TD Insurance Survey Reveals 23% of Canadian Small Businesses Lack Essential Coverage Amid Rising Risks

Canadian business owners are navigating a challenging environment, but not all have the same level of protection when facing these pressures. Over the past year, nine in 10 (90%) of small businesses have experienced at least one unexpected challenge, pressure or setback, according to a new TD Insurance survey. For more than two-thirds (67%) of businesses, these challenges have made them rethink how they plan for risk. Despite this, nearly one in four (23%) Canadian small business owners say they do not currently have business insurance.

Key findings from this TD Insurance survey include:

• Nearly one in four (23%) small business owners do not currently have business insurance.
• More than half (55%) could not cover an unexpected expense exceeding $10,000 without assistance.
• Nearly six in 10 (59%) say understanding business insurance is difficult or frustrating.
• Nearly nine in 10 (87%) small business owners experienced a significant business change over the past year, including expanding products and services, entering new markets, hiring staff, purchasing equipment, or investing in new technology.
• Three-quarters (75%) feel they have taken the right steps to strengthen or protect their business over the past year.
• Business owners with insurance are more likely to feel better positioned to grow and succeed than business owners without insurance (73% vs. 58%).

Business owners are navigating an environment defined by change and uncertainty. Nearly nine in 10 (87%) experienced a significant business change over the past year, while more than half (57%) faced direct financial pressures such as rising costs, cash flow challenges, or slowing customer demand. Together, these findings underscore the importance of understanding potential risks, reviewing business insurance needs, and ensuring businesses are prepared to adapt as circumstances evolve.

"As change becomes constant, preparedness may be more important than ever. From rising operating costs and economic uncertainty to new opportunities for growth," said Tang Trang, Vice President, Small Business Insurance, TD Insurance. " While it's encouraging that most business owners report having business insurance, our findings suggest there is still a gap in understanding how coverage can help support and protect their business as it grows. When unexpected events happen, having the right protection in place can make a meaningful difference in a business's ability to recover, adapt, and move forward."

Businesses are operating in an environment where change and unexpected pressures are common. The findings suggest that confusion around coverage may be part of the challenge, with nearly six in 10 (59%) owners saying they find understanding business insurance 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. This complexity may help explain the gap between intent and action: 76% agree insurance should be an integral part of business planning, yet 23% remain uninsured and 24% view insurance as a cost to minimize.

"Many business owners wear multiple hats every day, and reviewing insurance coverage often falls behind more immediate priorities," added Trang. "That's why having access to clear, trusted guidance can help business owners understand their risks and choose protection that reflects how their business operates today, so they can focus on growth."

Working with a professional could give small business owners an added layer of confidence. The survey found that insured business owners are significantly more likely than uninsured owners to feel their business is positioned to grow and succeed in the coming year (73% versus 58%). They are also more likely to prioritize growth and expansion (63% versus 49%) and investment in technology and digital tools (20% versus 11%).