Covid-19: How it’s impacting the insurance industry

We are in unprecedented times


As many of you will know the world is in the throes of a battle with Covid-19, a highly contagious virus that has wreaked havoc across the globe. Borders are closing and social distancing is now the mandated way of life but its impact goes further than just closing the doors to the world. What about small businesses or self-employed individuals? Does your commercial insurance policy cover this current situation?


Advice from the IBAO regarding Commercial Insurance Policies

For anyone who has a commercial policy and is wondering how the economic situation is going to impact their business the IBAO has issued information which may be useful at this time:




“We’ll provide a more comprehensive briefing in the coming days but at a high level:

• In order for Business Interruption to be triggered, there must be bodily injury or property damage to the building and/or its contents.


• Business interruption can’t be triggered on its own – a slowdown in business, closure, quarantine, etc. are neither considered bodily injury or property damage.


• An extension in policy wordings called “interruption by civil authority” does exist but refers to bodily injury or property damage to a neighboring or adjacent property where business closed by order of civil authority for clean-up, investigation, etc. Through the use of standard IBC wording, there’s no coverage for business interruption due to an outbreak or disease.


• There could be a number of exceptions both depending upon the insurance company and the variances in coverage used within each company, so it’s important each individual policy be reviewed line by line in order to give accurate advice to your customers.


This is a complex issue in our current environment that warrants more clarification. We’re working with member and industry partners to get this clarification and will get back to you as soon as possible.”

Personal Insurance

Covid-19 has caused many insurance company offices and brokerages to recommend their representatives to work from home. Many brokerages, like Servo Insurance Brokers, are fully equipped to be able to work from home in an on-line environment; policy changes can be made and documents issued electronically so you don’t have to worry about interruptions to your home or auto insurance. If you have a question about your policy, your insurance broker can be reached by phone or email to help guide you as best they can.


The Government of Canada is working constantly to find ways to help the economy which will ensure businesses will be helped in as best a way as possible however, the answers may not be as fast as the situation evolves. It is recommended to make use of the free access to many main news channels such as CBC, CTV and Global news to keep up with the ever-changing situation and announcements given by the provincial and federal government.


At this time please note all offices for Servo Insurance Brokers are closed to walk-in clients due to the restrictions implemented by the Covid-19 virus. All our brokers are available by phone or email and will continue to work with you as best they can. If you have questions about your policy or want to make any changes you can call 1-877-454-4476 or email your broker directly.


External Posts: Information released from the Government of Canada


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