Safety – Travel Tips for Home Security

• Never talk to strangers about an upcoming trip

• Never leave spare keys in their “secret” hiding place while you are gone

• If you leave your car at an airport parking lot while you are away don’t leave a house key on your car keychain.

• Stop mail and newspaper delivery a day before your leave

• Ask a neighbour to pick up any letters, packages or papers that may get through

• Have gardener to keep your garden tidy and the grass cut

• Ask a neighbour to park in your driveway occasionally

• Have a neighbour put a garbage bag out in your driveway from time to time

• Set the telephone ringer at its lowest ring tone so that any potential burglar will not hear the phone go unanswered from outside the house or apartment. If you have an answering machine, set it to answer after one or two rings

• If your trip has been announced in a local paper for any reason, hire a house sitter. Burglars use these announcements as one of the main sources of information

• Never leave notes outside the house

• Cover and screen the garage windows so a potential burglar will not know if your cars are gone.

• Bring tools into the house from the garage

• Set timers to turn your lights on and off at varying intervals

• Put valuables and important documents in a safety deposit box

• Make sure basement windows are locked and protected with grilles.

• Place removable drop bars on sliding glass doors

• Leave window shades and blinds in different positions, the way you would if you were at home.

• Make sure your insurance policy is paid up
  

Safety – Hotels and Motels

 Understand your hotel/motel fire safety system

When you make a reservation, ask about fire protection and try to stay at hotels and motels that have smoke detectors and automatic sprinklers. Upon arrival, read the fire safety and escape information posted in your room or in common areas.

 
Find the two exists nearest your room

Make sure they are not locked or obstructed.

Count the number of doors between your room and these exists. This will enable you to find them in the dark or in smoke.

 Be sure you can find and unlock your room door in the dark

Keep your room key or pass close to your bed. In the event of fire, take your room key or pass with you so you can return to your room if exists are blocked. Don’t stop to take anything with you.

Locate the fire alarm on your floor

If you discover a fire, sound the alarm, leave the building and then call the fire department

If a fire starts in your room, get out and close the door

Once you are out, sound the alarm, report the fire to the management and call the Fire department

Crawl low under smoke

moke rises, so cleaner air is near the floor. If you encounter smoke or fire and you are crawling, turn around and find another exit. If no other exit is clear return to your room.

Never use elevators during a fire

An elevator might stop at the floor where the fire is happening or malfunction as a result of the fire. Use the stairs

If you hear the fire alarm… evacuate, don’t investigate

If possible, leave the building immediately and stay out of the way of fire fighters.

Be sure your door is cool before you open it

Feel the door knob and the space between the doorframe with the back of your hand. If the door is cool, open it slowly and go to the nearest safe exit.

If your door is hot – don’t open it

If your room has another exit, check it and use it if it is cool. If the fire is outside your room, your room may be the safest place. Call the fire department to report the fire. Let them know where you are trapped. Seal all cracks with wet towels. Shut off fans and air conditioners. Signal at your window or balcony and wait until you are rescued.

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Family Security Comes First

The safety and well-being of you and your family are important to us. Every day we help you guard against loss and offer financial security by making sure your insurance coverage is right for you. However, even the best insurance cannot possibly cover every risk and exposure your family encounters.

 

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People Savers

Check and change the batteries in all of the smoke detectors in your house at least once a year. A recent report found that half of all smoke detectors are inoperable because of stale or missing batteries.

 

More people are becoming aware of the dangers of carbon monoxide (CO), the “silent” killer. This tasteless, odourless and colourless gas is produced by the incomplete combustion of fuels including natural gas, propane, fuel oil, coal and wood. Exposure to carbon monoxide gas produces headaches, dizziness, shortness of breath and nausea and can result in a coma, permanent brain damage and even death. For your peace of mind, CO detectors are readily available at hardware and department stores.

 

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Property Savers

 Every home should have at least two fire extinguishers. One in the kitchen and a second in a work shop, furnace or utility room. Purchase an extinguisher that is rated for “class A, B. and C fires”, since it can be used on any type of fire.

 

A frequent claim made by clients is for sump pump failure. Since these

Pumps operate frequently or seasonally, they are prone to malfunction. Proper maintenance is highly recommended, but so is a battery operated sump pump alarm that sounds when the water level in the sump hole rises above the level that should have started the pump.

 

An amazing array or burglar and intrusion alarms are currently available from a wide variety of providers. Because each home has needs that vary with your personal lifestyle, neighbourhood, community police resources and the value of your personal property, consider consulting a professional before any purchases.

 

Integrated central station alarm systems can also be added to your home to monitor temperature, power interruption, humidity and personal emergency alarm. Professional advice is suggested if you are considering this type of sophisticated system.

 

We hope these hints help you. Saving damage to your property is the best way to reduce insurance costs. But, knowing you’re protecting your family is everyone’s first priority. 

Protect yourself from Parking Lot Break-ins

While you’re shopping this holiday season, others are stealing. Make sure you don’t become their next victim. Police offer the following advice to help keep your vehicles safe from break-ins at shopping malls and parking lots.

1. Always park near other vehicles and in well lit areas.

2. Do not park next to large vans or trucks that can block your vehicle from plain view. Thieves often use large vehicles as cover to break into your car.

3. Never leave items inside your vehicle in plain sight. Parcels, purses, cell phones, portable CD players and even CDs left in the open are a calling card for thieves.

4. Be careful if you hide valuables under the seat. Many purses are stolen because thieves see the straps sticking out.

5. Remember, the safest place to leave parcels and valuables is in your trunk and out of sight.

 

Follow these simple precautions and your presents are more likely to reach their intended destinations on the big day.

 

SAFETY TIP

 Thieves often watch shoppers take parcels to their cars. They know once a customer returns to the mall, they will have a few moments. If you have more shopping to do it is wise to move your vehicle to a completely new location in the parking lot. After thieves watching will think you have finished y our shopping for the day and will focus their attention on other potential victims.

 

The OPP report that in 24% of all automobile break-ins, the property stolen was left in clear view. Items favoured by thieves include cell phones, CDs cameras and laptop computers.

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Parking After Dark

1. Criminals just love the cover of darkness, to attack you, your vehicle, or both. When you’re parking your car and not returning to it until after dark, here are a few precautions.

2. Park in a well lit and busy area, such as under a streetlight, in a lighted parking garage, or on a street with lots of traffic. Consider how lit or busy the area will be when you get back. A crowded parking garage in an office complex, for example, could be deserted by 8:00 pm.

3. Park as close as possible to your destination. In a garage, park close to the parking attendants, the stairs, or the elevator. This brings you closer to help in case of a threat.

4. When you leave the car, tilt the passenger seat forward. This gives you a chance when you return to check the back seat to see if anyone has entered the vehicle and is waiting to attack.

5. Back your vehicle into a parking spot so that you are always facing out. This lets you drive away quickly if you are approached by a stranger or sense any kind of trouble.

6. Don’t make your car an easy target. Make sure it is locked, and don’t keep a spare key in an obvious place, such as under the hood.

7. There’s no sense advertising what you have that might be worth stealing - put all valuables or parcels in the trunk.

8. If possible, don’t go to your car alone after dark. Even if you’re leaving alone, try to arrange for someone to accompany you as far as your car.
   As you approach your vehicle, have your keys out of your pocket and ready. That way, you’re not left fumbling with your pockets or purse while you’re standing next to the car.

9. When approaching your parked vehicle, pay attention to the cars around you. If a nearby car has been broken into, call the police or security right away - don’t go to your car. The thief could still be lurking in the shadows or behind other parked cars.

10. When you’re safely in your car, do not let down your guard. Lock all the doors.

11. If you have car trouble in a dark area, lock yourself in and wait for help. If a stranger offers to help, don’t get out of the car - ask that person to call assistance instead.

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Keeping Spare Keys

Where do keys go when you lose or misplace them? Is it the same place as the missing sock from the dryer? Well, you know that your house or car is secure when even you can't get in. Every now and then we all find ourselves without our keys. That's when you pat yourself on the back for making that spare set. But where to leave it?

For house keys, burglars know all the traditional hiding spots. Under the mat, on a ledge, atop a door frame, or in the planter. Forget them all. You might as well just leave the key in the door.

You have a few choices. You could come up with an incredibly original hiding place, one that no burglar would ever thing of checking - if it's such an obscure spot, just make sure you remember where it is.

There are also some nifty products on the market that are made specifically to hide keys, like hollow rocks that you can put in the garden - though these could be a problem in the winter, when it's buried under snow.

Your best bet is to leave the key with a trusted neighbour, or even leave it somewhere on their property. Even if a burglar stumbled on the key, he wouldn't know what it opened.

Keeping a spare set of car keys on your car isn't the wisest move; once again, burglars know the hiding spots. And leaving the keys inside the car makes no sense at all - if you've lost your keys, how on earth are you going to get inside to get the spare set?

Why not just keep the spare set with you?

Not on your main key ring, the one you're worried about losing, but in a different spot - maybe tucked inside your wallet or purse. Or keep two spares, one on you and one at home.

If you have a car door or an entrance at home that works by punching in a combination, you don't have to worry about keys at all. But you only have yourself to blame if you forget the combination.

 

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Repeat Burglaries

After your home is burglarized, you may feel shocked and violated. You didn't think it could happen to you, and maybe you don't think it will happen again. But this isn't the time to let down your guard.

Police tell us that many thieves will break into the same home a second time. They do so because they know it was easy the first time and they know you will be replacing items they stole with new merchandise. If they stole a 10 year-old stereo the first time, they may return to lift your brand new CD player next month.

Practice makes perfect. If it was easy for the thief to get in the first time, it will be even easier the second time. And a burglar who is faster and more efficient will generally take more items. Upgrade your locks and doors to make entry more difficult. Don't replace a broken door or lock with the same style or quality of hardware.

Change and reinforce your home's weakest point of entry - the point of forced entry. At the very least, if a burglar comes again, he will have to try another point of entry and may not be successful.

Engrave your name or an identifying number on your more valuable possessions so they can be returned to you if they are found by the police.

Even if the same burglar who broke into your home never returns, you should still take precautions. If one burglar was attracted to your home, others may also find it an appealing target.

Now's the time to take preventative security measures, from upgrading your locks or windows to installing an alarm. It will help ensure you're not victimized again.

A Safety Checklist

Home and work accidents have similar causes, but home accidents are more common. Every week, thousands of people are treated for accidental injuries when a few basic safety sense rules could prevent the majority of these events. Here are some important rules to keep in mind this fall and winter season.

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Travel

• Use low-beam headlights when travelling in fog or snow

• Remember fallen leaves hamper your braking ability

• Bridges and overpasses freeze before the roadways

• If you stop for any reason, pull completely off the road

• Pull over and stop when using your cellular phone

• Use caution when approaching reduced-visibility areas
  (rural intersections, curves, hills etc.)

• Do not speed on rural roads

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Wood Cutting

• Wear protective clothing (hard hat, safety goggles, gloves, hearing protection and safety boots)

• Stand to the side of the saw

• Never force a saw through a piece of wood

• Never work alone in the bush

• Follow all manufacturers’ operating instructions

• Keep all cutting tools sharp

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Fireplace & Wood Stoves

• Make sure pipes and chimneys are clean and in good condition

• Burn only seasoned wood to minimize creosote build-up

• Check stove hinges, doors, latches and gaskets for safety

• Don’t loan fireplaces or Wood Stoves with too much wood

• Don’t burn garbage or materials other than wood

• Keep flammable materials well away from heating units

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Carbon Monoxide

• Don’t close the fireplace damper until the fire is completely out

• Have all heating systems and gas appliances checked annually

• Have your chimney and flue cleaned professionally

• Don’t use gas or kerosene space heaters or barbeques indoors

• Never run a car, snowmobile or chain saw in an enclosed area

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Snowmobiling

• Always wear a helmet, protective clothing and a face protector

• Never wear loose clothing or scarves

• Make sure your snowmobile is in good repair

• Carry an emergency kit with parts and tools

• Cross highways with extreme care

• Avoid lakes and ponds when ice conditions are unsafe

• Use the buddy system
  

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Overloaded Circuits

Outside lights will brighten up your house during the holiday season. But make sure not to overload your circuits - otherwise you might light up your house with flames.

Many people make the mistake of plugging outdoor lights into standard household outlets. These outlets are often not powerful enough for the lights, causing an unnecessary and dangerous strain on your electrical system. Consider installing a heavier line with a separate circuit, specifically for the lights.

The fuse is an electrical safety valve. If too much current passes through the fuse, a wire inside melts and stops the flow of current. When a fuse blows, it's a sign of danger. The line has either been overloaded, or there's a break in the wires along the line in an appliance cord, a switch, or inside the wall.

If you are blowing fuses repeatedly, don't just keep replacing them. Call in an electrical contractor to evaluate your system for a dangerous overloading.

Never over-fuse, for example, by replacing a 15-amp fuse with a 30-amp fuse to try to meet an added power demand. Because 20 and 30-amp fuses are more powerful, people assume they are adding more power; however, the wiring is incapable of accommodating the additional demand.

Almost all the fuses in your fuse box should be 15-amp. If there's a 20 or 30-amp fuse already in there, don't automatically replace it with the same amp fuse when it blows. The previous homeowner may have replaced a 15-amp fuse with a 30-amp one way back when, and never corrected the mistake.

A dryer might take a 30-amp fuse and a stove a 40-amp, but these are usually cartridge fuses, not the screw-in types. All others should be 15-amps.

Also, never use a higher wattage light bulb than the fixture can accommodate (the maximum is usually indicated right on the fixture).

Plug appliances - not just a refrigerator or microwave, but a kettle or frying pan directly into the wall, never into an extension cord.

When you're renovating your electrical system, putting up major new lighting, or adding extra appliances to your circuits, don't forget to have your local power company or inspection authority check the work and your circuit.

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Furnace Safety

Every room in the house has it’s own safety concerns, and in the basement, safety revolves around one item above all: your furnace. Here’s how to keep the home fires burning... without burning down your home.

Schedule annual furnace check-ups with a heating contractor. Inspection and preventive maintenance is your best insurance against problems down the road.

Maintenance not only helps prevent fires, but carbon monoxide poisoning -- insufficient combustion produces higher levels of this dangerous gas.

Do routine checks of your heating equipment on your own. Look for rusted and loose parts, and other signs of deterioration such as water stains and leakage. Arrange for service immediately if you suspect any problem.

If you have an old oil tank, have a professional check it over. Small pinholes can develop after all those years, and the only thing preventing a leak could be a coat of paint.

Keep the furnace clear of all flammable substances. That includes paint, varnish, bleach, furniture stripper, other chemical solvents, fuel, and even lint from the dryer. Overheating alone can cause explosions. Store combustibles in sealed containers, in well ventilated areas, and out of reach of children.

Soiled rags are another fire hazard around furnaces. Rags that have absorbed oil, paint, glue and other chemicals can sometimes even burst into flames spontaneously. Store them in a closed metal container, outdoors, or better yet, dispose of them entirely.

If you use the basement as a workshop, turn off the pilot light inside the furnace and water heater if you plan to work with combustibles, including spray cans. You can have a fire or explosion if a flame even comes I contact with certain fumes, let alone with the substance itself.

During the winter, check your outdoor natural gas regulator once in a while. If it’s covered with freezing rain, ice or snow the fuel flow into the home can be come uncontrolled. Make sure the eaves troughs don’t drip water directly onto the regulator or gas meter.

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Avoiding Cottage Fires

A rustic cottage is the perfect spot for a break, but if you want to give yourself a break from fires, remember to establish a break. Got all that?

What we're talking about is a fire break, an area around your cottage that won't fuel a fire. Your basic protection is to keep the grass cut and raked. But there is much more you can do to create primary and secondary fire breaks.

A primary break is a clearing of all ground within five metres of your buildings. Space trees so the tops are at least five metres apart. Saw off branches that are less than three metres above ground level. Prune branches so they're at least three metres away from a chimney or stove pipe. Remove flammable ground litter such as dead grass, dead trees, branches, and household debris.

A secondary fire break extends at least 15 metres from your buildings. Remove shrubs, small trees, and dead ground litter. Keep the tops of mature trees even more than five metres apart to lower the chance of a ground fire spreading up them. Extend the fire break area to 25 metres downhill form any buildings on a sloping site, as fire will travel uphill if possible.

To protect your cottage, consider a few other fire safety tips. For the structure itself, select fire-resistant materials; metal roofing and aluminum siding may not look as nice as logs and wooden shingles, but they're a wiser safety choice. If you can't resist wood, treat it with a fire-retardant every few years.

Dry grass and debris collect under open porches, decks and floors, so close them in. This will keep sparks from blowing in and setting fire to dry floor joists or rafters.

As you would in any home (but especially one you don't always live in), maintain the fuse boxes, heaters, wiring, stoves, and other possible heat sources. Store any cleaning fluids and other flammable materials in approved containers. And stack any firewood or lumber well away from the building.

Keep fibreglass boats and canoes away from buildings, since they're highly flammable. Store them upside down, one metre above ground level, either on a clearing or a rock. If you're storing a powerboat nearby, remove any gasoline.

Finally, keep the phone number for reporting a forest fire near your phone. If you notice a fire spreading, your quick attention could be a real break for the forest and everyone in the area. 

 

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 Insuring Your Portable Property

Today, people move themselves – and their belongings more than ever.

Your personal property policy does provide coverage on property that has been temporarilyremoved from your residence, but there are conditions that must be met.

To help you better understand the terms, regulations and safeguards in moving property from your principal residence, we’ve outlined some of the more important aspects of portable property coverage.

Property and “Temporarily Removed”
The term “property” on an insurance policy generally refers to the property that you own, wear or use, and could include property owned by others that has been borrowed and is presently in your care.

Personal property does not typically include business property such as tools or other items that pertain to a trade or occupation.
The term ‘temporarily removed” applies to personal property removed from your principal residence with the idea that it has been removed for a short while and not
on a permanent basis. The implication here is that the property will be returned to your principal residence.

Limit or Protection
The limit of protection provided for property temporarily removed from your residence is usually 10% of the limit on your household contents. For instance, if the personal limit on your residence is $50,000 then $5,000 is available for property temporarily removed. With the advent of package policies, you may be allowed up to the full contents limit of your policy, but be aware that there may be a limitation on the personal property allowed in your vehicle. This can include cellular phones not permanently attached to the vehicle and notebook computers.

Indemnity and Deductibles
If your personal property policy has the replacement cost endorsement on contents you will be reimbursed for the full repair or replacement value, whichever is less, without deduction for depreciation? Most personal property policies have deductibles applicable to each loss. These would apply to losses on property temporarily removed.

to each loss. These would apply to losses on property temporarily removed.

At Another Location
Property permanently kept at any location other
than your residence (whether you rent or own) is not considered property temporarily removed. For example, the property at your seasonal residence or cottage, hobby farm, vacation trailer, yacht or vacation condominium is not covered. You should purchase specific insurance on the contents of these types of residences. We offer policies specifically designed for this. If you have children attending school and living away from home, some policies will cover their personal property, others will not. Please check with us.

Business or Vacation Travel
The personal property you take with you while traveling for business or pleasure is covered under the property temporarily removed section of your policy. As mentioned above, there may be limits for cell phones and portable computers.

Changing Residences
When moving to another location, your property in transit is not considered temporarily removed. Some policies provide coverage under these circumstances but consult with us to ensure the proper coverage. Also, be wary of coverage limits offered by moving companies. They may be inadequate.

Property at your Place of Work
Your personal property policy protects your property while it is at your place of work. Coverage is not extended to business property provided for your use, as this is not considered to be personal property.

Before you move any of your valuables, please do not hesitate to contact us.

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Properly Insuring Your Tools

Personal Tools
Personal tools used around your home are insured under your personal property policy. The perils that apply to your regular household contents also apply to your tools as does the deductible in the event of a loss.

Tools Away From Home
Your personal property policy will also insure tools while temporarily removed from your principal residence. However, if tools are taken to the cottage, a chalet or country home and left there for the season it would be wise to have a sufficient limit insured on the contents for that location. If you do plan to take tools to your summer residence, make sure the perils of vandalism and theft apply to this seasonal location.

You may or may not be able to obtain replacement cost coverage on the tools at your seasonal residence.

It is wise to check with us to see if your policy covers the loss or damage to tools that have been lent. If you do lend tools and a loss occurs, your policy may not cover this situation as the equipment is off your premises and may not qualify as “temporarily removed”. Loss or damage in such a case is sometimes covered under the other person’s property policy. Please check with us to see that your coverage is complete.

Commercial Tools
Tools used for commercial purposes on your premises are treated differently. Personal property policies in most cases impose a limit of “tools, books, instruments pertaining to business, a profession or occupation”. This limit can range from $1,000 to $2,500. Tools not used for earning income would be covered under the contents section of your property policy. Keep in mind that good quality tolls can quickly add up to an amount exceeding the limit on your policy.

Added Protection
It’s recommended that expensive commercial tools be insured on a personal tools floater on your personal policy. You should keep a record of all tools (where purchased, cost, manufacturer, serial number, etc.). Other information such as the type of tool, its value, its storage location, any anti-theft devices and additional details should also be recorded.

Commercial tools insured under a “floater” have the added benefit of being insured no matter where they are stored. If your tools are used for your full time occupation we suggest a commercial policy including tool floater coverage.

When using your tools while working for someone else, never assume that this person will automatically insure your equipment. Always ask if your tools are insured before beginning work.

Theft
Tool theft from vehicles is very common. As a result, insurers have a locked vehicle warranty clause in the tool floater. This means that coverage will be paid only if and when it can be proven that the tools were contained in a fully enclosed and secure compartment and there are no signs of forced entry.

If you take your employer’s tools home, your personal property policy will provide coverage for a limit stated in your policy.

Tools are expensive. It’s to your advantage to talk to us about their protection.

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Liability

It can get personal

•Your dog decides to bite the mailman
•Your golf ball hits another player in the head
•Your pot roast catches fire in the oven and causes fire damage to the apartment next to you.

Such situations can easily turn into lengthy and expensive lawsuits. However, if you have a standard property package (homeowner, tenant or condo policy) personal liability protection is included. This will cover liability you may incur as a result of bodily injury or property damage you may have incurred accidentally. Coverage applies anywhere in the world, and even covers defense costs, which can be substantial. Remember even if a claim against you is unfounded you will still need to defend yourself.

For tenants, personal liability coverage offers protection against their legal liability for the premises they occupy. It’s always a good thing to have such coverage. Landlords may very well come looking to their tenants for compensation in the case of a fire due to tenant carelessness.

Even if you do not wish to insure your personal belongings, you may want to consider a property policy simply for the liability protection it provides.

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Am I compensated for Sentimental or Artistic Value?

Insurance companies can only settle claims based on real dollar values.

Unfortunately, there is no way of putting a real dollar value on sentiment. A family bible, for example, that has been passed down for several generations may be priceless to the family who owns it, but to the company responsible for insuring it, it’s worth has to be translated into its actual and physical replacement value. However, some heirlooms may have a value that you were not aware of. Such hidden or historical value can best be determined through a professional appraisal.

Aesthetic, artistic or non-monetary value can be estimated in real dollars using the current market value of a group of similar items. But without a formal appraisal, it is difficult to establish an item’s value after a loss. A painting may be worth $2,000 but without an appraisal or evaluation confirming its value the claims payment may be limited to a few dollars necessary to replace the canvas, paint and frame.

This is why it’s always wise to have separate formal appraisals for unique items in your possession.

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Homeowners Insurance Values

Market Value vs. Replacement Cost!

Many homeowners struggle with this question. Understanding the difference between Market Value and Replacement Cost can provide some answers.

The market value is the price that can be realistically expected at any given time, if a house is listed for sale. A three bedroom bungalow in a nice metropolitan area could be listed for $250,000. The same house in a rural Ontario might sell for $115,000. There are many variables that will affect market value such as interest rates, location, and the volatility of the real estate market and so on. It is therefore a mistake to assume that the insurance value should be the cost of the house minus the value of the land.

Market value does not necessarily reflect the cost to replace your house. Insurers typically provide coverage on either a Replacement Cost basis or a Guaranteed Replacement Cost basis. If you are insured on a Replacement Cost basis, after a serious loss like a fire, your home will be rebuilt using materials of “like kind and quality” without deduction for depreciation up to the face value of your policy.

Most insurers however provide coverage on a Guaranteed Replacement Cost basis. That means the insurer will pay full replacement cost even if it is greater than the face value of your policy. This protects you in the event of a miscalculation of the insurance value, cost overruns, or periods of rapid inflation.

We have programs designed to help you determine the current replacement cost of your home. If you have not reviewed your insurance limit recently, or if you have concerns about the accuracy of your insurance values, please call us for more information.

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Personal and Commercial Insurance

The Main Difference

From a general perspective, personal and commercial insurance are essentially the same. Both involve the protection against loss. However, where they differ is in their complexity and degree.

Commercial enterprises can involve multiple or even multi-national locations. For example, liability exposure can vary dramatically for different products and geographic locations. Clearly the manufacturer of step ladders has a greater exposure than the maker of paper clips. Similarly, there exists a whole range of potential professional liability exposures such as Malpractice, Errors & Omissions and Directors & Officers Liability.

There is a broad range of insurance coverage that may apply to your business. Some are property, bonding, transportation, business interruption and crime, to name a few.

As a result, the entire process of identifying commercial risk and exposure is more intricate than for personal risks. Even though most insurers offer a range of “business packages”, each new risk must be carefully examined to determine which package will serve as the best base, and then the proper extensions and endorsements must be selected.

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Insurance and Your Home Office

With the economy in a state of turmoil and traditional forms of employment patterns undergoing changes, the home office is becoming more a reality in today’s environment. Not only for self- employed people but in some cases for employers who would like to see employees work from home. Computer, internet, faxing, scanning, etc. have lessened the communication problems.

Unfortunately, the homeowner’s personal insurance policy was designed to take into account only incidental office use and not the advent of the full time home office.

The issue of coverage for commercial office contents in the home can be resolved by taking out an office package policy with your broker. This will cover your computers, software, faxes, furniture and your liability. As long as the house meets certain criteria there should be no problem obtaining this coverage.

Unfortunately, the existence of a full time office may impact the select rating and coverages you enjoy under your current Homeowner’s policy. In particular, where you carry stock or have clients visit the premises, the insurance company may not want to provide as broad a coverage as your current policy.

If you are contemplating setting up a home office or if you currently have one on your premises and have not told anyone, sit down with your broker and discuss the issue. Don’t assume for one instant that your homeowner’s policy will respond to anything more than the casual existence of an office.

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Insuring a Business in the Home

The face of business has changed. Economic forces, technological developments and a new, more independent breed of business person have contributed to the dramatic rise in the number of home-based businesses.

From an insurance perspective, it’s important for budding entrepreneurs to realize that their business is not covered or has very limited coverage under their habitational policy.
To make business insurance more affordable for people who operate a business out of their principal residence, many insurers now offer coverage as an extension to the homeowner’s condominium or tenant’s package policy. Since the premiums payable under these programs are lower than those for stand-alone commercial policies, there are strict eligibility criteria.

• The business must be operated by the insured or a member of his or her immediate family residing in the dwelling.
• Gross annual sales cannot exceed $50,000 (some insurers have set a limit of $200,000)
• The business activity itself must be acceptable to the insurer (traditional office-related businesses, sales representatives and hobbies and crafts are generally accepted, but automotive repair, woodworking shops and businesses involved in selling products outside Canada are usually not.
• Only one business can be run out of the home
• There must be no claims arising out of the business operation for the last three year to five years

Home-based business insurance programs offer the same protection for business property as your residential policy does for your personal property.

Protection against fire, lightning, explosion, vandalism, water damage and theft are included if they are already part of the residence policy. (If you don’t already have sewer back-up coverage, be sure to add it . The personal liability coverage under the homeowner’s, tenant’s or condominium policy is extended to include liabilities arising from the home business operations. Please note, the limit of liability is the same as that on the residence policy but, can be increased to $2,000,000. Professional liability coverage (such as Errors & Omissions) is not included.

Business contents coverage under an extension can include such items as computers, software and fax machines. The limit of protection ranges from $10,000 to $50,000. Special coverage can also include property at a temporary location or in transit ( Canada only), accounts receivable, valuable papers, extra expenses, loss of business income actually sustained, and loss of money and securities inside and outside the residence.

If you have replacement cost indemnity on your residence policy it will also apply to your business contents although the deductible may be raised to $500.

Getting started is easy. A signed application is usually all that’s required. We would be pleased to help you complete the form and we can give you guidance on limits to insure and the extensions to buy. Remember, not only is home-based business insurance affordable, its premium is a tax deductible business expense.