Insurance Insights

Denied insurance claim in the news serves as reminder to consult a qualified insurance broker

insurance broker

November 15, 2017

Recently, a Toronto woman’s experience with a denied insurance claim made the news. Her story serves as a reminder of the role that an insurance broker plays when buying insurance for your home, vehicle or any other property. 

After recently switching over her insurance to an online company, she was involved in an accident which resulted in a total loss for her SUV. Her claim was denied due to occasional deliveries she made for her small business using the insured vehicle. Although she had disclosed that she used the vehicle for business purposes 30 per cent of the time, she was unaware that vehicles used for deliveries could not be insured under personal insurance policies.

Although this case is from Toronto, the lesson learned still applies no matter where you live. It is critical during the insurance buying process that all aspects of your individual situation are assessed and addressed. This is when it is important to seek the advice of a qualified insurance broker. It is the duty of your broker to thoroughly understand the intricacies of the types of insurance policies they advise on and ask the right questions in order to determine and recommend the most appropriate coverages and limits for your unique situation. Additionally, your broker should also inform you of what information must be disclosed to the insurance carrier.

For this type of scenario where a personal vehicle is being used for commercial purposes and particularly for deliveries, it is especially critical to to talk to your insurance broker about all the ways the vehicle is used and who drives it to ensure you aren’t faced with a nasty surprise in the event of a claim. Rates will differ depending on this information. Your broker should be probing to get a complete understanding of your specific needs and you should be informing your broker of any changes in your situation during your policy period.

If you have any questions about your insurance, please give us a call at 1 800 670 1877 or visit us at one of our office locations.

 

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