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Coronavirus Insurance Coverage Explained

Coronavirus and insurance companies in Canada - ALIGNED Insurance Brokers
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Coronavirus and Canadian Insurance Coverage Explained

We are in this together - ALIGNED Insurance Brokers
Questions? Call us toll-free at 1-866-287-0448

Coronavirus / COVID-19. Canadians are concerned. Our clients across the country are rightfully emailing and calling their ALIGNED Insurance Advocates with questions and concerns. You may be one of them.

Business owners have questions about COVID-19 and their commercial insurance policies. Specifically, people want to know about Coronavirus and what, if anything, is covered by their business insurance in Canada. Our brokers are working hard to provide answers about Coronavirus and business insurance coverage.

Important Disclaimer: It is with this lens that we have prepared this post about COVID-19 / Coronavirus insurance coverage. However, kindly keep in mind that each and every insurance policy is different and coverage should be formally reviewed by your broker and/or insurer. The following is not legal advice and/or a formal claims interpretation and has just been prepared to help people better understand the typical business insurance policy and typical business interruption coverage.

What you need to know about Coronavirus and your business insurance

The unfortunate reality is that basically no business insurance policies cover financial losses that businesses incur associated with, or directly resulting from, Coronavirus or any other virus or disease.

For further clarity, we wanted to highlight two coverages that are commonly asked about which definitely warrant further review and explanation:

  1. Interruption by Civil Authority
  2. Business Interruption

What is Interruption by Civil Authority insurance coverage?

There is a section in a typical property insurance policy that responds to Interruption by Civil Authority. It is commonly defined as:

the actual loss as insured hereunder during the period of time, not exceeding two weeks, while access to the “premises” described in the Declaration Page(s) is prohibited by order of civil authority, but only when such order is given as a direct result of direct physical loss or direct physical damage to neighbouring premises by a peril insured against under this policy.”

What is Business Interruption insurance coverage?

Business interruption coverage is part of a commercial property policy. However, business interruption coverage is only triggered if the loss in revenue is caused by an insured peril like a fire, flood, sewer back-up, etc. 

Business Interruption and Interruption by Civil Authority coverages are both triggered by physical damage caused to physical assets. These coverages were not built or intended to cover financial losses from viruses, pandemic and/or diseases. 

As a result, there is no coverage for loss of revenue due to COVID-19 under any property insurance policy in Canada to the best of our knowledge.

Not to confuse things as the above applies to more than 99% of the companies purchasing business insurance, but for the sake of completeness, some very specific and standalone event cancellation insurance policies purchased prior to the pandemic might respond in some cases including:

  • If international borders are closed and physical goods can’t be shipped and/or received there might be some contingent business interruption coverage.
  • If COVID-19 is explicitly and physical found on your business premises or it has been determined one of your employees is a confirmed case and might have been contagious while on the business premises.
  • Specialized viral coverage had been purchased as part of specialty business insurance products typically designed specifically for the health, medical and/or education sector.

In the days and weeks to come, we will provide new content about business insurance products and services that are particularly relevant during this evolving situation.


Need specifics about any of our commercial insurance products?
Call us toll-free now at 1-866-287-0448

Will insurance companies in Canada offer coverage related to Coronavirus financial losses?

Separately, we are paying close attention to see if any insurer will offer any sort of new product that could help protect companies from Coronavirus related financial losses.

To date there have been none and we don’t expect any in the near future (informally the industry views it similar to insuring a house while it’s already on fire).


Coronavirus and insurance companies in Canada - ALIGNED Insurance Brokers

Questions about Coronavirus and insurance companies in Canada?
Contact an ALIGNED insurance broker.


Related Matters: Understanding business interruption

Providing useful and practical commercial coverage information is one of the most important things we do as insurance brokers. Here’s an extract from one of our more than 1,000 informative blog posts.

It features information about business interruption insurance in Canada.

“After a fire, flood or windstorm, your business needs to have the right property insurance coverage in place to repair or replace your insured building, equipment and/or inventory. 

And, when a worst-case scenario happens, your business may not have sufficient funds to keep paying your ongoing expenses (aka as standing charges).”

ALIGNED Insurance Brokers “Business Interruption – Insurance broker Toronto”

When a worst-case scenario happens, your business expenses may include some or all of the following:

  • Property taxes
  • Ongoing utility costs even if it’s just for hook up
  • Payroll
  • Vehicle, equipment and/or other loans or lines of credit
  • Advertising expenses
  • IT expenses
  • Ironically…insurance costs
  • Employee benefits
  • Telephone & cell phone
  • Internet
  • Ongoing maintenance

It’s inevitable that more often than not, risk happens when you least expect it. This is why it’s vitally important for you to fully understand what your insurance will cover when a worst-case scenario situation happens.

Keep reading “Business Interruption – Insurance broker Toronto”


COVID 19 and insurance companies in Canada - ALIGNED Insurance Brokers

Questions about COVID-19 and insurance companies in Canada?
Contact an ALIGNED insurance broker.


ALIGNED brokers understand the nuances of commercial insurance coverages and can help you make informed decisions about your business insurance options. Bookmark our insurance info blog to keep current with Canadian insurance insights.


More than just business insurance…

Since day one at ALIGNED Insurance, we’ve taken pride in delivering a different insurance experience to Canadian business.

Our focus on providing important insurance insights here on our website, through our e-newsletter ALIGNMENT Matters and our social media channels will always be a cornerstone of our business.

About us | ALIGNED Insurance brokers

We are 100% Canadian owned. And we’re proud to be a premiere insurance brokerage that currently serves more than 1,600 clients across this country. First and foremost, we believe that aligning insurance experts to business needs is one of the most important things an insurance broker can do to support their clients.

We are proud to support businesses across Canada. In addition to a national operations centre in Cambridge, Ontario, we have offices in Toronto, Ontario; Calgary, Alberta and Vancouver, BC.

Since day one, we have been in growth mode, most recently acquiring Precept Insurance & Risk Management. Three well-established brokerage firms (with roots going back to 1912) came together in 1998 to found Precept. We are proud to align with our past, present and future as insurance brokers Canada. We are in this together.

About Us | Our story

Our story starts with an accident. Our President and CEO Andrew Clark launched ALIGNED because he wanted to deliver a different kind of insurance broker experience to Canadian businesses.

In July 2001, Andrew’s life changed forever when he was involved in a serious automobile accident for which he was at fault. Shortly after, Andrew received a Statement of Claim in the amount of $2,200,000.

As a 21-year-old university student, Andrew had a severely damaged pick-up truck, a significant amount of student debt and a deep sense of remorse and responsibility for the injuries and damage he caused. In what still feels like a miracle, his insurance broker and insurance company made certain those involved received compensation for the injuries they incurred and repaired Andrew’s truck.

Andrew had an overwhelming sense of gratitude towards the insurance industry. When his undergraduate degree was almost complete, Andrew started thinking about career paths.

He explored potential careers and learned more about the industry that was there for him when he needed it most.

A Vision | Insurance broker Canada

Andrew joined the insurance industry and unlocked a passion to help others as he was helped.

He rose through the ranks of two of the world’s largest insurance brokerages, placed tens of millions of dollars in commercial premium, negotiated thousands of policies, received numerous awards and professional designations.

In the early 2010’s, Andrew started forming a vision for a different kind of insurance brokerage that exclusively serves the needs of Canadian businesses…

…in 2014, Andrew founded ALIGNED Insurance.

Andrew’s vision led our 18 points of differentiation. These set our brokerage stands apart in the Canadian marketplace.

Uniquely within the industry, ALIGNED advocates create, negotiate and deliver the best commercial products, services and insurance solutions for businesses. 

We want you and your organization to be part of our story. Contact us today to learn more about us and get a quote for your business. 

We’re here to help you find the BEST commercial insurance…
Our team of insurance brokers is available to help answer any and all questions you might have about all of our commercial insurance products. If you have a question about business insurance, are uncertain about what a particular coverage term means, or simply want to find commercial insurance that directly aligns with your needs, don’t hesitate to call us toll-free at 1-866-287-0448.

It’s time to get your insurance aligned. Want Canadian business insurance that’s ALIGNED with your bottom line? We can help. 365. Call us toll-free at 1-866-287-0448.

We’re ALIGNED across Canada. The ALIGNED Insurance National Operations Centre in Cambridge, Ontario supports our Toronto, Calgary and Vancouver offices. We’re proud our industry peers consistently recognize ALIGNED Insurance as one of the best insurance teams in the country. We are also very proud to be one of the fastest growing insurance brokerages in Canada.

We deliver e-news you can use. Get practical business insurance insights in your inbox. 12,000+ people subscribe to our free ALIGNMENT Matters e-news. Just click the JOIN OUR DISTRIBUTION LIST button – at the bottom of our homepage – to connect and learn more about us.

365 | Get ALIGNED. Every day, Canadian business leaders follow our insurance insights via @ALIGNEDonRisk, on FacebookLinkedIn and watch our YouTube videos here!

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