Nest Forest School was set to open this week with 10 children enrolled
13 October 2020
Business insurance, like many types of expenditures, is one of those items which business owners typically do not like to pay. You must remember that sufficient insurance can be as critical to the success of your business as a good product or service. Without proper insurance you could lose all the money, time, and effort you put into your company. The types and amounts of coverage you purchase must be evaluated on a cost-benefit basis like any other commodity that you purchase.
Your insurance agent can help you review the amount of coverage you may wish to purchase for various purposes. Usually, you will want to insure against risks that could have significant detrimental impact on your business. This normally would include such items as fire, storm damage, theft, general, and product liability. Depending on the nature and size of your business, it is often a good idea to self-insure for all or a portion of certain losses. Self-insurance can be accomplished by not buying coverage for incidental risks or increasing the deductions on policies that you do buy. Often, raising the deductible can have a very favorable impact on policy premiums. The administrative cost to the insurance company to process small claims is quite high. The rates typically go down substantially if they are relieved of this expense by insuring for losses in excess of a sizable deductible amount. An insurance broker can provide you with comparative costs for various types of coverage with varying degrees of deductible amounts.
Very little insurance coverage is mandatory. For most industries, workers’ compensation coverage is required by law. It covers injuries to employees while on the job. Premiums for this coverage are payable as a specific assessment against your business payroll, based upon industry-wide claim experience.
You must also be aware that the terms of your building, office lease, or mortgage may require you to carry certain kinds of insurance coverage in specified minimum amounts. If you have leased equipment or have borrowed money from a bank or other lenders, there will usually be insurance requirements in the agreements relating to these transactions. There are many other types of policies that you may wish to consider. The specific coverage provided by each and their related costs can be explained in depth by a qualified insurance broker.
Some types of Insurance coverage you may consider for your business are:
This coverage, as the name implies, covers the loss of revenues your business would have generated if it were forced to shut down for reasons beyond your control. While this is obviously valuable insurance, the policy premium must be carefully considered relative to the potential profits your business might lose during a short shutdown of operations.
Employee Fidelity Bond
This type of insurance typically covers the risk of loss from theft by employees. If your business deals in large amounts of cash, negotiable securities, or similar types of assets, you may be well advised to consider this coverage. Certain industries are required to carry this insurance by regulatory authorities.
This type of insurance covers losses above and beyond the limits of other policies that you carry. Umbrella policies usually pertain to liability of various sorts, and are usually valuable if your business, or you, have a higher net worth, which requires protection in the event of a catastrophic loss.
Accounts Receivable Coverage
Also referred to as credit coverage, reduces the risk of doing business, because it covers you against customer bankruptcy, refusal of delivery, or other non-payment.
Insurance is like any other product you purchase. Before purchasing it you should consult with more than one broker. You should discuss insurance needs with acquaintances in the same or related business as yours.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Source: Mondaq News
Rising costs due to COVID-19 are partly to blame for premium hikes, insurers say
Hub International Limited (Hub), a leading global insurance brokerage, announced today that it has acquired the property and casualty and employee benefits businesses of Mumby Insurance Brokers Incorporated (Mumby Insurance). Terms of the transaction were not disclosed.
Located in Waterloo, Ontario, Mumby Insurance has decades of expertise in working with professionals throughout Canada, with special focus on architects, landscape architects, engineers and specification writers. Douglas Pinnell, Vice President of Mumby Insurance, will join Hub International Ontario Limited (Hub Ontario) and report to Matt Lievers, President of Employee Benefits in the region. Anthea Mumby, President of Mumby Insurance, will remain directly involved in the business as a consultant and will report to Gerry De Lauro, President of Personal Insurance, Hub Ontario.
About Hub’s M&A Activities
Hub International Limited is committed to growing organically and through acquisitions to expand its geographic footprint and strengthen industry and product expertise. For more information on the Hub M&A experience, visit WeAreHub.com.
About Hub International
Headquartered in Chicago, Illinois, Hub International Limited is a leading full-service global insurance broker providing property and casualty, life and health, employee benefits, investment and risk management products and services. With more than 12,000 employees in offices located throughout North America, Hub’s vast network of specialists provides peace of mind on what matters most by protecting clients through unrelenting advocacy and tailored insurance solutions. For more information, please visit www.hubinternational.com.
SOURCE Hub International Limited
Canadian hospitality businesses, already reeling from the downturn sparked by the coronavirus pandemic, are facing yet another existential threat as insurance companies spike premiums or exit the space, citing losses and the sector’s risks.
Even before COVID-19, insurers globally were scaling back from riskier businesses to improve performance. The pandemic’s profit hits have accelerated the trend and led underwriters to exit from, or raise premiums in, select categories.
Hospitality businesses, particularly those needing coverage for accidents caused by alcohol-impaired clients, were already seen as higher risk, said Karen Ritchie, vice president at Baird MacGregor Insurance Brokers and president of the Toronto Insurance Council. The coronavirus exacerbated that.
“It’s a perfect storm,” she said.
Many hospitality companies were already operating on razor-thin margins before pandemic-driven lockdowns. An inability to access affordable insurance could spell the end for them, given they are barely managing to hang on amid distancing restrictions.
While these businesses carry the same risks as elsewhere, the Canadian hospitality industry has faced a bigger hit due to a much smaller insurance market dominated by Lloyd’s syndicates, Ritchie said. Far more domestic insurers cover the space in countries like the United States, spreading out risk, she said.
Lloyd’s is a marketplace that comprises various specialist insurers, or syndicates, who write policies.
Lloyd’s business volumes fell 8.6 per cent in the first half of 2020, reflecting an intentional reduction by several syndicates exposed to poorly performing business segments, the group said in a statement.
The Lloyd’s market lost 438 million pounds ($569 million), versus a 2.3 billion pound profit a year earlier, primarily driven by coronavirus-driven losses.
‘I would close’
Erik Joyal, co-owner of Ascari Hospitality Group in Toronto, was told last month that his Hi-Lo Bar’s policy would not be renewed as his insurer, part of Lloyd’s, was moving away from restaurants and bars.
His broker found a policy through another insurer at more than three times his current C$9,000 annual premium, even though the restaurant had never filed a claim.
“I would close the business before I signed on to that,” said Joyal, who is continuing to search for an affordable policy.
Insurers, like other businesses, need profits, said Pete Karageorgos, director of consumer and industry relations at the Insurance Bureau of Canada.
And there is still capacity and affordable coverage available for businesses that can show measures to minimize risks, he added.
Arron Barberian said his Harry’s Steak House in Toronto was dropped by his insurance company, Groupone Insurance Services, although he paid premiums when the business was shut.
Groupone declined to comment.
Barberian found a policy through Intact Financial Corp , which insures his other Toronto restaurant, Barberian’s Steak House. While cheaper, it offers slim, possibly inadequate, coverage, he said.
Intact’s underwriting criteria for restaurants haven’t changed, and it continues to renew policies and write new ones, a spokeswoman said by email.
A Nova Scotia hotel owner, who said he was quoted a 50 per cent increase in premiums to renew his policy, also found more affordable coverage through Intact.
Even so, the owner, who declined to be identified as he is negotiating the return of some premiums paid during the shut-down, said he is bracing for thousands of dollars in additional expenses, as a change in insurers is accompanied by an inspection and, often, demands for changes.
His previous insurer, Wawanesa Insurance, attributed the premium increase to higher fire and storm-related losses even before the pandemic.
Despite limited ability to operate, “many bars and restaurants https://www.alignedinsurance.com/restaurant-insurance-overview still had contractual obligations and real risk that needed to be insured and insurance had to be maintained,” said Andrew Clark, chief executive of mortgage broker ALIGNED Insurance.
“The unfortunate reality is that the insurance companies aren’t willing to insure some businesses right now and they don’t really have many other options than to close,” Clark said.
Source: Global News
Existing policy holders received rebate cheques, but drivers seeking new policies saw higher average prices