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By LegalMatters Staff • The impact of coronavirus shutdown had led to many questions – whether you’re properly insured shouldn’t be one of them, says Toronto insurance lawyer Heather Vaughan.
Vaughan, partner with Benson Percival Brown LLP, specializes in insurance claims and she encounters many different situations in her practice.
With much of Canada at a standstill, she says some people may have not have a clear understanding of their insurance coverage and needs.
‘Unprecedented time’
“This is unprecedented time and it’s not just the use of vehicles that have changed, that’s the obvious one, but we’ve changed the use of our homes as well,” Vaughan tells LegalMattersCanada.ca. “When you are concerned about keeping safe and healthy, insurance may not come to the forefront of your mind or you perhaps just think about it when it’s time to pay the premium.
“The main message to people is that insurers are working to try to assist their customers. We are all going through the same thing. Investigate your options, call your broker and see what is best for you,” she adds.
Vaughan says insurers are offering premium reductions and deferred payments but while “there are some commonalities, there is no blanket approach.”
“Some will be applied automatically. It’s on a company-by-company basis so it’s better to get in touch with your insurer and let them know what’s happening so things can be managed properly,” she says. “Full communication is essential.”
Examine policies
Vaughan says people should examine all their policies. For example, you may be entitled to a reduction in premiums if you are not using your vehicle while isolating.
“People should consider whether they actually need to insure their automobile and what they need to insure them for. If those vehicles are parked in their garage do they really need to pay for insurance that would cover them if they were driving around?” she says.
However, Vaughan warns that people must be aware of what the changes they make could ultimately mean.
“You have to make sure you are complying with your policy and you are not taking your vehicle out for just that one drive if you have removed some or all of the insurance coverage,” she says.
How a person uses their car can also affect coverage, she notes. People who make voluntary deliveries for items such as personal protection equipment may not be found in contravention of their insurance policies if they get into an accident.
However, the same may not apply if someone is getting paid for delivering food, Vaughan says.
“People definitely have to be careful about what they are doing. I suspect there are many who have lost their jobs and are now working at DoorDash or Uber Eats and they need to ensure they have the proper insurance coverage,” she says.
Health benefits
Vaughan says some employee health benefits are not being used during the mandatory shutdown.
“People are not going to the dentist, they are not going to the massage therapist or the physiotherapist, so some companies are offering reduced premiums on their benefits,” she says.
When it comes to the home, fewer indoor repairs are being done because of the social distancing required to battle coronavirus, says Vaughan.
“Many companies are not going out to do any kind of work so some insurers are expediting cashouts on settlements so homeowners can do the work themselves when and if they can,” she says.
Being home on a fulltime basis can also affect your policy, says Vaughan.
“Housefire calls have increased because there are more and more people cooking at home,” she explains
“People are working at home so they may have work equipment. Is that covered under your homeowners’ insurance policy? Some insurers have increased their coverage to deal with that circumstance.”
Vaughan says renters should also take another look at their insurance policies and those who are not insured should consider it, especially if they are bringing work equipment home.
Greater risks
“Tenants are sometimes living in a residential home that is separated into units. Everyone is home so there are greater risks of the unexpected happening,” she says.
Business owners should also check to see if they need to change their policy, says Vaughan.
“You now have businesses that are vacant and there are vacancy exclusions in policies,” she says. “Business owners should tell their brokers what’s happening and make sure the insurer knows about the changes in risk.”
Vaughan says “there’s a lot to think about” and it’s prudent to take the time to review all your policies.
“Make sure you are properly insured and there aren’t any exclusions that you might be subject to,” she says.
“If you have a change in the use of anything that’s insured you should be connecting with your broker to figure out if you are entitled to any discounts. This a perfect time to put them to work for you.”
