Choose your settings
Choose your language
Business insurance

How to limit the cost of your business insurance premium?

April 14, 2023

If you're about to renew your business insurance, you may be wondering what factors, other than inflation, influence your premium. Here are some tips to make sure you have the right coverage and amount of insurance.

Factors that influence the price of insurance

Insurance cost is always subject to a number of factors, including the type of business, aspects of the building you occupy and the commercial vehicles you use. The key factor taken into account are:

Business activities

  • Products and services
  • Annual income
  • Area served (deliveries, transporting goods, etc.)
  • The value of goods in inventory and equipment


  • Features (age, type, materials, etc.)
  • Location
  • Surrounding area (flood zones, proximity to public services, etc.)
  • Type of neighbourhood (industrial, commercial, residential)
  • Added protection measures (linked alarm system, sprinklers, surveillance system with camera, etc.)

Commercial vehicles

  • Type of vehicle
  • Its use (delivery, transporting goods, etc.)
  • Number of drivers and their driving record
  • The territory covered

The importance of choosing the right protection

Take the time to list the coverages you need or may need when you're getting ready to sign or renew your business insurance policy. These questions will help you better identify what you need to consider:

  • What kinds of occurrences might impact your operations?
  • How much is your business worth, including commercial property (building and its contents)?
  • Do you work with your hands or do you provide consulting services?
  • Do you sell your products online or in a store?
  • Do clients come and meet with you at your workplace?
  • Do you require a commercial vehicle for your business?

Tips for getting a fair premium, and even saving

Here are some tips to reduce your business insurance costs while maintaining sufficient coverage.

  1. Review your coverage needs and choices. Your company changes and so do its needs. It's useful to regularly review your coverage in light of your company's current needs.
    Note that it is important to be honest about your income when requesting a quote. That way you'll avoid unpleasant surprises in the event of a claim. Also make sure that the cost to rebuild the building is consistent with the insured value in your policy.
  2. Combine your products. Combining coverage can reduce your premium. An entrepreneur who owns several businesses (for example, real estate assets) will benefit from insuring them with a single insurer.
  3. Monitor your financial health. Your personal credit score can affect your business insurance.
  4. Think about your location. Geographic region affects premiums. A less densely populated area can reduce costs.

Avoid cutting costs at any cost. In times of inflation, it can be very tempting to temporarily remove certain coverages to lighten the budget. But remember that what you sacrifice in prevention, you gain in increased risk and vulnerability. The goal is to have the right coverage to ensure your company's long-term viability at the right price.

Need help?

We're here for you. Don’t hesitate to contact a Desjardins damage insurance agent for information on the coverage we offer.

Desjardins Insurance refers to Desjardins General Insurance Inc., provider of automobile, property and commercial business insurance. These tips are provided for information and prevention purposes only. They are general in nature, and Desjardins Insurance cannot be held liable for them. We recommend using caution and consulting a damage insurance agent for comprehensive, tailored advice.