general liability, auto and employer’s liability policies | Businesses with higher-risk work, vehicles, or contracts that require $5 million or more | Umbrella guide |
| Commercial property and business interruption | Your building or improvements, equipment and stock, plus lost income after a covered loss | Businesses with premises, equipment or stock, including home-based businesses | Property guide |
| Commercial auto | Vehicles owned or used for work, their drivers, and what they carry | Trades, delivery, sales reps and any business with vehicles | Commercial auto guide |
Other coverage worth asking about
- Cyber liability: data breaches, ransomware and some types of payment fraud
- Crime and employee dishonesty: theft of money or property by employees or others
- Equipment breakdown: mechanical or electrical breakdown of equipment such as HVAC, refrigeration or machinery
- Directors and officers (D&O): for boards, including non-profits
- Employment practices liability: claims such as wrongful dismissal or harassment
Tips for Ottawa businesses
- Read the insurance clause before you sign. Commercial landlords, general contractors and clients often ask for a certificate of insurance, specific limits, and to be named as an additional insured. Federal contracts managed by Public Services and Procurement Canada commonly require at least $2 million of general liability per occurrence, and City of Ottawa road cut permits require $5 million.
- Plan for weather and power outages. The May 2022 derecho cut power to 180,000 Hydro Ottawa customers, and some waited nearly two weeks. Ask whether your business interruption coverage responds to off-premises power outages and spoiled stock.
- Know your WSIB obligations. In construction, WSIB coverage is separate from insurance, and anyone who hires a contractor must get a WSIB clearance certificate before work starts.
- Working from home? A home insurance policy usually gives limited or no coverage for business equipment, stock and business liability. Tell your insurer, and ask about a home-business endorsement or a small business policy.
- Review your coverage every year. New services, staff, vehicles, equipment or a bigger contract can change what you need. Tell your broker before the change, not after a claim.
Sources: Public Services and Procurement Canada insurance requirements · City of Ottawa road cut permits · Hydro Ottawa on the 2022 derecho · WSIB clearance certificates
The guides in this series
How Frank can help
Frank Tereraho is a licensed insurance broker (RIBO) with InsureU Brokers Inc. in Ottawa. He can review your current policy and the insurance requirements in your contracts, explain what they mean, and compare options from multiple insurers, in English or French, including on weekends.
Business insurance types, explained
Read the video text
- Which business insurance do you need? A quick guide to the main types.
- Liability: General liability: injuries and damage, Professional liability: costly mistakes, Umbrella: extra limits on top.
- Property and income: Building, equipment and stock, Lost income after a covered loss, Home-based businesses too.
- Vehicles and trades: Commercial auto for work vehicles, Contractor packages for trades, Tools and equipment.
- Check your contracts first. Leases, permits and client contracts often set the limits you need.
- Talk it through with Frank. A licensed broker compares options across insurers, in English or French.
- Get your business coverage reviewed. Call or text (613) 777-0375 · frankinsurance.ca/blog/business-insurance-ottawa
Common questions
Is business insurance mandatory in Ontario?
No single law requires every business to carry it. But some coverage is required by law, such as auto insurance for vehicles and WSIB coverage in many industries, including construction. Some regulators require professional liability, and contracts, leases and permits often require general liability.
How much does business insurance cost?
It depends on your industry, revenue, payroll, claims history, location, the limits you choose and your deductibles. An office-based consultant usually pays much less than a roofing contractor.
What is a certificate of insurance?
It’s a document that confirms your coverage, limits and policy dates for someone else, such as a landlord or client. It doesn’t change your policy. If a contract requires someone to be added as an additional insured, the insurer has to add them to the policy.
Can I combine coverage in one policy?
Often, yes. Many insurers offer a package policy for small businesses that combines general liability, property and business interruption. Commercial auto and professional liability are usually separate policies.
Get your business coverage reviewed
Send Frank your current policy, or the insurance clause from a contract, lease or permit. A licensed Ottawa broker will check what it requires and compare options across insurers. No obligation, and nothing changes without your approval.
This guide is general information, not legal or insurance advice. Coverage depends on each insurer’s policy wording, including exclusions, conditions, limits and deductibles. Requirements from the City of Ottawa, WSIB and other sources were checked in September 2026 and can change, so always confirm the requirement in your own contract, lease or permit.