More than one-third (36%) say they would rely at least in part on loans from friends and family after an emergency
Canadian small business owners say they’re prepared for the unexpected — but their actions tell a different story. A new TD Insurance survey reveals that while the large majority (94%) of owners have business insurance, just 52% would actually use it in an emergency. While insurance is their top choice to handle unexpected events, many respondents are still reaching out to additional income sources including credit cards (50%), bank loans (48%), lines of credit (47%), or even friends and family (36%).
The findings highlight an important gap in financial planning. Insurance doesn’t just protect against loss – it preserves cash flow and provides critical liquidity when small business owners need it the most.
“Insurance isn’t a last resort – it’s a strategic safeguard. When something goes wrong, your first call to protect the business you’ve built should be to your advisor,” said Tang Trang, Vice President, Small Business Insurance at TD Insurance. “If business owners are turning to outside financing, chances are they’re not getting the full value of insurance.”
Misconceptions about your coverage
According to survey results, economic uncertainty is now a top concern amongst Canadian business owners, with nearly one-third (32% – up from 29% last year) citing increasing expenses as their top challenge. The need to control cash flow combined with misconceptions around utilizing their insurance could be keeping business owners from safeguarding their business and using their unique policies effectively.
Though some may think that business insurance is exclusively for major emergencies, such as a hail storm or fire, there are many situations that could compromise your earning power, depending on the nature of the business. For example, a restaurant may need to shut down due to water damage from a pipe bursting, or stolen tools may prevent an electrician from being able to accept jobs. Insurance policies are customized towards your business, with flexible coverage options dependent on factors such as your industry and other risk elements. These factors can help you understand the level of protection your business may need and why, as a business owner, you may find you need different types of coverages depending on your situation.
Customize coverage for your unique needs
“We know your needs are unique and how important the business you’ve built is to you,” added Trang. “Connecting with a licensed insurance advisor can help you make sense of your coverage and ensure you have the right insurance in place to help safeguard your business from the unexpected – no matter how big or how small.”
About the survey
The survey was undertaken by The Harris Poll Canada and it ran from July 10th to July 15th, 2025 on behalf of TD. The survey of 400 Canadian small business owners and senior decision-makers was conducted online. Specific industries were targeted for this study: contractors (no GCs), real estate investors, restaurants, management consultants (business consultant/advisors), retail (grocery/convenience), and clothing retail. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of ±4.9%, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding.
