BUILDING SUPPLY INDUSTRY ASSOCIATION - Spring 2019 - 14

FEATURE

|

BY JAMES CLAY, J.T. INSURANCE SERVICES (CANADA), INC.

RISKY
BUSINESS:

PREPARING FOR
THE UNEXPECTED
R
isk is everywhere and
business owners know
that all too well. Just
a glance at global headlines
makes it clear that risks
continue to evolve and new
ones seem to pop up every
day in our fast-paced world.
Understanding these risks
and how to mitigate them
is important to the overall
success of an organization.
This article will address the
most common insurable
risks so you can develop a
strategy in partnership with
an insurance broker or risk
manager to effectively transfer
some of those risks to a
third party.
For simplicity there are certain
risks that can be transferred to an
insurance company in return for
a premium and there are others
that can be significantly reduced
contractually. We will take a closer
look at a few typical insurance
coverages required for your business.

Property insurance
Commercial property insurance
provides protection for physical

14

NEWS MAGAZINE | BSIA NEWS | SPRING 2019

(tangible) assets such as buildings
and their contents, equipment and
inventory, property in transit and
business interruption coverage.
The perils of earthquake/flood and
complex exposures like pollution risks
for lumber yards are not insignificant.
It is important you understand
the coverage and deductibles you
are carrying. Construction risks
also present challenges and it is
important you are working with a
knowledgeable advisor.

Environmental insurance
Environmental liabilities are
now very common. Remediation
costs - both direct and indirect - can
be substantial and every entity now
has exposure. Almost all commercial
policies exclude pollution risk,
which means that environmental
insurance is the only means for
you to recover losses caused by
environmental issues. Whether it
is your building or premises, the
exposure is material and pollution
insurance is a low-cost solution.
It is not just for manufacturers or
industrial businesses anymore and
savvy property owners are actually
using it to enhance their overall
returns. Remember older buildings

are particularly susceptible as they
are likely constructed using materials
containing asbestos.

Commercial general liability
and crime insurance
Even a single accident or claim
has the potential to put you out of
business. The right liability insurance
has you covered. Commercial general
liability (often referred to as CGL)
insurance offers protection for your
business against claims for bodily
injury and property damage to third
parties arising from your premises,
operations, products and completed
operations. Think of a slip and fall in
your store or yard for example.
It also offers protection for
advertising liability and personal
injury to third parties, as well as
defence costs.
Crime insurance protects against
losses from business-related crime.
Protection can cover merchandise,
money or other property loss from
embezzlement, forgery, robbery,
securities theft or another form
of business-related crime. Social
engineering fraud is becoming more
common and is a broad term that
refers to scams used by criminals to
trick, deceive and manipulate their



Table of Contents for the Digital Edition of BUILDING SUPPLY INDUSTRY ASSOCIATION - Spring 2019

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