Can I get representations and warranties insurance on a small, owner-operated business sale?

It is possible, though the market for representations and warranties insurance in Canada has traditionally been more active on larger transactions, and availability on a small, owner-operated deal depends on the specific insurer's appetite at the time. Some insurers and brokers do write policies on smaller business purchases, but pricing and underwriting requirements are not standardized across the market, and a smaller deal can face proportionally higher relative cost or a more limited set of insurers willing to quote it compared with a larger transaction.

Whether this option makes sense for a particular deal depends on factors specific to it, including the perceived quality of the target's due diligence, the seller's own financial strength to stand behind an indemnity, and how much the buyer values reducing direct reliance on suing the seller after closing. The best way to find out what is actually available is to approach a broker who places this kind of coverage early in the process, since insurers typically want to review draft transaction documents and diligence materials before quoting, not just after the deal is already signed.