Risky Business: Nearly one in four Canadian small businesses operate without insurance despite growing risks and financial pressures

TD Insurance survey finds nearly six in 10 small business owners struggle to understand insurance, while insured business owners are more likely to feel positioned for growth and success

TORONTO, Sept. 17, 2026 /CNW/ -- 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:

• 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."

A Coverage and Confidence Gap That Could Impact Business Resilience

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."

Insured Businesses Are More Likely to Feel Positioned For 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%).

Business growth also appears to be a catalyst for insurance reviews. Among insured business owners, 72% reviewed their coverage in the past year, and nearly two-thirds say growth would prompt them to update their insurance coverage.

Together, these findings suggest that business insurance may be more than just a safeguard against unexpected events. It can also play an important role in helping business owners plan for growth and navigate change with greater confidence.

Frequently Asked Questions (FAQ)

Why is business insurance important for business owners?

Business insurance can help protect a company from unexpected events that could otherwise disrupt operations or create significant financial challenges. As businesses grow and evolve, reviewing coverage can help ensure protections remain aligned with the business's current needs.

When should a business owner review their insurance coverage?

Business owners may want to review their coverage whenever their business experiences significant changes, such as hiring employees, expanding operations, introducing new products or services, purchasing equipment, or entering new markets. Regular reviews can help identify whether coverage remains appropriate.

How do I know what insurance coverage my business needs?

The right coverage depends on factors such as your industry, business size, services offered, and potential risks. A professional review can help ensure your business is protected from common exposures while avoiding unnecessary coverage.

What are some common risks businesses might face?

Risks vary by business type, but common concerns can include property damage, liability claims, business interruption, equipment breakdown, theft, and other unexpected events that may affect day-to-day operations.

Why might some business owners remain uninsured?

Business owners often balance many competing priorities, including managing expenses and investing in growth. Some may be uncertain about what coverage they need, while others may underestimate potential business risks or view insurance as a discretionary expense rather than part of broader business planning.

How can business owners save on insurance costs?

Business owners may be able to reduce costs by bundling eligible policies, understanding deductible options, reviewing coverage regularly, and ensuring their protection aligns with their current business needs.

What types of insurance are commonly recommended for business owners?

The right coverage depends on several factors such as your industry, business size, services offered, and potential risks. Common coverages may include Commercial General Liability, Professional Liability (Errors & Omissions), Commercial Property, and Business Interruption insurance. Coverage needs vary by business and industry.

About the TD Insurance Survey 

This TD survey, conducted using the Leger Opinion panel, ran from July 9 - 21, 2026, with a sample of 401 Canadian small business owners. Small businesses were defined as companies with 1-500 employees and annual revenue up to $5M. The sample is representative across BC, the Prairie provinces, Ontario, and Quebec, and across industries including contracting (excluding general contractors), management consulting or business advisory services, real estate investing, restaurant, food service, or catering, retail, and other sectors. For comparison purposes, a probability sample of 400 has an estimated margin of error of ±4.9%, 19 times out of 20.

About TD Bank Group

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves 28.2 million clients in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Banking, including TD Auto Finance U.S. and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among North America's leading digital banks, with more than 14 million active mobile users in Canada and the U.S. TD had $2.1 trillion in assets on July 31, 2026. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock Exchange.

SOURCE TD Bank Group

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