A guide for companies expanding into Canada
Insuring your Canadian expansion.
Your home-country or global program likely won’t cover Canadian operations cleanly on its own. Here is what changes when you cross the border, in plain language.
- 10provinces
- 3territories
- 12workers’ comp boards
- 10%federal excise tax
Thirteen jurisdictions
One country, thirteen rulebooks.
Each province sets its own workers’ comp, auto and privacy rules (the Northwest Territories and Nunavut share one comp board). Tap a tile to see the rules where you’ll operate.
See the full tableOntario
- Workers’ comp board
- WSIB
- Basic auto insurance
- Private
- Private-sector privacy law
- PIPEDA
Short answer
Probably not cleanly. Canada’s 10 provinces and 3 territories each set their own insurance rules, mandate workers’ compensation through their own boards, and tax insurance bought from unlicensed or foreign markets. Plan for each place you hire staff, hold property, run vehicles or sell.
The guide
Six things to get right.
How Canadian insurance is regulated
Two levels, 13 separate jurisdictions. A licence in one is not a licence in another.
→02What’s mandatory
Workers’ comp, auto liability and the limits your contracts demand.
→03Province and territory at a glance
Comp board, basic auto and privacy law for all 13.
→04The global-program tax trap
Why a foreign master policy can trigger a 10% federal excise tax.
→05Core coverages to put in place
CGL, property, cyber, D&O, E&O and employee benefits.
→06Before you open
Eight things to settle before your first Canadian hire.
→
Before your first hire
Workers’ comp is mandated by each province and territory’s own board, and auto liability is compulsory everywhere. A global program won’t satisfy either on its own.
What’s mandatoryBest practice
Local policy first. Master policy behind it.
Locally admitted Canadian policy, issued by your global insurer’s Canadian branch or partner.
Placed through a Canadian broker registered where your risks sit.
Master policy providing difference-in-conditions/limits cover.
Questions
Straight answers.
Will my global insurance program cover my Canadian operations?
Probably not cleanly on its own. Canada’s 10 provinces and 3 territories each set their own insurance rules, mandate workers’ compensation through their own boards, and tax insurance bought from unlicensed or foreign markets.
What insurance is mandatory for a business in Canada?
Workers’ compensation through each province or territory’s public board, and auto liability, which is compulsory everywhere. Landlords, clients, lenders and some professional regulators will also require specific limits and certificates.
Is it legal to cover Canadian risks under a foreign master policy?
Generally yes, but it is taxed, and some provinces (e.g. Nova Scotia) restrict it. It triggers taxes the Canadian entity must self-report, including the 10% federal excise tax on net premium.
What is the best way to insure a Canadian expansion?
A locally admitted Canadian policy, issued by your global insurer’s Canadian branch or partner and placed through a Canadian broker, with the master policy providing difference-in-conditions/limits cover.
