FAQ
Frequently Asked Questions
Is General Liability Insurance mandatory in Canada?
Not by law, but it’s strongly recommended to protect your business’s assets and is often a requirement of leases, contracts and RFPs. It can play an essential role in shielding your business from the cost of a catastrophic claim.
Does it cover employee injuries?
No. Employee injuries fall under provincial Workers’ Compensation plans like WSIB.
Can I bundle coverages?
Yes. Common bundles include Property, E&O and Cyber Liability to create a comprehensive protection suite.
Does insurance cover businesses with remote staff or multiple provinces?
Yes. Coverage can apply across Canada and in fact, Internationally and can be flexible for hybrid and remote teams.
Common Insurance Myths
Replacement cost equals market value.
Replacement cost is the expense to rebuild buildings or replace items. Market value reflects an item’s resale value before loss, accounting for depreciation; age, life expectancy and market demand.
Flooding is covered under standard home policies.
Standard home insurance typically excludes overland flooding. It requires separate flood or water coverage endorsements.
If I lend my car, the driver’s insurance applies.
Auto insurance follows the vehicle, not the driver. A borrower’s accident affects the vehicle owner’s policy.
Condo owners only need contents coverage.
Condo owners also require unit improvements coverage and liability for damage to other units or common areas in order to protect their assets.
Business use of a home or vehicle is covered under personal policies.
Personal policies typically exclude business use unless specifically endorsed.
Low claims history always guarantees lower premiums.
Rates are influenced by territorial loss data, construction type, inflation, crime rates, water risk, insurer appetite and other rating factors.
Not all insurance is created equal.
All insurers offer the same coverage
Policy wording varies significantly across insurers. Limits, exclusions, definitions and conditions can differ.
Insurance automatically covers renovation projects.
Renovations can invalidate parts of coverage or trigger new requirements. Insurer notification is required.
Bundle discounts always mean the best rate.
Bundling helps but does not guarantee the lowest overall cost or best fit. Market comparison is still beneficial.
Claims will always increase premiums.
Not always. Impact varies based on type of claim, severity, frequency, loss history and insurer rating rules.
The colour of a vehicle affects the premium.
False. The insurance companies do not even ask the colour of vehicles.
Insurance covers everything.
It does not. Every policy is subject to limits, exclusions and conditions. Understanding these details helps avoid surprises in the event of a claim.