What is Scotia Business Loan Protection?
If you own a business and you or any other key employee are unable to work due to a disability, Scotia Business Loan Protection can cover the regular payments on your Scotiabank line of credit, loan or credit card. If you or another key employee passes away, your outstanding loan amounts can be paid in full.
Scotia Business Loan Protection offers you two coverage bundle types:
Your coverage includes essential life insurance benefits. With Basic Protection, your business can receive a life insurance benefit of up to $2,000,000 if an insured employee passes away.
Your coverage provides Life insurance, Disability, Hospitalization and Terminal Illness benefits.
With Comprehensive Protection, your business can receive the following benefits:
- Life insurance benefits of up to $2,000,000 if an insured employee passes away;
- Disability benefit paid monthly and equal to 1%1 of the Comprehensive coverage amount if an insured person becomes disabled;
- Hospitalization benefit equal to 2%2 of the Comprehensive coverage amount up to $15,000; or
Terminal Illness benefit equal to the outstanding balances3 on your insured borrowings.
Who can apply for Scotia Business Loan Protection?
Who is eligible for coverage?
This coverage is available to critical members of your business operations, including:
- A sole proprietor or partner;
- A guarantor
- Shareholders owning at least 10% voting shares of the business
A key employee whose contributions are essential to an eligible business entity and without whom the eligible business entity would have difficulty operating.
What businesses are eligible?
Your business qualifies under Scotia Business Loan Protection if you are:
- A resident and operate in Canada
- A Scotiabank customer with a fixed or variable rate term loan or demand loan, or a revolving credit facility
- A sole proprietorship, partnership, corporation, holding company or other entity operating a business
- A business (if not a farm, fishery or ranch), that is a small business corporation within the meaning of subsection 248(1) of the Income Tax Act
What loans are eligible?
The following business loan types qualify for coverage:
All commercial, small business or farm loans, lines of credit, mortgage loans, credit cards, personal demand loans for business purposes, or other related business loan credit agreements with Scotiabank.
Premiums and Discounts
For Comprehensive coverage under $50,000, the monthly premium rate is $1.00 per $1000 of the insurance coverage. For Comprehensive or Basic coverage, above $50,000 the monthly premium rate is based on your age and the insurance coverage amount.
Basic coverage is not available for under $50,000. Check out our frequently asked questions to see our detailed premium rate tables.
Learn more about the product
Protect yourself financially with optional Scotia Creditor Insurance Protection
With or without dependents, the right coverage can help keep your financial goals on track.
Calculate your Loan Balance Protection
Find out how much your monthly insurance premium would be.
You may not be able to see the future, but we can help you plan for it.
See how Scotia Creditor Insurance can help you and your family get financially prepared.
Frequently asked questions
Ways to contact us
Scotia Business Loan Protection
Visit us at a local branch. A representative can help find the right solution for you.