Business insurance quote checklist: what to prepare before asking for liability quotes
A step-by-step checklist for getting business liability insurance quotes in Canada, from the information underwriters ask for to choosing a broker and binding cover.
To get accurate business liability quotes in Canada, prepare four things before you contact anyone: a complete description of every activity your business does, your revenue and payroll (last year and next year's estimate), your claims and incident history for about five years, and the insurance clauses in your lease and main contracts. Then ask two or three insurers or brokers to quote the same limits, deductibles and coverage parts, and compare the total cost including provincial tax. Starting four to six weeks before your renewal or contract start date gives underwriters time to respond and you time to compare.
This guide is the overview for the worked quotes and checklists section and links to every guide in it. The quote preparation checklist tool lets you tick off each step.
Step 1: describe the business precisely
Underwriters classify your business from your description, and the class drives most of the price. Write it as if explaining to a stranger:
- every service or product, including small ones such as delivery, installation, consulting or event rentals
- the share of revenue each activity brings in
- where the work happens: your premises, customers' homes, construction sites, online
- whether you work in other provinces or sell into the United States
- who your customers are: consumers, businesses, public bodies, children
Step 2: gather the numbers
| Item | Why it is asked | Where to find it |
|---|---|---|
| Revenue last year and estimate for next year | Exposure base for most CGL rates | Financial statements, accounting software |
| Payroll and number of employees | Exposure base for trades and services | Payroll records, T4 summary |
| Amount paid to subcontractors | Insurers rate uninsured subcontractors as your own work | Accounts payable |
| Years in business and owners' experience | New businesses are rated with less history | Incorporation documents |
| Premises: area, construction, use | Premises liability and tenants' legal liability | Lease, floor plan |
| Vehicles used for business | Non-owned auto and commercial auto | Vehicle list |
If the policy will be audited on revenue or payroll, an estimate that is too low simply leads to an additional premium later. Give your best honest estimate.
Step 3: list claims and incidents
Insurers typically ask about claims, lawsuits, demand letters and incidents in the past five years, paid or not. Prepare:
- date, what happened and the amount claimed or paid
- whether the claim is open or closed
- what you changed afterwards, such as new procedures or equipment
- a loss history report from your current insurer, which your broker can request
Step 4: pull your contract requirements
Leases, client contracts, municipal permits and tenders often set your minimum coverage. Note for each:
- required limit per occurrence and aggregate
- whether the other party must be an additional insured
- waiver of subrogation, primary and non-contributory wording
- notice of cancellation, often 30 days
- any professional liability or cyber requirement
The certificate of insurance guide explains these terms and how to prove compliance.
Step 5: choose where to get quotes
| Route | How it works | Good for | Watch out for |
|---|---|---|---|
| Independent broker | Licensed broker approaches several insurers | Most small and mid-sized businesses, unusual risks | Ask which insurers were approached and how the broker is paid |
| Insurer's own agent | Sells one company's products | Simple risks that fit the insurer's appetite | Only one insurer's view of your price |
| Online direct quote | Application and quote online, sometimes instant | Low-risk offices and simple services | Questions may not capture every activity; read the full wording |
| Specialist or managing general agent | Programs for specific industries | Niche trades, events, professional groups | Check the underlying insurer and its licence |
In every case, confirm the licence with the provincial body: RIBO or FSRA in Ontario, the AMF register in Quebec, the Insurance Council of British Columbia, the Alberta Insurance Council, or the equivalent in your province.
Step 6: compare like for like
Ask every source to quote the same structure, for example:
- CGL $2,000,000 each occurrence, $2,000,000 general aggregate, $2,000,000 products-completed operations aggregate
- tenants' legal liability $500,000
- non-owned automobile liability $2,000,000
- property damage deductible $1,000
- professional liability, if needed, with your current retroactive date
Then compare on four numbers: premium including provincial tax and fees, the deductible on a typical claim, the limits, and the total cost if paid monthly. The worked comparison guide shows the arithmetic, and the liability quote comparison tool does it for you.
Step 7: read before you bind
Before saying yes:
- Read the list of exclusions and endorsements on the declarations page.
- Check whether the policy is auditable and on what basis.
- Confirm the start date matches the end of your current policy so there is no gap.
- If you need to spread payments, see premium financing first.
- Check the cancellation terms; see cancelling mid-term.
Special situations
- Contractors and trades face extra questions about subcontractors, height work and completed operations; see contractor liability quotes.
- Businesses run from home may find their home policy excludes business activity; see home-based business insurance.
Frequently asked questions
How long does it take to get a business liability quote?
Simple, low-risk businesses may get an online quote the same day. Trades, manufacturers or businesses with claims often take one to three weeks because an underwriter reviews the application.
Should I give the same information to every broker?
Yes. Different information produces quotes that cannot be compared, and you remain responsible for the accuracy of every application you sign.
Can two brokers approach the same insurer for me?
An insurer will usually work with only one broker per risk, so the first broker to submit may "block" the market. Agree with each broker which insurers they will approach.
What happens if I make a mistake on the application?
Tell the broker or insurer as soon as you notice. Uncorrected misstatements can reduce or defeat a claim; see disclosure and misrepresentation.
Sources
- Registered Insurance Brokers of Ontario — check an Ontario broker's licence
- Autorité des marchés financiers — Quebec register of firms and representatives
- Insurance Council of British Columbia — licensing of BC insurance agents and brokers
- Alberta Insurance Council — licensing of Alberta insurance agents and brokers
- Insurance Brokers Association of Canada — information on what brokers do
