Frequently Asked Questions

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Commercial Insurance

Personal Insurance

Auto Insurance

Group Benefits

Life Insurance

Commercial Insurance

What is Business Interruption Insurance?

Business Interruption Insurance covers the loss of income that your business suffers after a loss or damage to your insured premises. The lost income can be due to the covered loss (example; fire) and/or due to the repair and rebuilding time after a covered disaster.

Take note that Profits Insurance covers you for just that, loss of gross profit due to 1. Reduction in turnover, and 2. Increase in cost of working as a result of loss or damage to the insured premises

What is Commercial General Liability (CGL)?

Commercial General Liability Insurance covers your business’s legal liability for compensatory damages because of bodily injury or property damages to a third party arising from all operations of the insured, including your premises and operations, completed operations and products, personal and advertising injury, contractual liability, non-owned automobile, and tenants legal liability.

What is Directors & Officers (D&O) Liability Insurance?

D&O Insurance protects a director or officer of a firm for liability resulting from negligence, error, or omission. The insurance will pay when the insured is found legally obligated to pay on account of claims including claims for employment practices, breaches or alleged breaches of any oral or written employment contract or quasi-employment contract. Coverage is for wrongful acts, employment practices, and personal injury or publisher’s liability.

What is Mechanical Breakdown (Boiler & Machinery) Insurance?

Mechanical Breakdown (Boiler & Machinery) Insurance 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 and their breakdown due to a covered loss.

What is a Non-Owned Auto Liability Policy?

A Non-owned Auto Liability Policy 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. Example; an employee using his/her own vehicle for work duties.

What is Professional liability (E&O) Insurance?

Professional Liability (E&O) Insurance typically 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.

Coverage includes Defense, Settlement, and 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 includes; your building, stock, furniture, equipment, tenants improvements, and property of others in your care, custody and control.

What is Business Co-insurance?

All commercial insurance policies are subject to a Co-Insurance Clause. The insurance is subject to a certain percentage of the value of the item insured. If the insurance is placed to an amount which is at least the percentage of value required there is no Co-Insurance penalty, however, if the amount of insurance is an amount less than required a penalty will apply to all except the smallest of claims.

How Co-Insurance works is best illustrated by an example:

The Value of Your Building $100,000
Co-Insurance Percentage 80%
The Required Minimum Insurance (based on Co-Insurance Clause) $80,000
The Amount of Insurance You Insured the Building for $60,000
The Amount of Damage Caused by Fire $25,000
The Amount Paid by Insurance 60,000/80,000 x 25,000 = $18,750

This example puts in dollar terms the Co-Insurance concept which could be described as The Amount of Insurance you DID insure for ($60,000) divided by the Amount of Insurance you SHOULD have insured for ($80,000) multiplied by the loss amount ($25,000). The insurance company will pay you $18, 750 as the Co-Insurance amount of 80% of the value of the building was not insured for.

Making your policy 'Stated Amount' is one possible solution.

Personal Insurance

Home and Property Insurance

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, and sprinkler or air-conditioning system; or from a "domestic appliance" on your premises; or from a water main. You are also covered if hail or wind causes a hole in your home through which water enters and causes damage. Insurance companies consider water damage to refer to the damage caused by “clean water” or water that hasn’t entered your home from the ground or sewer./p>

Coverage under Water Damage usually excludes damage arising from:

  • Floodwater – such as that from an overflowing river or any body of water
  • Repeated or continuous water seepage (from a cracked basement wall or an un-repaired pipe)
  • The backing up of water from a sewer, sump or septic tank
  • Leaky gutters and downspouts.


The Sewer Back Up Endorsement is important to have to protect you from this kind of damage. Sewer back-up involves damages caused by “dirty water”. “Dirty Water” includes any water coming into your home from pipes, drains, septic tank, eaves troughs or down spouts. The most common reason is when rain or melting snow overwhelms the city sewer system causing back-up and resultant damages to homes.

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:

  • Arrange for a competent person to enter your home daily to ensure that heating is being maintained
  • Use a heating alarm monitored by a 24-hour service
  • 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?

Exclusions are items, perils or situations that are not covered by your policy. Your insurer might exclude anything from long-term mold 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.

Auto Insurance

What coverage do I have 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 costs 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 if I rent 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 do I need to know if someone else drives 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.

My insurance broker quoted a premium that I agreed to and I bought the policy. Now I got a notice that the premium is more than they quoted. Can they do this?

An insurance company has sixty days from the effective date of the policy to review the application and confirm the information provided. It may adjust the quoted premium, which is an estimated premium, based on that review or underwriting process. The insurer must notify the insured of the revised premium in writing.

What are “Optional Coverages” for my car? And do I need them?

Optional Coverages are not mandatory or standard to your auto policy. Depending on the specifics of your car, the use as well as the financing on your car helps determine if you need the optional coverages. Working with an experienced insurance broker gives you peace of mind that you have the right coverage in place. Some optional coverages are:

Coverage for Transportation Replacement (OPCF 20)

This coverage under the collision or comprehensive portion of your policy provides you with the use of a rental car while your car is being repaired.

Family Protection Coverage (OPCF 44R)

This coverage protects you to the same limit as your liability coverage if you are involved in a car accident with an underinsured driver, an uninsured driver or an unidentified driver, such as a hit-and-run driver.

Removing Depreciation Deduction (OPCF 43)

This coverage removes the insurer's right to deduct depreciation from the value of your car when settling a claim for loss or damage caused by a peril for which you are insured.

Please keep in mind that these are only three of many other optional coverages that you may want to add to your policy. Speak with us for more information on these and other coverages to ensure you have the proper protection in place.

Group Benefits

Why should I offer Group Benefits to my employees?

Group benefit plans are just that – a benefit to employees. Employees view this as a form of compensation. Having a Group Plan in place as an offering can attract and retain top talent to your business and people see the value these plans. Plans protect your employees with health, drug and dental coverage reducing sick time and providing them with access to needed medical treatments. Plans protect your business ensuring your human resources investment is protected in case an employee becomes sick or injured.

What kinds of benefit plans are there?

Employers can sponsor group life insurance, accidental death and dismemberment insurance, extended health care, dental care and disability benefit plans. A group insurance provider is decided upon based on the coverage needs and premium dollar amount

Doesn’t OHIP cover these things?

Our provincial and national healthcare program does provide us access to doctors and emergency medical treatment, however it doesn’t cover everything. Group Health and Dental Insurance bridges the gap and helps keep all employees healthy and productive.

Do employees contribute to the plan?

Benefit plans are provided by employers as a form of compensation to employees. There can be cost sharing in the plan by employees and it is easily managed as a paycheque deduction.

What is usually covered under the health benefits of the plan?

The Health Benefit portion of the plan provides coverage for many things, here are some of the most common:

  • Professional services, such as chiropractors, psychologists, chiropodists, etc
  • Semi-private hospital coverage
  • Home care nursing
  • Paramedical supplies
  • Out-of- province medical protection
  • Vision care

What is Co-insurance?

The different types of benefits supplied under the health portion of the plan are often offered with a specific “co-insurance”. Co-insurance is a percentage that the insurer pays for the benefit once any policy deductible is exceeded. At 100% co-insurance, the insurance company would pay for all of whatever benefit is being covered. At 80%, the insured will pay 20% of the cost of the medical treatment or drug purchase, and the benefit carrier will pay the rest.

There are different co-insurance options. Important to note is the higher the co-insurance number, the higher the premium will be.

What is an EAP?

EAP stands for Employee Assistance Program. EAPs are value added services that offer confidential, short term counselling or professional services to employees that are experiencing personal or work related issues of stresses that could be affecting their performance. They are a great addition to any Group Benefit Plan to ensure the health and wellness and productivity of your team.

What is Cost Plus?

A Cost Plus arrangement can be set up with an insurer on a fee per claim basis. Cost Plus provides a method of payment for legitimate expenses not covered by the insured benefit program. Claims processed via Cost Plus are those expenses over the present policy limits which a client wishes to have covered. Claims must be qualified as an eligible medical and dental expense under the income tax act.

Life Insurance

Why do I need Life Insurance?

Life insurance protects your loved ones should the unthinkable happen and you are to pass away. The money from your life insurance policy can be used to take care of living expenses, mortgage payments, outstanding debts and credit card payments, childcare and education expenses, funeral costs, and more. The money can also be gifted to a loved one or favourite charity, or be used to protect the value of your estate or business.

How much Life Insurance do I need?

The amount of life insurance that's right for you if unique to you and your personal and financial situation. Such factors as marital status, children, your existing assets, your liabilities all will help us assess what type of life insurance is right for you and how much.

What is a death benefit?

A death benefit is the money your insurance company will pay to your named beneficiary if you die while your life insurance policy is in effect. The amount paid will be equal to the insurance coverage amount you have at the time of your death.

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