Small businesses form the backbone of the Canadian economy. As of December 2015, there were 1.17 million employer businesses in Canada and of these, 1.14 million (97.9%) were classified as a small businesses*. However, the COVID-19 pandemic has forced professionals in almost all industries to work from home in some capacity.
As more people turn their homes into their offices, our newly expanded Business in the Home endorsement can provide a wider variety of self-employed policyholders with the coverage they need. Given that business operations are continuing to shift, there has never been a better time for professionals working from home to review their coverage or obtain coverage for the first time.
The need to adapt to changing times
While Business in the Home is not a new product for RSA Canada, the need to pivot in the face of unprecedented times is. Effective August 1, 2020 for New Business and September 1, 2020 for Renewals, RSA Canada has updated the Business in the Home offering by:
- Expanding eligibility of annual gross receipts for the business
- Introducing increased coverage limits for business property
- Adding clarity on risk appetite
- Generally expanding the kinds of businesses that are eligible for coverage
“The common myth that your business is too small to insure is simply not true,” says Amy Graham, National Property Underwriting Manager, Personal Insurance at RSA Canada. “All businesses need to be insured – operating and conducting business activities out of your home are separate from personal activities in the same space. Ignoring insurance can present a financial risk, which is why we recommend that brokers review these situations carefully. Our updated Business in the Home product can assist to meet clients’ needs.”
Changes in eligibility criteria and expanding the types of businesses that can be insured has opened up additional business categories, which are classified as Office and Office Services (Code A), Sales Representatives (Code B), and Services and Crafts (Code C). This includes professions that also have adapted to the COVID-19 reality such as:
- Consultants (such as Business Planning)
- Hair Stylists
- Graphic Designers
- Interior Designers
- Manufacturer’s Agents – i.e. Tupperware, Avon, Pampered Chef
- Music Lessons
Additional changes, like increased special limits for accounts receivable and new optional business property limits are available. New definitions for key concepts such as, ‘equipment,’ ‘premises,’ and ‘off-premises’ have been added and the endorsement wording has been updated to make understanding coverage as clear as possible for brokers and customers.
“It’s important to remember that a loss at home will impact someone both personally and professionally if they’re operating a business from the home. It’s critical to ensure that you are getting the best protection,” says Graham.
A new kind of support is needed for all
Working from home has continued to evolve, and the needs of small businesses have as well. The newly updated and expanded Business in the Home endorsement is rooted not only in recognizing this, but in the need to provide brokers with the tools necessary to best support their small business clients.
For more information on Business in the Home and further details on product changes, please contact your Underwriting Team or your Regional Sales Manager.
*source Canadian Small Business Statistics https: //www.thebalancesmb.com/canadian-small-businesses-stats-2948030
The contents of this website are provided for your general information only. Eligibility requirements, limitations, exclusions or additional costs may apply, and/or may vary by province or territory. Nothing on this site alters the terms or conditions of any insurance policy. Read your policy for a complete description of coverage and contact your insurance provider for coverage and policy details.
