Get a Personal Services Insurance quote

What is personal services provider insurance?

As a business owner in the personal services industry (whether you have a tutoring center or a babysitting business), you're all about creating memorable experiences for your clients. However, accidents can happen, like a client slipping on a wet floor or an unexpected equipment malfunction.

Personal services insurance is your safety net, protecting your business from perils like these, among others. With personal services insurance coverage, you can keep your focus on growing your business, knowing you're protected when life throws a curveball.

Is personal services provider insurance mandatory in Canada?

In Canada, personal service providers aren't legally obligated to have insurance, but many businesses opt for it to ensure peace of mind. Whether you've been running a business for a decade or you're just starting out, having some type of coverage for unexpected events is a wise business decision, even if it's not a legal requirement.

The one exception is commercial auto insurance. If you use a vehicle for business purposes, you are legally required to get this protection. If you don't have commercial auto coverage for a car that's used as part of your business operations, then claims you submit to your personal car insurance provider may be denied.

Who needs personal services provider insurance?

Here are some examples of professions that can use personal services provider insurance:

• Personal-support worker: Provides personalized care and assistance to individuals with health and daily living needs.
• Tutor: Offers educational support and personalized teaching to help students improve their academic performance.
• Caregiver: Provides care and support to individuals who need assistance with daily activities.
• Life coach: Provides guidance and support to individuals seeking personal growth and improvement.
• Cleaning service: Offers professional cleaning solutions for homes and businesses to maintain a tidy and healthy environment.

What insurance do personal service providers need?

• General liability insurance: This protects your business if someone is injured, or property is damaged while you're working. For instance, if a client trips in your office and sprains their ankle, this insurance helps cover medical expenses and potential legal claims.
• Professional liability insurance: For personal service providers, this type of insurance covers claims of negligence or harm due to mistakes. If, for example, a client claims that a skincare treatment provided by a personal support worker damaged their skin, this insurance helps with legal defence and settlements.
• Equipment coverage: This protection safeguards your tools from theft or damage. If you're a tutor and your laptop is damaged or stolen, it will help reimburse you for the cost of a replacement.
• Auto insurance for business: If you drive to clients' homes to provide a service, then you'll need commercial auto insurance. You can't rely on personal auto insurance for a vehicle that's used for your business.
• Care, custody, and control insurance: This covers you if clients get injured or something happens while they're under your care. For instance, if a client is accidentally hurt during a service, this insurance helps with the costs.
• Business interruption insurance: In the event of a disaster that halts your business operations, this insurance helps cover expenses like rent and salaries, so you can weather the interruption.

How much does personal services insurance cost?

The cost of personal services insurance depends on your business size, the services you offer, and the coverage you need. For a small business, typical costs range from $300 to $1,500 annually.

Remember, this is just a rough estimate. Costs for insurance coverage varies significantly.

The best way to find out how much personal services insurance will cost you is to get a quote online. This allows a prospective insurance provider to assess all the variables of your business and provide an estimated cost that's relevant to you.

What factors affect your personal services insurance rate?

• Type of service: The specific nature of the services you offer contribute to defining your insurance premiums. A personal support worker, for example, might pay more for insurance than a tutor, all other factors of the respective businesses being equal.
• Type of coverage: More comprehensive coverage, especially for liability or property damage, increases the cost of insurance. The more thorough the protection provided, the more your policy will cost.
• Claim history: A history of previous claims can raise your insurance costs, as you're seen as a higher risk to insure.
• Coverage limits: Your insurance quote will vary based on your chosen coverage limits and deductibles. As with the type(s) of coverage you get, the more protection you have, the more you'll have to pay.
• Location: Insurance costs differ by location. Typically, operating in a larger city will cause your premiums to rise.