Good-bye 2020

BY ANDREW STEWART

What a difference a year makes. The COVID-19 pandemic has radically shifted consumer’s and employee’s needs, habits, and expectations. COVID-19 has brought unexpected risks and challenges to almost every industry. Canadian businesses are facing uncertain and challenging times, experiencing devastating financial impact, and business owners continue to face new risks and costs.

When it comes to commercial insurance, many business owners are seeing their premiums rise and may be finding it increasingly difficult to get the appropriate insurance to meet their needs in certain regions. There is no question that these are especially challenging times for small business owners in the hospitality sector. Business owners have asked is COVID-19 responsible for my rates increasing? The answer is more complicated than one could imagine. Canada’s commercial insurance industry was challenged coming into 2020 mainly from the following contributing factors:
• An extended period of weather-related claims that were both more severe and more frequent
• Record low-interest rates (affecting investment income)

One uncertainty that small businesses should not have to contend with is the prospect of litigation from the inadvertent exposure to COVID-19 on their premises. In Ontario, a Bill was introduced to provide liability immunity to any person as a direct or indirect result of an individual being infected with or exposed to COVID-19. The immunity is granted so long as the person acted in good faith and accordance with public health guidance. This protection would not cover gross negligence.
A vacation in 2021 could be the right medicine to feel better.

The most important part of any trip you plan during COVID-19 will be flexibility. Spending money on travel insurance should also be a priority, but you need to read the fine print. Almost all policies now consider COVID-19 a known event, and that will affect what is covered. Travel Insurance carriers successfully introduced a new COVID-19 Rider. It allows you to add $1,000,000 of coverage for emergency medical expenses that relate to COVID-19 when purchasing certain emergency medical plans.
The Rider is valid for one trip only so it must be purchased separately for each trip and it covers only emergency medical – not trip cancellation or interruption.

The job of travel insurance is to help you build confidence as you resume some cautious amount of travel in this COVID-19 era. Air Canada, Air Canada Vacations, WestJet, Sunwing, Air Transat, and others are now including COVID-19 coverage with the purchase of certain short-term, round-trip bookings to encourage travel. These travel suppliers are doing everything they can to try to help passengers feel safe again.