Top 5 business insurance trends to watch in 2026

Canadian businesses in 2026 face a more complex environment than before. Economic pressures and shifting trade relationships are creating new uncertainties that can feel overwhelming.

Understanding business insurance trends can help you protect your business and support its growth. Staying informed lets you take action now to safeguard your investment and keep your business strong, whatever the year brings.

This article covers five important business insurance trends for 2026 and offers practical tips to help you get ready.

Top business insurance trends shaping 2026

The business insurance trends for 2026 highlight the tough challenges Canadian companies face in an uncertain economy. Economic slowdowns and labour shortages show where businesses are most at risk and how having the right insurance matters most.

Here are five key business insurance trends every Canadian business owner should know for 2026.

1. Economic uncertainty and rising costs

Canada's economy is expected to grow by just 1% in 2026, according to the Business Development Bank of Canada. That's slower than 2025, and it means businesses will face continued pressure on profits and cash flow throughout the year.

Input costs are still high. The Bank of Canada reports that tariffs, a weak Canadian dollar, and supply chain changes are all raising the costs of raw materials, energy, and shipping.

What this means for your business insurance:

Consider adding business interruption coverage to protect your income if higher costs lead to temporary closures or slowdowns. This coverage can help replace lost revenue when you can’t operate due to covered events.

As operational costs rise, businesses may need to review their coverage limits. If inflation raises the value of your inventory, equipment, or property, your current insurance might not fully cover you.

Review your insurance policy to ensure replacement costs match current prices. Your premiums should reflect the true value of what you’re protecting.

Steps you can take now:

• Stress-test your cash flow and identify areas where you can trim expenses.
• Maintain emergency reserves to cover unexpected costs or coverage gaps.
• Schedule a coverage review with your insurance broker to adjust limits for inflation and increased costs of goods.
• Explore bundling options that might reduce your overall insurance costs.

2. Weak consumer demand

Canadian businesses are in a tough position as market uncertainty lowers consumer spending and slows growth. Weak demand makes it harder to maintain steady revenue, even as costs continue to rise.

Rising costs and limited ability to raise prices put real pressure on your business income. If you can’t raise prices to cover costs, your profit margins shrink. If demand drops further, you may also see lower sales.

What this means for your business insurance:

When market uncertainty puts your business income at risk, the right insurance can be a financial safety net. Business income protection is especially important if tough economic times affect your revenue.

Bond surety insurance can help you win contracts, even when clients are cautious due to financial uncertainty. This coverage shows you are reliable and helps you compete for projects that keep money coming during slow periods.

Steps you can take now:

• Document your typical revenue patterns so you can prove income losses if needed.
• Review your business income protection to understand what events trigger coverage.
• Consider bond surety insurance if you bid on contracts or need to demonstrate financial reliability.
• Speak with your broker about coverage options that protect against economic disruptions.

3. Supply chain disruptions

Supply chain problems are expected to continue in 2026. Canadian businesses that depend on imports are still facing delays, higher costs, and uncertain access to materials and products.

The trade landscape is shifting dramatically. According to the Bank of Canada, tariffs on Canadian exports have increased the average tariff rate from 0.1% at the start of 2025 to around 5.9% by October 2025. The upcoming renegotiation of the United States–Mexico–Canada Agreement (USMCA) adds even more uncertainty to cross-border trade.

These disruptions may force businesses to change their supply chains. You might need to find new suppliers, keep more inventory, or handle longer wait times. Each change adds costs and new risks.

What this means for your business insurance:

A disrupted supply chain can cause more than late shipments. You might have to stop production, lose revenue, or miss customer orders.

Business interruption insurance is important if supply chain delays halt your operations. It can help replace lost income when you can’t operate due to covered events, protecting your revenue while you sort out supplier issues.

If you’re holding more inventory to avoid delays, check that your property insurance covers the higher stock levels. The value in your warehouse may be much higher than last year.

Steps you can take now:

• Explore multiple suppliers for critical inputs, both in Canada and internationally.
• Maintain a small inventory buffer for essential materials.
• Review your business interruption coverage to ensure it covers supply chain-related losses.
• Document your supply chain dependencies so you can prove losses if you need to file a claim.
• Verify that your property insurance limits match your current inventory values.

4. Labour shortages

Canada’s labour market remains tight as we head into 2026. Many sectors, like technology, healthcare, and trades, are short on skilled workers. A recent ManPowerGroup survey found that 77% of Canadian employers are struggling to find the talent they need.

Wages are also rising. The Business Development Bank of Canada expects average wages to increase by 3% in 2026. While higher pay helps retain staff, it also raises your costs and can make it harder to keep enough employees.

When you're short-staffed, your existing employees often take on additional responsibilities outside their usual roles. Cross-training helps cover critical functions, but it also means people are doing work they might not be fully trained for. This stretches your team thin and can increase the risk of mistakes.

What this means for your business insurance:

When employees are overworked or working outside their expertise, errors become more likely. A mistake in judgment, missed deadline, or oversight could lead to claims against your business. 

Errors and omissions insurance covers professional mistakes, such as missed deliverables or errors, which can happen more often when workloads rise. This coverage is especially helpful if employees are taking on new or unfamiliar tasks.

Directors and officers liability insurance protects your leadership team if they are held personally responsible for business decisions during difficult times. This coverage is an important safety net when making tough choices about staffing, operations, or resources.

Steps you can take now:

• Develop retention strategies, including competitive pay, benefits, and flexible hours.
• Invest in proper training programs to reduce the risk of costly mistakes.
• Document all training thoroughly to show you took reasonable precautions.
• Review your errors and omissions coverage if employees are taking on new responsibilities.
• Consider directors and officers liability insurance to protect leadership during difficult decisions.

5. Cyber security risks

As more Canadian businesses go digital, cyber threats are increasing. The move to online and hybrid work gives criminals more opportunities to target companies with ransomware, data theft, and extortion.

Your business data is valuable. Cybercriminals may target customer information, financial records, and your intellectual property. 

A cyber incident can cost much more than just the immediate damage. You might need to pay legal fees, notify affected customers, repair systems, recover data, and possibly pay regulatory fines. A cyber attack can also stop your business for days or weeks, cutting off your income when you need it most.

What this means for your business insurance:

Cyber insurance helps cover losses from network threats and data breaches. This coverage can handle many of the costs that come with a cyber incident.

A typical policy covers legal help, notifying affected people, hiring investigators, fixing damaged networks, and recovering lost or corrupted data. Some policies also include coverage for lost revenue during system downtime.

As cyber threats evolve, having the right coverage helps you respond quickly to an incident without worrying about recovery costs.

Steps you can take now:

• Implement strong password policies and multi-factor authentication across your systems.
• Train employees to recognize phishing attempts and suspicious links.
• Back up critical data regularly and store it securely.
• Develop a response plan for potential cyber incidents so you can act quickly.
• Speak with an insurance broker about cyber insurance coverage that fits your business size and risk profile.

Stay ahead of business insurance trends with the right coverage

Businesses that succeed in uncertain times are those that plan ahead. Reviewing your coverage, updating limits for current replacement costs, and filling any gaps before problems arise can make a big difference in protecting your business.

You don’t have to manage these business insurance trends alone. Orbit’s experienced brokers understand the challenges Canadian businesses face in 2026. We help you find coverage that protects your business, fits your budget, and gives you peace of mind all year.

Contact an Orbit insurance broker today to review your policy and make sure you’re protected against future risks. We’re here to help you focus on what matters most: growing your business with confidence.

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