Covid-19

The situation with the COVID-19 pandemic continues to evolve as it relates to insurance and we wanted to provide you with updates and address some of the questions we have been receiving regarding insurance coverage.

What has changed at Hubbard Insurance?

We remain operational; all staff have secure, confidential, and full system/phone access from home offices.

Our physical office is closed and we will not be having face-to-face meetings. However, we are fully reachable via email and phones in the traditional way, as well as video conference as necessary.

Watch our COVID-19 Webinar Here! 

What is the impact on my insurance coverage if I have to close business locations?

Policy wordings do restrict coverages when locations are unoccupied or vacant. However, in the current situation, this is an area where insurers are indicating they will show some flexibility as they completely understand the necessity of everyone needing to play a role and either work remotely or close their business completely.

While this clause will only kick in typically over the 30 days mark, we think it is a wise risk management process to have someone check on your business location every 2-3 days just to make sure the heat is still on and everything is okay.

What if I can’t pay my monthly premium or miss a payment?

We are still getting updates from the insurers and there is some information here (link to last part of document) on what specific insurance companies are doing, however in broad strokes they are indicating:

• They will NOT cancel policies for non-payment in the current environment
• They will NOT charge NSF fee’s
• They will offer some flexibility on monthly withdrawals should there need to be a delay in payment(s)

Does Business Interruption Insurance cover my business due to COVID 19 ?

Generally speaking the position of insurance companies is that the current Covid-19 pandemic situation we are all faced with is not something that insurance polices were designed to cover.

Business interruption insurance is usually triggered only because of a peril covered under a commercial property policy, as such, we are expecting to see insurance carriers take the position that COVID-19 does not trigger coverage and generally speaking, that this is a largely uninsurable event.

We are, however, taking the position that it is in our clients’ best interests – if they are not sure and this situation has had an impact on their business – to report a claim and let the insurance company come back with a formal decision on coverage.

To this end, we are advising business insurance clients to maintain records detailing any reduction in revenue and/or increase in costs.

A more in-depth look at Business Interruption (BI) insurance and COVID-19:

What is Business Interruption Coverage?

BI coverage is generally an add-on to an existing business insurance policy. In the event of loss or damage to a business or damage to a neighbouring property, requiring the business to shut down, BI insurance covers continuing expenses or replacing lost profits.

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

BI policies require proof that the insured premises sustained physical damage from an insured peril that was covered under their business insurance policy. Once that damage is established, the BI coverage is triggered for loss of business income. A business that is interrupted due to the pandemic may not have sustained any physical damage.

How does business interruption insurance work?

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 from policy, which continues to pay until a business resumes to its normal, pre-interruption level. (Subject to policy limits)
3. Extra expenses policy, which is designed for businesses that can remain operational during periods affected by loss and/or damage.

Am I covered by my business interruption insurance for COVID-19?

A business that is interrupted due to closure due to the pandemic may not have sustained any physical damage. Without physical damage to the insured premises the BI coverage is not triggered.

Should I be making a business interruption insurance claim given that I had to close down operations due to COVID-19?

All businesses are encouraged to talk to their Hubbard Commercial Insurance Advisor if they are unsure whether the BI coverage was triggered.

Are there any preventative measures that I can take to help ensure commercial insurance coverage remains in place and facilities are maintained due to my business closure?

Your business insurance policy may have coverage limitations if your business premises are vacant or unoccupied for 30 days or more. It is our recommendation that you have someone visit the insured premises regularly to verify they are secure and check for any undetected damage. If you are unable to have someone visit your business premises, contact your Hubbard Commercial Insurance Advisor to determine what solutions are available.

Am I covered for change of use of my home or vehicle (working from home, using your vehicle for volunteer efforts or deliveries, etc.)?

Insurers understand that life has changed as a result of the pandemic, and that you may be 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). Insurers stand ready to ensure your ability to make a claim is not impacted by circumstances over which you have no control. Solutions are available – if you have questions or concerns, please contact your insurance representative to discuss your situation. 

What steps should we take in regard to our Group Benefits Coverage?

As you can probably expect, there have been many questions asked by employers regarding the impact to Benefit Plans resulting from Covid-19. Most common questions (so far) have been:

• What if my benefits are up for renewal now?
• Every situation is different and insurers recognize the challenging times we are in. There may be delays with renewals getting to you. Premium payment deferments may be able to be arranged but again this is insurer dependent. It is best to have a conversation with us in advance to better understand your situation before we approach insurer(s) on your behalf.
• What if I have to lay off employees or reduce their hours? What happens to their benefits?
• Insurers are stepping up here and allowing for continuation of benefits (Short Term Disability and Long Term Disability on a limited basis) for 90 days and this is subject to change depending on how long we are under this Covid-19 cloud. Again, it is best to have a conversation with us.
• What if I have to reduce work hours for my employees?
• Effective immediately and until May 31st, 2020 most insurers are waiving the ‘minimum hours’ required to be eligible for benefits.
• Out-of-country trip limit increases
• If an employee and/or family member is quarantined or unable to get back to Canada in a timely fashion, these exceptional cases will be reviewed on a case-by-case basis with a view to providing further support.
• Providing paramedical services virtually
• Many providers have started offering services virtually (i.e. Dietitian, Naturopath, Physiotherapist, Psychologist, etc.) and most insurers are accepting these claims assuming they are part of your plan design and covered services.

Our office is participating at the provincial level on calls with brokers and insurers and as more information is available, we will reach out to you and will, as promised, continue to keep you up to date. This is, of course, still a very fluid situation.

In the interim, if you have questions, reach out and talk to us. We are here for you

Again, we are available to connect with you by phone or email if you have questions or concerns.

We greatly value our relationship with you and maybe it is time that all of us take stock of what really matters, family & community. Let us look after each other, be good neighbours - stay healthy and take care!

We will talk to you in due course.

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UPDATED: What emergency relief will insurers offer customers? Here’s what they told us

Aviva Canada

Aviva is offering a new Stay Home endorsement which can reduce auto premiums by up to 75% for those who have stopped driving entirely. It’s one of a series of new relief options set out by the carrier, in addition to previously-announced measures.

For those customers who have to drive during the pandemic — but still less than before — could receive savings of up to 15%. Aviva recommends brokers speak with clients to discuss what savings would be available.

Those using personal vehicles to deliver food and medical supplies will also be covered during this time under Aviva’s personal auto policies with no change to premium or impact on coverage. This does not apply to delivery drivers using third-party apps, however.

When it comes to renewals, premiums will be frozen. So customers will have the same auto premiums for their next 12-month policy term. Aviva did not that this applies to renewals mailed on or after April 17 or upon regulatory approval in their province, whichever is later. Those who have had a significant loss or traffic violation, however, may not be eligible for this offer.

Aviva is continuing previously-announced relief measures like offering to defer payments for up to 90 days without penalty or additional fees when facing financial stress due to the pandemic. Non-sufficient fund fees are also being waived for those unable to make payments. Coverage will still continue for those clients.

CAA Insurance

Active auto policyholders will get a $100 back from CAA Insurance on top of the previously-announced rate reduction for home and auto lines.

Policies in effect as of May 1 will receive the Auto Insurance Relief Benefit and no action is required by brokers to get the benefit for their clients. For customers paying monthly premiums, the relief will be applied equally across their policy to reduce monthly payments.

Those who have paid for their policy in full will get a cheque for $100 mailed to them. Eligible customers will get a letter in the coming weeks that will provide details about the benefit and how payments will be processed, the company said.

In April, CAA announced it would provide a 10% rate reduction on home and auto policies for the entirety of the policy term.

Clients are still encouraged to contact their Hubbard Insurance Group rep or email This email address is being protected from spambots. You need JavaScript enabled to view it. to review additional ways to save money as drivers are using their vehicles less. Clients can reduce their annual mileage amounts on their policies, adjust insurance on multiple cars that aren’t being driven and sign up for CAA MyPace, its pay-as-you-go option which allows clients to only pay for the kilometres they’re using.

Economical

Those who are driving less may be eligible for an enhanced reduction when it comes to their auto insurance rates. Since insurance rates are calculated based on the expected number of kilometres driven in a year, reducing that number could drop monthly rates by up to 15%, said the company. Those who previously had longer drives may save more than those who had shorter commutes, Economical pointed out. Savings are available until June 30.

If a client has parked their vehicle entirely, they could save upwards of 75% on average. Hubbard Insurance Group reps can help clients apply a coverage suspension to reduce rates by keep the policy active. Economical recommended to ensure policies will still protect clients if injured as a passenger in another vehicle or as a pedestrian. Clients need to tell their Hubbard Insurance Group rep when they start driving again.

Those who are using their personal vehicle for delivery or volunteering need to inform their broker. There will be no impact to premiums, however,

Personal insurance customers with Economical who are impacted financially by the COVID-19 pandemic should speak with their Hubbard Insurance Advisor to go over relief options.

Intact Financial Corporation

Customers who park and safely store their vehicles will get an average of 75% in rate reductions from Intact Financial Corporation. Those whose driving habits have changed will get a 15% reduction on their premiums for three months.

The insurer made these changed on top of previously-announced measures to provide financial relief to customers during the COVID-19 pandemic. Other relief measures include:

• Waiving of missed payment fees
• Flexible payment options including payment deferrals
• Flexibility for those who are using their cars and homes during the crisis for different purposes like making deliveries and running a business from home
• Premium adjustments for small and medium-sized business customers that are now closed or have been severely impacted from a sales receipts and payroll perspective
• Premium adjustments for change of use or storage of commercial vehicles

The measures are in place up until June 30. Customers of Intact Insurance can either go through their broker or fill out an online form to update their personal driving habits. Customers of belairdirect can update their information online. Commercial customers should contact their Hubbard Insurance Group rep or email This email address is being protected from spambots. You need JavaScript enabled to view it.. 

RSA

Customers of RSA Canada will receive a break on their insurance premiums, but how much will depend on their needs and situation.

The carrier has put a number of measures in place until June 30 and will review the plan as the pandemic develops.

Those driving or commuting less – or aren’t using their vehicles at all – because of the pandemic or if you are struggling to make payments, flexible options and payment deferrals are being made available. Contact your Hubbard Insurance Advisor to discuss options.

Non-sufficient funds fees for personal and small commercial policies occurring after April 1 will be waived by the insurer. However, RSA warns that banks may make separate charges and customers should speak with their bank for more information.

Personal auto clients who are temporarily using their vehicle for delivery – whether they are an employee of a restaurant, grocery store, pharmacy or even with a food delivery service app — coverage will be available for all policies. There will be no change in premiums.

When it comes to home policies, coverages in place will not be impacted when working from home ad directed by their employer due to the pandemic.

As for commercial customers, RSA noted the following:

• It is adjusting its rating approach to support business owners
• For small and mid-sized businesses that have been directly impacted and are experiencing temporary closures and changes in operations, the company is working with its broker partners to be as flexible and accommodating as possible including allowing mid-term coverage adjustments, payment deferrals and premium adjustments.
• For businesses that are making changes to their operations to support the current crisis, RSA Canada is providing flexible underwriting solutions.