Commercial
Coverage guide

What each policy actually does.

Plain-English notes on the commercial coverages we place most often. Your broker recommends the mix for your business, and you never buy what you don't need.

01

Commercial general liability

The policy almost every business starts with.

Pays when someone outside your business says you hurt them or damaged their property: a customer who trips in your store, a ceiling your crew cracks, a product that fails in someone's kitchen. It also pays the lawyers, even when the claim goes nowhere.

Who needs it

Every business that has customers, visitors, a job site or a product.

A claim it pays

A plumber's fitting lets go a week after the job and floods a finished basement. The homeowner's insurer comes after the plumber for the repair bill.

Ask about commercial general liability
02

Commercial property

Your building, what's inside it, and what you'd need to reopen.

Covers the building if you own it, or your improvements if you lease, plus equipment, stock and furniture against fire, theft, water and wind. The limit has to keep up with what it would cost to rebuild today, not what you paid.

Who needs it

Anyone who owns or leases space, holds inventory, or runs equipment.

A claim it pays

A kitchen fire guts a restaurant's line. The policy replaces the hood, the ranges and the walk-in, and pays for the smoke clean-up in the dining room.

Ask about commercial property
03

Commercial auto & fleet

Every vehicle the business owns, leases or borrows.

Liability, collision and comprehensive for work vehicles, plus hired and non-owned auto for when staff use their own cars or a rental on the company's behalf. Fleets get priced on the drivers, the radius and what's carried.

Who needs it

Trades, delivery, transport and any business with a vehicle in its name.

A claim it pays

A delivery van backs into a customer's gate. The auto policy handles the gate and the van.

Ask about commercial auto & fleet
04

Tools & equipment

The gear your crew can't work without.

Covers contractors' tools and mobile equipment against theft and damage on site, in transit and in storage. Rented equipment can be added so a stolen skid steer doesn't become your bill.

Who needs it

Trades and contractors of every size.

A claim it pays

A work trailer is emptied overnight in a job-site lot. The claim replaces the tools and the crew is back working that week.

Ask about tools & equipment
05

Business interruption

The income you lose while you can't operate.

After an insured loss shuts you down, it covers the profit you would have made and the bills that keep coming: rent, payroll, loan payments. It's attached to your property policy, and the waiting period and indemnity period are worth reading closely.

Who needs it

Businesses that couldn't run for a month without the paycheque the business produces.

A claim it pays

A burst sprinkler main closes a retail unit for six weeks. Rent and staff still get paid from the claim.

Ask about business interruption
06

Professional liability (E&O)

For mistakes in advice, design or service.

Covers claims that your professional work cost a client money: a missed deadline, a design flaw, bad advice, an overlooked detail. General liability doesn't touch these because nobody was physically hurt and nothing was physically damaged.

Who needs it

Consultants, engineers, designers, IT firms, accountants, agents and anyone whose contract asks for it.

A claim it pays

A software integrator's error corrupts a client's order data for a week. The client claims the lost sales.

Ask about professional liability
07

Directors & officers (D&O)

Protects the people who run the company.

Covers the personal liability of directors and officers for decisions they make in the role: claims from investors, employees, regulators or creditors alleging mismanagement. It pays defence costs and settlements. Fraud and intentional wrongdoing are not covered.

Who needs it

Companies with outside investors or a board, non-profits, and any business planning to raise money.

A claim it pays

A minority shareholder sues the board over the sale of a division. D&O funds the directors' defence.

Ask about directors & officers
08

Builder's risk

The project while it's being built.

Covers a building under construction or renovation, the materials on site and in transit, against fire, theft, vandalism and weather until the job is finished. A regular home or property policy often excludes major renovation, which is why lenders ask for this.

Who needs it

Builders, developers, and owners doing a major renovation.

A claim it pays

Copper wiring is stripped from a half-built townhouse block over a long weekend.

Ask about builder's risk
09

Cyber liability

Breaches, ransomware and the notification bill that follows.

Covers the forensic team, legal advice, notifying affected customers, credit monitoring, ransom negotiation, lost income while systems are down, and claims from people whose data was exposed. Canadian privacy law makes reporting a breach mandatory, which is where the costs pile up.

Who needs it

Any business that stores customer, patient or payment information, which is nearly all of them.

A claim it pays

A clinic's booking system is encrypted by ransomware on a Monday morning. The policy pays the response team and the week of cancelled appointments.

Ask about cyber liability
10

Surety & bonding

The guarantee that lets you bid the job.

A bond is a promise, backed by a surety company, that you'll finish the work and pay your trades. Bid bonds, performance bonds and payment bonds for trades and suppliers show up on almost every public contract and many private ones. Bonding is underwritten like credit, so clean financials matter.

Who needs it

Contractors bidding municipal, provincial or large private work.

A claim it pays

A GC needs a 10% bid bond by Friday to tender a school addition.

Ask about surety & bonding
11

Product liability

When what you make or sell causes harm.

Covers injury or damage caused by a product you manufacture, import, distribute or sell, including after it has left your hands. Usually part of a general liability policy, but limits and recall exposure need attention for importers and makers.

Who needs it

Manufacturers, importers, distributors, private-label and e-commerce sellers.

A claim it pays

An imported space heater overheats and damages a customer's home.

Ask about product liability
12

Pollution liability

Spills, leaks and contamination.

Most general liability policies exclude pollution. This fills the gap for clean-up costs and third-party claims from fuel, chemical or contaminant releases, whether sudden or gradual.

Who needs it

Contractors, trucking, manufacturers, and anyone storing fuel or chemicals.

A claim it pays

A hydraulic line on an excavator bursts over a client's lawn and seeps toward a storm drain.

Ask about pollution liability
13

Trade credit

When a customer can't pay you.

Protects your receivables if a customer goes insolvent or simply stops paying. It can also help you extend terms to new customers with more confidence, and some lenders will advance more against insured receivables.

Who needs it

Manufacturers, wholesalers and distributors selling on terms.

A claim it pays

Your biggest retail account goes under with three months of invoices unpaid.

Ask about trade credit

These are general descriptions to help you ask better questions. What a policy covers depends on its wording, limits, deductibles and exclusions, and every insurer's form is different. MP Insurance Solutions is a brokerage, a division of Oracle RMS: we compare insurers for you and the insurer issues the policy.