Generative artificial intelligence (AI) continues to evolve with unprecedented speed. And the high stakes of AI make it essential for your HR team to be ready.

Generative AI, according to McKinsey,

“describes algorithms (such as ChatGPT, Claude, Copilot and Gemini) that can be used to create new content, including audio, code, images, text, simulations, and videos.” These tools draw from a vast database of information and language to generate humanlike responses to questions, searches and requests.

The technology has quickly become too big to ignore. Some praise it as a game-changing technology that can free employees to focus on strategy, creativity and other tasks requiring human ingenuity. Others fear its potential dangers, from creating new business vulnerabilities to replacing human roles across industries.

While opinions about generative AI vary, there’s universal agreement that organizations must understand the opportunities and challenges it poses and develop policies for its use.

To start, your HR and leadership teams should collaborate to create a company policy for current and future AI technologies. With the widespread and growing adoption of generative AI tools, it’s vital to communicate regularly and consistently with your employees. Be clear about specific usages and limitations.

Opportunities

As noted, these tools are already being used. Some applications might be relatively insignificant, like employees using them to craft emails. But other applications can be as dramatic as companies using them to shift core strategies.

Potential uses for your organization may include generating text for:

• Job descriptions
• Employee handbook policies
• Onboarding tasks, including documentation, support and reminder emails
• Training materials
• Performance reviews
• Employee and customer surveys
• Communication templates such as sales and marketing communications and company announcements
• Standard operating procedures and process documentation

Any use of generative AI should be part of a collaborative effort between employees and technology.

Regardless of the output, employees will still need to verify facts, use good judgment and customize content for appropriate audiences. A human understanding of company culture, social norms, and employee and client expectations is required to make sure the generated text is appropriate and valuable.

At its best, generative AI can help employees brainstorm ideas, create basic communications and offload administrative tasks. This can increase productivity and performance. It also lets your employees focus on idea generation, prospecting, and identifying key audiences and other high-level details.

Challenges

As with any new technology, the promise of generative AI also brings risk. Among the biggest concerns are:

• Plagiarism and copyright infringement: Generative AI can pull data from anywhere on the internet, which could lead to plagiarized passages or the improper use of copyrighted material. It’s also not yet clear who (if anyone) owns the copyright to outputs generated entirely by algorithms rather than people.
• Incorrect or insensitive information: The founders of ChatGPT warn that it is not 100% accurate; other generative AI tools have comparable limitations. Because they combine information and draw from a wide range of source documentation, the results could include inaccurate or offensive material.
• Outdated information: While generative AI tools acquire new information all the time through user prompts, they are not a reliable source for news, information or trends.
• Data protection violations: If users input personal information, AI can gather and share it. For example, if a hiring manager enters the names, addresses and employment histories of potential candidates, that personal information becomes part of the data set the algorithm can draw from and share. Candidates may not have consented to (or even know about) this use of their personal information.
• Cybersecurity: Generative AI presents the same risks as any third-party software, especially regarding sensitive company, employee and client information. Employees must avoid sharing personal, proprietary or other confidential information with generative AI tools.

Current best practices are to limit or avoid the use of generative AI for legal advice, personal guidance, market analysis or private business data. As mentioned above, employees should also avoid inputting personal or confidential information. Once data is entered into a generative AI tool, it may be shared in answers with other users.

Legal experts warn that lawmakers have not kept pace with the newest AI technology. Expect new legislation to address generative AI’s impact on hiring decisions, biases, the sharing of personal information, third-party vendors and more. Employees should act with the expectation that legal responsibility lies with your organization, not AI technology companies.

There are also concerns that generative AI could further ingrain cultural biases because it draws on past and current practices regarding gender, race and other protected characteristics. The technology could overrepresent certain views of gender, race and culture.

In addition, HR should be aware of employee concerns about having their career paths derailed or being replaced altogether. Multiple surveys show that employees are worried about having their roles diminished or losing their jobs.

Moving forward

Generative AI tools are becoming a core part of doing business. Your HR team will play a big role in balancing the risks and rewards.

Moving forward, it’s paramount to assess the opportunities and challenges for your employees and your organization as a whole. Craft a policy on internal and external use, review it regularly for timeliness and accuracy, and clearly communicate the rules and expectations to your employees.

Business income insurance, also known as business interruption insurance, is a type of coverage that replaces lost business revenue due to a covered loss, or “peril.” The cause of the loss must be covered by your commercial property insurance, since these policies are either added to property coverage or included in a business owners policy.

For example, if a fire or windstorm destroyed your place of business and you had to close for an extended period, a business income policy would help cover payroll, rent, utilities and taxes. Most policies also help pay for relocation, and there are other features you can add as discussed below.

Because a disaster can shutter your business indefinitely, business income insurance is an important coverage.

Be mindful of policy exclusions

Business income insurance won’t cover all causes of a shutdown. When considering a business income policy, take the time to understand what it covers and what it doesn’t. In general:

• Coverage is tied to your underlying property policy. If a peril is excluded from your property insurance, it’s excluded from your business income policy, too. For example, property insurance doesn’t cover floods, earthquakes or mudslides, so your business income policy wouldn’t cover lost income from these events. However, you may be able to purchase additional coverage for these types of perils.
• Business income losses are almost always caused by physical damage to property. Pandemics, viruses and communicable diseases (such as SARS and COVID-19) are typically excluded from coverage. Even all-risk policies usually list pandemics as an exclusion.
• Shutdowns mandated by civil authorities that directly causes business losses are usually covered, even if there is no physical damage to your property. Still, coverage is limited to the perils listed in your property coverage, and some policies require a direct physical loss. For example, if local authorities required your business to close due to its proximity to a fire, you may be able to make a claim. Coverage is usually limited to two weeks of interruption.
• Broken items aren’t covered, nor are utility disruptions. However, you can purchase utility service interruption coverage as part of your commercial property insurance. Utility service interruption policies kick in when water, gas, electricity or other services are suspended. A “time-element” policy covers loss of service within a specified period. “Direct-damage” insurance extends the coverage in your property policy to include damages resulting from downed power lines, broken water mains or other utility disruptions.
• Some types of operating expenses, such as marketing and research and development costs, don’t qualify for replacement.

Types of expenses that are covered

Business income insurance helps you pay your expenses so you can keep your business afloat. To successfully make a claim, you’ll need accurate records of your income and expenses. Income that’s not listed in your financial documents won’t be covered. Generally, a business income policy covers:

• Employees’ wages, salaries and commissions
• Taxes
• Loan payments
• Fixed costs such as rent, operating expenses and other costs you incur to generate business
• Profits that would have been earned had you remained open
• Replacement of equipment and associated training costs
• The cost of moving to a temporary location

How long will you be covered?

Policies have a specified “restoration period,” which is the number of days they will cover lost income while a business recovers. These periods are generally 30 days, but it’s possible to purchase extended coverage of up to 360 days. An extension will help your business if it takes longer than anticipated to resume full operations and return to profitability. There is usually a waiting period of two or three days before the restoration period starts.

Understand that payments cease once you resume operations, even if you’re working out of a temporary location and your main location hasn’t been restored. Ask your insurance broker about appropriate limits and the amount of time you may need to recover.

Remember, your property insurance pays the cost of repairing physical damage to your property, while business income insurance replaces lost income while your business is shut.

Extra expenses to consider

You may want to add extra expense coverage to pay for items not normally included in a business income policy. Some examples include:

• Leasing equipment you may need
• Paying employees overtime or hiring extra employees
• Replacing items such as furniture and computers
• Renting a temporary location while your property is being worked on

What if a supplier or vendor is disrupted?

You can also purchase “contingent business interruption” coverage. This kicks in when a supplier or vendor you rely on closes and it disrupts your business, or if a primary buyer, store or venue closes and you can’t sell your products. Payouts are generally limited to losses covered by your property insurance, and there may be a physical damage requirement.

Don’t skimp on business interruption coverage

Whether you add business income to your commercial property insurance or purchase it as part of a package, talk to an insurance broker about what it covers, what it excludes and whether you need to purchase any add-ons.

You’ll also want to analyze your sources of income and the costs you incur to generate that income. You’ll need to have accurate financial records to make a valid claim. If you fail to document a source of income, you won’t be able to include it in your claim.

You should also draw up a disaster response and business continuity plan so you’re prepared for a business interruption and can recover quickly. Planning and proper insurance are the keys to surviving a disaster.

According to an annual survey from the Canadian Payroll Association, 44% of Canadians would not be able to meet their financial obligations if their paycheque was delayed by even a single week. One insurer reports that 48% of Canadians have disability coverage through their workplace benefits. However, of the remaining 52%, the majority have no disability coverage at all.

These individuals choose not to buy coverage for many reasons:

• They don’t see the value.
• They have other financial obligations or expenses.
• They can’t afford coverage.
• They think they don’t need it.

Statistics Canada reports that about one in five individuals has some form of disability. However, neither workers’ compensation nor disability benefits will cover many of the situations these individuals will face. Workers’ compensation covers only work-related injuries, and government disability benefits are approved under stringent requirements.

Why offer disability coverage?

Disability insurance provides increased financial security. It helps bridge the gap between paid time off and the time when an employee would have to use their savings to pay for everyday expenses like rent, food and utilities.

A medical exam is not usually required to purchase group disability insurance. So, more employees may qualify for coverage than if they tried to purchase individual coverage. Premium rates may be lower as well, since the group helps offset the risk.

For employers, working with a disability vendor can simplify leave management. You receive the assistance you need to manage the plan and avoid discriminatory lawsuits and fines for noncompliance with federal and provincial regulations.

You may also get support in managing a return-to-work program. This can help your organization and employees focus on getting people back to work rather than the potentially traumatic experience from which they are recovering.

Offering individual disability for young executives, partners and business owners

Individual disability policies are available to cover:

• The buyout of a disabled partner
• Continued contributions to a disabled partner’s retirement plan

Without these policies in place, you may be expected to pay out of pocket to buy out the partner who has become disabled.

If you are interested in learning more about these policies, we can help you understand who may be considered under an individual policy.

What are my administrative options?

You may choose to manage your disability plan in-house. Or, you may want to outsource the administration. Disability vendors can package leave administration with group long-term disability plans. They may incorporate:

• Short-term disability
• Compliance with provincial laws that require either paid or unpaid leave in certain situations
• Family and medical leaves
• Reasonable accommodation requests

Your third-party administrator (TPA) may also be able to handle plan administration and work directly with your disability vendor.

Choose modern technology

Many payroll and human resources information systems (HRIS) vendors now offer leave management. This eliminates the problem of multiple systems tracking multiple data points. Electronic data feeds are sent directly to your disability vendor.

Some companies even offer:

• Application programming interface (API) to make exchanging data even easier
• Artificial intelligence (AI) to evaluate claims, coach a customer service representative during a call and walk individuals through filing claims online.

For more information

If you have questions about how disability insurance can benefit your employees and what to look for in a plan administrator, contact us. We can design a disability program that protects your employees’ income and minimizes your administrative burden.

A standard homeowners policy won’t cover a dwelling that is vacant or unoccupied for an extended period. It’s normally specified in your policy details. If you leave your home unattended for 60 days (30 days in certain policies) and something happens, your claim may be denied.

That’s why you need to look into vacant home insurance if you’re planning to travel for an extended period or are in the process of selling or renting your house.

The difference between vacant and unoccupied

There is a big difference between a vacant home and an unoccupied one. A home is considered vacant when it is empty, while an unoccupied home is one that is just missing its occupants. The distinction is an important one if you are temporarily away from your home because it means you are (or should be) covered by your policy.

For the distinction of unoccupied to hold, none of the major pieces of furniture or appliances should be missing; it must be a livable space. We can help you add an endorsement to your policy just to be safe.

Construction versus renovations

Strangely enough, policies do not consider homes under construction to be vacant. You don’t need a special endorsement or policy to ensure coverage while your home is being built; a standard homeowners policy will do.

However, major renovations are different because rooms are emptied and the inhabitants are away. As discussed earlier, this constitutes a vacancy.

Who needs vacant home insurance?

Talk to us about vacant home insurance if:

• You’re buying, selling or renting your dwelling.
• You plan to be away from your home for more than 30 days.
• You’re moving out temporarily for major renovations.
• You own a vacation home.

You can cover a vacant home on your existing policy by adding an endorsement or purchasing a stand-alone policy. Since the risk of a fire or break-in is greater than in a regular home, you can expect to pay more for this policy.

What is covered under vacant home insurance

Most vacant home policies cover:

• Named perils, like fires, lightning, wind, hail and explosions
• Glass breakage, vandalism and malicious mischief
• Liability

Theft of personal property on the premises may not be covered, and water damage is often excluded.

There are different levels of coverage, so be specific about your needs before settling on a policy. Contact us to get more information about this coverage or to review your current coverage.

According to the Canadian Anti-Fraud Centre (CAFC), Canadians reported $24 million in text scam losses in 2024.

Exploiting your responsiveness to texts

Texts are far more likely to be responded to than calls or emails. And many consumers prefer texting.

Fraudsters have this information, which is why they continue to send their scams over text. They’re leveraging text open and engagement rates against you, hoping you’ll click and reply instead of stopping and thinking.

Some current text scams to watch out for

Here are some of the top text scams:

Fake e-transfers for goods sold

The CAFC is warning Canadians who sell goods on social media or online classifieds websites to look out for fraudulent e-transfer texts and emails. Fraudsters send these retailers a text message to get them to accept a fake e-transfer as payment. Once you access the fake deposit page, you are prompted to enter your banking credentials, giving them unlimited access to your bank accounts!

Never click on questionable links. Retailers should only use the proper apps and software to receive payments and should always communicate directly with the vendor when asked to enter sensitive information. Payment platforms do not send out unsolicited texts like this.

Bogus jobs, the gamified “task scam”

In a task scam, the criminal texts you about a job opportunity that involves rating products, videos or apps. The text says you can make good money by boosting products or doing optimization tasks for companies online. You just download the app and get started.

In the app, you see an ever-increasing tally of your earnings, incentivizing you to complete more tasks. Eventually, the app or platform asks you to deposit your own money to complete the next set of tasks. It says this will allow you to cash in your earnings. It’s a heist. After you make the deposit, the scammer takes your money and bolts.

Never pay for a job. If a job asks you to pay them or transfer funds, it’s a scam. There are legitimate ways to make money by doing market research and reviews, but they don’t require a startup fee or payment. Also, writing fake reviews and ratings for products you’ve never used is illegal, and trustworthy companies won’t ask people to do it. Always research the company you’re applying to. Real jobs don’t send generic spammy texts or direct messages. If you get an unrealistic offer to make easy money, ignore it.

Fake fraudulent activity alerts

Scammers are looking to catch you off guard with this one. You get a text about suspicious financial activity or a large purchase you didn’t make. The text might even look like it came from a bank or retailer. It includes a number to call or a link to click. Or it asks you to type STOP to cancel the unrecognized transaction. Your reply goes to the scammer, who ironically poses as the fraud department.

These criminals are good at tricking you. They’ll seem helpful at first, but that’s part of the act. Eventually, they pressure you to transfer your cash to a “safe” account under the guise of helping you. It’s a lie. The money goes to their account instead.

Banks will never ask you to transfer your money to a safe account. They might ask you to verify your identity using a specific PIN or another means of verification, but they will never ask you to tell them your multifactor authentication code. If they do, hang up. Navigate to your bank’s official website and call their main number to report the fraud.

Similarly, a retailer won’t contact you to verify a purchase. Don’t respond to pushy or scary texts that demand you act or suffer consequences. If you’re worried, contact the retailer using a platform you know is real to verify your account’s status. Don’t reply to the text, not even to say you know it’s a scam.

Instead, report them:

• Forward the scam text to your phone provider’s spam department at 7726 (SPAM). This helps your wireless provider spot and block messages for everyone.
• Report it to your messaging app using the report junk or spam option.
• Report it to the CAFC at 888-495-8501.

False notices for unpaid tolls

Scammers are sending texts that look like they’re from highway toll programs all over the country. They convince people to click a link about an unpaid toll balance, but it’s a lie. Reports suggest scammers are after credit card information and even Social Insurance numbers. They say they want you to click a link and pay the toll, but they actually steal your information instead.

Don’t click on unexpected texts with payment links. Instead, log in to check your toll account using a website or app you know is legitimate.

Wrong number texts

Wrong number scams start with an out-of-the-blue message that looks innocent. It might say “hi” or “Sorry I was late.” Or “Coffee sounds good – what time?” They make it seem like a misdirected text. The scammer uses this tactic to play on your good nature.

It might seem like a simple act of kindness, but responding to let the stranger know they got the wrong number can kick off a long-range scam. Reports show these swindlers strike up fake relationships, often posing as successful investors.

Once they’ve gained your trust, they offer a once-in-a-lifetime opportunity, usually cryptocurrency.

You might start by investing a small amount. Your investment quickly pays off. Then you invest a little more as your balance grows by tens of thousands of dollars. This can go on for months, getting you hooked on the scheme. One day, they have an amazing offer that requires more of your money. By now, you trust them. You make the investment, and they steal your funds.

In these scams, the account is merely a lure to earn your trust. Some targets have lost their life savings.

Don’t transfer or lend money to someone you’ve never met in person. Video chatting isn’t the same as meeting someone. Deepfakes could make the scammer sound and look like a completely different person. Often, these scams are engineered from real Facebook profiles to lend legitimacy. Artificial intelligence assists with the con by overlaying a fake image to disguise the scammer’s voice and face.

It can be hard to grasp, but these long-haul scammers are good at what they do. They’re great listeners and use psychological manipulation to mold themselves into your dream friend. Don’t let them talk you out of your feelings or into a false sense of security.

Advocate for yourself

In text scams like these, the scammer can seem to know and care about you. Not so. They are merely playing the odds. When they send a text message to 30,000 numbers, chances are good that 100 people will use the service they’re referencing.

Even if you accidentally engage with a scammer, disconnect. Trust your gut and report them. Use this knowledge to stay cybersafe!

Many homeowners are now renting their homes on platforms like Airbnb and Vrbo, a trend that has grown into a multibillion-dollar industry.

If you’re thinking of renting yours, it’s wise to learn about insurance for short-term rentals.

Legal considerations

A good first step is to review the terms of your homeowners association or condo bylaws, or your local laws. You should also check if your municipality has an ordinance regarding short-term rentals.

You’ll want to consider city-specific regulations, too. Understanding the laws and regulations in your city or province will help you avoid potentially hefty fines and even eviction if short-term rentals are illegal in your area. Online marketplaces like Airbnb and Vrbo offer information to help homeowners understand the many considerations and practice due diligence.

Homeowners, renters and landlord insurance

Weigh the benefits versus the risks before opening up your home to visitors. For example, what if your guest destroys your property or your neighbour’s landscaping? What about damage to the common space in your condo building? Who pays for injuries on your property? Are you liable?

While an online platform like Airbnb may provide a measure of protection, you may still be in for a costly surprise. For example, Airbnb offers up to $1 million in protection for damages to covered property. But the program doesn’t cover cash, securities, collectibles, rare artwork, jewellery, pets or personal liability. Nor does it cover losses or property damage due to wear and tear. It is not a replacement for your homeowners or renters insurance.

You may think your homeowners or renters insurance will cover any damages, but think again. Many policies do not cover property damage caused by paying guests or the costs of any injuries they suffer. Ask us to review your homeowners policy to see what it will and won’t cover.

Know that homeowners policies often exclude home-based businesses. Since it’s hard to say when occasional rentals cross over into official business, be aware that this could invalidate your coverage.

You may also want to purchase a landlord policy that helps protect you and your belongings.

Finally, only rent to guests who can prove they have homeowners, renters or personal liability insurance. Guests may be covered under their own policies.

Prepare for guests

Before your guests arrive, inform them that they are obligated to pay for any damages or losses. Have it in writing and reiterate it when possible.

Renting your home can be a lucrative opportunity, but it also entails additional, complex risks that should be thoughtfully considered. If you’re not well-prepared with the proper insurance and precautions, it could cost you. Speak with us before opening your home to short-term renters.