Risk & Business Magazine Gifford Associates Fall 2017 | Page 7

your property and to get you back into the same place you
are in right now if an insured event destroyed everything you
own this evening? If it takes one year or two years to rebuild,
are there additional costs that could be insured either as
business interruption or additional living expenses? Is your
property subject to a potential additional cost because it
is old and local bylaws would require improvements that
need doing before you reoccupy after the rebuild? Have you
considered the effect of inflation on what the cost would be
to rebuild from scratch? And have you ever thought about
how much it might cost to remove debris after a loss before a
rebuild can begin?.
THEY WORRY THAT YOU
ARE PROPERLY COVERED
UNDER THE RIGHT POLICY
FOR THE RIGHT LIMIT.
Not that long ago, a CAD 1 million limit was the gold
standard for general liability on a business, personal liability
for a homeowner, or for third-party liability under an
automobile insurance policy. Today we wonder if CAD 5
million is enough. Given recent court-awarded settlements,
what was once more than enough has quickly become too
little.
How is it that many businesses and homeowners discover
the potential of being underinsured only after a loss occurs?
Perhaps they believe they will never have to rely on their
insurance policy so it does not matter. They do not take the
time to calculate what it would cost to replace their property
should a loss occur. They intentionally undervalue their
property and exposure because it reduces the premium. Or
they believe that, somehow during the insurance-buying
process, their insurance broker knows how much is enough
to adequately match the value of the insured property.
Your insurance broker can help you secure coverage. They
can guide you and offer alternative limits and coverage
options to allow you to make an educated decision on how
best to cover your business, your home, your vehicles—all
of your assets. However, contrary to popular misconception,
they are not able to provide an appraised value on your
property, and they cannot tell you what limits you should buy.
So work with brokers and understand that there is a sincere
desire to make sure you are well-protected when the question
is asked of you, “What do you need to have insured and how
much is it worth?” And should an insured loss befall you,
brokers want your insurance policy to provide more than
enough to get you back to exactly where you were before the
loss happened. +
It’s better under the umbrella ®
Your risk management challenges are unique. Your solutions
should be too. That’s what you’ll get with Travelers Canada.
Our experience delivering custom solutions, combined with
our global expertise in risk management, make us the only
choice when it comes to your business.
For risk management advice and resources to meet the unique
needs of your industry, visit us at travelerscanada.ca or contact
your local insurance broker.
travelerscanada.ca
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Insurance Company (Canada Branch) and/or Travelers Insurance Company of Canada.
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