Commercial insurance Recent Posts

It’s that time of year again, and no – we don’t mean the holidays. ‘Tis the season to prepare your business for snow and ice.

Nearly 654,000 reported emergency department (ED) visits last year were the result of unintentional falls, which accounted for nearly a third of all reported ED visits for trauma and injury. As a business with a physical space like a storefront, warehouse, or office taking action to prevent costly lawsuits is a must. Here’s our tips.

If your business has a physical location, generally you are responsible for clearing away snow and ice from walkways, parking lots, and other areas. There are some exceptions. 

For example, if your business is renting the space that you operate out of, and your lease states that the landlord takes care of snow removal, then that responsibility falls on them. If anything happened to a third-party (a delivery person, shopper, client, or passerby) because the snow and ice wasn’t properly cleared, your building’s landlord could be sued. 

However, most businesses are responsible for maintaining the walkways outside of their buildings. If snow and ice aren’t cleared from a walkway and someone slips and falls, the business will almost always be the one paying up. 

As for parking lots, the property owner is responsible for snow removal or for hiring a snow removal company. If it’s a multi-business parking lot, then the lease would specify the responsibilities for each rented unit. And if a slip-and-fall does occur, businesses are required to report the incident to their insurance provider immediately.

Every business aims to create a smooth and pleasant experience for their customers, from the moment they arrive to the second they leave. But visits to your building can be a little more hazardous come winter. 

To protect your customers (and your business against costly suits) we have some tips for you:  

Many commercial property insurance policies will have a clause which requires businesses to have a snow removal contract in place. This contract ensures that a snow removal company clears walkways and does de-icing on a regular basis. Many insurance companies will require you to keep logs of when snow was removed, and it’s usually recommended to have your property cleared as soon as possible after it snows.

It’s also a bylaw in many Ontario cities that businesses must clear walkways within 24 hours after it finishes snowing. Cities like Toronto have even shorter windows – usually 12 hours.  

While having a third-party responsible for your business’s snow removal ensures a safe walkway, some policies will permit businesses to take on their own snow removal. “In some instances, businesses can take on this responsibility themselves, but we usually don’t recommend it – especially if you’re located in a high-traffic area,” said Jake Hovinga, Commercial Lines Manager at Mitch Insurance. “Hiring a snow removal contractor comes with a cost, but the onus for any snow and ice-related slips falls on that company. If you handle your own snow removal, it increases your liability and you’ll also be responsible for keeping your own logs.”

“Although there’s no insurance discount for using a snow removal company, it’s a good practice and helps protects you and your business. You’re also responsible for clearing your property when your business is closed (evenings, weekends, holidays, etc.). Having a snow removal company manage this means one less thing to worry about.”

And as you’re liable for clearing your property even if your doors are closed, snow removal companies may even be brought on to do removal when the business is not in operation. This includes over weekends, during holidays, etc.

During winter, outdoor and indoor mats and rugs can quickly become soaked as snow and ice fall off people’s boots and melt. Wet mats can become a hazard very quickly, so you’ll want to ensure that they are replaced with dry ones and that they’re properly secured to the floor to avoid a mishap.  

Keeping a sand or salt box on your premises is also a good way to remove ice from your walkways and reduce the risk of people slipping and falling.  

If your business sees a heavy amount of foot traffic, your floors can quickly become damp in the wintertime. This can also happen with regular cleaning, mopping, etc. It’s important to mark any wet areas on your floors to indicate where customers or even window shoppers may be at risk of slipping. If you’ve experienced flooding or an area in your business is especially hazardous, block it off entirely. 

Ensuring that water isn’t pooling around your business’s exterior is key to preventing it from later freezing and becoming a hazard. Over time, this water can also damage the foundation of your building as it freezes and melts. 

As a business owner, you’ve got a lot to juggle. Ensuring that all your staff members know how to keep your walkways and business safe is key to having “all hands-on deck” when it comes to your business’s overall security.  

Sometimes, accidents happen. When they do, it’s important that you keep track of everything that occurred to avoid details being blown out of proportion in a potential future lawsuit. Make sure your staff are aware that all incidents need to be documented and ensure there’s a procedure for them to follow. Be sure to also report any incidents to your insurance company as soon as possible.  

Never offer a settlement upfront. This is admitting fault, and it can take away an insurance company’s right to defend you. A person has up to two years to sue for a slip-and-fall claim in Ontario, so be mindful of this if you think an accident has been “forgotten about.”  

Winter is wrought with potential exposures, and Canada tends to see the worst of the snow, ice, wind, and hail. Being proactive by purchasing insurance and taking the right measures to ensuring your store is a safe place to go can help mitigate future claims.

As a business with a physical storefront, like a retail store, warehouse, commercial rental property, office, – or anything in the mix – having insurance is a surefire way to protect yourself as you focus on growth and customer experience. Give Mitch Insurance a call so we can handle the insurance while you focus on growing the business side of things.

Canada saw a 406% increase in claims in 2024 due to severe major weather events and natural disasters in just 4 weeks. During a period with a rising instance of natural catastrophes, the need to reassess insurance needs is growing–and business owners are not exempt from this push.

Some companies may consider reducing or even removing their insurance coverage as a way to save money. But this could lead to significant problems. Not having adequate insurance leaves your business massively exposed and even if you could afford repairs after a storm or similar loss, could you keep up with ongoing expenses during a period of unexpected downtime?

Enter one of the most crucial commercial insurance coverages there is for any company: business interruption insurance.

Business interruption insurance may cover a variety of costs associated with an unexpected downtime. If your business needs repairs because of a fire that was covered by your insurance policy, your business interruption may cover: 

Every business interruption policy is different, so be mindful that what’s listed above may not necessarily be included in your coverage. Review your plan or ask an insurance broker to go over your policy with you. 

When buying business interruption insurance, we recommend working closely with a broker to identify the best coverage for your operations. There are several types of business interruption: 

This form of business interruption insurance covers all actual costs and expenses as a result of a claim due to physical damages, destruction to insured property, etc. The payment is based on what the company would have earned were it not for the unexpected loss. 

This type of business interruption insurance pays lost profits until your business returns to its full functionality after an interruption (or up until your policy’s limits). 

This covers your gross earnings until the property that was damaged in an insured loss is up and running again.  

Extra expenses business interruption insurance offers the funds needed to relocate, if necessary, to temporary facilities until your insured property can be fully restored.  

Business interruption insurance, like any other commercial insurance policy, is not a catch-all solution and must be purchased alongside other coverages to be fully sufficient in protecting your company. It also cannot be purchased on its own and must be bought alongside commercial property insurance.  

Most of the time, the following events will not be covered by business interruption insurance: 

Also keep in mind that all policies have limits. Your insurer is only required to pay if your business legitimately sustained a loss due to the interruption, and the amount you’ll be eligible to recoup cannot exceed the limit that is stated in your policy. The limit could be a specific duration of time or a dollar amount.  

And although unfortunate, business interruption insurance does not cover COVID-19-related losses. This is because viruses cannot cause physical damage to property. Business interruption insurance is triggered by a physical loss covered by commercial property insurance, not because your staff are sick or closures due to a virus. Since the COVID-19 pandemic, most business interruption policies contain clauses specifically excluding pandemics or viruses from coverage.  

Business insurance plans vary in cost depending on a number of factors, including the following: 

Business interruption insurance policies vary from a few hundred to several thousand dollars per year. That said, they can save your company thousands of dollars if an interruption does occur. Plus, you have peace-of-mind knowing your business is protected. 

Give us a call at Mitch Insurance to discuss business interruption insurance today. Our commercial insurance brokers would be more than happy to give you a proper run through of how it works, the benefits it provides your business, and more.  

Cyber Security Awareness Month, otherwise known as Cyber Month, is held each October to improve public awareness of the importance of cyber security.   

For businesses, cyber security is more vital than ever. A recent study by the Canadian Internet Registration Authority (CIRA) found that 44% of Canadian companies experienced a cyberattack in the past 12 months. 

Here’s how awareness of the most up-to-date cyber practices can help bolster your business’ digital defenses. 

A study by the Insurance Bureau of Canada found that around 60% of small businesses thought they were too small to be targeted by cyber criminals, but the same poll showed 25% of employees feel they don’t have the tools or training necessary to identify cyber threats. 

Cyber security awareness for businesses is crucial, and all companies should have some kind of cyber protocols to defend their digital data and protect themselves against common schemes, such as malware, phishing scams, data theft, and similar threats. 

Here are some of our top tips to help promote cyber security awareness for your business: 

By providing cyber security training sessions, you can ensure your staff have a thorough understanding of what it means to be cyber smart. Helping employees to understand the most basic steps of cyber security and how simple actions can go a long way to impacting the overall health of a security network is important. Regular training sessions, at least once per year, can help to keep your entire organization sharp.   

No matter how careful a company is, sometimes things slip through the cracks. It’s better to plan for the worst and be prepared in case your business is the victim of a cyberattack or has a data breach. Having a plan in place for data recovery means that normal service can continue as soon as possible, even if a breach occurs. All key employees should be aware of their roles in the event of a data breach, to ensure data is easy to recover.   

Multi-factor authentication, or MFA, is a fancy way of saying multiple means of authentication are required to access an account or database. This lessens the odds of a breach and increases security. Plus, it’s easy to implement.   

Cyber security is always evolving, whether that’s in how we address it or in the new threats that are emerging. New practices are always available, so it’s important to stay informed to ensure your business is in the best shape to tackle possible threats. Some companies will also have legal requirements to comply with the most up-to-date security practices.    

As technology evolves, and the sophistication of cyber criminals improves, it becomes likelier and likelier that businesses will be faced with a cyberattack or data breach. Cyber insurance is a great way to protect your company.  Here are some high-level benefits: 

A popular misconception about hacks and data breaches is that small businesses aren’t at risk. That couldn’t be further from the truth. Hackers will target any size of business, and smaller companies may be even more vulnerable because they’re less equipped to handle an attack.   

Recent CIRA data has discovered that the prevalence of cybercrime is pushing customers away from Canadian businesses. For small businesses especially, getting off the ground can incredibly difficult even without considering the risk of cyberattack. Since small businesses are more vulnerable, they can also be more appealing victims for these kinds of crimes. Small businesses with predominantly virtual presences or with no brick and mortar locations are even more at risk.  

It can be overwhelming to tack on cybersecurity with all your existing ongoing expenses, but it really is important. At the same time, there are numerous cyber resources out there that are completely free. 

One resource any business can capitalize on is the Insurance Bureau of Canada’s cybersecurity assessment. This free online assessment shows businesses what kind of risks they may be faced with and provides them with insights on steps they can take to mitigate their risk. 

Taking this assessment during Cyber Month (between October 1^st and October 31^st) will automatically enter your business in a draw to win one of four prizes valued at $500.  

You can also check out the Government of Canada’s cyber information for small and medium businesses here, which provides numerous resources and articles pertaining to bolstering the cyber defenses of businesses with few to no employees. The site offers advanced filter searches, where you can sift through to find resources dedicated to your specific needs. Check out topics on AI, applications, Bluetooth, operating systems, phishing, remote access, and so much more. 

Cyberattacks are unfortunately a prominent issue in Canada, and lawsuits over data breaches can be a very real concern for any size of business.  

Our commercial insurance brokers are happy to discuss cyber insurance options and to help find the coverage that’s right for you and your business. Call us to learn more and get a quote at 1-800-731-2228. 

Roofers, landscapers, and bricklayers are among the many contractors whose demand surges during the summer but dwindles come autumn. If you run a seasonal contractor business, it may seem logical to consider insurance coverage only during your peak working months. 

However, most insurance providers require annual coverage rather than seasonal policies. Here’s why this matters. 

If your insurance policy extends to your warehouse or office space, as well as your assets, tools, and equipment, it’s wise to maintain coverage to safeguard them even during periods of inactivity. 

This remains relevant whether you operate from a home-based setup or store your tools and equipment in a garage or storage unit during winter. Unexpected incidents like theft, fire, or water damage can occur regardless of the season, and your tools and equipment are not only be costly, they are imperative to running your business. 

Commercial general liability insurance is an integral part of any contractor’s insurance policy, as it helps to protect them against claims of bodily injury or property damage resulting from their work. While most claims are more likely to arise during your active season, say you had completed a project at the tail-end of your busy season. A couple of months later, someone alleges that your work caused them severe injury. If you cancelled your policy, any compensation that person is entitled to or any legal fees that arise from a court case would have to come out of your own pocket.  

Contractors are held to rigorous standards due to their expertise, specialization, and industry regulations, making them accountable for various aspects of their work. In some instances, clients may insist the contractors have insurance coverage, regardless of provincial requirements.  

Ceasing coverage and then restarting it when work ramps up isn’t advisable for several reasons. Chief among these is that insurance companies view businesses with inconsistent insurance histories unfavourably. You’ll always be required to disclose your insurance history when buying a new policy, so your new insurer (or previous one, if you’ve elected to go with your insurance provider from last season) will recognize that there are lapses in your coverage. They may limit your choices in the type of coverage you can buy, requiring you to pay higher prices for your insurance or ask that you pay your full premium upfront. The longer you’ve been insured for, the better your rates will usually be – and having an inconsistent insurance history can act as a red flag for many insurance providers.  

If you have to pay your full premium upfront but still elect to cancel in the winter, you won’t be given a refund – no matter the reason. Your premium is based on a lot of things, mostly what kind of work you do and your company’s annual revenue, not just which months of the year you operate for.  

Having continuous coverage is always ideal. If a job pops up in the “off-season”, or you’re faced with a claim, it’s better to already have a policy in place instead of having to go through the process of getting insured again. You won’t need to do much more than review your policy each year (unless you’re considering shopping around for a better policy).  

Some insurance companies will offer seasonal business insurance, but very few. An insurance broker can help you look for options. This can be beneficial for businesses and seasonal contractors that work strictly during specific seasons, but it only covers you for the weeks or months that you’re in business for and leaves a big coverage gap. Again, you won’t be covered if your property is damaged or stolen, you won’t be covered for any claims that arise between jobs, and there’s no guarantee that a seasonal policy will be more affordable. 

In reality, insurance companies might increase premiums for seasonal businesses due to perceived risks, resulting in higher costs for potentially reduced coverage, creating a lose-lose scenario 

Everyone’s situation is different. We can’t tell you what’s best without getting to know you and your business. Chat with one of our commercial insurance brokers to learn more about what insurance is right for your seasonal contracting business. We can give you advice, help you shop around, and make suggestions. Plus, when the time comes around for renewal, we can help see if you’re still paying the best possible price for your policy or if it’s time to start looking elsewhere. 

Give us a call.  

A recent study conducted by KPMG Canada found that of 92 % of business owners and executives fear their companies will be impacted by extreme weather. Over half of the businesses surveyed have already seen their profits impacted by climate change, whether that was from flooding, heatwaves, or forest fires. 

More and more businesses are rethinking climate risks. Severe weather events can put businesses out of work for weeks, months, or even longer—and without the right insurance coverage, it can be hard to spring back from these kinds of financial losses.  

Jasper’s devastating wildfires in July 2024 have destroyed 30% of the town’s structures and are one of the many prime examples of business owners being impacted by climate change and being left to pick up the pieces. In 2023, severe summer storms caused over $340 million in insured damages.  

The planet is on pace to warm by nearly three degrees Celsius by 2100. However far off that might seem, the realities of the situation are still very present. Heavy rainfall, prolonged periods of drought, and the ever-increasing risk of wildfire pose some obvious physical threats to businesses. Even companies not directly impacted might see suppliers devastated by weather events and consequently be unable to carry out business operations as usual. 

Insurance is designed to cover unexpected events, including those that may arise due to climate change. As you might expect, physical damages are covered under commercial property (commercial auto for vehicles, assuming comprehensive coverage exists) but one of the biggest killers for any scale of business is the downtime spent making repairs and doing restoration. 

Enter business interruption insurance. It can help cover your ongoing expenses and help keep your business afloat by ensuring you’re able to make ends meet even after an interruption due to extreme weather (or any other insured reason). Depending on the type, it can cover certain expenses up until your business is entirely restored, until you’re making pre-loss income, or until your policy’s limits are reached.  

There are several types of business interruption insurance available to consider: 

Gross earnings business interruption insurance provides coverage up until your insured property is repaired or replaced, even if your company isn’t back to the level of earnings it was at prior to your claim. 

This offers coverage until the point where your business resumes operations at its normal, pre-claim level of profits (up until your policy limit or coverage period). 

Actual loss sustained (ALS) is a type of business interruption insurance that covers all types of expenses and losses due to a claim from physical damages. This includes reduced income after reopening, loss of profits due to the claim, coverage for fixed ongoing expenses, and so on. 

This is designed for businesses that may be able to continue operations after a claim but covers additional expenses, such as temporary relocation, emergency repairs, and extra outsourcing or advertising.  

Insurance is meant to serve as a backup, not a wall of defense. It can help restore your business back to its pre-incident state, but it can’t prevent things from going wrong. 

A commercial insurance broker may be able to provide your company with additional insights based on your location, type of business, and specific threats.  

Climate risks are unpredictable, and for business owners they can be very stressful. Mitch’s commercial team are experts in emerging risks like the ones Canadians companies face from climate change. Give us a call today to discuss your business and concerns. We’ll help find a policy that’s right for your unique circumstances to ensure your business is always protected.  

Both architects and engineers are professionals who provide specialized services which involve significant expertise, technical knowledge, and creativity. Any errors in their work can have serious consequences, both financially and in terms of safety and functionality.

Enter professional liability insurance, also called errors and omissions (E&O). E&O offers protection against claims arising from professional services, such as those provided by engineers and architects.

E&O insurance goes by many names, and depending on the industry it’s for, it can also be referred to as professional indemnity insurance (usually for lawyers or law professionals) and medical malpractice (coverage for the healthcare industry). Its sole purpose is to protect “professionals” (any industry that offers advice or a service) from claims alleging errors, omissions, negligence, etc. It can also provide coverage for lawsuit costs, including legal fees, settlements, and more.

While E&O is an optional coverage, some regulatory bodies will require it for specific professions, such as for corporate lawyers. Architects and engineers may not be required to purchase it, but it’s highly recommended given the nature of their work. It also enhances a business’s professional appearance, and clients who are aware you have this coverage are more likely to trust and work with you. While it isn’t common for individuals or families to ask for this coverage, organizations, government, and corporations will look for it.

The work of architects and engineers is very sensitive by nature and any mishaps, errors, delays, or miscommunications could result in significant financial damage, reputational harm, or setbacks in a final project. Architects and engineers are held to a high standard due to the value of the work they provide, so an unexpected mistake or omission causing harm could be devastating for not just the client, but all involved.

Here are examples of claims that might be made by engineers and architects:

Your client alleges that you misrepresented your capabilities, experience, or qualifications as an engineer or architect, resulting in delays, mistakes, or problems during a project. As a result, they seek compensation for the costs and associated damages.

With E&O, your policy may provide coverage for compensating your client and assisting in restoring your reputation or offsetting any associated financial setbacks.

An example of a misrepresentation claim might be if your business made a false claim about its experience or reputation to secure a contract. If your client found this out to be untrue, they could sue you for a claim of misrepresentation.

A competitor or other third-party alleges that the design you created as an engineer or architect infringes upon their intellectual property rights, like a patent or copyright. As a result, they might seek an injunction or to protect their property and even sue for damages.

Like the example above, E&O could provide coverage for the costs associated with this. If the case escalated to a lawsuit, E&O could help with your legal and administrative costs.

*Note: In Ontario, infringement may need to be added separately to a policy for copyright or patent infringement claims to be covered.

An example of an infringement claim could be something like a competitor of your client’s alleging that the design you created was a direct copy of theirs. Your client could turn around and sue you for copyright infringement or defamation.

If a client claims that you were late in delivering the final design, which then caused further delays in the project and resulted in additional construction costs and potential lost revenue, they might seek compensation. E&O could help cover the cost of that compensation.

An example of a delay claim could be as simple as a professional architect alleging that they can complete a project within 10-12 months, but they take upwards of 18 months due to oversight of the complexity of certain phases. This oversight could result in additional, unexpected costs that the project owner originally wasn’t anticipating.

Designing, renovating, and proofing construction projects poses significant challenges and risks for an engineer or architect. It may be your specialty, but the consequences of a mistake are far greater than they would be in most other industries. Clients could sue over a variety of mishaps, from design flaws leading to injuries, property infringement, etc.

There are four main reasons why architects and engineers should consider E&O insurance:

Let’s dig into each of these a bit more:

One of the best benefits of E&O is that it can help your business to rebuild its reputation by providing finances for hiring crisis experts even if a client or ex-client files a claim against you. A case like this can seriously damage your brand and make it even harder to attract new clients. E&O helps you to both defend against claims and safeguard your reputation as your business grows.

E&O’s main purpose is to keep your business going despite a lawsuit. Given the value of architectural or engineering projects and what a mistake could cost a client, the dollar value of these lawsuits can be huge and have the potential to bankrupt your architect or engineer business. E&O insurance provides coverage for settlements, legal expenses, administrative fees, and more.

Perhaps one of the most underrated benefits of having the right insurance in place is the trust it builds with your clients even before you start working with them. This can lead to increased growth and a more successful business overall.

This should go without saying, but peace of mind is important when it comes to insurance protection. It allows you to focus on your work and assisting your clients without worrying about possible lawsuits, financial loss, and more.

Ready to get insured? Get in touch with Mitch’s commercial team and start discussing your options for E&O coverageas an architect or engineer today. Whatever your specialty or profession, we’re happy to find a plan that works for you. E&O is just the start – be sure to ask your broker about other coverages like commercial general liability, cyber liability, commercial property insurance, and more.

As costs continue to rise across the country, more and more Canadians are working side hustles to try and make ends meet.  

Like any job though, having your own side hustle where you deal with clients or even sell a product or service can leave you vulnerable to certain liability exposures. 

Here’s the what, why, and how of insuring a side hustle. 

A side hustle is a way to earn extra income in addition to your full-time job. While this can help to supplement your income, it also comes with extra responsibilities including the need to insure your operations.  

Regardless of whether your side hustle is a running a small business selling crochet patterns, doing independent consulting work, or even ghost-writing children’s books for larger publishers, you could be sued or accused of errors in your work, selling defective products, and more. This is why insurance should always be considered when starting a new side hustle.    

Some common side hustles in Canada that should be insured include: 

This list is just a small sampling of popular side hustles. hardly finite. There are many other side hustles that Canadians can do which will probably benefit from being insured.  

Do side hustles need to be insured? There’s usually no legal requirement for businesses to obtain insurance, but certain side hustles could affect your home insurance coverage and, with any kind of work, there’s always the risk that something could go wrong. So, while it isn’t mandatory to insure a side hustle, it’s highly necessary. 

Coverage will always vary depending on the kind of side hustle or business you’re running. One key consideration is to keep your home insurance provider in the loop when you start running a business from home. You’ll need to either get an extension on your home coverage (usually in the form of a home-based business insurance endorsement) or a separate commercial policy that reflects the unique liability coverage needs of your side hustle. 

For example, say you have a full-time job, but on evenings and weekends, you run your own shop selling homemade jewelry on Etsy. You might need a commercial liability policy with product liability in case a customer ends up getting a skin rash from one of your bracelets and holds you liable for their medical bills.  

How much insurance and what kind of coverage you need will always vary based on risk. Selling crafts online is low risk compared to running a weekend daycare in your home. This is why we always recommend reaching out and discussing your side hustle with an insurance broker to ask their advice. 

Each side hustle is different. However, if you make any kind of deliveries or drive around paying passengers, you’ll likely need to obtain commercial auto insurance. If your side hustle involves using your vehicle for business activities, your personal auto policy will not cover you for any damages or losses incurred while performing said activities. 

This is why it’s crucial to obtain a commercial policy. Companies such as Uber, Lyft, and DoorDash offer their own insurance coverage for drivers, but what they offer can be limited. You’ll still need to have a personal auto policy, and some companies may ask that you add an endorsement for rideshare regardless. At the very least, your insurer should be aware of your usage habits.  

Failure to disclose your home-based business or any business activities you do at home could mean a rejected claim in the future, or the possibility that your policy ends up being voided entirely. Consulting with an insurance broker about what additional coverage is needed prevents that from happening, ensuring you and your side hustle are protected against all the what ifs. 

With side hustles and second jobs becoming more and more common, it’s likely that more Canadians will need secondary policies, or at least additional coverage on top of their existing home policies.  

Getting coverage for your side hustle is no different than getting insurance for any other type of home-based business. You’ll have three options: 

The first step is to call up your insurance broker. They can help determine what the best course of action is regarding the kind of policy you need and can find you the best (and most affordable) coverage options.  

If you’re considering starting a side hustle or already have one on the go, contact a Mitch Insurance broker to discuss your options today.  

With significant weather incidents continuing to grow in frequency and severity, construction businesses need to begin rethinking how to appropriately manage external hazards. As climate change evolves, construction companies could be faced with higher insurance premiums due to increased rates of severe weather, plus the possibility that their insurance coverage may not be sufficient.  

As it stands, construction businesses and contractors may need to re-evaluate their existing insurance coverage and make shifts in the way they conduct business to address the ever-growing threat of climate change. 

The Ontario government’s Provincial Climate Change Impact Assessment projects an increase in extreme heat, flooding, and wildfires, which will impact everything from food production to infrastructure. 
 
That doesn’t bode well for contractors and construction businesses, whose company models require them to be active working on roads, sewers, and new builds. Due to the increased risk, certain hazards – fire, water, and wind damage specifically – may soon either come with a minimum $5,000 – $10,000 deductible or be uninsurable altogether. This is a serious spike from the minimum $2,500 deductible a few years ago.  

The Insurance Institute predicts severe weather claims paid out by Canadian insurers will double over the next 10 years. With this in mind, construction and contractor insurance policies may no longer be sufficient in covering businesses against their relative risks. As the risk of loss increases, it is important to know what areas of your insurance could be impacted and where you might need to make changes.  

Contractor’s equipment insurance is a floating coverage since the insured equipment can be transported to and from various locations on any given day. It’s designed to protect assets used by your business that are valued at $2,500 or greater, and may insure them in-transit against losses, or while they are at your worksite. You can add coverage for rented, leased, or borrowed equipment and have options to insure your brand-new assets for up to five years replacement cost.  

We recommend reviewing your policy with an insurance broker to ensure your contracting equipment is sufficiently covered against things like fire, flooding, etc. With certain worksites, insurance costs could rise, or coverage could be restricted due to the proximity to a fire hazard. In some instances, a worksite may be uninsurable altogether.  

Both installation floaters and builder’s risk are other areas that could be heavily impacted. An installation floater is used to cover equipment and materials while on-site awaiting installation, whereas builder’s risk is used to protect buildings under renovation or construction.   

Severe weather can delay projects or even hinder them, which can impact insurance due to the increased exposure. If your builder’s risk policy offers insurance for a certain number of days, it might do you good to review your existing policy with your broker to ensure you have enough coverage with extended delays and increased risks.  

According to the KPMG Private Enterprise Business Survey, nearly 60% of Canadian small and medium-sized businesses were directly impacted by extreme weather in 2023. These physical risks will continue to grow as the climate change crisis evolves.  

Tools like the International Finance Corporation’s new Building Resilience Index (BRI) may become more predominant to help determine a building or site’s ability to stand up to severe weather events. The tool can be used on any type of construction and can evaluate a building’s exposure to natural hazards, considering whatever upgrades have already been implemented to manage risk.  

This tool presents beneficial data that will allow insurers to gauge and assess risk and help developers and contractors create resilient buildings more effectively.  

Here are some ways to tackle the additional risks being created by climate change and reduce your odds of having to file a claim.  

Climate change is unpredictable and it’s tough to say with exact certainty how everything is going to be affected. With that in mind, your insurance broker is a great source of knowledge and can help adjust your policy to ensure your coverage is up to date.  

Risks evolve, equipment and tools depreciate, and your business operations might even shift. If your course of business changes (for example, you offer a new service or expand to a new location), make sure to update your broker to ensure you’re covered.  

Wrap-up insurance acts as an all-encompassing liability policy and protects both contractors and subcontractors. This ensures everyone’s covered and there isn’t any unexpected exposure. 

Keeping up-to-date on local weather forecasts and risks specific to your worksite’s locality is increasingly imperative to ensuring you can proactively identify safety issues and construction delays.  

It’s important to have contingency plans in place for any weather-related issues that arise.  

You may also want to check your construction equipment and materials to ensure they’re adequately weather-resistant, confirm contact information for suppliers, clients, stakeholders and your staff is current, and review your safety training for all construction workers. Make sure your existing protocols for emergencies are clear, concise, and can be followed by everyone.

Safety equipment such as hard hats, goggles, masks, and gloves are not only a requirement, but they can also help reduce the risk of injuries due to severe weather, hazards like falling debris, or exposure to toxic fumes and materials. Some brands are more weather-resistant than others, so consider PPE that can stand up to harsh conditions.  

Construction workers should be educated and informed of what exposures they might face while operating on worksites during inclement weather, such as electrical accidents, falling objects, slippery surfaces, and more. It may be worthwhile to implement a program that considers up-to-date climate change fluctuations and severe weather risks, especially as you work on new and unfamiliar jobsites or even in new cities and provinces.  

With climate change beginning to have a real, tangible impact on the daily operations of construction businesses and contractors, reviewing your insurance at least once per year is another way to stay on top of things. Your insurance broker can help with this and provide guidance on where your policy may need amending.  

Want more information on how to bolster your construction company’s defenses against weather risks driven by climate change? Give us a call. Our team of commercial insurance brokers will be happy to answer any questions you may have.  

Canada has its way of surprising us with the weather. At the beginning of winter, it’s always a good idea to do a thorough property inspection. Checking your home’s pipes and water drainage systems is top of the list, and it’s key to staying ahead of potential issues. But what happens when snowfall happens unexpectedly later in the season? 

Snow dumps and cold snaps aren’t uncommon during the springtime, but we’re often less prepared for these events and when the weather catches us unaware, it’s likely to result in property damage or even liability claims. 
 
Here’s some advice to help you stay ahead of wintery weather, no matter when it comes.  

During the colder months, property losses often occur because of poor maintenance and installation causing frozen and burst water pipes. These are not covered by home insurance if the cause of the loss can be traced back to lack of maintenance or inadequate installation.  

Many insurance companies will insist upon adequate risk mitigation measures as a condition of coverage. Even during the spring, unexpected cold snaps can cause serious issues with a home’s plumbing, and that problem is exacerbated when coupled with poor maintenance.  

The installation and protection of utilities is similarly important. Both business owners and homeowners will want to check and re-check their property’s sealing. Adequate sealing foam can help protect the external connection of utilities as well.  

With climate change fluctuations and more instances of severe and unpredictable weather, it’s wise forall property owners to get ahead of any potential issues before they arise. Performing regular upkeep and maintenance year-round, like trimming landscaping, inspecting roofs, fixing small damages, and hiring professional contractors to come in do repairs as needed is a must, and can help prevent future claims and can help prevent future claims and the increase in rates that often accompany them. 

In summary: 

Heavy snowfall, especially when it’s unexpected, can cause lots of damage to a home or commercial property. Landscaping and vegetation not trimmed or maintained can cause poor drainage and water/ice pooling in vulnerable areas, such as around the building’s foundation.  

With any heavy snowfall – regardless of when it happens – we recommend doing the following: 

Beyond property damage, heavy snow, freezing temperatures, and ice accumulation at your home or business may expose you to some unique liabilities that occur only with freezing weather or snowfall, or even uncover some unique coverage gaps.  

Winter weather hazards can exacerbate the risk of slip-and-falls for businesses. Snow can accumulate rapidly on walkways, building entrances, stairways, walkways, and even wheelchair ramps. Snow can also conceal any walking hazards that would otherwise be visible under normal conditions, such as speed bumps, potholes, etc., that can injure visitors or even damage vehicles. 

When the temperature plunges below freezing, icicles can form above entryways and can seriously injure anyone walking below. Yet another overlooked hazard is lighting; the winter season brings shorter daylight hours, which means exterior lighting may be needed to ensure that walkways and the parking lot are properly illuminated.  

Work-related injuries spike during the winter as well. The National Safety Council (NSC) suggests that the top three leading causes of work-related injuries are due to slips, trips, and falls, which account for 84% of nonfatal injuries in the workplace. Keeping a clean walkway, getting rid of snow promptly, clearing away ice, and ensuring adequate visibility are key to keeping your commercial property safe.  

Some of the most common exposures that homeowners face during heavy snowfall and winter weather events is a lack of adequate coverage. Few homeowners are fully aware of what their policy documents include, which can lead to confusion and uncertainty when a claim needs to be filed. Water-related winter damages are common, but not all homeowners have secured the necessary endorsements to protect themselves. 

Ground water coverage is something Mitch Insurance frequently recommends. It provides protection against all varieties of “sudden and accidental” flooding. Not all insurance companies offer this coverage, however, so it’s important to check with a broker.  

If you are unsure about what deductibles or policy limits are in place in the event of a winter or weather-related claim, it’s a good idea to consult with your broker. They can review your policy and go over any potential coverage gaps; their job is to ensure you, as the client, are as amply protected as possible.  

Have questions? Give us a call at Mitch Insurance.