Question 1

How do insurance companies determine premiums?

Accepted Answer

Insurance companies determine premiums in different ways. When it comes to car insurance, there are a lot of factors:

Your insurance history. How long you’ve been insured in the province you’re looking to get insurance in is one thing the insurance company considers.
If you’ve been in any accidents or if you’ve received speeding tickets, the insurance companies will take that into account.
How you use the vehicle is important. Is it for personal use, or is it part of your business?
Companies take into account how much you drive. If you have a long commute it could increase your rate.
Where you live is a huge factor in determining your rate.

When determining home insurance premiums, the factors are different:

Your claims and insurance history
Where you live
What coverages you’ve selected. When it comes to home insurance, there is a lot of optional coverages to consider which will affect the premium.

Question 2

Does my marital status affect my car insurance rate?

Accepted Answer

Some insurance companies take your marital status into consideration. And we hate to break it to all the lonely hearts out there, but common-law and married couples sometimes get a cheaper rate. It seems pretty unfair, but if the insurance company has determined that couples get in fewer accidents, they’ll consider single people a bigger risk, and their premiums will cost more. However, not all insurance companies take marital status into consideration. A broker can shop around different insurance companies to find the plan that fits your life, whether you’re single, married, or it’s complicated.

Question 3

Does my driving experience affect my car insurance rates?

Accepted Answer

Yes! Driving experience and driving history are factors insurance companies take into consideration when determining rates. If you don't have a lot of driving experience, you will likely see higher rates for insurance. If you have a long history of driving without accidents, you will likely have lower rates.

Question 4

I commute to work, does this impact my insurance rate?

Accepted Answer

Yes, your driving habits are something that insurance companies take into consideration. The more time you spend driving, the more likely you are to be in an accident. This means that if you have a long commute to work every day, it might have an impact on your rates. One of our managers from Toronto, Ina Goga points out an important distinction when it comes to commuting:

"Commuting to work and commuting for work are two different things," Ina says. "If clients have to drive around for work we might have to rate them differently. This can sometimes be confusing for clients."

If you find insurance confusing, you’re not alone! We have brokers like Ina who can explain everything, and make sure you have insurance that makes sense for you.

Question 5

If I can’t visit an office in person, how can I receive or send insurance documents?

Accepted Answer

Most of the insurance carriers we work with will mail documents to you directly. If you require additional documents, please call us to determine what options are available.

Question 6

What if a friend wrecks your vehicle?

Accepted Answer

When someone else drives your car, your insurance will follow them. As long as you give them permission, and they are legally able to drive, your policy will be in effect. If they damage your vehicle, it will effect your insurance policy and future rates, just as it would if you were the one to get into an accident.

Question 7

Is my business insurance still eligible if I make any changes to the operations of my company?

Accepted Answer

Your insurance should be as unique as your business. If you alter your business or operations you may be altering your risk exposure. It is important to notify your broker of any planned changes to your business model. This may include changes to the product you manufacture, the process for manufacturing or offering new types of goods or services. Perhaps you are planning to start offering installation services for the products you distribute. These operational changes are called a “material change in risk” and can impact the type of coverage you need or the premium charged by the insurers. It’s a good idea to speak to your BrokerLink broker before moving forward with any business modifications that may impact your coverage.

Question 8

Is my business covered by insurance if my we get sued?

Accepted Answer

Depending on the allegations, your policy can help defend you from legal action against the operations of your business. Notify your broker immediately if an incident occurs that could result in a potential claim or lawsuit. They can discuss what protection and coverage is available to you.

Question 9

Is my business covered by insurance if we experience a flood?

Accepted Answer

Many commercial insurance policies can cover damage to your business as a result of overland flooding. It’s important to speak to your BrokerLink broker to understand how your deductible and any limits can impact exactly how much would be covered. You broker can provide options to ensure you have the right level of coverage in place.

Question 10

Is my business covered by insurance if a fire causes an interruption?

Accepted Answer

In the event of a fire or other incident that results in you having to halt or cease operations, business interruption insurance can help cover the costs of lost revenue and additional expenses associated with being temporarily shut down, including employee wages. If you don’t already have one, creating a risk management plan can be useful to refer to during an unexpected event.

Question 11

Does business insurance cover a product or service that causes injury, illness or death?

Accepted Answer

Every business owner should carry general liability insurance for protection against bodily injury and property damage to others. Depending on the nature of your business, as an added form of coverage, you can add product and completed operations liability to your policy. This coverage extension can provide further protection from customer claims made against your products and services after the sale. Talk to your BrokerLink advisor to determine whether this coverage extension is right for your business.

Question 12

What type of liability insurance does my business need?

Accepted Answer

We highly recommend that most business consider getting general business liability insurance, which will cover common types of insurance claims, though there are also five additional types of liability coverage available:

Employer Liability
Employment Practices Liability
Employee Benefits Liability
Directors and Officers (D&O) / Management Liability
Legal Expenses Liability

To learn more about these additional business liability options, read our business liability coverage blog post.

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FAQs

How do insurance companies determine premiums?

Does my marital status affect my car insurance rate?

Does my driving experience affect my car insurance rates?

I commute to work, does this impact my insurance rate?

If I can’t visit an office in person, how can I receive or send insurance documents?

What if a friend wrecks your vehicle?

Is my business insurance still eligible if I make any changes to the operations of my co...

Is my business covered by insurance if my we get sued?

Is my business covered by insurance if we experience a flood?

Is my business covered by insurance if a fire causes an interruption?

Does business insurance cover a product or service that causes injury, illness or death?

What type of liability insurance does my business need?

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FAQs

How do insurance companies determine premiums?

Does my marital status affect my car insurance rate?

Does my driving experience affect my car insurance rates?

I commute to work, does this impact my insurance rate?

If I can’t visit an office in person, how can I receive or send insurance documents?

What if a friend wrecks your vehicle?

Is my business insurance still eligible if I make any changes to the operations of my co...

Is my business covered by insurance if my we get sued?

Is my business covered by insurance if we experience a flood?

Is my business covered by insurance if a fire causes an interruption?

Does business insurance cover a product or service that causes injury, illness or death?

What type of liability insurance does my business need?