Many home-based businesses are either underinsured because the owners thought their business activities were covered under their homeowners policy.

If you run a business out of your home, don't automatically assume your Homeowner's Condominium or Tenants policy has you covered. It doesn't. In fact, unless your insurance company is aware of your home-based business, you may even void your home policy.

As a business owner, you're exposed to insurance risks that aren't covered by your homeowner's policy.

• If your computer is stolen, you may find that it's not covered by your homeowner's policy because business property is excluded; 
• If a delivery person slips and falls when delivering a package, you could be sued and find out you're not covered for injuries associated with business deliveries. 
• If your house burns down, you may find that your fire coverage is void because you didn't tell the insurance company that you were using your home for business.

Fortunately, it's easy and affordable to protect yourself and your business by adding a Home-Based Business extension to your property policy.

For most home-based businesses, this extension is all you need to protect your property and cover any liability exposure arising from your home business. Call us to get started.

For financial professionals, salespeople or providers of specialized services, you may be exposed to different risks. We'll take the time to explain your options and make sure you get the best protection at a competitive price.

Your business is more than a job; it's part of your life. Even a small home operation needs protection against the risks of doing business. Call us to make sure you are properly protected.

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For many of us, our home is our most valuable asset. Before starting any renovation, talk to us, and we'll make sure you are protected against financial loss should an accident or an injury take place during the project.

Even though your house is adequately insured, your risks change once your home becomes a construction site.
When a contractor works on your home, you need to be protected from a number of risks. Insist that the contractor provide you with proof of Business Liability Insurance, also known as general commercial liability insurance. $2 million is the minimum that should be requested. This protects you if your home is damaged through the contractor's fault, of if your contractor causes damage or injury to third parties, like your neighbours. We are happy to review your contractor's policy to make certain there are no gaps between in and your policy that could leave you financially vulnerable.

If your contractor needs to hire additional trades such as an electrician or plumber, make sure they are insured for the work they perform.

Your contractor should have Worker's Compensation for all the people on the job. If they don't, you could be at risk if a worker is injured on your project.

Don't just take the contractor's word - ask to see a certificate.

If you do the work yourself or plan on acting as your own general contractor and hire others to do the work, talk to us to make sure you are properly protected against damage or injuries suffered as a result of your project.

While most repair or renovation work will not require changes to your homeowner's policy, there are some coverage restrictions you should be aware of. If building materials stored on your property are stolen, they are not usually covered. In addition, if the building is under construction there may be no coverage for vandalism or malicious acts. Water damage is also restricted, especially if it is during the renovation, let us know so that your coverage does not lapse. Remember, tell us about your renovation plans before the work starts. We'll help protect your most valuable asset.

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If we told you that the government was handing out money for free, would you be interested? No, you won't have to testify at the Gomery inquiry if you accept the offer. All you have to do is set some money aside for your child's (or children's) education – and that's something you may have been considering anyway.

According to information released by Statistics Canada last year, university tuition fees have increased at an average annual rate of 8.1% between 1990/1991 and 2002/2003 – that's four times the rate of inflation. Last year, Canadian undergraduate students paid an average of $4,172 a year in tuition fees. Some professional programs charge significantly higher amounts than that; first-year tuition for a law student at the University of Toronto is currently set at $16,000. Add in books, food and housing costs and you could be looking at a very significant expense.

There are, fortunately, savings vehicles that can help you prepare.

A Registered Education Savings Plan (RESP) is a little bit like a Registered Retirement Savings Plan (RRSP). While you may not deduct the contributions you make, your earnings do accumulate tax-free, and when your child withdraws funds, the growth is taxed in his or her hands – not yours. Since students tend to have little other income, they'll probably end up paying very little (if any) taxes on the money they receive.

Several years ago, the government introduced several changes to make RESPs more attractive and encourage Canadians to start setting money aside for their children's education. Students may now attend a wide variety of qualifying programs, including not only university but also community colleges and trade schools. Even if your child decides not to pursue post-secondary education, your money doesn't go up in smoke — you can roll all of your contributions and up to $50,000 of your earnings into your RRSP provided you have unused contribution room. In the worst case scenario, you'll still keep 80% of your profits and receive a cash refund of your capital.

There's also a lucrative Canada Education Savings Grant (CESG) available to anyone who opens an RESP. The government will top up your plan with a grant equal to 20% of your contribution, up to an annual maximum of $400 and a lifetime maximum of $7,200.

You don't have to be rich to take advantage of the plan, either. In fact, if your family earns $35,000 or less a year, changes introduced a few months ago make you eligible for a CESG of 40% on the first $500 you deposit every year. There's also a new Canada Learning Bond that will offer children who qualify for the National Child Benefit supplement a special $500 payment at birth, then $100 every year for the next 15 years.

If you're interested in learning more about the education savings options available to you, we hope you won't hesitate to contact us.

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23% of Canadians don't know what their insurance policies cover: TD Insurance poll

Almost one-quarter of Canadians admit they're unsure or have no idea what they're covered for in their insurance policies, according to TD Insurance's Coverage Uncovered Poll.
The poll quizzed 1,503 Canadians about what they knew about their insurance policies during the first week of September 2010.
More than half (53%) of the Canadians polled said they have made a claim on their insurance before. Of those who said they had made a claim, 42% were surprised by something on their insurance policy.
The Top 3 things Canadians believe are covered by a standard home insurance policy include:
• damaged or stolen property (82%);
• protection from liability if someone hurts themselves on their property (78%); and
• roof damage from tree branches (73%).
Twenty per cent of Canadians believe a standard home insurance policy covers damage to lawns and gardens, although coverage in these cases is typically limited.
Although the majority of Canadians (77%) say they think they understand what is included in their insurance policies, most don't take the proper steps to protect themselves, the TD Insurance poll found.
For example, nearly six in 10 (57%) said they don't bother to keep a detailed inventory of their home's valuables. Less than a third of Canadians (29%) update their insurance policy when they acquire something of major value.
When asked what causes the most home insurance claims, 36% of Canadians said water damage. The other top responses were burglary (26%) and fire (24%).
Few Canadians think the most damage is caused by wind and tornadoes (4%). Even fewer think the most damage is caused by third-party bodily injury claims (3%) and lightning (less than 1%).
According to TD Insurance, last year, 37% of home insurance claims were the result of water damage. Seventeen per cent of the home insurance claims that TD Insurance received last year were the result of wind and hail.
Fourteen per cent were due to theft and only 2% were due to fire.

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When you walk up to the counter in your local convenience store or gas station to buy your lottery tickets, what thoughts are going through your mind? Early retirement? An extended … no make that a very extended holiday? A new home, new car, a summer cottage? The sky is the limit to our dreams of grandeur. You buy your ticket, walk away and smile, all the while knowing in the back of your mind that the chances of your ticket being “the one” are next to none. In fact, statistics say that we have a better chance of getting hit by lightning, twice, than winning the lottery. Yet, many people buy tickets anyway, on the hope that maybe someday, their number will be called.

Insurance works much the same way. We all buy our tickets (policies), but most of us will never get that million-dollar pay out. Still, we buy insurance.

Why is that?

Well, unlike the lottery, we stand to lose big if we don’t buy a policy. Imagine your home and everything in it being completely destroyed by a fire. Now imagine not having an insurance policy that will help you get everything back. It’s a pretty horrifying thought isn’t it? The same scary thoughts come to mind when thinking about your auto insurance liability ($1 million lawsuits seem a lot bigger when the third parties are coming after your personal bank account as opposed to that of the great big insurance company), or your disability insurance policy (imagine never being able to earn money again ….).

So we buy our policies, so that we have the peace of mind that if by chance our number is ever called, we will not be left in ruin.

Now think back to our lottery concept.

Imagine your number was called and you were to become the lucky recipient of several million dollars. After your heart calms down and you make plans to get that oversized cheque, a dark cloud suddenly comes over you. You receive word that 10 other tickets containing the winning numbers have been discovered. Suddenly your million dollar prize is only a fraction of what it was supposed to be. That’s fine, you may say, and shrug your shoulders … its still more money than you had the day before. True, but what if those other 10 tickets were copies, home-made duplicates of your numbers. I doubt any of us would be willing to give up what is rightfully ours to fraudulent ticket holders.

Sadly, this is the scenario the insurance industry deals with on a daily basis. Every year billions of dollars are lost to fraudulent claims, and these claim pay-outs take away from the premiums we all pay to ensure our futures are secure.

Insurance companies hire adjusters and investigators to help reduce these numbers. By investigating claims, insurance companies are trying to ensure that only the true “winning tickets” are cashed so-to-speak. Just as the lottery corporation checks every winning ticket submitted to verify qualification (based on their age and place of residence) and validity, so does the insurance company once they receive a claim.

If people were not questioned and every claim was granted at face value, premiums for coverage would soar to terrifying heights. Fraud is very real, and it happens more than we like to think.

Whether it’s a homeowner who tries to get a 32” television instead of a 28” one, or a driver who claims they had a $2,000 stereo in their vehicle before it was stolen (when in fact they had none at all), or even a worker who claims they can no longer work due to an injury they (when the truth is they just don’t want to work), fraud is a crime, and it costs us as policy holders billions of dollars every year.

So what can we do? Well the most obvious place to start is to make sure that we do not become part of the problem. As tempting as it may be to get back at the insurance companies that we have paid premiums to all these years, we need to remember that we buy insurance so that we receive help when we truly need it. Like the little boy who cried wolf, we do not want to have our bluff called, as help will not be so easily given should we have a legitimate loss and we have a history of submitting false or padded losses.

Secondly, we can all make sure that we discourage those around us from submitting false or padded claims, because when it all boils down to the bottom line, it is really your premium dollars that they are stealing.

Keep this in mind, if ever you are questioned by an adjuster about your legitimate claim, smile and be glad … they are in essence safeguarding your winning lottery ticket from those who would try to take your winnings from you.

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In today's litigious society, even small mishaps can result in large lawsuits. That's why general liability insurance, along with property and worker's compensation insurance, are essential for most companies. Liability insurance protects the assets of a business when it is sued for something it did (or didn't do) to cause an injury or property damage.

General liability insurance can be purchased separately or as part of a business-owner's policy (BOP). A BOP bundles property and liability insurance into one policy; however, the liability coverage limits are generally pretty low. Businesses that need more coverage usually purchase liability insurance as a separate policy. The amount of coverage a business needs depends on a couple factors:

Perceived risk. Business owners should first consider the amount of risk associated with their business. For example, a business that manufactures heavy machinery is at a greater risk of being sued than a company that manufactures linens and would therefore need more liability insurance.

The state in which you operate. Businesses that operate in states with a history of awarding high damage amounts to plaintiffs typically need to carry liability insurance with higher coverage limits. An insurance broker can offer guidance in this area.

How General Liability Works

Under a general liability insurance policy, the insurer is obligated to pay the legal costs of a business in a covered liability claim or lawsuit. Covered liability claims include bodily injury, property damage, personal injury and advertising injury (damage from slander or false advertising). The insurance company also covers compensatory and general damages. Punitive damages aren't covered under general liability insurance policies because they are considered punishment for intentional acts.

General liability insurance policies always state a maximum amount that the insurer will pay during the policy period. Usually these policies also list the maximum amount the insurer will pay per occurrence. For example, if a company has a $1 million occurrence cap in their liability policy and they are successfully sued for $1.5 million, the insurer would pay $1 million and the business would be responsible for paying $500,000.

To cover these types of situations, many companies purchase umbrella liability insurance, which picks up where their general liability coverage ends. Umbrella liability covers payments that exceed your other policy's limits and provides additional coverage for liabilities not covered in a standard liability insurance policy.

Most insurance companies require their policyholders to report as soon as possible any accidents that could lead to a liability claim. The insurer may then require the business owner to document the situation, forward all summons and legal notices, and cooperate fully in any investigations.

Taking precautions before an accident can help keep your liability and your insurance rates down. All businesses can take certain steps to lower the chance of a liability insurance claim:

• Set a high standard for product quality control.
• Make sure all company records are complete and up to date.
• Be sure employees are properly trained.
• Get safety tips for your type of business from your insurance company.

Article as found on: http://www.allbusiness.com

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Protecting Your Business in a Nutshell!

I will preface this article with my philosophy that people should not make themselves 'insurance poor'; rather, carry adequate insurance and also employ risk management techniques to mitigate risk exposure as much as possible.

To begin with, you are building a business and we are familiar with that process and know that it is not easy and it takes a great deal of time. We are becoming a litigious society. Claims are most certainly on the rise in Canada, due to people looking to recover through litigation. Claim amounts are also increasing as people are pursuing higher settlements. There are countless unfortunate situations where a single claim can spell the demise of an improperly protected business. Legal expense is an ever-increasing cost in settling claims. These costs are incurred and covered even if a claim against you seems groundless.

Coverage afforded by a CGL policy:

Coverage extends to you, your spouse, partners, and employees only in the course of your business.

Property Damage

This coverage is offered to protect you against damage to a third party's physical property. This could be as simple as having a glass of red wine with a client and spilling it on their carpet requiring a complete re-carpeting of the home. There are situations where a claim will exceed the intrinsic value of the damaged item based on rarity, sentimental value (such as a family heirloom) or other extenuating circumstance. In the case of the carpet, you would not only be looking at the value of the carpet, but the cost to remove the old carpet, install the new carpet and costs for any materials required for installation.

Bodily Injury

Coverage against bodily injury to a third party in the course of business. Again, this isn't simply the 'slip and fall' coverage while patrons are at your premises. It covers you and employees while off premises and you inadvertently hurt someone while in the course of business. Often it seems that these would be minor, but one should give consideration to the possibility of medical bills, lost pay if your client is self employed and loses time away from business, and of course legal fees to settle a suit/claim.

Personal Injury / Advertising Injury Liability

This coverage protects you against injury you may cause to another through advertising or other marketing activities. It is not designed to protect you against false advertising. But, in the event that you published information about a client on your web site for example, and this in some way had a damaging affect on their business, whether from a sales or reputation standpoint, they could pursue damages against you.

Tenants Legal Liability

This provides coverage for damage to a premise you lease or occupy which belongs to a third party. For example, if a fire broke out in your office and damaged the building you occupy, this coverage would apply to the repair or restoration of the portion on the building you occupy. The building owner's property coverage would apply to the portion they occupy but not the leased space and they would look to recover from the tenants legal liability coverage on your policy.

Employers Liability

Most CGL wordings will provide coverage or the option of coverage for injury that may occur to an employee, over and above the coverage afforded by worker's compensation.

We have also seen a trend toward Designers being required to produce evidence of a CGL policy for RFP's. In this respect, one could spin this coverage into a sales feature when competing against other Design firms for projects. By offering evidence of this insurance to a prospect, you are essentially reducing their risk exposure.

It protects the business you are building, it offers you peace of mind, it offers your clients peace of mind and it enhances your image as a good corporate citizen.

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