Common Insurance Claims for Small Businesses

Reputational Harm

Also known as reputational risk, these claims involve libel, slander and violation of rights and privacy which can seriously damage a firm’s reputation. This isn’t necessarily the most common insurance claim; however it is the most expensive. A reputational harm claim averages a cost of $50,000. The good news is, there are plenty of ways to prevent these situations. The main way is to follow proper and ethical procedures within the workplace and always have an emergency plan ready for any situation.


The average cost of a fire claim is $35,000 and affects one in every ten small businesses in Canada. A fire can be devastating to any business, luckily there are a few steps owners can take to make their workplace safer. For example, simple safety procedures such as having fire extinguishers and smoke alarms positioned in proper locations can make a huge difference. Accidents can happen, so as a business owner you should review your policy to ensure you have the right coverage.

Vehicle Accidents

Accidents are less common than other claims but can put a decent dent in a bank account. The average costs of these claims are around $45,000. With the summer months approaching, the roads in Muskoka will only get busier. Once there are more vehicles on the road, statistically, accident probability increases. Luckily, there are steps that can be taken to avoid these claims. A business owner should run a complete drivers history report on all employees and ensure that all work vehicles have proper road safety standards.

Product Liability

This claim refers to the liability of all parties along a manufacturing chain of a product. For example, say your business produces a product and somehow causes harm to an individual. Product liability claims average a cost of $35,000. A review of your policy can ensure that you have the correct protection in case of a product malfunction.

Most Common

Some of the most common claims aren’t necessarily the most expensive. This does not mean they should go over looked. For example, burglary and theft ranks number one affecting 20 percent of all small businesses. One way to protect your business is to take proper background checks into each employee that is hired. Also, take steps to ensure that the company has adequate and up to date security systems. Furthermore, water and freezing damages rank as the second most common claim affecting 15 percent of all small businesses while slip and fall injuries affect 10 percent.


If you’re a small business owner and have any questions on how to make sure your business has the right coverage, contact us today!

Since the 1900's...

Born under the name George Hutcheson, Hutcheson, Reynolds & Caswell Ltd. began providing insurance policies in Muskoka since the early 1900s. Bernard Reynolds joined the firm in the 1940s and purchased the firm from George Hutcheson in 1967. Finally, in 1980, David Caswell joined the company's ranks to complete Hutcheson, Reynolds and Caswell. We have grown along with our name and provide the same dedication to superior customer service and top-notch insurance coverage that George Hutcheson was famous for over 100 years ago.