Bowman & Gibson Insurance Brokers

Liability Insurance: How It Protects Your Family

Michelle Roberts — Wed, 11 Dec 2024 03:28:47 +0000

Home insurance protects our homes. Auto insurance protects our vehicles. But both of these policy types come with a coverage type that can protect against impossible-to-predict losses: liability insurance.

Potential damage losses for home and auto policies are limited to the value of the home or car we’re insuring. While these can still be big numbers, the average loss amounts pales in comparison to the potential losses due to liability risks.

What is Liability Insurance?

Liability refers to our financial responsibility to others. It is defined by the Insurance Bureau of Canada as being “Insurance that agrees to indemnify the insured for sums they may be required by law to pay to third parties as damages for bodily injury or damage to property. The maximum amount of insurance provided under a policy of liability insurance.”

For example, if you accidentally knock down the neighbor’s fence with your new riding mower, you become liable for the cost of repair. In this example, many people would choose to pay for the damage out of pocket rather than placing a claim.

In many other cases, the cost of repairs or financial loss to others can be much higher — especially if someone is injured. Typically, your policy can also help pay for your legal defense, often a sizeable cost on its own.

How Do I Obtain Liability Insurance?

Most home insurance policies include coverage for personal liability risks. If you or a member of your household causes accidental damage to the property of others or unintentional injuries to others, your home insurance policy can help pay for your financial liability.

Similarly, your auto insurance policy provides liability coverage for damage you cause to the property of others, including vehicles, signs, lamp posts, etc. Medical liability for bodily injuries caused to others is also included.

However, your coverage is governed by the coverage limits you choose and many households don’t have enough protection. This is especially true for auto policies which often default to a relatively low liability coverage limit and which have a higher risk for injury to others. There may also be some gaps in coverage if you have business-related liability risks or could face risks due to libel or slander.

The best strategy to safeguard against liability risks is to discuss your coverage needs with a licensed insurance broker. For some households, the base coverage offered by a standard home or auto policy may be enough. In other cases, it may be prudent to add expand your coverage with an umbrella policy or a business liability policy.

A policy review offers the opportunity to better understand your risks, potential losses, and the best ways to protect against the unexpected. If you haven’t reviewed your coverage lately, contact us to schedule a time that’s convenient for you.

The post Liability Insurance: How It Protects Your Family appeared first on Bowman & Gibson Insurance Brokers.

Protect Your Valuables With the Right Insurance Coverage

Michelle Roberts — Fri, 29 Nov 2024 17:46:57 +0000

Your home, condominium or tenants (renters) insurance policy brings together a variety of coverage types, including coverage for your belongings. Among your belongings, you may have some items that are worth considerably more than others, which means you may want a special type of coverage for these items.

The role of sub-limits on your insurance coverage

A standard home insurance policy has both broad limits and sublimits. An example of a broad limit would be your coverage limit for personal property, meaning your belongings. On many policies, the default limit is set at a percentage of your home’s insured value.

Let’s say your home is insured for $500,000. In this example, your coverage limit for personal property might be $250,000. But that figure may not apply to everything in your home. Sublimits can reduce coverage for specific categories of items, such as electronics or jewelry. For instance, jewelry might have a coverage sublimit of $2,500. This means that if you have a $5,000 diamond ring, that ring isn’t fully insured by the policy.

Insurers use sublimits to keep coverage more affordable for a wider range of consumers. After all, not everyone has a $5,000 ring. To expand coverage for the ring (or any other valuable) to the full value of the item would mean other policyholders in the insured group were subsidizing coverage for the valuables others own. Insurance works like a pool, transferring risk from the individual to the pool of insured policyholders.

Instead, insurers use sublimits with the option for each policyholder to buy specific coverage for items that may be worth more than average.

Full value coverage for valuables

Though they use different names different names for the coverage, many insurers offer one or two ways to protect your most precious items without sublimits. In both cases, you specifically insure the item — or several items — to full replacement value. Insurers may refer to either solution as scheduled coverage.

– Personal articles rider: A rider is an add-on to your existing policy that changes how your coverage applies.

– Personal articles policy: A personal articles policy is a standalone policy that can be used to insure valuables independent of your home insurance policy.

In both cases, you can insure your most precious belongings to their full value. As an added benefit, you’ll enjoy wider coverage for additional risks not covered by a standard home insurance policy. You’ll also benefit from deductible-free claims if you do have a covered loss.

Discuss your insurance coverage needs with your broker

Scheduled coverage allows you to focus your coverage where you need the most protection. Your most valued possessions may merit the extra investment of premiums. Contact us to discuss your insurance options or to learn more.

The post Protect Your Valuables With the Right Insurance Coverage appeared first on Bowman & Gibson Insurance Brokers.

What You Need to Know About Insuring Your Cottage

Michelle Roberts — Wed, 12 Jun 2024 13:31:22 +0000

Most of us love to get away occasionally and for many Canadians, a cottage or a vacation property makes the perfect home away from home.

Cottage insurance is often on a different policy type (i.e. named perils or broad form) than your homeowner’s insurance (comprehensive form), which can sometimes create confusion. Here are some of the basic things you’ll need to know if you’re considering a cottage or vacation property – or if you already have one.

Part of the reason that your homeowner’s insurance is so affordable is that insurers know that you live at your home full-time. You’re able to address issues quickly to reduce damage and your presence deters theft and vandalism. Cottages are usually only occupied part-time, which increases the level of risk due to natural causes, vandalism, or the occasional wildlife visitor. Because cottages are often vacant, the cost of cottage insurance is can be a bit higher than the cost of insuring your home when you compare the insured value of each.

In many cases, insurers will only consider providing coverage for a cottage or vacation property if you insure your primary home with them as well. This isn’t necessarily a bad thing; many times, you can earn additional discounts by combining several types of insurance policies with one insurance company. Having one broker handle all or most of your insurance needs helps to ensure that your broker has the information they need to guide your coverage. In some cases, your cottage can be added to your home insurance policy. In other cases, it may be best to choose a standalone policy.

Many owners of cottages or vacation properties choose to use their property for part of the season and rent out the property at other times. If this is the case, you’ll want to discuss your coverage options with your broker. A property that’s rented to a third-party has special coverage considerations and it may be wise to increase your liability coverage as well.

Cottages and vacation properties are also often equipped with toys, meaning boats, snowmobiles, all-terrain vehicles, or maybe even a well-kept classic convertible. Coverage options for vehicles and personal property can work differently for cottages and vacation properties or for occasional-use vehicles, so be sure your broker is aware of the personal property and vehicles you keep at your cottage so they can recommend the appropriate coverage.

One last thought: when you will be away from your cottage for an extended period, be sure your cottage is secured to keep nature outside where it belongs. If raccoons or other small critters take up residence while you’re away, your policy may not provide coverage.

For more information about home insurance coverage, check out our FAQ page.

The post What You Need to Know About Insuring Your Cottage appeared first on Bowman & Gibson Insurance Brokers.

Understanding Business Interruption Insurance

Michelle Roberts — Mon, 10 Jun 2024 14:50:49 +0000

If you own or run a business, you already know how important it is to have property insurance — and especially liability insurance. But what do you do if a property insurance claim forces your business to close temporarily? Revenue drops to zero. Often, payroll still has to be paid. Your rent or commercial mortgage is still due on the 1st. Utility bills and loan statements keep rolling in. Seasonal slowdowns are one thing but when your revenue drops to zero unexpectedly, everything you have worked to build may be at risk.

Fortunately, you can purchase business interruption insurance. This coverage pairs with your business property insurance to provide a lifeline when revenues are affected by a claim. Your coverage can replace revenue you will need to protect your business future.

Here is a real-life example. Let’s say you own a new phone store. Business is growing and you are carving out a niche for yourself in the local market. You are located on a busy road. Visibility is great. Demand is high. There is every reason to be optimistic about your business future.

One day, a car veers off the road — ironically, possibly caused by a cell phone distraction. The vehicle crashes through the front of your store breaking the window, door, showcases, and even damaging a wall. Fortunately, nobody is seriously hurt. And thank goodness you have property insurance. The repairs and damage to the showroom are covered.

However, you might be closed for a while — especially since a wall was damaged as well. In this real life example, the wall was a load bearing wall. Engineers from the township schedule a seemingly endless array of meetings, surveys, and inspections. Basic repairs can be completed in days but, in this case, the process could take weeks — or even months. You are out of business until the township says the building is safe. Even your neighboring businesses are affected.

When you started your business, you wrote up a business plan. In your plan, you detailed your business goals, expected revenues, expenses, and other factors. If you were thorough, you also detailed the challenges your business will face and how to overcome these challenges. Business interruption insurance is designed to cover the risks that are impossible to predict — the kind that were not addressed in your business plan but that happen to real businesses every day.

If you already have business property insurance or if you are thinking of starting a business, reach out to your agent or broker to learn more about business interruption insurance. Coverage may be more affordable than you think and your business will be better protected against the chaos that life sometimes sends our way.

The post Understanding Business Interruption Insurance appeared first on Bowman & Gibson Insurance Brokers.

Distracted Driving Risks

Michelle Roberts — Tue, 28 May 2024 00:01:01 +0000

DWI and DUI risks get all the headlines, but distracted driving can be just as dangerous in many situations. For too many of us, driving can become secondary to other things we’re doing while driving, such as reading, fiddling with smartphones, eating, shaving, or putting on makeup. As much as we like to think we can do more than one thing at once without a problem, there are limits to how our brains work, and a second activity takes focus away from the first.

Distracted driving statistics gathered from various agencies underscore the risk, with driving while texting heading up the list.

Driving while texting (23x): Driving while texting can increase crash risk by up to 23 times. Texting typically involves one or more hands. You’ll also take your eyes off the road to text or read. Arguably your mind goes somewhere else as well, venturing into a rectangular emoji-filled world rather than the road ahead and the movements of other vehicles and pedestrians.

If you need to send an urgent text, find a safe place to park and send your text.

Reaching (9x): We’ve all dropped something while driving, watching it bounce behind the seat, under the seat, or fall in between the seat and center console. Reaching for dropped items or something you left in the back seat can be more distracting than many might realize, increasing the risk of an accident by nine times.

If you’ve dropped something or need to reach for an item in the back of the vehicle, find a safe place to park first. The risk isn’t worth the reach.

Reading (4x): We expected a higher number here, thinking back to drivers we’ve seen reading a precariously held newspaper while driving. But reading can also involve maps, books, or even ebooks.

Use a voice-activated navigation app if you need a helping hand reaching your destination. And in the interest of safety, save other reading until you put the vehicle in park. As a bonus, your reading comprehension will be better as well.

Grooming (3x): We’ve all seen people craning their necks to shave while driving. Putting on mascara or lipstick at the wheel is another sight we’ve all witnessed. Grooming while driving can triple your risk of an accident by shifting focus and shifting our eyes away from the roadway.

Give yourself a few extra minutes to get ready before heading out. This step is almost certain to help you feel more prepared for the day ahead as well.

Eating (2x): Whether it’s a healthy snack or a messy meatball sandwich, eating while driving can double your risk of a driving mishap. There’s also a non-zero risk of dropping a meatball on your work clothes. Accidents happen, but the moving vehicle kind of accident can have long-lasting consequences.

Eat before or after you head out on the road. If you need to eat on the go, find a safe place to park or even take a short mental break by enjoying some sunshine and eating at a park or picnic table. The quick recharge can also help reduce driving fatigue. Double win.

The post Distracted Driving Risks appeared first on Bowman & Gibson Insurance Brokers.

One in five road crashes in Ontario involves a transport truck.

Jason Chahrouri — Tue, 25 Jul 2017 17:54:48 +0000

Statistics show that transport truck-related crashes continue to take a significant toll on human life on Ontario roads, with one in five road crashes involving large commercial vehicles.

Among the 1,342 fatal motor vehicle collisions on OPP-patrolled roads between 2012 and 2016, 266 involved transport trucks.

Authorities are advising transport truck operators to exercise more caution. Read full story here.

The post One in five road crashes in Ontario involves a transport truck. appeared first on Bowman & Gibson Insurance Brokers.

It’s Flood Season — Coverage When it Comes to Water Damage

Jason Chahrouri — Tue, 24 Jan 2017 19:36:16 +0000

With the increasing frequency of severe storms there has been substantial concern around weather related insurance coverage. What is covered and what is not covered?

Most homes today have basements that have been transformed into living areas. As a result, in most cases, there is a significant investment for the homeowner to protect.

At this point we need to differentiate between types of water related insurance coverage…..

1) Sewer Backup: Most insurance policies will provide coverage for water backing up in your basement through the drains connected to the sewer line. Be aware that there may be limitations as to the amount of coverage provided and the various deductibles associated with a sewer back up claims. Sewer back up also includes the backing up of a septic system and sump pump malfunction.

2) Floods: Floods typically include water that has risen over dry land by rising lakes and rivers, storms, waves, and the breaking or overflow of levees from any body of water, whether man made or not. Residential insurance policies do not cover flood damage. If you live beside a lake or river you have to be aware that there is no coverage for flooding. As an example: every year in Manitoba, the Red River floods and there is no coverage to residential homes that are damaged.

3) Overland Water: This is the newest form of coverage that is becoming available today. The overland water coverage now addresses some of the previously excluded flood damage that may have occurred from a torrential storm. It covers the water that comes in through the doors and windows into your basement as a result of a large storm. Purchasing an “Overland Water Rider” on your policy, would mean, for example, that the flooded basements that resulted from the torrential storms in Toronto last year, would now be covered. It will also cover the flooding of lakes and rivers that occurs after a torrential rainfall. These are also subject to various deductibles and conditions.

The best way to see if you are properly protected is to speak with one of brokers. They will be able to address your situation individually and off your the best options for protection.

The post It’s Flood Season — Coverage When it Comes to Water Damage appeared first on Bowman & Gibson Insurance Brokers.