national commercial broker sales guide...1. bi12: added to contractors edge plus policy types, for a...

NATIONAL COMMERCIAL PROPERTY OFFERING

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Broker Sales Guide: Broad Form property, EDGE Complete, Contractor’s and Business Interruption extensionsIntact Insurance’s property insurance consisting of the Building and Contents Broad Form property wording and extension packages, provides your customers with a comprehensive and scalable insurance solution for their commercial business needs. In this sales guide, you will find both summary and detailed information about the product and structure, as well as recommended guidelines to help determine what

coverages and limits are best for your customers.

We’re here to help. If you have any questions, please contact your Intact Insurance Commercial Lines Underwriter or Manager.

Inside this guide: • Product structure

• Summary of changes

• Building the right solution

• Product mapping

• Pricing

• Selling EDGE Complete

• Claims scenarios

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Product Structure Intact Insurance’s commercial property insurance offering is composed of:

1. Building and/or Contents Broad Form (BF02)2. Extension packages: EDGE Complete, Contractor’s and Business Interruption

Customers must have a base Business Interruption form in order to add the Business Interruption extension.Contracting risks must have a BF02 (and/or a BF04 Contractors Equipment Broad Form) in order to purchase a Contractor’s Extension package, but do not need to purchase an extension package. As such some customer scenarios could be:

• BF02 only• BF04 only• BF02 + EDGE Complete• BF02 + Contractor’s extension• BF04 + Contractor’s extension• BF02 + BF04 + Contractor’s extension• BF02 + Business Interruption form + Business

Interruption extension

• BF02 + EDGE Complete + Contractor’s extension• BF02 + EDGE Complete + Business Interruption form +

Business Interruption extension• BF02 + EDGE Complete + Business Interruption form +

Business Interruption extension + Contractor’s extension

Building and/or Contents Broad Form (BF02)We have enhanced our broad form property coverage to include:

• Condominium coverage • Co-insurance is waived for losses up to $50K• UAV (Unmanned Air Vehicle) stock is included when for

sale on the premises• Debris Removal coverage is no longer limited to 25% of

property limit• Coverage for roadways, walkways, parking lots

• Coverage is included for: - Sewers, drains and watermains outside bearing

walls, but within property lines - Newly acquired locations and contents - Inflation protection - Signs and glass

EDGE Complete – property extensionsA package of more than 60 extensions with four levels of limits to choose from:

Levels 1.0, 2.0 and 3.0 are identical in coverage, but different in limits. Level 4.0 has increased limits and additional perils. All levels have the same individual limits in Section 3.

Contractor’s extension: Customers can choose from three levels of different limit options for these extensions. Customers do not need to purchase an EDGE Complete package to access the Contractor’s extension. It may be added directly to the policy if either the broad form property BF02 and/or Contractor’s Equipment form BF04 is attached.

Business Interruption extension: Customers can choose from three levels of different limit options for these extensions. The extensions can only be added if a customer has purchased a base Business Interruption form (i.e., Actual Loss Sustained (ALS), Gross Earnings, Profits (non ALS) or Rental Income). Extra Expense form is not considered to be a base Business Interruption form.

1.0 2.0 3.0 4.0

Section 1 $250,000 $500,000 $750,000 $1,000,000

Section 2 $50,000 $100,000 $250,000 $250,000

Section 3 Individual Limits

Section 1: Blanket limits: primarily on-premises extensions; Section 2: Blanket limits: primarily off-premises extensions; Section 3: Individual limits and peril-related extensions


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Extension – Plants, Trees, Shrubs $5,000 max limit per occurrence removed. Overall impact:

Fewer restrictions in coverages

Clearer wording

Updated exclusions for consistency with the industry and our original intention

Inflation ProtectionAdded to base property form (previously only available in an Edge package).

Definitions – addition of Condominium

BF12 (base property Condominium wording) was incorporated into BF02 and is no longer required.

Property Being Worked Upon Exclusion removed, however faulty workmanship still excluded.

Sewers, drains and watermains Covered to property lines.

Summary of ChangesBF02 (base property form)

New standard coverage for all customers (previously only available in certain Edge packages)

• Expediting expenses• Proof of loss & inventory prep expenses• Office business contents• Newly acquired contents • Breakdown of refrigeration or heating

equipment on vehicle• Extra expense includes civil authority

• System software erasure• Condo - Trustee fees• Condo - Common expense • Contents at insured/employee residence• Deferred payment plan stock • New generation (technology upgrades when

equipment being replaced is obsolete)

Overall impact:

More extensions available to all customers Expanded existing coverages

Clarified wording and intention

New extensions added to provide better coverage for customers

Coverages are clearer and simpler, helping customers understand what coverages they have

Streamlined structure supports all sizes of businesses

New coverages and provisions

• Crane operators insurance• Consequential loss, or dampness or

dryness or temperature change – full policy limits on all wordings

• Environmental (green) upgrade coverage • Deductible waiver for most losses over $250,000• Contents temporarily away from the premises

Expansions

Arson and Theft Reward Reward is now for theft (not just burglary).

Building by-lawsAdditional limit (subject to cap) for Increase in the cost of construction.

Catch all clauseClause can apply to any individual extension in Section 3 (no restriction).

Debris removal expensesAdditional limit for debris removal expenses (10% of the amount of insurance on POED).

Land and pollutant clean-upExpenses can be incurred and reported within 365 days (up from 180), and can be excess of loss if the expense is covered elsewhere.

Personal property of officers, employees and volunteers

Added coverage for volunteers to personal property coverages and added trigger for legal liability.

Replacement of locks and keys Coverage now includes digital key entry systems.

Unscheduled tool floater No longer subject to maximum amount per tool.

Replacement cost on stockReplacement cost on unsold stock, and selling price on sold stock.

Clarifications

Fire or police department service charges Insured must be legally liable for service charges.

Newly acquired buildings and contents Coverage territory restricted to Canada and the U.S.

Warehouseman’s legal liabilityExcludes loss to perishable goods if caused by electrical failure of refrigeration or heating system.

EDGE Complete


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New coverages

• 90 Day Ordinary Payroll (Level 3.0 only)

Expansions

Contingent loss of income – neighbouring premises

Limit is now the highest of either the dollar amount specified, or the number of days specified.

Newly acquired property No longer restricted to a dollar amount. Coverage provided up to 90 days.

Off premises service interruptionRemoved exclusion for loss due to lack of sufficient capacity and intentional reduction. Buried electrical transmission lines no longer excluded.

Business Interruption Extension

New coveragesOverall impact:

Fewer exclusions and limitations

Enhanced coverages

New coverages

• Property while waterborne or on an aircraft• Catch all clause• Newly acquired contractors equipment

Expansions

Tool floater Removed some exclusions and maximum amount per tool

Replacement costInsured does not have to be original owner and applies to tires and batteries, as well as leased equipment.

Contractor’s Extension


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Difference between 3.0 and 4.0: A blanket limit of $1M is available under Section 1 of the 4.0 while the blanket limit under Section 1 of the 3.0 is $750K. The following perils are included in 4.0 only, and are covered up to the policy limit:• Contamination, marring or scratching, shrinkage• Dampness, dryness, temperature change • Electrical devices, appliances or wiring• Entrance of rain, sleet or snow • Property leased, rented or loaned• Seepage, leakage or influx of water

• Settling expansion, shifting or cracking not caused by earthquake or flood

• Sewers, drains, watermains• Snowslide, landslide, subsidence not caused by

earthquake or flood

Manufacturers Edge/Edge Plus, Wholesalers Edge/Edge Plus:

1. EP01, EP02, EP08, EP11: Will receive Business Interruption extension endorsement only if a base BI coverage is on the policy

Commercial Edge/Edge Plus/Accel +:

1. BI14 (Profits ALS): will be added only if a base BI coverage isn’t already on the policy. If base BI coverage is already on the policy, BI14 will not be added, but Business Interruption extension endorsement will still be added.

2. BI14 requires revenue to rate. Revenue will be carried over from the EP04/EP11 End’t to the BI14. If the revenue in the EP04/EP11 is under $1,000, or is $0 or blank, the system will automatically apply revenue of $100,000.

Contractors Edge:

1. BI10: Added to Contractors Edge policy types, for a limit of $25K. This is added only if a base BI is already on the policy. 2. E159: Added to Contractors Edge policy type (it waives co-insurance on BI10 for losses $25K and under).

Contractors Edge Plus:

1. BI12: Added to Contractors Edge Plus policy types, for a limit of $50K. This is added only if a base Business Interruption is not already on the policy. 2. E160: Added to Contractors Edge Plus policy type (it waives co-insurance on BI12 for losses $50K and under).

E053:

1. If this endorsement was paired with another Edge Endorsement (e.g. EP04 + E053), then the policy will convert to the equivalent of the other Endorsement (e.g. EP04 + E053 would convert to Edge Complete Level 2.0 + BI Ext End’t Level 2.0 + Stated Amount End’t).

Other:

1. G031: Is the DIC/DIL (Difference in Conditions, Deductible & Amounts of Insurance) endorsement.2. E043: Stated Amount endorsement added to all policy types, except E001 and EP14 (which didn’t include Stated Amount in package).

Product Mapping GuidelinesOne of the benefits of EDGE Complete and our enhanced BF02 is the flexibility to choose the coverage option that works best for your customer.

EDGE Complete Conversion Form MappingExisting Renewal Conversion

Policy Type / Package Form NumberEDGE Complete(Level and Form

Number)

Business Interruption

Extension

Contractor’s Extension Other

Business Edge E001 1.0 – EP20 None None G031

Contractors Edge Accel EP14 1.0 – EP20 None 1.0 – EP22 G031

Manufacturers Edge EP01 2.0 – EP30 2.0 – EP31 None G031, E043

Wholesalers Edge EP02 2.0 – EP30 2.0 – EP31 None G031, E043

Contractors Edge EP03 2.0 – EP30 1.0 – EP21 2.0 – EP32G031, E043, BI10,

E159

Commercial Edge EP04 2.0 – EP30 2.0 – EP31 None G031, E043, BI14

Commercial Edge Accel + EP04 2.0 – EP30 2.0 – EP31 None G031, E043, BI14

Contractors Edge Plus EP12 3.0 – EP40 3.0 – EP41 3.0 – EP42G031, E043, BI12,

E160

Manufacturers Edge Plus EP08 4.0 – EP50 3.0 – EP41 None G031, E043

Wholesalers Edge Plus EP09 4.0 – EP50 3.0 – EP41 None G031, E043

Commercial Edge Plus EP11 4.0 – EP50 3.0 – EP41 None G031, E043, BI14

Residential Condominium Corporation Broad Form

E053 1.0 – EP20 None None G031, E043


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PricingDespite the enhanced coverage offered by EDGE Complete, we have endeavoured to minimize the overall price impacts. While we will continue to take a customer-focused approach to pricing to ensure your customers are properly protected and priced for their business, this could mean pricing may fluctuate by customer. To help best manage pricing, please consider:

• Completing a full submission on new business• Updating customer information on renewal

• Obtaining credit consent for additional discounts

Selling EDGE CompleteBenefits of the product: • Tailored industry coverages• Comprehensive extensions for future growth and

unanticipated occurrences • Scalable limits so it is easier to adjust the coverage as the

customer’s business evolves• Blanket limits for the most common types of risks

businesses face

Benefits of Intact Insurance: • Dedicated claims team with deep commercial experience• Loss prevention services available to help prevent losses

before they happen• Size, strength and expertise of Canada’s largest home,

auto and business insurer

A 10-second overview of the benefits of the productIntact Insurance offers EDGE Complete - its comprehensive and scalable property insurance that helps protect your business for the risks you face.

Coverage highlights• Coinsurance waiver• Waiver of deductible for most losses (over $250K)• By-laws coverage• Debris removal

• Catch-all clause• Computer systems, media and data breakdown• Valuable papers and records, computer data• Extra expense

Industry Coverage Highlight

Manufacturing

Consequential loss - on & off premises

New generation

Deferred stock payment plan

Replacement cost on unsold stock

Moulds and patterns

Newly acquired equipment

Professional and Health Services

Accounts receivable

Contents at other than specified location

Exhibition floater

Contracting

Fines, damages or penalties for breach of contract

Equipment rental expense reimbursement

Installation floater

Rented or leased contractors equipment

Warehousing

Accrued storage charges

Land and water pollutant clean up expenses

Replacement of locks and keys

RetailDeferred stock payment plan

Peak season increase

Industry Coverage Highlight

Hospitality

Consequential loss - on & off premises services interruption

Breakdown of equipment on a vehicle

Fire suppression recharge expense

Fine arts

Realty

Environmental (green) upgrade

Mortgage rate guarantee


Land and water pollution

Condominiums

Common elements or common area contents

Common expense

Trustees fees

Property in custody


Wholesaling

Consequential loss - on & off premises

Peak season increase

Mobile inventory management equipment

Deferred stock payment plan

Accounts receivable


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Why? Product highlights Customer profile

Privacy Breach

•Privacy breaches are on the rise

•Business critical personal information is often stored online

•Remediation, business interruption and legal expenses can be high

•Important to respond quickly to mitigate impact to the reputation of the business

•Mix and match coverage limits for remediation expenses, legal expense and business interruption

•Basic package available at minimal cost

Any customer who collects personal data from customers or employees should consider privacy breach coverage

Directors & Officers

•Personal assets of directors, officers, governors or trustees can be at risk during a lawsuit

•A public lawsuit could jeopardize the customer’s reputation and result in losing customers

•Coverage helps to settle issues quickly

•Includes negligence, misconduct, errors and omissions, breach of duty, misleading statements

•Specialized products available for small business with an annual fixed premium of $950

•Coverage applies to past, present and future directors and offices, committee members, employees and volunteers, etc.

Companies, not- for-profit organizations, education institutions, venture capital and start-up companies, small business, cooperatives

Errors & Omissions

•Society is becoming more litigious

•A public lawsuit could jeopardize the customer’s reputation and may result in losing customers

•Protects against claims of financial loss, bodily injury and property damage arising from negligence or mistakes

•Coverage includes defence costs in case of lawsuit, compensatory damages to third parties

Professional services customers – financial, real estate agents, consulting companies, applied science, medical, education, event planners, etc.

Equipment Breakdown

•Equipment breakdowns are costly to repair and could result in loss of income

•EDGE Complete includes coverage for loss or stock and replacement cost of equipment damaged by a loss

•This product covers a loss when the equipment itself breaks down

•Provides coverage for sudden and accidental breakdown of mechanical, electrical, electronic or pressure equipment

•Combined with EDGE Complete, a customer could be covered in more circumstances – originating from equipment breakdown or specified perils.

•Limits up to $250M available

•Customizable coverage for owners or tenants, including damage to property in the customer’s care.

Customers who rely on electrical, mechanical and electronic equipment such as small retail stores, manufacturing plants and everything in between.

Business Interruption

•Business can be interrupted in a variety of different ways: catastrophe, disruption in the supply chain, or loss at an adjacent business to name a few

•Increased reliance on suppliers in other markets increases the potential for interruption and disruption

•Competition is increasing across all markets and industries, while customers are becoming more selective and diligent with how they are spending money

•Depending on the Business Interruption form selected, customers could benefit from:

-Different coverage options exist based on what’s best for the customer’s business

-Additional extensions available to further enhance coverage

-Coverage starts from the day of loss and continues until the customer has restored the same level of income (up to 12 months)

-Includes interruption by Civil Authority up to 14 days

-Includes extra expense to reduce the impact of the loss

Profits: customers where sales may be affected after repairs are made (e.g. manufacturing)

Gross earnings: customers where contracts are not impacted by the loss and repairs can be made quickly (e.g., wholesale, small manufacturing, larger retail)

Monthly earnings: smaller business customers

Extra expense: customers that can set up in another location and be back in business quickly (e.g. telemarketing)

Gross rents: customers who rent property to others with long term leases (e.g. property management companies)

Building the Right SolutionOffer your customers peace of mind and additional benefits with our range of commercial insurance products. Here are some other popular products for commercial customers:


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Getting Your Customers Back on Track (Claims Scenarios)Break-in at facility

Your customer’s manufacturing facility is broken into, causing damage to existing equipment, as well as equipment that was recently delivered, but not yet installed.The customer had also just finished a short run of products for an upcoming tradeshow that was currently unsold, and the break-in resulted in damage to these products.

With the EDGE Complete policy, the customer would be covered for the equipment (new and older), as well as the replacement cost for the unsold stock they had on hand.

Off-site power outage

A fire at a power generation plant located 95 km away causes the power to go out at your customer’s location. According to the local authority, the power outage will last at least two days, but could be up to a week. The initial outage already damaged the stock the customer had on hand, and with a delivery upcoming for a large order, the customer decides to temporarily relocate to a second location with power, but will incur moving costs and rental fees.

With EDGE Complete , the customer is covered for the loss of stock at their location, and will be reimbursed for your expenses to use the second location to keep their business running in the meantime.

On-premises fire

A fire on your customer’s property causes damage to their hotel, cooking equipment, décor, and computer systems, including their guest booking system and inventory information. The fire suppression systems deployed after a fire alarm was set off.

EDGE Complete provides coverage not only for the customer’s building and contents, but the extra expenses incurred for inspecting and recharging their fire suppression systems and re-programming and replacing their critical business electronic systems.

Roof collapse

Snow load causes the roof of your customer’s retail store to collapse, damaging stock and their digital point-of-salesystems. The building is deemed beyond repair and the entire policy limit must be used to reconstruct the building.

With the EDGE Complete solution, the customer would have additional coverage for debris removal expenses and expenses related to reprogramming and replacing the information in their point-of-sale system. Plus, if the loss were to happen during peak season, coverage would extend to cover the additional stock on hand.

national commercial broker sales guide...1. bi12: added to contractors edge plus policy types, for a...

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