Home Business Coverage

What’s covered

We insure your Home Business and Business Property up to the maximum limit of insurance stated on your declaration page for this coverage. The business coverages extended under 1.1.9.2i in Section 1, Coverage C – Your Personal Property are replaced by and not in addition to this coverage.

In the event of loss or damage to your personal premises, the limit or amount specified in this coverage may not be applied to indemnify for loss to property not used for the Home Business.

Property Insurance for Your Business Property

We insure your property used for your Home Business against those risks of direct physical loss or damage subject to the exclusions as described in Section 1, Coverage "C" – Your Personal Property as stated on the declaration page for this policy in an amount not exceeding the lesser of:

for Stock, the cost to repair or replace less depreciation;
for all other property, the cost to repair or replace;
your financial interest in the property;
the policy limit,

subject to the co-insurance provision contained in “How claims are paid”.

Extra Coverage:

Money and Gift Cards: We insure, at your option, money including gift cards stored in your Home Business in accordance with 1.1.9.2iii afforded by the policy but not so as to increase the policy limits.
Business Property of Others Located on Premises: This coverage also insures property of others for which you’re legally responsible by reason of your business activities. The measure of loss for property of others shall not exceed the cost to repair or replace less depreciation and indemnity is subject to the co-insurance provision contained in “How claims are paid”.
Business Property Temporarily Away: We also insure your business property while it is temporarily away from your premises or while in transit in Canada. We will pay up to $5,000 in all.
Loss of Earnings and Extra Expense: In the event of physical loss or damage as a result of insured damage to your Home Business property we also agree to pay:

a. any extra expense you incur to continue the normal operation of your Home Business, provided you undertake to reduce or avoid any such expense as soon as reasonably practicable, for a period not exceeding twelve (12) months from the date of loss, or, until you’re able to resume normal occupancy of your personal residence, whichever first occurs, up to $5,000 in all; and

b. any loss of Earnings resulting from the necessary interruption of your Home Business in an amount not to exceed $10,000, but in no event more than $2,500 for any loss of Earnings in any thirty (30) consecutive calendar days.

Basis for Calculating Any Loss of Earnings

In determining any loss of Earnings, we’ll consider:

the Earnings of the business before the date of loss or damage;
the probable Earnings had no loss occurred;
the continuation of operating expenses, including payroll expense to the extent necessary to resume operations with the same quality of service which existed immediately prior to the loss; and
the reduction of loss that could be made possible by resuming complete or partial operation of the described property, or by making use of other property.

Limitation for Electronic Data Processing

If as a result of insured damage, you sustain a loss of Earnings resulting from loss or damage to electronic data or electronically controlled equipment the length of time for which we’re liable shall not exceed the lesser of thirty (30) consecutive days, or, the length of time reasonably required to rebuild, repair or restore the property exercising due diligence.

What’s not covered

Applicable to the Entire Coverage

There isn’t any coverage for:

loss or damage to business property:

a. you’ve loaned or rented to others; or

b. you’ve sold under:

i. a conditional sales agreement; or

ii. deferred payment plan;

c. once the property is delivered to your customer;

loss or damage excluded by your Personal Property Insurance;
loss or damage caused by pilferage, appropriation, conversion, embezzlement or concealment or any dishonest act on the part of you, any member of your household or any of your employees or any other party of interest, his or their employees or agents or any person to whom your business property may be entrusted;
loss or damage caused by a voluntary parting of title or ownership whether or not the parting of title or ownership is induced by fraud, trick or false pretense;
loss or damage caused by disappearance or any loss or shortage disclosed on taking inventory;
loss or damage caused by delay or loss of market;
loss or damage caused by the release or escape of any pollutant unless the loss or damage to the business property is as a result of insured damage;
any economic loss including loss of profits or extra expense, except as expressly provided elsewhere in this coverage.

Applicable to Loss of Earnings or Extra Expense

We’ll not pay for:

any increase of loss caused by any by-law, ordinance or law regulating zoning or the demolition, repair or construction of buildings and their related services;
any increase of loss caused by interference at the described premises by strikers, locked-out workers, or persons taking part in labour disturbances or any other person, with rebuilding, repairing or replacing the property, or with the resumption or continuation of your business;
fines or damages for breach of contract for late or non-completion of orders, or for any penalties of whatever nature;
loss caused by the suspension, lapse or cancellation of any lease or license, contract or order, which may affect the insured’s Earnings after the period following any loss during which indemnity is payable.

Inspection and Audit

We reserve the right to have your property and operations inspected at any time.

We may examine and audit your books and records at any time during the term this coverage is in effect and up to two (2) years after.

How claims are paid

We agree to pay an amount not exceeding whichever the least is of:

for Stock, the cost to repair or replace less depreciation at time of loss;
for all other property, the cost to repair or replace;
your financial interest in the property;
the policy limit.

Co-insurance: We’ll pay the proportion of loss that the amount insured bears to eighty percent (80%) of the value of the property insured.

How claims are paid

We’ll pay only the amount by which any loss or damage insured exceeds the Deductible; stated on the declaration page, in any one (1) occurrence.

If your loss involves business property as well as personal property insured by Section 1, Coverage "C" – Your Personal Property arising out of any loss or damage, the greatest deductible will apply to the total loss.

Legal Liability Insurance for Your Home Business

We’ll pay all sums which you become legally liable to pay as compensatory damages caused by unintentional physical injury, or, physical damage to tangible property that arises solely by reason of the activities of your Home Business provided the liability is caused by an occurrence that arises in Canada during the policy period in accordance with Coverage "E" – Legal Liability in your personal policy.

Limit of Insurance – Legal Liability Insurance

In no event shall the amount payable pursuant to this grant of coverage exceed the amount stipulated under Coverage “E” – Legal Liability on the declaration page regardless of the nature of the liability and for the purpose of this section:

all physical injury or property damage which arises out of continuous or repeated exposure to the same conditions shall be considered as arising out of one (1) occurrence; and
all compensatory damage which arises out of one (1) lot of goods or products prepared or acquired by you or by another trading under your name shall be considered as arising out of one (1) occurrence.

Legal Liability Not Insured

You’re not insured for any claims made against you arising from:

any matter excluded by reason of Section 2 of your policy;
any physical injury or property damage for which you’ve assumed liability under any contract or agreement, except damage to premises or their contents which you’re using, renting or have in your custody or control, provided loss is attributable to fire, explosion or smoke;
liability imposed upon or assumed by you under any Workers’ Compensation statute or any similar law;
physical injury to:

● any of your employees if such injury arises out of and is in the course of employment by you; or

● you; or

● any partner of yours or the spouse of any partner, if you are a partnership;

property damage to property owned by you;
damage to that particular part of any property that must be restored, repaired, or replaced because Your Work was incorrectly performed on it, other than property damage included in the Products-Completed Operations Hazard;
property damage to Your Product arising out of it or any part of it;
damage to that particular part of Your Product or Your Work on which you or any contractor or sub-contractor working directly or indirectly on your behalf is performing operations if the property damage arises out of those operations;
property damage to Your Work;
property damage to Impaired Property or property that has not been physically injured, arising out of:

a. a defect, deficiency or inadequacy in Your Product or Your Work; or

b. a delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms;

any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of Your Product, Your Work or Impaired Property, if such product, work or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy, or dangerous condition in it;
physical injury or property damage resulting from the rendering of or the failure to render any professional service;
any occurrence arising out of:

a. the performance of data processing services for others;

b. systems or circuit design, specifications, reports, opinions or recommendations; or

c. erasure or loss of data and/or information contained in, or on, any form of media including tapes and discs;

physical injury or property damage arising out of the actual, alleged or threatened discharge, dispersal, release or escape of pollutants;
any loss, cost or expense arising out of any governmental direction or request that the Insured test for, monitor, clean up, remove, contain, treat, detoxify or neutralize pollutants; and
fines, penalties, punitive, aggravated or exemplary damages.

Aggregate Limits

In the event of an occurrence, whether arising pursuant to your personal policy or this coverage, or both, the aggregate amount payable shall not exceed the amount stipulated in Coverage “E” – Legal Liability as itemized in the declaration page. Under no circumstances may an Insured combine the legal liability limit in each of the personal policy and this coverage so as to thereby increase the total limit of liability.

In the event of more than one (1) occurrence during the term of this policy for a “Products-Completed Operations Hazard” claim, the total aggregate amount payable under this coverage shall never exceed the amount stipulated in Coverage “E” – Legal Liability as itemized in the declaration page.

Deductible applicable to Property Damage

In the event of a claim for physical damage to tangible property, we’re only responsible for the amount by which we are legally obligated to pay exceeds the amount of the deductible shown on the declaration page for any one (1) occurrence.

Definitions

The coverage under this coverage is subject to the definitions contained in Section 5 of this policy except as modified or added by the definitions contained within this coverage.

"Earnings" means net profit plus payroll expense, taxes, interest, rents and all other operating expenses earned by the business.
"Home Business" means a business:

a. that you operate out of your principal residence, or, detached and locked private structures or outbuildings located on the premises which is insured by this coverage and described in the signed declaration submitted pursuant to the issuance of this policy; or

b. for which there does not exist, in whole or in part, any other location at which activities are conducted; and

c. that is operated by you or a member of your family living in the same household.

"Impaired Property" means tangible property, other than Your Product or Your Work, that cannot be used or is less useful because:

a. it incorporates Your Product or Your Work that is known or thought to be defective, deficient, inadequate, or dangerous; or

b. you've failed to fulfill the terms of a contract or agreement, if such property can be restored to use by;

i. the repair, replacement, adjustment or removal of Your Product or Your Work;

ii. your fulfilling the terms of the contract or agreement.

"Occurrence" means an accident, including continuous or repeated exposure to substantially the same harmful conditions.
"Pollutants" means any solid, liquid, airborne, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.
"Products-Completed Operations Hazard" means all bodily injury and property damage occurring away from the premises you own or rent and arising out of Your Product or Your Work, including your activities away from your premises related to Your Product or Your Work.
Stock means:

a. merchandise of every description usual to your Home Business;

b. packing, wrapping and advertising materials; and

c. similar property belonging to others which you are under obligation to keep insured or for which you’re legally liable.

"Your Product" means any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by you.
"Your Work" means:

a. work or operations performed by you or on your behalf; and

b. materials, parts and equipment furnished in connection with such work or operations.

All other terms, conditions, limitations and exclusions of the policy continue to apply.