Below you will find answers to some of the most common questions you have asked about Intact Insurance Commercial Lines. If you have a question which has not been covered on this page, please contact your Intact Insurance underwriter.
property and/or contents broad form coverage
EDGE Complete coverage
Contractor’s extension Coverage
property and/or contents broad form coverage
Previous to this update, the property and/or contents broad form (BF02) offered Blanket Basis coverage – if coverage was on a blanket basis, the valuation of the property was calculated at 115% of the total values. Where did this extension move to?
The clause was moved from BF02 to our Statutory Conditions Form G003. To clarify, the clause is included in our G003 as a condition to aid in valuation of lost or damaged property that is included within a blanket limit of insurance. The clause does not augment limits by +15%.
EDGE Complete coverage
What are the most commonly used property extensions?
Some of these extensions are:
How does the Catch All work for the EDGE Complete?
The Catch All Clause applies to any of the extension in the individual limits section and can be applied to more than two extensions at any time. Coverage is on a per occurrence basis
What is the new territory for Tool Coverage?
Territory for EDGE Complete is Canada and the USA unless otherwise stated in the wording. Our appetite has not changed.
Does our EDGE Complete extend coverage for incidental property in the USA, for example storage locations, where there are no USA operations, no employees and the location is a permanent location and coverage is required based on contractual obligation (ie: Costco and Sysco).
Yes – EDGE Complete addresses such incidental exposure with this extension:
CONTENTS AT OTHER THAN SPECIFIED LOCATIONS- This extensions covers contents, while at a location not owned, rented, or controlled in whole or in part by the Insured. This Extension applies while the contents are anywhere in the world.
Will the customer need to rebuild on the same site with our new EDGE Complete wording?
Our EDGE Complete does not require customers to rebuild on the same site; however, the Replacement Cost valuation will be based on their original site if they choose to rebuild elsewhere.
For Roadways, Walkways and Parking lots, is there coverage if they’re non-paved, for example, gravel?
There is no requirement in the wording that roadways, walkways and parking lots have to be paved. EDGE Complete covers loss or damage to roadways, walkways, parking lots, other exterior paved surfaces, retaining walls or permanently installed landscape structures on the premises outside the building.
Regarding the Fire or Policy Department Service Charges, what does the definition of “service charge” include?
Our wording states that coverage is extended when the fire or police department is called to save or protect the insured property from fire or another insured peril only, and when the customer is legally liable.
For the Off-Premise Service Interruption coverage, why are overhead electrical transmission not included? Would Equipment Breakdown cover this exposure?
It’s not the intent of our wording to cover off premises service interruption coverage caused by an insured peril to overhead electrical transmission lines – The exposure is very high – The overhead electrical transmissions lines are subject to damages by weather (freezing – ice storms), sometimes by animals (squirrels cutting lines).
BM31 form could cover such a loss when there is an accident to an object and when there is consequential loss coverage on the policy. For more details, please contact your underwriter or one of our Equipment Breakdown specialists.
For the Environmental (Green) Upgrade, is the extension subject to coinsurance?
The extension itself is not subject to co-insurance, but the building and contents to which the extension applies must meet co-insurance requirements.
What happened to the Home Office extension in our previous EDGE packages?
The Home Office Extension is being replaced by "Contents at Insured residence or Insured's Employee Residence" extension, which is broader. We will cover the customer’s contents while at their residence or their employee's residence. The new wording does not require the contents to be in an office in the home of the customer or their employee. This coverage is found in Section 2 which has a higher blanket limit, potentially providing a much higher limit to the customer.
Consequential Loss-on premises is not covered under the EDGE Complete 4.0? I thought this was the highest & best coverage option you have available?
We include consequential loss extension in EDGE Complete 1.0, 2.0 and 3.0 because the property and/or contents broad form includes an exclusion for dampness, dryness and change of temperature. EDGE Complete 4.0 has coverage for dampness or dryness and temperature change and as such consequential loss coverage is automatically covered up to the policy limit.
The Newly Acquired Locations now includes Canada & United States. Does that mean Intact Insurance is insuring U.S. locations?
Yes, with our acquisition of One Beacon we can now look at insuring Canadian companies with U.S. locations and/or U.S. operations.
For fines, damages and breach of contract coverage, would this coverage apply if a customer is leasing equipment, suffers a loss and the customer incurs a fine/penalty for breach of contract?
No, the intent of this coverage is to provide indemnity to the customer should an insured peril to insured property result in a fine/damages/penalty solely for late or non-completion of orders in consequence of loss or damage.
For breakdown of refrigeration equipment coverage, does coverage only apply to the insured's stock or does it apply to property of others?
The wording for this extension refers to insured property; if the property lost or damaged is inured on the policy and the loss or damage is caused by an insured peril, then this extension will apply.
If the property lost or damaged belongs to others but not insured as building or contents on the policy then there is no coverage under EDGE Complete.
Property in transit, does this include while on a barge or iceroad?
There are a few answers depending on the customer’s policy; here are a few common scenarios:
What is "New Generation" in the individual limits?
This extension covers the increase in replacement cost of equipment which has been lost or damaged as a direct result of an insured peril. The customer can choose to replace the equipment with new generation or not. The replacement has: to perform the same function and it's of like kind and quality as the equipment lost. This extension applies only when there is a total loss.
The peak season percentage in the EDGE Complete extension is 25%. Can this percentage be increased?
With a standalone rider, yes the percentage can be increased.
Contractor’s extension Coverage
Does the 5-year replacement cost for contractor’s equipment start when the customer purchases the equipment or when the equipment was manufactured?
If the customer leased, rented or borrowed equipment and a loss occurred, would it be covered?
If the customer has EDGE Complete and the equipment is covered on the policy as property insured on premises, then there is an extension called property leased, rented or loaned to others. EDGE Complete 1.0 to 3.0 provides coverage for 30 days. EDGE Complete 4.0 does not have maximum number of days of days. This extension is not meant to be used in a business that rents to others as a primary operation.
Would the Newly Acquired Contractor’s Equipment extension cover equipment in transit from outside of Canada and the USA?
Our EDGE Complete extensions follow the terms and conditions of the forms that they attach to. Our Newly Acquired Contractor's Equipment extension follows our BF04, which has a territorial limit of Canada and the Continental United States of America. This extension applies only when the equipment is purchased in Canada or USA, as a result, if the customer purchased of a piece of Contractors Equipment and took possession of the item in outside of Canada or USA (ie: Europe), there is no coverage for this extension.
Under the Contractors Extension package, if the customer’s equipment is leased, rented or loaned out to someone else and a loss occurs, is the customer covered?
Contractor's Extension does not have coverage if the customer’s equipment is rented, leased or loaned out to others.
Can EDGE Complete be added midterm?
In certain circumstances, we may be able to accommodate a mid-term change to EDGE Complete. Speak to your Intact Insurance underwriter to discuss the options for your customer.
Can the EDGE Complete level be changed on the policy midterm?
If the business and needs of the customer change, the customer is able to move to a different EDGE Complete level either on renewal or on endorsement. If it’s a multi-locations policy, we can issue a separate policy for the specific location that requires a different EDGE Complete level.
Can policies with multiple locations have difference EDGE Complete levels?
No, multi-locations policy must have same EDGE Complete levels. But we can issue separate policies for the specific location that requires a different level of coverage
Are the wordings going to be attached to renewals when they select the EDGE Complete?
As with all wording changes the new wording will be attached on renewal. The new wordings are now available on the Broker Portal.
The launch of EDGE Complete is February 26, 2017, when does this affect renewals?
Automatic renewals with a renewal date of April 17 and beyond will be renewed with the EDGE Complete.
Can I move my entire portfolio of business into a specific EDGE Complete level?
Yes, we can move an entire portfolio into a specific EDGE Complete level. Policies will be converted as they come up for renewal.
Is there any way to receive quotes for multiple levels, or will there be a standard percentage between levels so I can quote multiple levels to my customers?
There is no standard percentage between levels as the pricing is based on a percentage of the building and content premiums. When submitting for a quote, you can request for multiple levels; however, once you become familiar with the levels and what they cover it will be easier to determine if customers are best suited to 1 vs. 2 vs. 3 etc. Your Intact Insurance underwriter will work with you on this to determine the best level.
Can the additional perils/coverages under the Edge Complete 4.0 (excluded on the lower Edge levels) be added by endorsement?
Not at this time, however it may become available in the future.
Does every customer need to purchase an EDGE Complete?
Customers with unique needs can build a customized Business Insurance Policy (BIP). Your Intact Insurance Underwriter can discuss the benefits of a BIP or EDGE Complete policy.
Is there a way to make sure that the coverage mapped to or chosen, i.e. 1.0 vs. 2.0, etc. is appropriate for my customer?
During our process of conversion, we choose the option that provided the customer with equal or better coverage than they had with their Edge product. There is also a Difference in Conditions/Difference in Limits clause for the next two years in case there is a claim that would have been covered under their Edge policy. If you have concerns about the mapping during conversion, please speak to your Intact Insurance underwriter – they can review with you and make any necessary changes.
Whose credit consent is needed to apply the discount?
The principal owner. If there are more than one principal, consent would need to be obtained for the person with the majority of share. If multiple owners have equal shares (example 2 owners with 50% ownership) we would ask for both names.
Can the number of days in ordinary payroll be increased?
Yes, we can add standalone riders to increase the number of days in ordinary payroll.