The basics | Getting the best property insurance aligned…
Bricks and mortar. It’s the literal foundation of every Canadian business. Your business is grounded with a physical location, regardless of where your clients find your products or services.
And with property also come risk exposures. Canadian Underwriter recently took a look at historical insured catastrophe losses in Canada. Citing a report released by the Insurance Bureau of Canada (IBC), the article provides some timely insights about property losses.
For example:
“If you take a deep dive into the real cost to Canadians of insured major natural disasters, even though the methodology changed around 2008, it still shows a long-term trend of claims cost increases over nearly 40 years.”1
At a recent CatIQ Connects virtual conference, the CEO of IBC shared that “The Canadian property and casualty insurance industry was averaging about $400 million a year in insured cat losses from 1983 through 2008, Forgeron said at the time. Since 2009, the annual average has been nearly $2 billion.”2
These numbers aren’t fake news. They are based on real statistics. And on real events that have devastated people’s lives and livelihoods.
The need for insuring your bricks and mortar physical location has never been more clear. Catastrophic events across Canada are on the rise and securing commercial property insurance that will respond to a worst-case scenario is nothing short of essential.
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As a result, you need to know precisely what you are buying when you are insuring your business property. And the best way to do that is to work with a brokerage that specializes in commercial insurance. We are that brokerage. The experienced ALIGNED Insurance brokers only work with commercial risk. That is to say, they are business insurance specialists.
We have deep and strong relationships with more than 65 top insurance companies in Canada and can get you aligned with options, choice and value.
Firstly, here’s how Canadian property insurance helps manage common risks…
Basic property insurance covers losses due to fire or lightning, including the cost of removing property as a way to protect it from further damage. You can also buy a standard policy that provides coverage for extended perils.
For instance:
- Floods
- Windstorms
- Hail
- Earthquakes
- Acts of terrorism
- Explosions
- Riots
- Smoke
- Civil commotions and
- Vehicles that damage your property
Beyond this, coverage for vandalism and malicious mischief can also be included. If you are looking for a property insurance application, our advocates can help find more options and value for your business.
Do you know the difference between replacement cost value and actual cost value?
You should. In general, a property insurance policy will provide the replacement cost value for your building as well as the actual cash value for your business property. Here’s what these terms mean:
- Actual cost value is the value of your property when it is damaged or destroyed. This amount is typically determined by subtracting the depreciation from the replacement cost value.
- Replacement cost value is the amount that is necessary to replace or rebuild your building or repair damages with similar materials, without considering depreciation.
Meanwhile a coinsurance clause requires you, the policyholder, to share the cost of covered services up to a moderate percentage of the actual cash value of the property. This will allow you to receive full coverage for your losses. Without adequate coverage, you may be obligated to pay a percentage of all losses, even if they are listed in the policy.
Related Matters: CanadianUnderwriter.ca: What historical insured catastrophe losses really mean
Want to know more about common risks covered by property insurance? Have questions about available extensions? Our ALIGNED Insurance brokers can provide the answers you need to make informed decisions about your property coverage. Contact us now to learn about options that can help with managing the specific risk exposures your business faces.
Secondly, here’s a list of property insurance coverages you can consider…
Choice. In order to know you are getting value for your investment in insurance you need to have choices. When you are looking at property insurance coverage for your commercial business, choice is important. Here are some property coverages that we can help you understand as you decide on the best options for your business.
For example:
- Business contingency for suppliers
- Buildings and other structures (leased or owned)
- Cargo
- Electronic data processing equipment (computers, etc.)
- Extra expenses as a result of loss
- Furniture, equipment and supplies
- Intangible property (goodwill, trademarks, etc.)
- Inventory
- Leasehold improvements and betterments you made to a rented premise
- Machinery/boiler
- Mobile property (construction equipment, etc.)
- Money and securities
- Ordinary payroll
- Property in transit
- Satellite dishes
- Records of accounts receivable
- Signs, fences and other outdoor property not directly attached to the building
- Valued documents, books and papers
Looking for a property insurance application? Our advocates can help you secure the best property products, services and solutions for your organization.
In short | Here’s how we can get your property insurance aligned
To sum up, we know that bricks and mortar risks are essential to insure. And when you are looking for the best property insurance options, working with a brokerage that exclusively specializes in commercial coverage gives you a solid foundation of choice.
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Above all, working with an ALIGNED Insurance broker means that you are connecting with an experienced commercial expert who has deep relationships with top Canadian insurers. And an individual who is 100% focussed on business insurance solutions only. Similarly, someone who is part of a team that delivers commercial insurance to thousands of businesses across the county.
That is to say, a team that’s 1000% committed to delivering a different and better business insurance experience.
Source(s): 1,2 CanadianUnderwriter.ca: What historical insured catastrophe losses really mean ;
