Commercial Insurance……DID YOU KNOW?
What is Business Interruption Insurance?
Profits insurance coverages you for just that, Loss of gross profit due to;-
• Reduction in turnover, and
• Increase in cost of working resulting from loss or damage to the insured premises
What is Commercial General Liability (CGL)?
Typically it covers your firms legal Liability for compensatory damages because of bodily injury or property damages to third parties arising from all operations of insured, Including your Premises and Operations, Completed Operations & Products, Personal & Advertising Injury, Contractual Liability, Non-owned Automobile, Tenants Legal Liability ($500,000)
What is Directors & Officers (D&O) Liability Insurance?
The insurer agrees to pay on behalf of an Insured all Losses which such Insured becomes legally obligated to pay on account of any claim (including with respect to a Claim for Employment Practices only such Claim brought in Canada for a breach or alleged breach of any oral of written employment contract or quasi-employment contract) first made against such Insured during the Policy Period, or, if exercised, during the Extended Reporting Period, for:
a. A Wrongful Act
b. Employment Practices, or
c. Personal Injury or Publishers Liability
What is Mechanical Breakdown (Boiler & Machinery) Insurance?
This typically covers all Fired and Unfired Pressure Vessels at scheduled locations, Boiler, Expansion Tanks, Air-conditioning Systems and Mechanical/Electrical Equipment, Electric Water Storage Heaters.
What is a Non-Owned Auto Liability Policy?
Non-owned covers a corporate entity for bodily injury and property damage caused by a driver of a vehicle that is not owned by your company, but for which the company may be deemed liable for i.e.: in the case of an employee using his/her own vehicle for work duties.
What is Professional liability (E&O) Insurance?
Typically it covers Sums, which the Insured shall become legally, obligated to pay as compensatory damages resulting from claims made against the Insured during the policy period by reason of any error, omission or negligent act arising out of the Insured's professional services for others. Including Defense, Settlement, Supplementary Payments provided the Limit of Liability has not been exhausted, the Insurer shall: defend any suit or arbitration proceeding against the Insured seeking damages payable under the terms of this policy, even if any of the allegations of the suit are groundless, false, or fraudulent and investigate and negotiate the settlement of any claim or suit as it deems expedient;
What does Property of Every Description (POED) Cover?
Property of every description, including; building, stock, furniture, equipment, tenants improvements, and property of others in your care, custody and control.
Insurance is all about pooling risk. The premiums of the many pay for the losses of the few. Even if you haven’t made a claim, sometimes your rate will go up because of the actions of others.
What is covered under water damage?
Coverage is usually limited to damage arising from sudden and accidental escape of water from an indoor plumbing, heating, sprinkler or air-conditioning system; or from a "domestic appliance" on your premises; or from a water main. Coverage usually excludes damage arising from:
1. Floodwater – such as that from an overflowing river or any body of water
2. Repeated or continuous water seepage (from a cracked basement wall or an un-repaired pipe)
3. The backing up of water from a sewer, sump or septic tank (may be covered by Sewer Back Up Endorsement)
4. Leaky gutters and downspouts.
What should you do before going away for vacation?
Most insurance policies state that if you intend to be away from your house more than 4 consecutive days, you need to do one of the following in order for coverage to be maintained:
1.Arrange for a competent person to enter your home daily to ensure that heating is being maintained
2.Use a heating alarm monitored by a 24-hour service
3.Shut off the water supply and drain all the pipes and appliances before leaving
What 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 vacancy permit from your insurer. The permit will maintain most of your coverage, except for risk associated with vacancy such as broken water pipes, glass or vandalism.
What are 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.
What are 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.
Am I covered for earthquake?
This is not an automatic coverage in your homeowner policy . Earthquake coverage is sold as additional coverage and can be very expensive. To determine whether you should purchase earthquake insurance call our office and discuss your options.
What if I rent a car?
Your Ontario Automobile policy will extend coverage to a rental car if you have added OPCF #27 Endorsement (Liability for Damage to Non-Owned Automobiles)
If you drive a rented car or any vehicle that is not owned by you and you have this coverage, 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. 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.
What about renting a car in the US?
Your Ontario Automobile policy will extend coverage to a rental car if you have added OPCF #27 Endorsement (Liability for Damage to Non-Owned Automobiles). Please keep in mind that the purchase of this endorsement does not provide “DOWN TIME INSURANCE” which seems to be a new term being used in the state of Florida.
“Down Time Insurance” is coverage requested for loss of income that the Rental Car Agency could suffer, should a vehicle need to be taken off the road and is in for repairs as a result of an accident. The rental agency offers this type of coverage with an additional charge on the contract and if the consumer declines, the rental agency will attempt to charge the consumer at an approximate rate of $25-$30 a day.
Am I covered 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 and not yours, will be affected.
What if someone else drive my car?
Remember that when someone else is driving your car, you are still responsible for it. Any at-fault accident will go onto your driving record and affect your future premiums.
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