Legal and Insurance

When starting a small business there are many considerations and decisions to make about your business, least of all the insurance coverage and legal contracts or documents you need as well. Depending on your business you are starting, you may start with a sole proprietorship structure or have already visited a lawyer and incorporated your business.

Regardless of your business structure there are some standard insurances and legal contracts/policies that are important and required for your business.

Connect with our local Insurance Brokers and Lawyers from our Referral Partner network.

Think of insurance as your business’s safety net. Just like you wouldn’t drive without car insurance or own a home without coverage, your business deserves the same protection.

Why it matters:
Anyone can sue anyone—for anything. Even a frivolous lawsuit can cost thousands in legal fees. Insurance helps you manage risk and stay focused on growth.

Types of Business Insurance to Consider:

Commercial General Liability (CGL)

Often called “slip and fall” insurance, this covers injuries on your property, legal fees, and damages. It can also include:

• Equipment, stock, and contents coverage
• Non-owned auto coverage
• Building coverage (if you own it)
• Tenant’s legal liability (if you rent)

Errors & Omissions (E&O)

If you offer advice or professional services, this is essential. It protects you if a client claims financial loss based on your guidance. Think:

• Life coaches
• Marketing consultants
• Personal trainers
• Aesthetic service providers

Cyber Insurance

Cyberattacks aren’t just a big business problem. Small businesses are easier targets. If you store customer data, this coverage is critical. It helps with:

• Ransomware recovery
• Data breaches
• Legal liability for compromised customer info

Directors and Officers (D&O)

If you’re running a corporation, charity, or not-for-profit, D&O insurance is a must. Directors can be held personally liable for decisions that negatively impact shareholders, members, or partners. Without D&O, lawsuits can reach their personal assets.

Why it matters:
Offering services, giving advice, and making decisions on behalf of others opens you up to risk. The right insurance turns uncertainty into assurance.

Pro Tip:
Talk to a broker—insurance quotes are always free!

Need help choosing the right coverage?
Connect with trusted Insurance Brokers through our Referral Partner Network.

Legal documents aren’t just paperwork—they’re your business’s backbone. They define relationships, protect your assets, and keep you compliant.

Online Agreements

Privacy matters—no matter your business size.
Maintaining privacy is about knowing what to collect, what to disclose, and how to protect it.

Cyber Security Tip:
Take simple steps to protect your business online. Use strong passwords, secure your website, and educate your team.

Terms of Service & Privacy Policy
These are must-haves if you collect personal data or run an e-commerce site. They help you comply with CASL and GDPR, limit liability, and protect your rights.

Include a copyright notice like:
“Copyright © 2025. yourwebsite.com”

Service Contracts

If you’re offering services—graphic design, consulting, coaching—you need a contract that protects your work and sets clear expectations.

Include:

• Scope of work and deliverables
• Intellectual property rights (what you retain vs. transfer)
• Fees, payment terms, and late charges
• Project start/end dates and milestones
• NDA terms and confidentiality clauses
• Renewal or extension terms
• Invoice schedule
• Portfolio usage rights

Want to learn more about protecting your IP?
Check out our dedicated blog on Intellectual Property for deeper insights.

Independent Contractor Agreements

Hiring a subcontractor? This agreement defines the relationship and protects you from unexpected obligations.

Include:

• Scope of work
• Payment terms
• Tax responsibilities
• IP ownership
• Termination clauses

Employment Agreements

Hiring employees? Don’t skip this. A solid employment agreement protects you legally and sets clear expectations.

Include:

• Job responsibilities
• Compensation and benefits
• Conditions of employment
• Termination and severance terms

Confidentiality / NDA Agreements

Sharing sensitive info with investors, suppliers, or collaborators? An NDA ensures your trade secrets stay protected.

Without it, there’s no legal obligation for confidentiality—and that’s risky.

Partnership Agreements

Going into business with someone? Get it in writing.

Include:

• Roles and responsibilities
• Ownership percentages
• Revenue and loss sharing
• Conflict resolution strategies

Top Tips for Strong Legal Agreements

• Keep it simple and clear
• Include dates and contract duration
• Define renewal terms
• Be transparent about pricing and payment
• Clarify IP ownership and licensing
• Include dispute resolution and termination clauses
• Ensure contracts are signed and witnessed

BACD’s Legal Resource: Law Depot

We’ve partnered with Law Depot to make legal documents more accessible for our clients. BACD Clients Get 15% Off!

Law Depot Plans:

• One Year Pro:
  $95.88/year + GST (just $7.99/month)
  Unlimited documents for a full year. Auto-renews annually.
• Free Trial:
  One week of full access.
  Renews at $39/month after trial. Cancel anytime.

Law Depot offers 150+ customizable templates for Canadian businesses—from rental agreements to business contracts. Their legal team ensures documents are accurate and up-to-date.

How it works:
Answer a few questions, customize your document, and download it. It’s fast, affordable, and reliable.

👥 Need Help?

BACD offers free advisory meetings to help you navigate your legal and insurance needs. We’ll help you understand your options and make confident decisions.

Email to prebook your meeting: bacd@durham.ca
Call: (905) 668-4949

Or connect with our Referral Partner Network for trusted lawyers.