Loss Control Investigations Concern Commercial Property Owners
Thunder Bay – BUSINESS – Small and medium-sized businesses have struggled over the past year. The COVID-19 pandemic and lockdowns as well as the shift to online shopping have left many business owners working long hours to keep pace.
Now it looks like another challenge is on the horizon for more than 200 commercial property owners in Thunder Bay.
Insurance companies have in many cases increased their rates. Building owners told NetNewLedger that in some cases the increases are in the thousands of dollars per year.
What is looming are loss control investigations.
Wawanesa Insurance, one of Canada’s insurance companies, states that âTo begin with, it should be noted that most large insurers have a loss control or prevention department. Usually, when you buy a new policy or when the time comes to renew, the underwriter can ask the loss control team to investigate. In a nutshell, they will assess all possible hazards on your property, such as electrical and plumbing system hazards, with the goal of helping prevent or minimize loss in your home, business, or farm.
âWe are not inspectors, and we are certainly not code executors. We’re risk consultants, âsays Paul Johnston, Eastern Claims Control Business Director at Wawanesa Insurance. “We work with our customers and try to prevent them from suffering a loss.”
âIt’s a win-win situation. Loss control is great for both the business and our policyholders.
The owners are hesitant about this. Their rates having already increased by around thirty percent, they see this loss control survey as another way for their insurance companies to raise their rates again.
One property owner shares with NetNewsLedger: âThe implementation of mass loss control surveys of local business business owners in Thunder Bay after many saw huge increases in insurance premiums is going to be a big boost. difficulty for small businesses in the city. Not just in their outcome, but emotionally. I think some entrepreneurs will give up after everything they’ve been through for the past two years. We need the government to step in and monitor these investigations. “
Insurance rates for commercial vehicles have skyrocketed throughout the pandemic.
At the provincial level, the government provides support to small and medium-sized businesses, and some new form of assistance may likely be needed.