HSB Canada has launched a new service line coverage for commercial insurance policyholders.
Available to partner insurers, the new commercial service line offering provides comprehensive coverage for exterior underground service line failures. Service lines for water, sewer, natural gas, electrical, communications, and compressed air are covered, and the damages covered by the offering include root invasion, freezing, penetration by a shovel or backhoe, erosion, as well as wear and tear.
With the incorporation of business interruption, expediting expenses, and spoilage coverages, the new offering also helps businesses deal with disruption and losses, a release said.
“When an exterior underground service line fails, building owners can find themselves responsible for thousands of dollars in repair costs, said HSB Canada vice president of treaty client management Terry Smith. “The standard commercial property policy does not cover buried utility lines, and if there is coverage, it is often quite limited.”
The coverage is a solution which fills a gap that many businesses appear to be unaware of. According to HSB Canada’s research, 70% of those who have experienced a service line failure erroneously believed someone else would be financially responsible for the repairs.
In April, HSB Canada renewed its support for the Broker Identity Program (BIP) of the Insurance Brokers Association of Canada (IBAC). The BIP is IBAC’s national advertising campaign which looks to raise consumer awareness of the value that brokers provide their insurance clients.
