Real Estate

Civil liability insurance covers material or bodily injury that you may involuntarily cause to a third party or to one of your clients, regardless of where you conduct your activities. This coverage is essential to protect your business in the event of a lawsuit or claim arising from your activities, place of business or work. It is important to choose the right coverage limit based on the potential risks, since the consequences could be catastrophic for the survival of your company.

You should also consider the location of your building, particularly if it is located in a “congested” environment, since this affects the losses you may cause your neighbours. These may include:

• The value of the buildings’ contents
• Reconstruction of buildings
• Loss of revenue if there are adjacent business premises

It is essential to have enough coverage in the event of a lawsuit or if the building were to cause bodily injury to occupants and/or visitors.

Umbrella insurance provides you with additional liability coverage. By opting for this added protection, you extend the limits of your underlying policy.

Adding executive risk coverage, better known as “D&O,” allows property administrators and managers to personally insure themselves. Whether you are a board member or a property manager or administrator, you could be held personally liable for any wrongful act in the operational or financial management of a building. D&O insurance also covers defence costs (legal fees) in the event of allegations or legal action brought against board members or company directors, as well as various other types of compensation.  

Have you been hired to manage property for clients? Professional liability insurance (E&O) covers financial losses that you may cause:

• As a result of an error you make.
• As a result of the omission of an act or advice that you should have given in your professional capacity. 

The third party in question could sue you for losses caused by any errors or omissions you make. This insurance also covers defence costs in the event of a lawsuit.

Since building insurance is included under your basic insurance policy, immovable property is covered (the walls, floors, windows, cabinets and counters of your business in the event of fire, theft, vandalism, etc.).

It is also important to consider the reconstruction cost of your building. Your coverage limit must be equal to the reconstruction cost, regardless of the municipal assessment or resale value of your property. It should include:

• Architectural plans and fees
• Engineering fees
• Marketing expenses
• Taxes (GST and QST)

Taxes must be added to the reconstruction cost, since they cannot be recovered from the various levels of government. However, since taxes for commercial properties can be recovered, they do not need to be added to the reconstruction cost.

This addition to your insurance policy covers water damage to your business.

Your two coverage options are:

• Sewer backup endorsement: this insurance covers sewer backup and sump pump leakage.
• Flood endorsement: you are covered if a body of water overflows onto the premises.

This coverage protects you from any damage to your buildings that may occur in the event of an earthquake. Ground movement is excluded from the standard real estate insurance policy.

This addition to your standard insurance policy covers property in transit at all times. Property on your building locations is also covered in the event of theft or damage while in transit.

This addition to your insurance policy covers property that belongs to you and is used to maintain your buildings, such as a lawn tractor, snowblower, generator, etc.

This insurance covers your legal liability in the event that the stock you store is lost or damaged. You will be protected if you are held liable for these losses or in the event of a lawsuit by a third party or their insurer.

This insurance covers damage resulting from the sudden or accidental breakdown of your equipment requiring repairs or replacement. It also offers inspection services for your equipment.

This coverage applies to:

• Pressurized equipment—Electrical equipment—Mechanical equipment
• Electronic equipment and loss of data

This insurance covers lost profits or expenses incurred to maintain normal business operations (for example, renting buildings or equipment) in the event of a major loss. It also covers rental income loss for a term of up to 24 months, depending on the time required to rebuild the building.

This insurance covers damage caused by pollution from a sudden and accidental or continuous and gradual event, depending on the type of policy. Your company is protected in the event of pollution resulting from the discharge, release, escape or dispersal of solid, liquid or gaseous substances into the atmosphere, water, or water lines such as sewers or drainage systems. In your case, this often involves gas or oil tanks in your buildings. This insurance can also cover fines and penalties.

This insurance not only covers liability related to the management of the private client, employee and company information, but also covers your personal data in the event of hacking.

It also includes the following types of coverage:

• Protection against accidental computer breaches
• Coverage for data recovery costs
• Coverage for data breach reporting costs

Short-term rentals such as Airbnb are considered a commercial activity and must be declared to your insurer, since your basic insurance policy contains exclusions that may limit your coverage in the event of a claim. If a loss occurs, you will not be compensated unless this information is included in your file.