At GBA, we regularly connect with professionals across industries who share our passion for helping business owners build resilient and thriving operations. We recently sat down with Desjardins Insurance Agent, Mike Francis from Mike Francis Insurance and Financial Services Inc., about the role that insurance plays in safeguarding entrepreneurs—particularly those in the early stages of growth. From understanding co-insurance to aligning insurance coverage with a growing business, Mike shared valuable insights on the common risks business owners face and how trusted partnerships can make all the difference.
Mike: Many entrepreneurs focus on getting their business off the ground—building their brand, serving clients, and growing revenue. Insurance often gets treated like a checkbox item, when really it should be part of the foundation. It is not just about having coverage—it is about understanding what risks could seriously impact your business, your income, or even your ability to operate tomorrow.
That is why it is important to work with someone who sees the bigger picture. Insurance is not just about policies—it is about people. I spend most of my time building relationships and trust, understanding a client’s full roadmap, and then connecting them with the right tools or people to help.
Mike: Sooner than most people think. A lot of start-up and early-stage business owners wait until they need it for example to sign a lease agreement or a contract requirement—but the truth is, those early decisions can create risks that impact you including cost and insurability. We recommend finding the right partner in an advisory position to provide protection on the business including all assets like property and equipment, and who will guide them as the company moves through growth stages including protecting often their most important asset, their cash flow.
Mike: That is actually where a lot of our best conversations happen. Many early-stage businesses are focused on growth—they may be familiar with personal insurance but lack awareness on the commercial side. We take the time to learn about their business model, growth plans, and risk exposure, and then we help them start building the right foundation. We take the time to ask the right questions in order to determine what is suitable for them.
It is not about pushing products—it is about asking the right questions: What happens if your income stops? If your equipment gets damaged? If you are responsible for a liability claim? We want to make sure they clearly understand protecting cash flow, income, and business assets appropriately, even if they are not insuring every risk at the outset.
Mike: Co-insurance is something many business owners either are not aware of or do not fully understand when it is a factor in their policy — but it can have a major impact in a claim situation. At its core, it is about making sure you have enough coverage based on the actual value of what you are insuring. If you are underinsured and something happens, you could end up covering a significant portion of the loss out of pocket.
We encourage reviews of coverages on a regular basis. With our policy, we don’t have a co-insurance clause so here’s the risk if you’re not adequately insured.
So, say your building should be insured for $1,000,000 but you have only insured it for $600,000 — and then you have a $200,000 claim with an 80% Coinsurance requirement and $1000 deductible. Our understanding, the payout is not going to be the full $200,000 loss so accurately insuring to value is critical. The insurer would pay $160,000 less their deductible, or $159,000, and the policyholder would be responsible for the remaining $40,000. While it may vary by carrier, we certainly focus on this as a risk if their current policy has this condition.
Many business owners cannot absorb that kind of hit. At Desjardins, we do that extra analysis upfront—we look at the value of your assets, your risk exposure, and what coverage you should have to protect yourself properly. It is not just about replacing equipment or repairing a space; it is about helping the business absorb a setback it otherwise could not handle. That is what makes co-insurance a key part of our conversations—we want to help our clients close those gaps before something happens.
Mike: One of the biggest areas business owners overlook is protecting their income and cash flow. When people think about insurance, they tend to picture buildings or equipment—but your ability to generate income is just as critical. If you cannot work due to illness or injury, or if something disrupts your operations, how will the business stay afloat?
That is why we talk to clients about disability insurance, critical illness coverage, and Corporate-Owned Life Insurance (COLI) including key-man protection, especially when succession planning is on the horizon. These tools can help replace lost income, protect the owner’s equity, and ensure the business can continue—even if the unexpected happens – and can transition without or with less disruption.
Mike: We often act as the connector—bringing together our client’s lawyer, accountant, and other advisors. I often say, “I know what I know, I know what I don’t know, but I know who knows!” That is why I involve other professionals who can advise and offer the appropriate support.
Mike: Insurance is not just a product—it is part of your business strategy. If something unexpected happens—like a flood or a health crisis—the right coverage could mean the difference between a setback and a shutdown. My team’s role is to identify the risks, simplify the options, and earn our clients’ trust every step of the way.
At GBA, we value partnerships with professionals like Mike Francis, who take a proactive and relationship-based approach to business advisory. Whether it is co-insurance pitfalls or scaling coverage to match business growth, these insights help us serve our clients better. If you are a business owner navigating insurance, tax, and risk planning, reach out—we are here to help guide the conversation.
For anyone interested in learning more about the Mike Francis Insurance and Financial Services Inc., we encourage you to visit their website at www.mikefrancis.ca
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This blog is not meant to provide specific advice or opinions regarding the topic(s) discussed above. Should you have a question about your specific situation, please discuss it with your GBA advisor.
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