“C” is for coffee, “S” is for sensory, and “I” is for insurance.
Julian Lee and Victoria Kwon dreamt about launching their own sensory-focused business for more than 10 years. The Toronto-based couple, both with backgrounds in interior design, envisioned a destination where people develop and enjoy their own signature perfumes, slow down, and appreciate the aroma of a specialty coffee, while at the same time, viewing a perfectly curated wall of visual art.
Earlier this year, Lee and Kwon took the plunge, quitting their day jobs to focus entirely on their new business. In October, they opened Ratelier (“ra” meaning raw, and “atelier” to connote creation) in Toronto’s Trinity Bellwood’s neighbourhood.
It’s a one-stop destination for the senses, offering aromatic coffees, and perfume design workshops, in a carefully curated location. Their first weekend, they went “viral,” on Instagram and TikTok, according to Lee.
“One customer posted about us on social media and suddenly everyone was sharing with their friends,” he said.
They served more than 400 people per day.
“We ran out of milk,” said Lee, delighted by their quick success.
To ensure his business continues to run smoothly, Lee has not only invested in more milk but has also made sure that his business is protected through adequate insurance coverage.
“Having business insurance gives me a sense of security that I have a backup in case anything happens. It’s good to know I have a safety net,” he said.
The importance of business insurance
Many small businesses focus on growth and expansion, but in the process, they may overlook updating their insurance coverage. This oversight can create unexpected gaps that could put their business at risk.
For example, a business may have a commercial property insurance policy to protect their equipment, inventory and property, in addition to a commercial general liability policy to help cover losses resulting from third party claims.
But if the business was forced to temporarily shut down due to a covered loss and didn’t carry business interruption coverage, they could be out of pocket to cover ongoing expenses such as rent and payroll.
This coverage gap could be the reason why business owners aren't turning to insurance in an emergency. A recent TD Insurance survey¹ found that while most business owners surveyed (about 94%) have insurance, only 52% would use it in an emergency. Half of respondents said they would turn to credit cards first, or a bank loan (48%), or tap into their line of credit (47%).
The business owners surveyed are so reluctant to use their insurance that more than a third (36%) said that they would ask for a loan from friends or family if their company’s future was at stake before filing an insurance claim.
According to Tang Trang, Vice President Small Business Insurance at TD, there are two ways to look at it. One is that business owners may be reluctant to make a claim because the claim is small and less than the deductible.
But another concern might be the business doesn’t have adequate insurance coverage to cover the loss, which is why they’re turning to other sources of financing.
"Many businesses think about coverage for contents, property, even liability. But if they don’t have business interruption insurance, there’s no support to help them if they need to temporarily shut down the business,” Trang said.
“This is where business insurance differs from other types of insurance. In the event of an emergency, businesses need to consider ongoing expenses and revenue. It adds additional layers of complexity, and this can create real uncertainty, even fear.”
Economic uncertainty a top concern for Canadian business owners
It’s no secret that uncertainty in the economy is striking fear in hearts of many Canadian business owners.
According to the survey, 32% of Canadian business owners polled describe the country’s economic uncertainty and rising prices as top concerns. They might be tempted to save money on insurance, but that could leave their business exposed if they opt out of policies such as business interruption insurance or liability coverage.
For Lee, safeguarding the future success of Ratelier remains his top priority, and despite the economic concerns held by many small businesses, he thinks anyone with a stated goal to launch a business can succeed, if they just take it step by step.
“Everyone has a vision and there is always timing, but if I have one piece of advice it’s don’t wait,” Lee said.
Not one to rest on his laurels, Lee said he has plans to accelerate Ratelier’s growth.
The shop, which already offers 90 fragrance bases for clients to work with, plans to add 30 more. Ratelier has collaborations with florists, sommeliers, and single-origin tea distributors, as well as workshops to create all-natural bath bombs. With the hectic pace of life in Toronto, Lee believes there is an unmet need to stop and — literally — smell the rose fragrance.
“As an artist, I always felt that every moment where people are sitting around and soaking up their environment, whether it’s a gallery or café, the sensory part of their experience is really important,” Lee said.
“I wanted to emphasize a place where clients can take a moment to appreciate their senses. Rather than just buy a fragrance, we want people to understand the connection between the fragrances and our memory and emotions. It’s more than perfume."