Commercial insurance Recent Posts

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 unveil 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.

A leader in Ontario cannabis insurance says that the province removing a requirement for licensed producers to carry recall insurance could open up the market to smaller producers. However she also cautions that cannabis businesses are more vulnerable to recalls than most.

In November of 2022, facing pressure from the cannabis industry, the Ontario Cannabis Store (OCS) – the body that regulates legal cannabis in Ontario – dropped a requirement for all licensed producers to carry $15 million in product recall insurance. This was a welcome development for smaller producers, for whom the minimum premiums were a barrier to entry into the Ontario market.

“It was a significant problem for smaller businesses,” said Kelli Hunt, Senior Vice President at CannGen Insurance Canada. “If you were a micro-grower that wanted to list your products on the OCS website, it was about a $50,000 minimum premium just for the recall insurance before you did anything else. So it kept a lot of those growers out of the Ontario market.”

At the same time, OCS increased the requirement for CGL and product liability insurance from $5 million to $15 million, but that is much less onerous for small producers because premiums are based on the revenues of the business, as opposed to the recall coverage which is more like a flat rate for everyone.

The problem with removing the recall insurance requirement altogether is that most small cannabis producers are very price conscious, so many of them just dropped the coverage altogether. Hunt worries that this might be a mistake, given that it seems Health Canada is treating the cannabis industry much like healthcare and big pharma, which means recalls are a constant risk.

“To go from $15 million down to a reasonable number is a great idea,” said Hunt. “To go from $15 million to zero is probably going to, in hindsight, hurt some folks along the way.”

The Health Canada website lists 62 consumer product recalls related to cannabis since legalization in 2018. The cost of some of the bigger recalls might be around $2 million for larger producers.

“Have there been recalls over the last five years? Absolutely there have been,” said Hunt. “But I don’t know that we’ve seen that big, bad, major recall. That may be thanks to the way Health Canada requires small batches so that problems can be pinpointed and dealt with.

“Still, even with a minor recall, a business can be in for $100,000 or more, plus your stock if it’s deemed unusable. You might think that’s covered under your property policy. It’s not.”

Some cannabis insurers have responded to the regulatory change by offering recall coverage with lower limits and more reasonable premiums. But since recall insurance is no longer mandated, Hunt says it’s up to brokers to explain to their clients what exactly they are getting rid of and what can happen. That’s going to be different for each producer, and requires an understanding of the business.

“Say your big campaign for the fourth quarter is a cannabis advent calendar for the Christmas season, and you have to pull it back,” added Hunt. ”You’re not going to have time to get it back on the market. What happens then? This is the conversation that brokers need to have with their clients.”

At Mitch Insurance, we offer competitive cannabis business coverage for growers, distributors and retailers. We work with some of the top cannabis insurers in the province, and our commercial insurance brokers take the time to understand your business and recommend a package of coverage that reduces your risks while respecting your bottom line.

Amazon has announced a tightening of the rules regarding product liability insurance. From now on, a seller using their marketplace to deliver goods to customers, either through Fulfillment by Amazon or Fulfillment by Merchant, must acquire Product Liability Insurance once sales reach $10,000 in any one month.

While Amazon has turned a blind eye to sellers who have disregarded this requirement in the past, recent lawsuits against the company have forced it to rethink its approach. This means if you sell on Amazon, it’s time to think about insurance coverage.

Looks like Amazon is finally moving towards enforcing a rarely observed requirement for sellers to hold product liability insurance. The requirement has always been around, it’s just that many people often just ignored it, with no repercussions. This looks set to change.

So if you or your business are selling items on Amazon, you might want to call up your broker and purchase some insurance. Not only will it ease your mind, but now Amazon is offering a few incentives that might just make it worth it for you to get on board.

Perhaps the biggest change to Amazon’s Business Solutions Agreement is that a seller using its marketplace will now need to obtain product liability insurance once sales have reached $10,000 in any one month.

Previously, you only needed to obtain insurance once you had reached average sales of $10,000 a month over a 3 month span.

Because this requirement has rarely been enforced, it was widely ignored by those with relatively modest sales on Amazon. But now it is unclear how serious Amazon is going to be about enforcing this policy going forward. Recent court actions involving Amazon suggest this policy change reflects an attitude shift within the company regarding coverage.

So if your business is set to clear $10,000 a month in the coming year, it would be wise to start thinking about obtaining product liability insurance before you find yourself facing legal trouble brought on by a customer, or even Amazon itself.

Amazon has been put under intense scrutiny by the courts regarding liability for the products sold through its marketplace. Up till now, the courts have ruled in their favour on thousands of lawsuits in which they were named.

Recently though, some courts have suggested that Amazon could very well be liable after all. In 2020, the California Court of Appeals declared in Bolger v Amazon that Amazon could be strictly liable for a battery sold on its site by a third party which was allegedly defective.

Though there were no dramatic changes in Amazon’s recent revisions to their Business Solutions Agreement, it does indicate a shift towards enforcement of its requirement that sellers obtain product liability insurance.

Yet whether this policy will ultimately be enforced or not, in the meantime it appears Amazon is trying to incentivise sellers to comply with the policy voluntarily by offering A to Z Guarantee Seller benefits.

Considering that 80% of such claims are under $1,000, Amazon is basically saying that they will protect both sellers and buyers who comply with their policies. This is reason enough for your business to prioritise getting a valid insurance policy as it circumvents a lot of potential pitfalls and hassles.

If you sell, manufacture or distribute a product to customers, whether directly or through Amazon, it is highly recommended that you acquire Product Liability Insurance anyway. This protects you against claims alleging:

Claims are usually the result of a defect in design, manufacturing or marketing, such as a mislabeled product or a lack of sufficient safety warnings on the packaging.

So for example, a product you have shipped to a customer malfunctions, or is even used incorrectly, causing bodily harm, and as a result, that customer sues you. With Product Liability Insurance, you will be covered for any injury claims, including medical expenses, as well as the legal fees required to defend yourself.

Even if the claim is without merit, the very act of litigating this kind of claim can be very expensive and has the potential to financially ruin you and your business before you even get it off the ground!

This is why product liability coverage is a must-have for any retailer, regardless whether you sell through Amazon or not!

If your aim is to grow a robust, successful business, it is recommended that you more fully protect yourself by adding product liability coverage to a Commercial General Liability Insurance policy. This will give you the broadest possible coverage against lawsuits brought on by third parties.

Let’s face it, the chances of a liability claim are fairly low, but when they do happen, the legal costs, damages awarded and time drain can be extremely damaging to your business.

In addition to product liability, a sound, comprehensive policy should cover all possible liabilities related to the operation of your business, including:

Amazon’s insurance policy criteria is available on their Seller Central page. If you go to the “Program Policy” help menu, you can find it in “Pro-Merchant Insurance Requirements”.

While getting yourself all set up to sell on Amazon is usually a rather quick and straightforward process, it can get a little intricate depending on the scope of your operations. Furthermore, you might find your insurance needs exceed Amazon’s basic requirements.

So give Mitch a call today at 1-800-731-2228 and let us find you the coverage that not only satisfies the rules of Amazon, but also suits you and your business best in the long run. We have a panel of insurers on standby who specialize in insuring businesses like yours. Cause when it comes to peace of mind, we deliver!

You’ll need:

Call us today at 1-800-731-2228.

We can help keep that Amazon smile on the face of your business.

If you’re like most of us, you’ve been working from home since the pandemic began. If you’re an employee just plugging away on your laptop, working from home shouldn’t affect your home insurance. But if you run your own business, or if your job requires interacting with clients, making or receiving deliveries, or having expensive business equipment at home, you should check with your insurance broker to make sure you have the coverage you need.

Private tutors have been in high demand during the COVID-19 pandemic. If you’re a tutor or run a tutoring agency, you’re probably operating very differently than you ever did before, what with online learning, learning pods, and some parents needing support for homeschooling. With new opportunities come new risks, so now may be the time to look into private tutor insurance, starting at $50/month.

When it comes to legalizing cannabis, Canada stands alone among the G7 countries. No other major economy in the world has opened itself up to the cannabis industry quite like ours has. As a result, cannabis retailing has disrupted the standard insurance practices, and so many insurers are reluctant to enter the game and readily underwrite the risks associated with this unique and still quite novel product.

More than most careers, protecting yourself against lawsuits is an essential part of being a personal trainer, whether that means you are a: