Frequently Asked Questions

  • How can I reduce the effects of Insurance Fraud?

    Insurance fraud affects you and you can help to reduce it.

    Insurance fraud drives up premiums for everyone

    The insurance industry estimates that 10 to 15 cents of every dollar paid in premiums goes to paying fraudulent claims-totaling more than $1.3 billion each year. This makes insurance fraud second only to the drug trade as a source of illegal profits in North America. Unfortunately, insurers have to pass these costs on to customers in the form of higher premiums.

    The industry is fighting the problem

    Insurers are doing much more than raising premiums to deal with the costs of fraud. A number of industry associations are working together to fight this problem.The Insurance Bureau of Canada,The Canadian Automobile Association, and The Canadian Coalition Against Insurance Fraud are just a few of the groups helping to promote public awareness, better business practices and improved investigative and enforcement techniques.

    You can be part of the solution

    It’s easy to sit back and say “There’s nothing I can do to stop fraud,” but there is something you can do. Insurance fraud is often the result of fairly routine manipulations of the system-a tow truck driver who recommends a garage and gets a commission for doing so; a service provider who bumps up a charge because they know the insurer is paying; or a paralegal who asks for a percentage of an insurance award. These may seem harmless to you, but they are part of the web of fraud schemes that are costing you money. When you see fraudulent activity, challenge the service provider directly or report the behaviour to the police.

  • What is insurance and why do I need it?

    Insurance has many forms and functions but really just one purpose – to provide peace-of-mind.

    Four good reasons to insure

    In some cases, insurance is mandatory – to obtain a mortgage, for example, or to drive a car. Otherwise, the choice is yours, but it’s a wise choice for four main reasons:

    1. Reduces worry. With the right type and amount of insurance, you can be protected from the risks to property and person that are inherent in everyday life.
    2. Makes it easier to obtain credit. Lenders may be more willing to extend personal or commercial credit if they know that proper insurance is in place.
    3. Helps to prevent loss. Brokers and insurers work to help prevent loss with information and advice on road safety, anti-thief, fire prevention and fraud reduction.
    4. Frees Up capital. Because insurance protects your assets, you do not have to put money aside in case of future losses. This security applies to individuals and businesses.

    Three main types of insurance

    In addition to life and health insurance, there are three main types of property and casualty insurance in Canada:

    1. Automobile insurance whereby vehicles and their equipment are covered in cases of accidents and theft.
    2. Property insurance in which home and business assets and property are protected from perils such as fire, theft and accidental damage.
    3. Liability insurance that protects people who are responsible for injuries or damages to third parties.

    Two key players: your insurer and your broker

    Insurance is sold in a number of ways, some of which make it easier for customers to get objective advice and rapid service. Some insurance companies will sell directly to customers through their sales forces or agencies. Brokers, on the other hand, are not tied to any one company, but are independent advisors whose best interest is long term customer satisfaction. Brokers can comparison shop across insurance companies to find good rates or special insurance products and assist in assessing your risk.

    Your broker can tell you more about the basics of insurance in order to make sure your needs are covered.

  • Why use an insurance broker?

    Your broker works for you, not the insurance company. They are at your side when you buy or upgrade your insurance or if you have to make a claim.

    The value of objective advice

    Insurance brokers are business people whose success rests on your satisfaction with your coverage, price and service. It’s in their interest to understand your needs and negotiate on your behalf for competitive premiums even if it means approaching several companies to find the right solution. Because your broker doesn’t work for the insurance company, he or she can also assist you with objective advice should you have to make a claim.

    Get informed help when you need it most

    The insurance industry has become more complex with its own language of terms, legal issues and subtle details. You need a knowledgeable expert at every stage of the process to interpret all rules and what they mean for you. Your broker’s advice can also be invaluable, as your insurance needs change and your requirements become more complex.

  • What do I do in case of a loss?

    How you make your claim is as important as what you claim.

    The right time to make a claim is immediately or as soon as you are able.

    Alert your broker as soon as practically possible

    If there is any danger or ongoing damage occurring, your first priority should be to insure your safety and limit the damage to your property. At that point, you should take care to act quickly and with the right information.

    • Alert your broker and your insurer of an insured loss as soon as your situation permits.
    • Keep phone numbers available.
    • Alert the police of any theft or break-in.
    • Do not alter evidence of the loss, for example, by starting to clean up after a pipe bursts or altering the scene of a break-in. If you absolutely must alter anything, take detailed pictures of the damage first.

    Consider whether or not you should make a claim

    First things first. Should you make a claim? There are some situations in which you shouldn’t and your broker can help you decide.

    • Is it insured? Remember that your policy has limits and exclusions that means some losses are not covered. Property belonging to your employer, for example, is probably not covered. Damage from a fire that was set intentionally might not be covered, and theft of a valuable painting could be beyond your insurance limit. Is it covered? Ask your broker first.
    • If the loss is less than the amount of your deductible, then you cannot make a claim.
    • If your loss is covered and above the amount of your deductible, you might still not want to make a claim if your premiums will increase as a result. Again, ask your broker for advice.

    Work with your broker and the claims adjuster

    Once your claim has been made, the insurance company may appoint an adjuster to get a clear picture of the circumstances and extent of the loss. They may assist in securing repairs and can help with arrangements for accommodations. They might also decide to limit the amount of a payment or to not pay at all – depending on the situation. If you are unsure about the role of your adjuster and the information they are using, be sure to contact your broker who can help bring clarity to the situation.

    Your broker can help you with every step of the claims process.

  • How can I minimize my insurance costs?

    Brokers can help find ways to control your premiums and still get the coverage you need.

    No one likes to pay insurance premiums, so any chance to control or reduce cost is welcome. Your broker can help you minimize premiums by helping to define your insurance needs and by shopping around for the best policy.

    Don’t over or under-insure

    Under-insure and you might be left carrying the cost of damage, theft or loss of property. Over-insure and you will be paying more than you have to. Your broker can help you find the right balance by examining your assets, your risk profile and your insurance history. They can also alert you to choices that could reduce your insurance costs such as installing an alarm system in your home.

    Set deductible and liability levels right

    One way to control your premiums is to set a higher deductible, which means you accept more risk for covering small losses. Insurers tend to have deductibles ranging from $300 to $1,000. Ask your broker to explain the cost implications of different deductibles. If you drive in the U.S., you might want to consider higher liability coverage due to the higher levels of personal injury awards in that country.

    Stay claims-free

    One of the best ways to minimize premiums and obtain discounts is to avoid making claims. One of the best ways to do this is to reduce the risk factors that drive claims.

    For your vehicle:
    • Avoid car accidents by driving defensively and never while impaired.
    • Install an anti-theft system.
    • Never leave valuables in the car.
    • Keep your driving record clean.
    In your home:
    • Consider a home security system.
    • Install smoke and carbon monoxide alarms.
    • Clear the snow and ice off your walk ways.
    • Install good quality locks on your doors and windows.

    These are just a few examples of ways in which lowering the risk can mean lowering the cost to you.

    Ask your broker for more information about how to keep your premiums under control without compromising on coverage.

  • How does my Homeowners Insurance policy really work?

    Don’t wait until it’s time to make a claim to get a full understanding of how your insurance works.

    The following definitions explain a few of the major building blocks of home insurance.

    Acts of God

    Acts of God are considered natural disasters that could not have been reasonably prevented or avoided. Most standard forms cover the perils of hurricanes and tornados. Lightning and hail are classified as named perils. Coverages for floods or earthquakes are not included in standard policies. In some cases, earthquake coverage may be available for an additional premium, and is likely to be more expensive and difficult to obtain in areas susceptible to this peril.

    Deductibles

    Deductibles are the amounts you pay to cover a loss before you are entitled to payment by your insurer. Just about every policy has a deductible, usually ranging from $500 to $5,000. Deductibles are designed to discourage small claims, since the purpose of insurance is to protect you from catastrophic losses, not minor inconveniences.

    Exclusions

    Quite simply, exclusions are items, perils or situations that are not covered by your policy. Your insurer might exclude anything from long-term mould damage to natural disasters, computer data or high-speed watercraft. Other common exclusions include avoidable damage from termites or rodents, water seepage, frozen pipes, intentional damage and high value items such as art and jewelry.

    Liability–in the home and away from home

    Although liability insurance is part of your homeowner policy, it also protects against third party claims for bodily injury and property damage caused (unintentionally) by you when you are away from home.

    Depreciation

    Depreciation is a measure of the loss in value of an item over time resulting from wear or obsolescence.

    Valuations

    Your insurer will likely want to conduct a valuation of your home in order to set the right replacement value and coverage level. Unlike an appraisal, this does not determine the market value of the property, but rather the likely cost to rebuild the dwelling and other structures to original standards in the event of a complete loss.

    Your broker is an insurance expert, so you don’t have to be.

  • Do I need extra coverage for high value items?

    Take the time to ensure that your most precious things are protected.

    Most policies limit payments for certain items and categories

    It is common practice for policies that cover personal property to have special limits on the amount that will be covered for specific items or items within specific categories. If you require the full replacement or market value to be insured, you will have to arrange for additional insurance and pay the appropriate premiums.The rationale behind this practice is to ensure that everyone is provided with a base level of insurance at reasonable rates and those with high value items cover their own extra costs.

    Examples include:
    • Jewelry, Watches, Gems And Furs
    • Coin Collections
    • Silver And Gold Ware
    • Money Or Bullion
    • Business Property

    A thorough home inventory will tell you where you stand

    One of the best ways to know if your belongings are covered is to do a complete inventory of your contents and review it with your broker. A home inventory will help you itemize your property if you need to make a claim, and it is a good way to test if your overall policy limits are adequate. You should include a list of contents, a brief description or photograph and an estimate of the replacement value of each item. Consider making a video of your rooms, cupboards and shelves and store it off-site.You can also take advantage of inventory tools such as the IBAC Home Inventory Form available online, at http://www.ibac.ca/Pages/English/Consumers/Downloads.aspx.

    With a professional appraisal, you can arrange the extra insurance you need

    If you have high value items that exceed the limits in your policy and you want to have them separately insured, you will probably need to have the items valued by a professional appraiser so that you know what limits of coverage to purchase. Depending on the type of property and how much information you can provide, an estimate of value can be determined. There is a fee for this service.

    Knowing the value of the contents of your home is vital to being properly insured. Your broker can help you find the tools and resources you need.

  • Does having a home business affect my insurance?

    The short answer is yes, and the best way to know what is covered is to talk to your broker.

    More and more people are starting home-based businesses, for everything from marketing homemade products to keeping a home office for a consulting business. From an insurer’s perspective, this adds new types of risk to your home, and therefore, may require additional insurance.

    Residential policies provide limited coverage on business property

    Anything you use in running your home-based business is subject to the limits of insurance and/or might not be covered at all.

    Be aware that:
    • Dollar Limits Apply On Business Property, Computer And Software.This Limit Might Be As Low As $2,000 In Total, Which Would Not Cover Even The Most Basic Home Office.
    • Your Policy Might Completely Exclude Any Special Equipment That You Keep In Your Home For Business Purposes.
    • Items That Are Covered For Business Use Are Only Covered While In The Home. So, For Example, If The Computer You Use For Your Home-Based Business Is Stolen While On A Trip, It Will Not Be Covered.

    Some home businesses may require added liability insurance

    The operation of your home-based business might mean that you have more people coming and going, and therefore, more risk associated with the activities in your home. If this is the case, not only will a basic liability limit of one million dollars likely not cover you, but also, some insurers might refuse to cover a third party claim by a customer or employee who is injured in your home. If you think this situation applies to you, be sure to tell your broker about your home business and make sure your insurance company is made aware of your home-based business activities.

    Your broker can tell you more about the basics of insurance and can help you make sure your needs are covered.

  • How do I choose the right policy for my home?

    Your home should be insured from the moment you take legal ownership-even if it is under construction. Your broker’s expertise is particularly useful at this stage when you really need to match policy features with needs. Here’s a primer to get you started:

    Home insurance covers the building, its contents and liability

    There are usually three parts to your homeowner’s policy. For condominium owners and tenants, just the contents and liability coverages apply:

    1. Building insurance covers the main dwelling, garage and any out buildings.
    2. Contents insurance covers the cost of replacing furniture, carpets and personal possessions. Valuables such as art, jewels and furs may require additional coverage. Note that most contents are insured even outside the home, for example, if stolen while you are on a trip.
    3. Liability policies insure against the costs incurred if, due to negligence, you are held responsible for an act causing injury or property damage to others.

    Policies range from offering comprehensive to “bare-bones” coverage

    You can save money by scaling down your policy, but be careful not to underinsure. Basically, there are two common types of protection.

    1. Named perils coverage provides coverage for specific basic perils outlined in the policy. This coverage is usually less expensive, but places more risk to financial loss on you.
    2. All risks coverage provides you broader coverage for normal risks to which your home exposes, except those which are specifically excluded, such as acts of terrorism or flooding.
    There are three general policy categories from which to choose:
    1. Basic/named perils policies which is the most basic policy you can buy, providing “Named Perils” coverage only for both your home/outbuildings and its contents.
    2. Broad form policies provide slightly broader protection, offering “All Risks” coverage on your home and outbuildings and “Named Perils” coverage on your contents.
    3. Comprehensive policies provide the most thorough coverage available by offering “All Risks” coverage for your home/outbuildings and also your contents.

    Regardless of which policy you select, some coverages can be increased and certain items insured separately. Your broker will be happy to sit down with you to review your coverage needs.

    Ask your broker to explain your options, and to help assess what’s best for you.

  • What do I do if my home is unoccupied?

    Your insurer considers an unoccupied dwelling riskier than an occupied one.

    Depending on how long you are away from your home, you need to make arrangements to ensure your dwelling is checked regularly, especially through the heating season. In some circumstances, you may need to inform your insurer.

    When away for a short time 

    If you will be away from your home for fewer than 30 days, you do not need to inform your insurer. However, you do need to arrange for a competent person to look in on your home everyday or two to make sure that everything is in good order. If a deep freeze and/or a broken furnace results in exploding pipes and water damage that goes unnoticed for several days, your insurer could refuse to cover the costs if no one was looking in on the house.

    For longer absences 

    If you are away for more than 30 days, your home is considered “unoccupied” because you plan to return. In this case, you should contact your broker to determine whether you will need to inform your insurer and obtain a special permit to leave the house empty. You will still need to arrange regular checks on the property, and you might want to consider draining water pipes and installing a good security alarm system.

    If the property is empty

    A fully vacant property is one with no occupants and no contents. This may occur if a house sale is delayed and the property remains vacant until sold. In this case, you need to obtain a vacancy permit from your insurer. This permit will maintain most of your coverage, except for risks associated with vacancy such as broken water pipes, broken glass or vandalism.These permits can be obtained for up to three months.

    Before you leave your dwelling unoccupied, check with your broker to be sure that you are covered.

  • What do I need to get an Auto Insurance quote?

    The more information, the better.

    Whether you are transferring your insurance from another province, seeking to change insurers or owning a car for the first time, the process of getting an insurance quote can be daunting. In general, the more the insurer knows about you and your driving record, the better off you will be, even if your record is less than perfect. Full disclosure at the beginning will save any risk of misrepresentation if you do need to make a claim in the future.

    This is an area where your broker can be of particular assistance in helping you to navigate the terrain. There are three main categories of information required:

    1. Information About You

    • Names of the drivers of the vehicles to be insured. This usually includes all licensed members of your household since it is assumed they will use the car. Provide their names as shown on their license, the number of years licensed and the percentage of time they will use the vehicle.
    • Driving records of all applicants will be screened to identify applicants with undesirable driving records. This will include driving convictions in the last three years and accident claims in the last six years.
    • Insurance history for the preceding three to six years must be provided, including any cancelled, declined or refused insurance.
    • License history of all listed drivers must be provided for the preceding six years, including suspensions, cancellations or lapses.
    • In provinces that have public insurance, all required information is already captured by the government.

    2. Information About The Vehicle

    • Full information about the make, model and year are required as well as the vehicle identification number or VIN. Also, include the details of a lease if you have one, the purchase value, whether new or used, and the value of any modifications to the vehicle. Include vehicle ownership. If any other party has a financial interest in the vehicle, this should be recorded to they are protected in the event of a loss.

    3. Information About Your Coverage Requirements

    • Finally, you will need to provide information of how the vehicle will be used. Is it for pleasure or business? If it is for commuting, what is the daily estimated distance? What will the annual distance be? If for business use, will you be carrying paying passengers, renting the car out to others or transporting any goods? You will also need to indicate your choices regarding your coverage, for example, your preferred deductable, liability limit and coverage for any special situations, including storing the car or driving in the U.S.

    Getting your application right can have a significant impact on your premiums. Be sure to ask your broker for advice and help.

  • How much Liability Coverage is enough?

    Liability insurance is mandatory, but you can adjust the level to make sure your needs are met.

    What is liability insurance?

    Liability insurance covers the cost of damages (for accident benefits, medical costs, lawsuits and awards) in the event of personal injury or death from an accident involving the insured party. In other words, you are financially protected if you are held liable for an injury or loss by others arising from the operation of your vehicle.

    What is no-fault insurance?

    Many provinces in Canada now have some level of no-fault insurance in which each person’s own insurance company pays for injury or damage up to a certain limit.This applies regardless of whether or not the insured person was at fault. In Quebec and Manitoba, for example, there is a pure no-fault. In Ontario, however, there is a threshold system in which the no-fault clause only applies up to a certain threshold of liability. So, if you are involved in an accident and injured, your own insurance covers the associated costs of treatment, living expenses, loss of work and pain and suffering. This means injuries that are not “serious and permanent” are covered by your own insurance. Your insurance also covers the associated costs of treatment, living expenses, loss of work and dependent care.

    When to consider extra coverage

    The recommended level of liability insurance coverage is usually about $1 million. There are some situations in which you might want to increase your liability limit depending on the use of your vehicle. For example, if you drive into the U.S. on a regular basis, where liability settlements are generally higher than in Canada, you might want to consider higher coverage. If you carpool to work or drive groups of children in your car to school or after-school events, you might want to increase your coverage to reflect the higher risks to which you are exposed.

    Ask your broker for more information about liability insurance and how to obtain the right level of coverage.

  • Special Coverage: Am I covered?

    Every policy is different, but there are some common situations to be aware of.

    Your vehicle insurance policy likely has some flexibility built in to ensure you are covered in different situations. You should check your policy or ask your broker to be sure.

    Renting a car

    If you drive a rented car or any vehicle that is not owned by you, your existing policy automatically extends accident benefits and third party liability coverage to your rented car. These limits are the same as those on your own car. You can purchase additional coverage by way of an annual endorsement to your own policy that provides physical damage insurance for any rented vehicle during the policy term. It is important to note that this endorsement usually has a limit of $50,000. So, if you rent a luxury car, you should be aware that the cost of repairs are limited.This endorsement is simple to arrange and far more economical than the costly damage waivers offered by the rental companies.

    Traveling outside the province or country

    Your insurance will apply if you take your car on short trips to other provinces or into the continental U.S., as long as you engage in normal use of the vehicle.

    Moving to another province

    If you are relocating long-term or permanently, you must inform your insurer and arrange for new coverage that reflects the risks in your new location.

    When the car is “in the shop”

    Under most insurance policies, you are not entitled to a replacement vehicle while your car is in the shop for normal maintenance or repair. If you lose the use of your car because of an accident, then you might be entitled to a loaned vehicle depending on the situation.

    When driving someone else’s car

    If you borrow someone else’s car, you are covered by the insurance on that car. However, if you are involved in an accident, the owner’s record, not yours, will be affected. If you borrow a car on a regular basis, ask your broker to arrange a special clause in your policy to cover your use.

    When someone else drives your car

    Remember that when someone else is driving your car, you are still responsible for it. Any at-fault accidents or claims will go onto your driving record and affect your future premiums.

    Ask your broker for more information about liability and how to obtain the right level of coverage.

  • What are my Auto Insurance bill of rights?

    Consumers’ Rights

    • You have the right to purchase auto insurance coverage.
    • You have the right to be treated fairly by your insurance company.
    • You have the right to be given written reasons if you have been denied auto insurance.
    • You have the right to keep your policy in place if you pay your premiums and meet the responsibilities.
    • You have the right to pay your auto insurance premium in monthly installments.
    • You have the right to keep your policy in place if you pay your premium within 30 days following one or two non-sufficient fund (NSF) situations.
    • You have the right to be informed in writing if your policy is not being renewed.
    • You have the right to change or cancel your insurance policy at any time.
    • You have the right to remain with your insurance company even if that company no longer sells insurance through your broker.
    • You have the right to know from which companies your broker received quotes and the amounts.
    • You have the right to prompt and fair handling of claims.
    • You have the right to reasonable repair of your damaged vehicle.
    • You have the right to choose a repair shop, tow operator or vehicle rental company.
    • You have the right to receive information about accident benefits.
    • You have the right to dispute your insurance company’s refusal to pay benefits.
    • You have the right to choose your health care provider.
    • You have the right to register a complaint about your insurance company.

    Consumers’ Responsibilities

    • You must insure your vehicle and retain your proof of insurance (pink slip) while driving.
    • You must pay your premium in a timely fashion.
    • You must give true and accurate information to your insurer and complete all forms promptly.
    • You must promptly let your insurer know about any change in circumstances that could affect your insurance situation, including if you are involved in any accident.
    • You must provide your insurer with updated information when requested.
    • If you are claiming accident benefits, you must send your insurer a completed accident benefits package on time.
    • If you are claiming accident benefits, you must attend medical examinations requested by your insurer that are reasonably necessary to evaluate your claim.
    • If you receive accident benefits from your insurer, you must participate in treatment and rehabilitation, and try to get back to work.

    Laws and regulations regarding auto insurance are administered by the Financial Services Commission of Ontario (FSCO), the government’s regulator of auto insurance. If you have questions about your rights, you may check the FSCO website, www.fsco.gov.on.ca.

  • What extra Commercial Insurance coverage should I be aware of?

    Special policies can cover the risks unique to your business.

    Business Interruption Insurance

    This form of insurance provides you with the funds required to protect your business’s financial position if your operations are interrupted by an insured loss such as a fire. Features and costs will vary considerably depending on whether you insure for named perils, a specific timeframe, specific costs or just a portion of the income you lose.This form of insurance is highly customizable and can include coverage for extra business expenses, rental income lost, gross earnings lost, payroll and professional fees.

    Consequential Loss Insurance

    A consequential loss is not caused directly by damage to property, but is a consequence of other damage. For example, a cold storage facility might experience significant inventory losses if an on-site transformer station failure cuts out electricity supply or a fire damages the refrigerators. A greenhouse operation or a winery might require constant temperature and humidity to be maintained. Consequential loss coverage would insure the resultant damage caused to stock by an insured peril that changes these factors.

    Equipment Breakdown Insurance

    Many named perils and broad commercial property insurance policies will exclude coverage of breakdown or damage to highly sensitive or specialized equipment including high-pressure boilers, control systems and computers, diagnostic equipment and more. Special machinery policies can be obtained to cover equipment for sudden and accidental breakdown, which is advisable if loss of use is a significant risk for your business.

    Errors and Omissions Insurance and Director’s and Officer’s Liability Insurance

    It is common practice to protect company directors and senior managers from personal liability for actions that are the responsibility of the company they direct.While insurance does not remove their fiduciary duty, it does provide some financial protection from legal liability for a claim made against them for an alleged or wrongful act.A wrongful act is any error, misstatement, misleading statement, act omission, breach of duty or neglect allegedly committed or attempted. Errors and omissions insurance is usually used in professional services firms such as law, accounting and consulting to protect professional staff from the impact of errors and omissions in their work.

    Specialized Insurance Coverages

    There are as many forms of specialized coverage as there are risks to your business. A broker can help you assess the probability of experiencing a loss and determine whether or not you should purchase specialized coverage. Talk to your broker to see if there are risks unique to your business that require extra protection. For example:

    • Crime – designed to protect against loss of money or securities, may include theft overnight or on the way to the bank. This also includes employee dishonesty.
    • Electronic data processing systems – protects your computer and it’s data.
    • Sewer back up – covers loss or damage caused by the backing up of sewers, sumps, septic tanks or drains.
    • By-law coverage – covers additional expenditures resulting from by-laws regulating construction when rebuilding a building after a loss.

    These are just a few of the special coverages available for special situations. Your broker can tell you more.

  • Who needs business insurance?

    The right insurance is an important tool to protect any business.

    Every business has unique requirements

    Your commercial insurance should be designed to protect against the most prevalent risks, to the assets and capital in your business. Your broker can help you itemize and quantify those risks, and determine the level of coverage you should consider.

    Risks include:
    • Property loss – Insurance against property damage or theft protects the physical assets that support your business including buildings, equipment, vehicle fleets and inventory, as well as intangible assets such as licenses, patents and accounts receivable.To arrange the right level of insurance, you must know your rights and obligations as an owner, tenant, leaseholder, landlord or mortgage holder. You must also take into account local bylaws on standards for physical repair and reconstruction.
    • Liability loss – Every business is exposed to liabilities and should be protected against the minor as well as the major ones including personal injury, product failures or negligence.
    • Personnel loss – Group health and benefits insurance can help to improve employee retention and well-being thereby reducing the cost of turnover and lost time.
    • Net income loss – Some businesses are exposed to specific perils that are beyond their control and that would cause critical damage to the viability of the business.

    For example, a food services operation might insure against a major electrical outage that would result in spoilage of their inventory.

    Consider the underlying risk drivers in your business An experienced commercial insurance broker can help you read the risks in your business, advise you on how to reduce some of the more manageable exposures and suggest an insurance mix that takes your risk tolerance and financial situation into account.

    The following are examples of common risk drivers:
    • Heavy reliance on limited sources of income
    • Dependence on one or a few people to run the business
    • Elaborate and specialized physical assets
    • Extensive international operations
    • Sensitivity to factors outside your control, such as weather and commodity prices
    • Labour unrest
    • High levels of inventory
    • Large vehicle fleets
    • Rudimentary workplace health and safety practices
    • Dangerous materials handling

    Let your broker help you plan and arrange the right insurance for your business.

  • How can I reduce the risk in my business?

    A risk management program is the best way to systematically reduce the impact of risk.

    An experienced commercial broker knows how to identify and manage many of the risk factors in your business and translate that knowledge into a costeffective risk management program. There are four key steps:

    1. Know your risk exposures the first step is to accurately identify and analyze the risk exposures to your tangible and intangible property, your income, personnel and liabilities. These can be determined in a thorough audit of your office, warehouse or shop floor to identify all perils, probabilities and potential financial consequences.
    2. Consider the risk management alternatives insurance is one form of “financing” your risk, but there are other alternatives to explore. These include eliminating the exposure, loss prevention, loss reduction and contractual transfer of responsibility for losses, for example, when a lessee assumes the liability for damages to leased space. A thorough risk management plan will examine all these alternatives before getting to the issue of insurance. Commercial insurance is the most widely used of all risk financing techniques because of the cost-effective protection it provides. General and specialized policies can cover just about any peril. Another way to manage risk is to be financially prepared for a loss. One way to do this is to accumulate your own capital reserves to cover the loss, but this can tie up large amounts of capital at low rates of return.
    3. Implement your plan with loss prevention and reduction plans in place, your broker can help you implement your insurance program with one or multiple insurers.
    4. Monitor and adapt your plan make sure to adapt your plan to match the changes in your business including geographical expansion, physical frowth, new lines of business or increased complexity. Consider an annual review of your needs with the help of your insurance broker.

    Your commercial insurance broker has the experience to help you manage the insurance risks in your business.

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