Christian Vanasse

By Christian Vanasse

May 7, 2018


Insurance for Self-Employed Workers in 3 Questions

Article revised on 6 July 2018

There are a number of benefits to being self-employed. Because you’ve decided to be your own boss, you manage your own schedule. However, a lot of responsibilities, expenses and risks go along with that decision. There are a number of products and services that can help protect your investments in your company and ensure its longevity, including insurance for self-employed workers. If you’re wondering if you need insurance coverage for your professional activities, here’s what you need to know!

1. Do you need to inform your insurer that you are now self-employed and working from home?


When considering what type of personal home insurance you need and calculating your premiums, your insurer takes various factors into account. One of them is how the premises are used. By making your insurer aware of the ways you’re actually using your home, you allow it to provide you with optimal coverage based on your needs. In addition, in the event of a claim, you’re assured that the commercial use of your home won’t interfere with the processing of your claim, and that your commercial property is covered.

2. What types of insurance coverage are available for self-employed workers?

Depending on your needs, three types of coverage are available to meet the needs of self‑employed workers.

  • The “Business property” coverage included in your home Insurance
  • An additional coverage (an endorsement) that can be added to your home insurance
  • Commercial insurance for self-employed workers

Your insurer will analyze various factors in order to advise you on the best coverage for your situation. For example, it may take into account the value of your business property, the nature of your business activities, how frequently you travel or how frequently you have clients visiting you.

“Business property” coverage included in home insurance – In addition to covering your personal property and civil liability (i.e. damage that you may cause to another person), most home insurance includes coverage for business property.

The scope of this coverage is limited. It could be right for you if you work from home and the type and value of your business property comply with the eligibility criteria established by your insurer. To ensure that you have sufficient coverage for replacing all your business property in the event of loss, the Insurance Bureau of Canada (IBC) recommends you take the time to calculate the value before calling your insurer. Remember to include computer equipment, furniture, tools, instruments and any other property you use for your business.

Additional coverage (an endorsement) added to your home insurance – An endorsement allows you to cover your civil liability in the event of damage caused to another person while conducting your business activities, whether it occurs onsite or elsewhere.

Commercial insurance for self-employed workers – If your home insurance doesn’t adequately cover your business activities, your insurance representative will propose commercial insurance specifically designed to meet your needs.

Here are a few examples of coverage that may be included in commercial insurance for self-employed workers.

  • Business property: The amount of insurance is determined based on your needs
  • Civil liability insurance covers you not only for damage caused to another person while conducting your business activities, but also the products you sell.
  • Loss of earnings and supplemental expenses: Coverage to allow you to resume your business activities rapidly after a loss
  • Coverage of accounts receivable, cash registers and important documents

Various coverages can also be added to commercial insurance to cover other risks, such as:

  • Equipment breakdown
  • Loss or deterioration of important documents
  • Professional fees incurred for determination of losses arising from business interruption in the event of damage

3. How to be sure you’re making the right choices?

The different types of coverage available and their suitability for your situation vary from one insurer to another. Take the time to get a few quotes, compare the offers and ask questions! The insurance representative’s role is to inform you of the options available to you and advise you on the coverage that’s best suited to your needs.

In addition to the coverage offered and the premium, you should also consider the service and payment options, as details such as these will make a difference to your day-to-day operations.
In summary, by making your insurer aware of your professional activities, you safeguard and strengthen your business so that it’s ready to meet a multitude of challenges. Think it over carefully. After all, it’s your livelihood!

Good to know

Do you use your vehicle for business purposes? Let your insurer know so that it can adjust your auto insurance.

Think it over carefully.

In addition to property damage, health issues can have a negative impact on your business. Think about obtaining life insurance or health or disability insurance.

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