Protect What You've Put Into Your Business

You've worked hard to build a successful company that provides a secure lifestyle for your family, and for the partners and employees who make it run, so you can't afford to put your business at risk.

Apply or get more information

Contact your Small Business Advisor or RBC Royal Bank Account Manager directly:

Business Loan Insurance Plan can help ensure the financial obligations of your business are met in the face of a key employee, partner or owner's critical illness or death, or when an owner becomes disabled as a result of illness or injury.

  • Normal business activities can continue
  • Minimize potential cash flow problems
  • Preserve your personal insurance for what it's intended protecting your family
  • Keep business investments and other assets intact

Three Types of Protection Under One Cost-Effective Plan

  • Critical Illness Coverage with Life - Should an owner or key employee be diagnosed with a critical illness (heart attack, cancer or stroke), this valuable coverage provides up to $500,000 per insured person to help pay off outstanding loans.
  • Disability Coverage with Life - If a disability prevents an owner from working, this coverage provides up to $7,000 per month for a maximum of 24 months per claim towards loan payments. There is a lifetime maximum of 48 months of Disability benefit payments per insured person.
  • Life Insurance - Should an owner or key employee pass away, life insurance provides up to $1,000,000 per insured person to help pay off outstanding loans.

Life insurance includes Accidental Dismemberment Coverage at no additional cost. This coverage can pay up to $25,000 against the outstanding balance of an insured loan if an injured person suffers an accidental injury resulting in the loss of sight in one eye or a single dismemberment. This benefit can double to $50,000 in the event the insured person suffers an accidental injury resulting in the loss of sight in both eyes or a multiple dismemberment.

Frequently Asked Questions

Your account manager will help you decide which coverage may be best for your unique needs. Consider these features:

Feature Critical Illness Disability
Conditions where a benefit could be paid Heart attack, cancer or stroke Whether you are able to perform the regular duties of your job is not a condition for a benefit payment to occur A sickness, injury or mental illness (being treated by a qualified medical doctor) that completely prevents you from performing the regular duties of your occupation
Benefit Payment One time, lump sum Covers monthly regular business mortgage, loan or operating line payments for up to 24 months
Benefit Payment amount maximums Up to $500,000 Up to $7,000 per month

Consider what would happen if your family had to liquidate all or part of your nest egg suddenly and in a down market. Business Loan Insurance Plan can help to ensure the covered business debt is paid (either partially or in full) so your personal/family assets can remain intact and your savings and home equity can be used for what you intended them for your loved ones.

To qualify for and remain eligible for coverage, the business must:

  • Be domiciled in Canada, and operate in Canada
  • Be a sole proprietorship, partnership, corporation or other entity operating a business/farm that is indebted to RBC Royal Bank under a loan

The following RBC Royal Bank business loans are eligible for coverage (all loans must be denominated in Canadian dollars):

  • Operating loans
  • Term Loans
  • Canada Small Business Financing Loan
  • Commercial mortgages less than $1,000,000
  • RoyFarm Mortgage
  • Any revolving credit facilities, by way of RBC Royal Bank prime based loans

These types of loans are not eligible: letters of credit, letters of guarantee, most commercial mortgages, Visa card balances, overdrafts, leases, bankers' acceptances or tender loans.

To qualify and remain eligible for coverage, the individual for whom insurance is requested (the proposed insured) must meet the below requirements.

Critical Illness Coverage with Life

Up to 25 owners, guarantors or key employees may apply be insured for the plan's critical illness coverage

  • 18 years of age but less than 60 years of age on the date of the application
  • A Canadian resident
  • Approved for and maintain a minimum of $25,000 in life insurance coverage under the plan
  • An owner of the business, or, responsible in whole or in part for the management of the business, or, a guarantor or endorser of the insured loan
Disability Coverage with Life

Up to 3 business owners may be insured for the plan's disability coverage.

  • 18 years of age but less than 65 years of age on the date of the application
  • A Canadian resident
  • Approved for and maintain a minimum of $25,000 in life insurance coverage under the plan
  • An owner of the business
  • Actively working for the business at least 20 hours a week, on average, as of the date of the application
Life Insurance

Up to 25 owners, guarantors or key employees may be insured for the plan's life coverage.

  • 18 years of age but less than 65 years of age on the date of the application
  • A Canadian resident
  • An owner of the business, or, responsible in whole or in part for the management of the business, or, a guarantor or endorser of the insured loan

You have a growing business and while you may have one type of credit today, as your business grows, you may have different and more credit needs in the future. By including BLIP on your credit today, as you add more credit, it will automatically be covered up to your insured amount.

Yes. Business Loan Insurance Plan automatically tracks your term loan or operating line, and bases your premiums on your daily outstanding balances. As a result, you pay only for as much or as little as you need. And, you pay nothing when the outstanding balance of your loan or operating line is zero.

Insurance premiums are calculated based on the insured person's current age, sex, smoking status at the time you are applying for coverage and the daily outstanding balance on all insured loans.

For more information on RBC Business Loan Insurance Plan premiums please contact us today: 1-800-769-2523.

Each person applying for life insurance coverage must answer one health question in the application. If you are applying for critical illness or disability coverage, you will also need to answer an additional health question. If you answer "yes" to either of the two questions in the application, a medical phone interview will be scheduled.

A medical phone interview is also required if you are applying for life or critical insurance coverage in excess of $300,000.

Click here for details on the medical phone interview

Apply or Get More Information

Contact your Small Business Advisor or RBC Royal Bank Account Manager directly:

Need to make a claim?

Phone 1-800-769-2523 More Claim Information