All Risks Insurnance For Businesses | ALIGNED Insurance

Where To Buy All Risks Coverage For A Business In Canada?

Ever wondered exactly what “all risks coverage” for a business in Canada specifically means? Well, you are not alone. Every industry has its own language. These are specific terms, words, abbreviations and acronyms that are instantly recognizable to people who work within an industry. The insurance industry is no different.

Insights are just one of 18 reasons why commercial insurance buyers choose to work with ALIGNED insurance experts. More importantly, insight into what “all risks coverage” means within the insurance industry is why we wrote this article.

Demystifying Insurance Industry Jargon

The insurance professionals who work at commercial insurance brokerage ALIGNED Insurance use specific words and abbreviations. They use these terms in order to communicate clearly and consistently with insurers, adjusters as well as other insurance professionals. Industry professionals do this all the time. For instance, people who work in government, manufacturing, retail, construction and healthcare use specific words, terms and acronyms when they communicate with their professional colleagues and peers.

The longer you work within an industry, the more “short hand” you tend to use. Over time, this can lead you to assume everyone knows exactly what you mean when you use industry-specific jargon. This inadvertent assumption can lead to both confusion as well as misunderstandings.

In person, on the phone and on our website we regularly share insurance insights. Each insight we share helps to demystify specific insurance words and terms. One common, misunderstood insurance term is “all risks coverage for a business”. And this term is what we’re going to explain in the next section.

What Exactly Is All Risks Coverage For A Business In Canada?

The terms “all risks insurance cover” and “all risks insurance coverage” essentially mean the exact same thing. However, these terms are very misleading because no insurance policy exists that covers all risks. An insurance policy that provides coverage for all risks never will exist. This is because:

  • The pricing and actuarial models for every risk differs dramatically.
  • Insurers don’t put all their eggs into one basket. They silo or isolate risk into separate buckets using products. Insurers use products to create separation and clarity on where and how things are covered, set capital reserves, build different policies, procedures, etc.
  • All insurance policies include exclusions. These exclusions need to be carefully reviewed. Exclusions ultimately determine what is NOT covered in an insurance policy.
  • On rare occasions, an exclusion will affirmatively add coverage back into an insurance policy.

Explained: All Risks Coverage In Canada

As with many things in life, the specific reality of what the insurance term all risks coverage means is somewhat different than what you may anticipate. All risks coverage is a highly specific term describes the full and complete scope of insurance coverage provided within a commercial property insurance policy.

Commercial property insurance policies can be written several ways. This includes named or specified perils or all risk. All risks insurance is also commonly referred to as “all perils coverage”. This means that all perils causing property damage are covered unless they are specifically excluded. Conversely, specified or named perils commercial property insurance policies specifically and only cover perils that are actually listed within your policy wording.

In short, all risks insurance coverage can be defined as: property insurance covering loss arising from any fortuitous cause except those that are specifically excluded. This is in contrast to named perils coverage, which applies only to loss arising out of causes that are listed as covered.

The term all risks insurance continues typically defines covered causes of loss within a property insurance policy. This is why the phrase “all risks” is no longer actually found in insurance policies. This is because “all risks insurance” inappropriately infers that the coverage is broader than what it actually is.

Where To Buy All Risks Insurance Coverage In Canada

Nowadays, instead of the term “all risks” you may hear the terms “special”, “open” or “all” together with the word “perils” rather than “all risks”. Ultimately, all risk insurance cover means you can expect that something is covered unless it’s specifically excluded.

However, not many business insurance policies are written on this basis and commercial property insurance and directors and officers insurance are the two most common.

Here are a dozen more types of commercial insurance coverage you can buy with ALIGNED.

  1. Directors & Officers (D&O) / Board Insurance
  2. Errors & Omissions (E&O) / Professional Liability / Indemnity Insurance
  3. Cyber Liability & Privacy Insurance
  4. Employment Practices Liability (EPL) Insurance
  5. Crime Insurance / Fidelity Insurance
  6. Pollution Liability Insurance
  7. Protection & Indemnity (P&I) Insurance
  8. Representations & Warranty (R&W) Insurance
  9. Small Business Insurance
  10. Trade Credit Insurance / Accounts Receivable Insurance
  11. Umbrella Liability Insurance
  12. More commercial insurance coverage can be found here…

Get Commercial Coverage With ALIGNED Insurance

Want to learn more about how we help Canadian businesses get aligned with better insurance options? Our experienced commercial insurance brokers are here to help you to determine the types of coverage you need most. Click to get a business insurance quote. 

Connect with one of our Canadian Business Insurance Brokers today at 1-866-287-0448 or CLICK HERE!

Get your coverage lined up. Want Canadian business insurance that’s aligned with your bottom line? We can help. 365. Call us toll-free at 1-866-287-0448.

ALIGNED Across Canada. The ALIGNED National Operations Centre in Cambridge, Ontario supports our Toronto, Calgary and Vancouver offices. Our industry peers consistently recognize us as one of the best Canadian insurance teams. We’re also one of the fastest growing insurance brokerages in the country.

e-news you can use. Get practical business insurance insights in your inbox. 12,000+ people subscribe to our free ALIGNMENT Matters e-news. Click JOIN OUR DISTRIBUTION LIST (at the bottom of our homepage) 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!

Want more insights about all risks coverage in Canada? Check out these brief reads:

Buy Insurance Online Now!

We offer online insurance products for multiple industries, just fill out a simple application form and get a quote today!