Business Insurance....What are you covered for??

Commercial Insurance…are you covered?

“Canada’s insurers and intermediaries need to find creative solutions to ensure that Canadian businesses can access the insurance they need.”

See a copy of report here

Summary from Report

The core objective of commercial insurance is to financially protect businesses and non-profit enterprises against the insurable risks that they face. Currently, the Canadian commercial insurance market is facing a period of significant change. Several sizable external pressures are negatively impacting insurers, intermediaries, and their clients and creating tension in the commercial insurance market.The Canadian commercial insurance market became a “hard market” in 2019, which means the market entered a period of higher rates and reduced underwriting capacity for certain lines of business and/or geographies (e.g., commercial property). Years of insufficient underwriting profitability, driven by rising claims costs, and low returns on investment led to an overall decline in net income between 2015 and 2019 for property and casualty (P&C) insurers. The environmental and macroeconomic events of 2020 have exacerbated these market dynamics, driven by three immediate pressures:

 

Basically this all means that you, as a business owner, are going to be paying more for your insurance. 

The forecasts indicate that the increases will continue until late 2022.  Another hard hit on business.

Business Loss deals with physical loss/damage and a Pandemic does not fall under this purview.  The same applies to Business Interruption Endorsement.  The pandemic affects more than just your business.  The Endorsement does not get activated unless the Business Loss portion is activated.

From 2001 to 2010 $400M in claims were issued across Canada.  From 2011 to 2019 $1.9B claims were issued across Canada.  In 2020, across Alberta alone, $2B in claims were issued.  This created the “Hard Market” that is spoken about in the Summary/Report.

What can you, as the business owner, do about it?

• Make sure you take the time to discuss your coverage with your broker.  Get more than one quote.  Yes, it is going to take time, but time well spent!
• Make sure the broker knows your business.  Make them a part of your Risk Management Team.
• Develop a Risk Management strategy!
• Talk with fellow business owners and see what they have found.
• The Insurance Bureau of Canada (IBC), has setup a program to assist Canadian businesses that need advice or financial aid on their insurance.    Contact the IBC, they are here to help!

Businessinsurancehelp.ca     - 1-844-2ask IBC  (1-844-227-5422)

 

In some provinces there have been class-action suits filed against insurance companies.

• Class action launched against insurers that won't pay businesses for coronavirus-related losses   Saskatchewan 
• Class action suit in BC

 Even though they have been filed/launched, it will take some time to go through the law system and come back with a verdict.  That doesn’t help the here and now.

What to do today:

You need to look after your business.  

Make sure you are aware of what is in your policy and work with a broker that understands your business!  

Take a look today and see what is in your policy.  Just renewed?  

Make sure you understand why the changes occurred..contact your broker!

COVID Restrictions TownHall Feb 3rd review

As a Chamber we had no questions submitted by the Membership to ask.This is a review of the meeting with concerns raised from across the Province.

STEP 1 <600 hospitalizations	STEP 2 <450 hospitalizations	STEP 3 <300 hospitalizations	STEP 4 <150 hospitalizations
Potential easing in these areas: Restaurants Indoor fitness Indoor and outdoor children's sport and performance (school-related)     Steps based on hospitalization benchmarks	Potential easing in these areas: ·         Retail ·         Banquet halls ·         Community halls ·         Conference centres ·         Hotels ·         Further easing of indoor fitness and children's sport and performance	Potential easing in these areas: ·     Adult team sports ·     Casinos, racing centres and bingo halls ·     Indoor social gatherings with restrictions ·     Indoor seated events (movie theatres and auditoria) ·     Libraries ·     Museums, art galleries, zoos, interpretive centres ·     Places of worship	Potential easing in these areas: ·       Amusement parks ·       Concerts (indoor) ·       Festivals (indoor and outdoor) ·       Funeral receptions ·       Indoor entertainment centres and play centres ·       Performance activities (singing, dancing and wind instruments) ·       Sporting events (indoor and outdoor) ·       Tradeshows conferences and exhibiting events ·       Wedding ceremonies and receptions ·       Workplaces (lift working from home)

For latest information and updates visit:

Biz Connect AB

If you have questions or concerns contact:  jei.ministeroffice@gov.ab.ca

Feedback is a needed.

If you are a Sole Proprietorship, the issue of registration numbers has been sorted, as of Feb 4^th.  You can now apply for Relaunch funding….

 

RESTAURANT EASEMENTS     

February 8^th restriction easements, do not include personal changes.  Even if you are going to a restaurant, the protocol is the same as December, family household members only – Max of 6 people at a table.  No alcohol after 10pm and no food after 11pm.

FITNESS/DANCE CENTRES

Fitness centres have been hit very hard and even though restrictions are easing, they are firm at one – on – one training only.  Dance studios are included in the Fitness umbrella.  

Will the Dance Studios be moved to own category?  No.  Although sympathetic to crises of business sector, public health issues take priority.

Can bowling be a separate category?  Bowling not a 1 on 1 sport.

RESTRICTION EASEMENTS

If restrictions will only be eased after 3 weeks of reduced hospitalizations, how fast will restrictions be reset if numbers increase?

If there is only a small increase that happens slowly, then restrictions will probably remain.  If there is a quick increase, then the return of restrictions will happen just as quickly.

If safety protocols were the only factor that was needed to decide on Step Level easements, then things would happen more quickly.  But there are other factors that must be mitigated, especially with the new variants.  General Community transmission is the main issue.

If variants surged, then all easements can be rescinded and tighter controls would be put into place.  Total lockdown is the last option that would be considered.

Step 2 Banquet halls, hotels will be allowed to open with AHS restrictions for things like business meetings.

Museums are in Step 3, to allow slow opening of activities generally.  Still a public space where people from more than 1 household are present.

If you feel your business falls in the cracks or doesn’t meet full criteria, do contact the Minister’s office.  As a Chamber, we fell in the cracks and didn’t meet the initial criteria set for ReLaunch Funding.  We contacted the Minister’s office, more than once, and were finally able to make our point heard.  Changes have been made for Chambers and other Non-Profits, so we do qualify for financial help.

As with other businesses is this financial help enough to offset the losses incurred?  No, but it will keep the doors open and lights on!!  So don’t hesitate to contact them and make your point.

Contact info:

Biz Connect AB

If you have questions or concerns contact:  jei.ministeroffice@gov.ab.ca

Feedback is a needed.