What You Need to Know About Insurance Coverage in Ontario During COVID-19 – Part 2 Business Insurance
Updated April 29, 2020
COVID-19 continues to drastically affect our day to day lives, as individuals, as families, as employees, as citizens. If you are a business owner, you are likely facing one of the most challenging circumstances you have ever seen in the life of your business.
In part one of this post, we looked at home and auto insurance and how they have been affected, from relief programs to changes in circumstances. In this part two, we are specifically going to look at business insurance and what business owners needs to know during the pandemic.
It’s important to note off the bat that commercial insurance is quite complicated and that there are as many different policies as there are types of business. We will give some general guidelines and things to think about in this post, but the best thing to do would be to contact your broker or provider to discuss your specific situation with them. Let’s look at some considerations for business insurance during a pandemic…
Business interruptions due to COVID-19
As you are likely already aware, most policies do not offer coverage for business interruption (BI) due to pandemics. However, there certainly are coverage options that could encompass this situation. It all comes down to your specific plan.
There are different types of business interruption coverage, usually included as an add-on to an existing commercial insurance plan. This type of add-on would be for a situation where a business had to temporarily shut down. Again, there are all kinds of nuances and different triggers for coverage. For example, many BI policies require that a business has actually sustained physical damage. Speak to your broker to understand the peculiarities of your plan.
Many commercial insurance plans cover the property or physical assets of a business. Some plans only cover specific perils named, other plans offer a more comprehensive coverage. Understanding the specifics of your property coverage is important. For example, if your business has ceased operation, there may be a requirement for the property to be monitored.
If your business has vehicles or employees use their cars for business, there could be a savings in terms of insurance, especially if the vehicles are no longer in use, or if the car is no longer being used for business and only for pleasure.
You might now be wondering if there are any specific relief measures in place for business insurance, as we have seen in other industries like finance. Similarly to home and auto, there is no blanket relief that applies to everyone. However, many insurers are working with businesses and allowing deferrals of insurance premiums. The best thing to do is to get in touch with your broker or provider and find out what the specific deferral policy is for your plan and what other steps they are taking to support their business customers during this trying time.
Check out this pdf from the Insurance Bureau of Ontario which outlines the relief response of different providers in Ontario: April 23 Industry Response COVID 19 Comparison Chart
Essentially, if your business has changed its operations in any way during this pandemic, whether you are facing a complete suspension of operations, or your workforce is mainly working from home, or any other shift in how you normally do things, the best thing to do is to talk to your insurance rep and find out how this new reality applies to your coverage, what you can do to protect your business and its future and how the insurance company is willing to support you during this pandemic.
Insurance Bureau of Canada – COVID-19: Canadian home, auto and business insurance information and Q and A on Business Interruption Insurance Coverage
Some good recommendations and steps to take from BDO Canada on managing business losses – Insurance Coverage and COVID-19: Legal Considerations and Loss Quantification Developments
If you’re looking for some general information about the supports in place for businesses in Ontario due to the pandemic, check out the Ontario government’s site – COVID-19: Support for businesses
And for small businesses, check out the Canadian Federation of Independent Business: COVID-19 Small Business Help Centre
The Ontario government is also working to support regulation changes to assist businesses during this time. Check out: Frontline and business: help us support you during COVID-19
We’re going to continue updating and adding to this post as the situation progresses. If you have any suggestions or ideas for what to include in this post, or if you have any questions related to COVID-19 and your insurance coverage, please reach out to our team. You can also reach us on Twitter and Facebook. Please remember that while our offices remain closed to in-person visits, we are still here to support you. If you are looking for a quote for business insurance, head over here.
Image source: FreeDigitalPhotos.net | Stuart Miles