Where To Buy All Risks Coverage For A Business In Canada?
Ever wondered exactly what “all risks coverage” for a business in Canada specifically means? Well, you are not alone. Every industry has its own language. These are specific terms, words, abbreviations and acronyms that are instantly recognizable to people who work within an industry. The insurance industry is no different.
Insights are just one of 18 reasons why commercial insurance buyers choose to work with ALIGNED insurance experts. More importantly, insight into what “all risks coverage” means within the insurance industry is why we wrote this article.
Demystifying Insurance Industry Jargon
The insurance professionals who work at commercial insurance brokerage ALIGNED Insurance use specific words and abbreviations. They use these terms in order to communicate clearly and consistently with insurers, adjusters as well as other insurance professionals. Industry professionals do this all the time. For instance, people who work in government, manufacturing, retail, construction and healthcare use specific words, terms and acronyms when they communicate with their professional colleagues and peers.
The longer you work within an industry, the more “short hand” you tend to use. Over time, this can lead you to assume everyone knows exactly what you mean when you use industry-specific jargon. This inadvertent assumption can lead to both confusion as well as misunderstandings.
In person, on the phone and on our website we regularly share insurance insights. Each insight we share helps to demystify specific insurance words and terms. One common, misunderstood insurance term is “all risks coverage for a business”. And this term is what we’re going to explain in the next section.
What Exactly Is All Risks Coverage For A Business In Canada?
The terms “all risks insurance cover” and “all risks insurance coverage” essentially mean the exact same thing. However, these terms are very misleading because no insurance policy exists that covers all risks. An insurance policy that provides coverage for all risks never will exist. This is because:
- The pricing and actuarial models for every risk differs dramatically.
- Insurers don’t put all their eggs into one basket. They silo or isolate risk into separate buckets using products. Insurers use products to create separation and clarity on where and how things are covered, set capital reserves, build different policies, procedures, etc.
- All insurance policies include exclusions. These exclusions need to be carefully reviewed. Exclusions ultimately determine what is NOT covered in an insurance policy.
- On rare occasions, an exclusion will affirmatively add coverage back into an insurance policy.
Explainer: All Risks Coverage In Canada
As with many things in life, the specific reality of what the insurance term all risks coverage means is somewhat different than what you may anticipate. All risks coverage is a highly specific term describes the full and complete scope of insurance coverage provided within a commercial property insurance policy.
Commercial property insurance policies can be written several ways. This includes named or specified perils or all risk. All risks insurance is also commonly referred to as “all perils coverage”. This means that all perils causing property damage are covered unless they are specifically excluded. Conversely, specified or named perils commercial property insurance policies specifically and only cover perils that are actually listed within your policy wording.
In short, all risks insurance coverage can be defined as: property insurance covering loss arising from any fortuitous cause except those that are specifically excluded. This is in contrast to named perils coverage, which applies only to loss arising out of causes that are listed as covered.
The term all risks insurance continues typically defines covered causes of loss within a property insurance policy. This is why the phrase “all risks” is no longer actually found in insurance policies. This is because “all risks insurance” inappropriately infers that the coverage is broader than what it actually is.
Where To Buy All Risks Insurance Coverage In Canada
Nowadays, instead of the term “all risks” you may hear the terms “special”, “open” or “all” together with the word “perils” rather than “all risks”. Ultimately, all risk insurance cover means you can expect that something is covered unless it’s specifically excluded.
Here are a dozen more types of commercial insurance coverage you can buy with ALIGNED.
- Directors & Officers (D&O) / Board Insurance
- Errors & Omissions (E&O) / Professional Liability / Indemnity Insurance
- Cyber Liability & Privacy Insurance
- Employment Practices Liability (EPL) Insurance
- Crime Insurance / Fidelity Insurance
- Pollution Liability Insurance
- Protection & Indemnity (P&I) Insurance
- Representations & Warranty (R&W) Insurance
- Small Business Insurance
- Trade Credit Insurance / Accounts Receivable Insurance
- Umbrella Liability Insurance
- More commercial insurance coverages can be found here…
Get Commercial Coverage With ALIGNED Insurance
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