COVID-19 & Insurance in 2021

By Terrance Palmer posted 02-17-2021 04:20

  

One of the most affected groups during the coronavirus pandemic has been and continues to be business owners and working-class people. Beyond that, you are people with real everyday needs outside of your job.


Thankfully, the Canadian government has been doing everything in its power to return financial security to those that work hard for it every day. 

Business Insurance

Canada was already experiencing record low interest rates, which affected investment opportunities and commercial growth, coming into last year. The Insurance Bureau of Canada (IBC) created the Business Insurance Action Team (BIAT) to help deliver affordable insurance to small businesses specifically impacted by COVID-19.


There are currently still some roadblocks and obstacles. These include the repeated denial of various coronavirus related claims from larger insurance agencies. Consequently, Many also desire to include a “disease clause” in insurance-related rhetoric. 


This would help make it easier for businesses to rebuild after possible infection of workers or loss of customers. Whether or not this will gather steam and become law is yet to be seen.


As in all times of universal struggle, many people are coming together to make their voices heard. Some smaller insurance companies are including Business Interruption Insurance (BII) which can cover some additional costs when your cash flow is being blocked by pandemic restrictions. Contact your insurance representative to see if you are eligible for BII.

Homeowner’s Insurance

Whether you currently own a home or not, there also have been some changes to homeowner’s policies. One of the key changes to homeowner’s insurance with the pandemic includes a “communicable disease exclusion.” 


This blocks any member of your household from claiming extra money because of the pandemic. This is due to the fact that everyone had to deal with coronavirus in 2020. While understandable, it could potentially cause extra undue financial stress. 


In many ways, a lot of your ability to get relief depends on the nuance of the language in the policy itself. If you’re in need of more assistance relating to homeowner’s insurance specifically, look here.

Additional Insurance Changes

Various IBC adjacent companies have provided over $2 billion in relief and up to $200 million in deferred premiums to combat COVID-19. 


Auto insurance companies recognize that Canadians aren’t using their vehicles as much. Working from home has lowered the average number of commuters. This has led to various policies lowering or deferring monthly premiums.


There are still plenty of ways to save money on the table; if you’re unsure as to if you qualify for any deferments or payments, contact your IBC representative.

Conclusion 


The coronavirus pandemic has created countless financial burdens on everyday people. It has especially ravaged the business-sector. You must account for your financial security and your businesses’. People’s jobs are on the line.


Though nNot all insurance companies are making it easy to rebuild as a nation. Luckily, big strides are being made in the right direction. The first step is reaching out to your IBC representative and asking what additional coverage you may qualify for. Stay healthy, and good luck.

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