Canadian insurance companies are doing what they can to help business owners experiencing financial difficulty due to the COVID-19 pandemic. If your business has been affected by a temporary closure, a supply chain disruption, changing consumer behaviour or some other consequence of the crisis, here are some of the ways your insurance company may be able to assist you.
Many insurance companies are allowing policyholders to defer paying their premium. In other words, they can pause their monthly payments and settle their account balance at a later date, without being charged any interest. Additionally, many insurers are waiving fees for payments that were missed since the beginning of the COVID-19 crisis.
Premium Adjustment Advice
If your revenue has decreased as a result of the pandemic, you may choose to speak to your insurance company about updating your premiums. Many top insurers are encouraging policyholders to reach out to them for suggestions regarding premium adjustments that could allow them to pay less for insurance during the crisis.
Non-Enforcement of Vacancy Clause
For businesses whose operations have been halted due to the pandemic, top insurance companies have decided that they won’t consider the property “vacant” during this time. Under most business insurance policies, coverage for vandalism, water damage, theft and other losses is voided if the building is “vacant.” In the insurer’s language, vacancy occurs when a commercial property hasn’t been used for its customary purpose for more than 60 days.
Some business insurance policyholders will be able to file insurance claims. For example, if your business was planning an event that got cancelled and you bought cancellation insurance, you may be able to recoup the anticipated income from the event. However, it depends on the details of the policy: some event cancellation policies exclude infectious diseases from the coverage.
Additionally, you should note that the business interruption and supply chain disruption coverages offered under commercial insurance policies generally don’t cover losses caused by a pandemic. That said, there are specialized business interruption and supply chain disruption coverages that do extend to such losses. If you don’t have this type of coverage now, you may want to consider adding it to your policy should a similar crises arise in the future.
Business Insurance in Edmonton
HDF Insurance is available to serve businesses during the COVID-19 crisis. As always, we’re here to help you obtain affordable commercial insurance in Edmonton and elsewhere in Alberta. Contact us for more information.