More than half of owners could not absorb a $10,000 hit without outside help
Twenty-three percent of Canadian small business owners currently carry no business insurance, while 90 percent reported at least one unexpected challenge, pressure or setback over the past year.
More than half of owners, 55 percent, said they could not cover an unexpected expense exceeding $10,000 without assistance.
Another 57 percent reported direct financial pressures such as rising costs, cash flow challenges, or slowing customer demand.
Another 87 percent experienced a significant business change over the same period, including expanding products and services, entering new markets, hiring staff, purchasing equipment, or investing in new technology.
Two-thirds, 67 percent, said the past year's challenges made them rethink how they plan for risk.
Nearly six in 10 owners, 59 percent, said understanding business insurance is difficult or frustrating.
Common challenges include knowing what is and is not covered, determining how much coverage is needed, and identifying risks specific to their industry.
TD reported that 76 percent agree insurance should be an integral part of business planning, while 23 percent remain uninsured and 24 percent view insurance as a cost to minimise.
Most business owners report having business insurance, said Tang Trang, vice president, small business insurance, TD Insurance in Toronto, in the release.
A gap remains, according to Trang, in understanding how coverage supports a business as it grows.
Trang said many business owners handle multiple responsibilities, and reviewing insurance coverage often falls behind other priorities.
She said guidance can help owners "understand their risks and choose protection that reflects how their business operates today."
Insured owners were more likely than uninsured owners to say their business is positioned to grow and succeed in the coming year, at 73 percent versus 58 percent.
The same split appears on prioritising growth and expansion, at 63 percent versus 49 percent, and on investment in technology and digital tools, at 20 percent versus 11 percent.
Among insured small business owners in Canada, 72 percent reviewed their coverage in the past year, and nearly two-thirds said growth would prompt them to update it.
Three-quarters, 75 percent, said they have taken the right steps to strengthen or protect their business over the past year.
TD Insurance surveyed 401 Canadian small business owners with one to 500 employees and up to $5m in annual revenue, through the Leger Opinion panel between July 9 and July 21.
