Insurance Bureau of Canada on Spring Flooding

With warmer weather arriving, snowmelt coupled with spring storms once again increase the risk of spring flooding across Canada. Provincial Emergency Management authorities have predicted certain communities across the country will likely experience flooding and Canadians should be prepared.

Municipalities are already taking action to reduce the local impacts of flooding and Insurance Bureau of Canada (IBC) is informing consumers about how they can prepare for the coming flood season and help protect themselves and their property from damage.

During a severe weather event, everyone’s priority must be their personal safety and the safety of loved ones and neighbours. Given the current COVID-19 pandemic, emergency responders may have reduced resources. As such, this places greater emphasis on individual preparation.

A number of Canadian insurers now offer residential overland flood insurance, which, along with sewer backup coverage, helps reduce the financial risk of inland flooding events. These products are optional and must be added to home insurance policies for an additional premium.

Contact your insurance representative to ensure your property is protected. Insurance representatives are an essential service at this time and although they may not be available in person, they can still respond to your insurance coverage questions , as well as assist with any claims.

Tips to protect your home from water damage:

  • Keep a current and detailed home inventory.
  • Assemble a disaster safety kit.
  • Create a 72-hour emergency preparedness plan for your family.
  • Visit IBC website for more tips: Water Damage – Are you Protected?

Even while all levels of government are coping with the pandemic, we still face the same risks from extreme weather, especially flooding, that come every spring. Canada still needs a National Action Plan on Flooding as committed to by the present federal administration.

Components of a National Action Plan on Flooding include investing in resilient infrastructure to protect communities from floods and wildfires, improved flood mapping, measures to re locate  those at highest risk out of harm’s way, and the availability of affordable overland flood insurance to remaining Canadians at high risk of flooding.

IBC continues to advocate for all stakeholders to work together to reduce the financial strain caused by flood events. For every dollar paid out in insurance claims for damaged homes and businesses, Canadian governments and their taxpayers pay out much more to repair public infrastructure damaged by severe weather.

Visit IBC’s website for information on how to prepare for a disaster and ways to prevent flood damage to your home.

About Insurance Bureau of Canada

Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 126,000 Canadians, pays $9 billion in taxes and has a total premium base of $54.7 billion.

For media releases and more information, visit IBC’s Media Centre at www.ibc.ca.

SOURCE Insurance Bureau of Canada

COVID-19 and business insurance

These are uncertain and challenging times. With COVID-19 causing global concern, we understand many Canadians will have questions related to commercial insurance. IBC has produced a brief Q&A document outlining how coverage is triggered and how business interruption policies work.

Updated: April 8, 2020

Commercial insurance is complex and specialized, which makes it important that you speak to your insurance representative if you have any questions or need clarification about your coverage.

Will my standard business policy or business interruption policy cover me for interruptions due to COVID-19?

  • Generally, commercial insurance policies and traditional business interruption policies do not offer coverage for business interruption or supply chain disruption due to a pandemic such as COVID-19.
  • Some organizations may have purchased specialized contingent business interruption coverage, stand-alone business interruption coverage and supply chain disruption coverage which may be triggered as a result of the World Health Organization’s declaration of a pandemic.
  • Commercial insurance is complex and specialized and specific to your business which makes it important that you speak to your insurance representative if you have any questions or need clarification about your coverage.

How does business insurance work?

Property insurance for businesses is designed to protect the physical assets of a business against loss and/or damage from a broad range of causes. There are two basic policy types:

  1. Named perils – covers only loss and/or damage caused by perils specifically listed in the policy, subject to exclusions. Loss and/or damage caused by any other peril is not covered.
  2. Comprehensive – covers loss and/or damage caused by any peril, unless specifically excluded.

What is business interruption (BI) coverage?

BI coverage is an add-on to an existing business insurance policy. In the event of a business temporarily needing to shut down, BI covers continuing expenses or replaces lost profits. There are three types of BI policies:

  1. Gross earnings policy, which pays only until property or damage is replaced or repaired, or stock is replaced
  2. Profits form policy, which continues to pay until a business resumes its normal, pre-interruption level (subject to policy limits)
  3. Extra expense policy, which is designed for businesses that can remain operational during periods affected by loss and/or damage.

How does BI insurance work?

BI policies are not standardized and include many variants, but most contain language indicating that the insurer will pay for the actual loss of “business income” due to the “necessary suspension” of operations during “the period of restoration.” A number of concepts and nuances come into play, including:

  • Physical damage requirement: Most policies require proof that the insured premises sustained physical damage (for example, from fire, heat, flooding or firefighting efforts) that was covered under their property policy, which caused an interruption that resulted in a loss of business income. A business that is interrupted due to the loss of data or a loss of utilities may not have sustained a physical loss. (There is separate utility loss coverage.)
  • Period of restoration: If BI coverage is triggered, a significant issue is defining the period of indemnity or, as some policies refer to it, the period of restoration. Most policies will pay business income loss through to the point that the business is restored or when the coverage expires (usually 12 months from the beginning of the interruption).

Consumer Relief Measures

To help Canadians cope with the financial impact of COVID-19, Insurance Bureau of Canada (IBC) member companies are offering substantial consumer relief measures. For consumers whose driving habits have changed significantly, IBC member companies are offering reductions in auto insurance premiums to reflect this reduced risk. IBC expects this could result in $600 million in savings to consumers. The reductions will continue for the next 90 days. Additionally, insurers have supported Canadians and businesses who are most adversely affected by honouring requests to defer premiums. Thousands of Canadians have had their premiums deferred.

Insurance customers whose driving habits have changed significantly or who are facing financial hardship as a result of the pandemic should contact their insurance representative. As it relates to savings on auto insurance premiums, savings will vary depending on individual driving habits.

Many insurers have transitioned their employees to work from home, and insurers ask for your patience as service levels may be strained.

In addition to adjusting premiums for drivers, IBC member companies have also committed to the following measures to help Canadians, which will also apply for the next 90 days:

  • Explore flexible payment options for consumers who are in a vulnerable position or facing financial hardship as a result of COVID-19;
  • Waive the NSF fees they would have charged if you have insufficient funds to cover your premium. You remain responsible for any fees your bank may charge you; and
  • If you are temporarily using your car or home differently (for example, you may be using your car to commute to work instead of taking public transit, or you may be working from home) it will not affect your premium or your ability to make a claim.

Insurers are also working with small business and commercial clients to help businesses manage their costs.

Insurers are supporting communities across the country, and some have made substantial donations to help those impacted.

www.ibc.ca

IBC: Insurers reducing insurance costs for Canadians

To help Canadians cope with the financial impact of COVID-19, the Insurance Bureau of Canada (IBC) member companies are offering substantial consumer relief measures. For consumers whose driving habits have changed significantly, IBC member companies are offering reductions in auto insurance premiums to reflect this reduced risk. IBC expects this could result in $600 million in savings to consumers. The reductions will continue for the next 90 days. Additionally, insurers have supported Canadians and businesses who are most adversely affected by honouring requests to defer premiums. Thousands of Canadians have had their premiums deferred.

“This is an incredibly challenging and uncertain time for many Canadians, and insurers want to help alleviate some of the financial burden for the most vulnerable. Insurers understand that many drivers are no longer commuting or using their vehicle as regularly, which could result in savings,” said Don Forgeron, President and CEO, IBC.

Insurance customers whose driving habits have changed significantly or who are facing financial hardship as a result of the pandemic should contact their insurance representative. As it relates to savings on auto insurance premiums, savings will vary depending on individual driving habits.

Many insurers have transitioned their employees to work from home, and insurers ask for your patience as service levels may be strained.

In addition to adjusting premiums for drivers, IBC member companies have also committed to the following measures to help Canadians, which will also apply for the next 90 days:

  • Explore flexible payment options for consumers who are in a vulnerable position or facing financial hardship as a result of COVID-19;
  • Waive the NSF fees they would have charged if you have insufficient funds to cover your premium. You remain responsible for any fees your bank may charge you; and
  • If you are temporarily using your car or home differently (for example, you may be using your car to commute to work instead of taking public transit, or you may be working from home) it will not affect your premium or your ability to make a claim.

Insurers are also working with small business and commercial clients to help businesses manage their costs.

Insurers are supporting communities across the country, and some have made substantial donations to help those impacted.

About Insurance Bureau of Canada

Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1-844-2ask-IBC.

www.ibc.ca

Economical Insurance is committed to supporting Canadians throughout COVID-19

he family of brands provides flexibility and digital operations for
customers, brokers, and employees while giving back to communities in need

WATERLOO, ON, April 8, 2020 /CNW/ – Economical Insurance is responding to the hardships COVID-19 creates for individuals, communities, and businesses across the country with a mix of consumer relief and community impact efforts to provide support for Canadians as we work together to find a way forward. This includes exploring flexible payment options for personal insurance customers, solutions for brokers and business owners, a safe work environment for employees, and funding for community organizations that support the front lines of this unprecedented crisis.

“Our business has supported customers through world wars, the depression, and other more recent crises, and our commitment remains focused on the customer first through the challenges we are faced with today,” said Rowan Saunders, President and CEO of Economical. “We are working collaboratively with our dedicated employees and valued broker partners to bring solutions to customers during a situation that none of us have ever experienced. This is the first time we, and the entire industry, have supported customers through this type of global pandemic and I’m proud to see how everyone is adapting together.”

Options for customers in need
Economical has proactively taken the following steps for the next 90 days, or as otherwise deemed appropriate based on ongoing assessment.

Personal insurance customers with Economical, Family Insurance, and Sonnet who are impacted financially by COVID-19 are advised to connect with their broker, visit the website, or contact a customer service representative to review support currently available to offer relief, which may include the following:

  • Flexible payment options, including payment deferrals and waived NSF fees

  • Payment plans adjustments to update the method or frequency of payments

  • Reduction of auto insurance premiums by limiting coverage or reducing the number of kilometres driven to support those with significantly changed vehicle use

  • No impact to premiums if customers temporarily use their cars or homes differently, such as efforts to support community goodwill or migrate to remote work

To support its commercial insurance customers:

  • Economical has made appropriate changes to the rating approach for commercial insurance customers to acknowledge the challenging circumstances many of them are facing

  • For small and mid-sized businesses that have been directly impacted by COVID-19 and are experiencing temporary closures and significant decreases in revenues, and changes in operations, Economical is working with its broker partners to adjust premiums

  • Economical will also provide flexible underwriting solutions for businesses that have made changes to their operations to adapt and support the current crisis

Petline, a subsidiary of Economical, is equally committed to supporting pet owners with pet insurance options through its affordable, simplified Peppermint offering. Additionally, customers have been provided with information on how to safely care for a pet during this pandemic, including managing visits to the vet and adjusting to a new routine.

Investment in technology and digitization during the past few years enabled Economical to launch Sonnet, Canada’soriginal digital direct home and auto insurance offering, and Vyne, a dynamic broker offering for Economical, in addition to digital pet insurance offerings. These innovations are helping customers and brokers navigate insurance more easily, from anywhere at any time, during a truly disruptive period.

Giving back to communities
For almost 150 years, Economical and its workforce have maintained a strong tradition of giving back to communities across Canada through corporate giving and volunteerism.

Economical has adjusted its social responsibility efforts to focus its impact on the national needs of pandemic response in alignment with its existing community giving pillars:

  • Health & Wellness: Acknowledging the brave and necessary work of health care workers on the front lines of this pandemic, Economical is investing $200,000 to provide front-line support in cities across Canada

  • Safety & Security: Economical will extend its long-standing partnership with Canadian Red Cross by providing an additional $100,000 donation for COVID-19 support measures, particularly at a time when flood and fire risks emerge, and response teams are operating under new physical distancing measures

  • Youth & Education: To support vulnerable populations in our communities, Economical employees will be given remote volunteer opportunities through organizations in need of assistance such as Kids Help Phone and Junior Achievement

From the onset of the COVID-19 pandemic, Economical employees quickly rallied to support urgent needs through a corporate matching campaign totaling more than $50,000 in donations to-date for Food Banks Canada.

Supporting employees
Economical and its subsidiaries have a resilient workforce that mobilized early in the COVID-19 pandemic to adopt new working practices designed to ensure business continuity. As nearly 95 per cent of the Economical workforce is now working remotely, Economical has provided flexible work options to help employees manage the needs of work and the personal impacts of this pandemic, as well as maintaining a safe work environment for those who are required in the office.

Economical will continue to evaluate the situation and assess these measures to ensure customers, brokers, employees, and communities are provided with the best help and advice we can offer.

About Economical Insurance
Economical Mutual Insurance Company (“Economical” or “Economical Insurance”, which includes its subsidiaries where the context so requires) is a leading property and casualty insurer in Canada, with $2.5 billion in gross written premiums and approximately $6.0 billion in assets as at December 31, 2019. Economical is a Canadian-owned and operated company that services the insurance needs of more than one million customers.

SOURCE Economical Insurance

www.economicalinsurance.com

Finance minister calls for auto insurance breaks during COVID 19 pandemic

TORONTO _ Ontario Finance Minister Rod Phillips says he wants to see insurance companies giving drivers breaks on their premiums that reflect the “devastating impact” of the COVID-19 pandemic.

He says he met last week with the CEOs of the major insurance companies and told them their actions need to reflect these unprecedented times.

Some companies have already announced discounts for customers, including Allstate Insurance Co. of Canada, which is giving all of its drivers a “stay at home payment” of about 25 per cent of their monthly auto premium.

Many other companies say they are offering to adjust premiums for customers, but Phillips says he would like to see them being proactive.

The Insurance Bureau of Canada says its member companies are offering reductions for the next 90 days that could result in $600 million in savings to consumers and says drivers should contact their insurance representatives.

The NDP is calling on the Ontario government to mandate a three-month, 50-per-cent discount on auto insurance.

Happy Easter from ILScorp! Please note our business hours this long weekend

Happy Easter from ILScorp! Please note our business hours this long weekend

ILScorp offices will be closed on Good Friday ― April 10, 2020.

And we’ll be back on Monday, April 13 ready to take your calls and answer your questions.

You can also register for our insurance training programs online, anytime, at ILScorp.com

How do I register or renew my subscription for online insurance courses?

To renew your subscription or register for an online course or CE Subscription simply:

  1. Go to www.ilscorp.com
  2. Do not log in – find the course or subscription you wish to purchase and click ‘Buy Now’
  3. If you are a returning user – enter your current username/password – click ‘Sign In’ (Do not make a new account)
  4. If you are a new user – create a new account and fill in all applicable information – click ‘Submit Information’
  5. Enter your credit card information as it appears on your billing statement

How do I access my online insurance courses once I am registered?

To access your courses simply:

  1. Log in with your username and password on www.ilscorp.com
  2. Go to ‘My Courses’ on the top tab
  3. Choose a course category, and a click on a course title within that category to begin taking courses

Continuing Education Course Subscriptions

View CE Subscriptions

Now is the time to get working on your mandatory CE hours and avoid the last-minute rush. ILScorp’s continuing education catalogues feature hundreds of hours of accredited courses that you can complete anywhere you have an internet connection.

Edited for ILSTV

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