Does your home have carbon monoxide detectors?

Installing carbon monoxide detectors is one of the most important things you can do to protect yourself, your family and anyone else in your home.

A detector is designed to warn you before carbon monoxide concentrations reach a dangerous level.

What is carbon monoxide? And why is it dangerous?

Carbon monoxide is a tasteless, colorless and odorless gas.

If carbon monoxide gas escapes into your home, it can easily poison the air before you know it’s there. Carbon monoxide poisoning can cause sudden illness or death. That’s why it’s known as the “invisible killer.”

According to the Ontario Association of Fire Chiefs, accidental carbon monoxide poisoning kills approximately 50 people each year in Canada and sends hundreds more to the hospital emergency department.

Sources of carbon monoxide include home appliances and devices that burn fuel, such as gas, oil or coal. Examples include:

• Clothes dryers, ranges and gas refrigerators
• Furnaces
• Portable generators
• Pressure washers
• Space heaters
• Water heaters

If these devices are not well-ventilated and operating properly, carbon monoxide can build up inside the home.

Symptoms of carbon monoxide poisoning

Be aware: Carbon monoxide poisoning can happen at different rates depending on the source and nature of the leak. Poisoning can occur slowly through the release of small amounts of carbon monoxide over a long period. Or it can happen quickly when a large amount enters a home or office space.

Carbon monoxide poisoning can create flu-like symptoms. These include:

• Dizziness
• Headaches
• Lightheadedness
• Nausea
• Shortness of breath
• Vomiting

High levels of carbon monoxide can also cause confusion, loss of consciousness or death.

Breathing in carbon monoxide during your sleep can kill you before you even notice any symptoms.

Protect against carbon monoxide by using detectors

For your safety, use carbon monoxide detectors to signal when there is a leak.

• Select a detector that is battery-operated or contains a battery backup.
• Carefully follow the manufacturer’s installation instructions.
• Place detectors on each level of your home and near bedrooms. (You want the alarm to wake you.)
• Change the batteries in your carbon monoxide detectors every six months. Don’t wait until they chirp. Test alarms monthly.
• Replace carbon monoxide detectors every five years or according to the manufacturer’s recommendations.

If a carbon monoxide detector sounds, leave your home or office immediately and dial 911.

Who needs carbon monoxide detectors?

What if your furnace and other appliances run on electric power, instead of gas, oil or coal? Experts say carbon monoxide detectors are still a good idea.

If you have an attached garage and someone accidentally leaves a car or lawnmower running, the carbon monoxide fumes can enter the home through walls or doorways.

Also, when using gas generators or other appliances outdoors, carbon monoxide can seep inside the house.

Other important precautions

To help prevent accidental carbon monoxide poisoning in your home, take these precautions too:

• Ask a trained service technician to check your furnace; water heater; and gas, oil or coal-burning appliances each year. Make sure they are vented and operating properly. (Read the product safety manuals to learn about carbon monoxide risk.)
• Don’t cook indoors with a barbecue grill or gas camping stove. Keep these items outdoors, away from windows.
• If you use a power generator, place it at least 20 feet away from your house. Keep pressure washers and gas-powered devices away from windows, doors and vents.
• Make sure all fireplaces, grills and stoves are properly vented. Have chimneys inspected annually. (Debris blocking a chimney can cause carbon monoxide to build up inside your house.)
• Make sure space heaters are properly vented.
• Never run a car or lawnmower inside your garage, even if you leave the door open.
• Never use a gas range or oven to heat a house, cabin or camper.
• When you buy gas-powered equipment, look for the seal of a national testing agency, such as Underwriters Laboratories.

With knowledge, you can prevent carbon monoxide poisoning in your home.

Several thousand bicycles are stolen every year in Canada, and even more are damaged in accidents. That’s a huge issue if your bike is your primary mode of transportation, and especially if you have invested a lot of money in it.

The only way to protect your investment from thieves, accidents and other unexpected events is to properly insure it. But keep in mind that most home insurance policies only offer limited coverage, so you may not receive the replacement value you’re looking for. Also, talk to us about your deductible and what you can expect to pay out of pocket.

How bike insurance works

You have two options for insuring your bike:

Insure your bike under your home insurance. Home insurance covers all personal property; you just need to make sure you have enough coverage for your bike and all your other items. Your policy should cover your bike, up to the amount stated in the policy. It will help whether your bike is stolen from inside your house or outside your workplace.

The policy should pay for damage, too. As long as you are locking up your bike and taking other precautions to keep it safe, your insurance should cover you.

Purchase scheduled personal property insurance. This type of insurance is extra coverage for your bike. It can help replace your bike if it is damaged or stolen, even if the damage is minor. It can also cover you if you cause a bike crash.

Scheduled personal property coverage is not subject to your deductible, so you’ll get the full coverage to repair or replace your bike.

Insurance for professional bikes

If you use your bike for work, your home insurance won’t cover it. That’s because it isn’t considered “personal property” if it’s part of your profession.

In that case, you’d need bike insurance. This type of insurance covers your bike if it is stolen or damaged. But, like auto insurance, it also covers you in an emergency. For instance, it might cover medical care for an injury you sustain while biking.

Bike insurance covers other related losses

All types of bike insurance cover your bike and bike accessories, such as your lock, helmet, lights, and reflectors. In the case of theft or damage, you can get money to replace these items, too.

To get the most out of your bike insurance, keep all receipts for the bike so you can prove its value. This means receipts for the bike itself and all other accessories or costs.

If you have an expensive bike and use it often, protect it with bike insurance. Whether it is a theft, an open car door or a wreck on the trail, you’ll have what you need to get back on the road. Talk to us about getting the right coverage for you.

Flooding is one of the most common and costly natural disasters in Canada. It also isn’t typically covered by homeowners insurance.

Overland flooding coverage has only been available to Canadians since 2015. According to the catastrophe insurance data firm CatIQ, 55% of Canadian homes have flood insurance. That leaves nearly half the country without coverage.

To protect your primary or vacation home, you need flood insurance. It can cover structures, windows, fuel tanks and contents, such as personal possessions, small appliances and artwork, depending on your policy.

Flood insurance is usually required for homeowners taking out mortgages for properties in high-risk flood zones. But homeowners in lower-risk areas may want to get it, too, because flooding can happen anywhere in the country.

Flood insurance policies

Insurance companies provide homeowners and tenants with overland (freshwater) flooding coverage. You can also get flood insurance for seasonal and secondary homes. Coverage can be expensive or hard to obtain in high-risk areas, but you can mitigate your costs by choosing a higher deductible.

Flood insurance generally excludes saltwater floods, tsunamis, dam breaks, intentional acts and some high-risk areas. Flood coverage is sometimes bundled with sewer backup insurance.

Advantages of flood insurance

Consider the following reasons to get flood insurance for your property:

• You can set your coverage limit to the value of your property to avoid any coverage gaps.
• If you have furs, jewellery, fine art or collectibles that could be damaged by floodwaters, you can insure them separately for the appropriate amount. Ask us for details.
• Flood insurance can be cheap in low-risk areas.
• Flood insurance can offer multiple deductible options.
• Flood insurance can pay for living expenses if your home becomes uninhabitable. The extent of coverage is typical of regular home insurance policies.

In this fast-changing environment, now is the time to talk to us about the latest options available to protect your home from floods. Don’t wait until floodwaters rise to understand your flood coverage options.

StatCan reports that 97% of Canada’s farms are owned and operated by families. While many are small, they’re still businesses that need property and liability insurance. Insurance can also help keep the farm in the family long after the current owner is gone.

The successful transfer of family farms from one generation to the next takes planning and the right insurance for property and crops. We can help you evaluate the coverage you need to sustain your family farm for generations.

Start by protecting your farm from financial loss

Insurers often cover a family farm’s home, outbuildings, machinery and liability risks related to operations. Coverage should protect you from financial losses due to physical property damage. It should also cover you if someone is injured or sustains property damage on your premises. Finally, it should address risks that might disrupt your ability to earn an income.

Farm insurance can cover losses due to fires, lightning, theft, vandalism, burst pipes, hail, wind, and other perils named in the policy. As us what your policy does and doesn’t cover. Coverage can differ by insurance company.

Depending on where your farm is located, you may need to purchase an add-on, or “endorsement,” to your insurance contract or a separate policy to cover flooding, earthquakes and other natural disasters. Some perils have to be covered separately, and others are uninsurable.

You’ll likely need an appraisal or a recent estimate of your farm’s value, including the buildings and equipment you own or lease. These figures will determine how much insurance you should purchase. Although some degree of risk is inevitable, this requires evaluation and a balanced approach. You need enough coverage to pay for a loss and rebuild your farm if it’s completely destroyed, but you also need to factor in the cost of those policies.

The premium you pay will be based on your chosen levels of coverage, also known as the “limits” of what the insurance company will pay you after a loss. You can adjust your deductible amounts to arrive at a premium you’re comfortable carrying.

Most physical property on the farm, including your residence and vital machinery, is insured to its “replacement cost.” The replacement cost is the amount needed to repair or replace it using the same kind and quality of materials.

However, you may prefer to select “actual cash value” coverage, which is less expensive. Actual cash value is the replacement cost minus depreciation. Actual cash value coverage might make more sense for barns, older buildings or structures that aren’t in active use, as their loss may not impact your day-to-day operations.

Types of property coverage

Beyond buildings, there are other types of property you need to insure. This includes owned and leased farm equipment and machinery, irrigation systems, driveways, and fences. In some cases, “blanket coverage” can protect all of this property collectively. In other cases, “scheduled coverage” may be more appropriate.

Scheduled coverage lets you choose which items to cover and for how much. This helps you protect your most important property while potentially saving money by lowering or eliminating coverage for less valuable property. You also need to consider risks that fall outside a standard farm policy, including equipment breakdowns and lost revenue.

Whether you produce dairy, grow crops or raise livestock, you should have insurance that covers those assets. Remember to talk to us about blight, disease, drought, theft and other causes of loss.

In addition, if you own commercial vehicles used outside your farm property, you’ll need commercial auto coverage. You’ll want liability and collision protection.

Cover your farm’s liability exposure

Your farm insurance policy should also include commercial general liability. This will protect you against claims of bodily injury and resulting medical expenses, property damage, lost wages, and personal injury, including pain and suffering.

Commercial general liability insurance helps pay for accidents that occur due to your operations, both on and off the farm. As an example, one of your tractors could damage another vehicle on a public road. Or an animal could get spooked and injure someone visiting your farm. Someone might even claim that your comments at the local grain elevator harmed their business’s reputation or led to a loss of opportunity.

Liability insurance will pay for your legal defense and settlements or court judgments against you, up to your policy’s limit. However, policies commonly exclude farmers markets, agritourism, chemical spray drift and the use of aircraft. You can insure these activities separately.

Product liability and pollution liability are also typically excluded. Product liability claims may be an issue for your farm if you sell or sample eggs, milk, fruits, vegetables, jams, or other food products. Pollution liability could include chemical and pesticide injuries and health complications from things like burning pastures or livestock manure.

If your operations create these kinds of exposures, you can either add an endorsement to your main farm policy or purchase a separate policy for protection. The solution depends on how your insurance company writes the coverage.

Finally, be aware that liability insurance doesn’t apply to farm employees. Workers’ compensation pays for lost wages and medical expenses if an employee gets sick or injured on the job. It even includes family members you employ. It’s an important safeguard for you and your employees; agriculture is among the most hazardous industries.

Succession planning is critical

Don’t leave the transfer of your farm to chance. Certain insurance policies can ensure the smooth transition of your farm to a family member or valued employee. These financial instruments provide a way to pass on your farm without leaving the new owner with debilitating debt.

We can help you select the right policy for your business. The most crucial one is a key-person life insurance policy that pays death or disability benefits to a beneficiary. This could be a partner, a family member or another individual. Your beneficiary must use the proceeds to sustain the farm after your death. Life insurance can also fund a buy-sell agreement to provide liquidity for a buyout if needed.

You can purchase these life insurance policies in addition to other term or whole life insurance you may have for protecting your family or heirs financially. Those policies aren’t tied to farm finances after your death.

Like any commercial business, family farms need insurance to protect farm property, equipment, livestock, crops and the survival of the business. We can help you keep your land and preserve your family’s legacy.

In a merger or acquisition, buyers want financial assurance that the information the seller is providing is accurate and complete. One way to encourage sellers to provide full disclosure is to hold them financially accountable. But even sellers who intend to provide maximum transparency make mistakes that can harm a buyer down the road. To protect both parties from costly errors and unknowns, buyers and sellers can obtain representations and warranties (R&W) insurance.

In general, there are two parts of the sale relevant to these concerns:

• The representations a seller makes to bring the buyer into a sales contract
• The warranties a seller makes within the contract supporting the original representations

The representations and warranties can address:

• Liens
• Financial performance
• Talent retention
• The value of in-place contracts
• Other elements that affect the value and functioning of the business being sold

Both sides can buy R&W insurance

Either the seller or the buyer, or both, can purchase R&W insurance. Each policy has a different purpose. A buyer’s R&W policy is meant to guard against financial loss due to misrepresentations by the seller. That includes mistakes and deception. A seller’s policy provides liability coverage for accidental misrepresentations and errors. Such a policy might also act a financial instrument in a negotiated escrow agreement.

For example, a buyer might want $10 million set aside for two years to insure against costly errors while the seller doesn’t want to, or can’t, put in more than $5 million for more than a year. An R&W policy might sit atop that escrow account and provide the extra $5 million and one year of protection. That would allow the seller to distribute the extra $5 million rather than keeping it in escrow.

Intellectual property issues

Intellectual property (IP) is one of the diciest areas in R&W insurance, since patents and proprietary systems are heavily litigated. Terms of coverage need to be clear, and substantial investigation and disclosure are required to clarify the meaning of any IP warranty. Even with all this effort, an insurer may exclude IP.

Cyber liability issues

Cyber breach warranties may also require extra care, since many intrusions are latent and undiscoverable even with the best cybersecurity efforts. Ask about adding a cyber liability policy with a “tail” or policy retroactive date that extends a year or more before the acquisition’s close date.

Environmental issues

Even if the seller declares there are environmental hazards relevant to the sale, an insurer may still exclude environmental issues from the R&W policy. Exclusions typically address asbestos remediation but can also involve other hazardous materials. Ask about adding contingent liability insurance to cover unforeseen environmental and contamination complications as part of your M&A protection plan.

Further benefits of R&W coverage

The insurer will do some research as part of the underwriting process. If they uncover problems, they will exclude those problems from the R&W policy. These should be yellow flags to the buyer. This doesn’t mean the buyer doesn’t have to do their own due diligence. In fact, the insurer may ask for the report of the buyer’s investigation as part of its underwriting.

An insurer typically will do a preliminary check on both parties to determine its appetite for the deal. If it determines it wants to provide insurance for either party, it will then go through extensive underwriting, and it will charge a fee. That fee generally runs in the tens of thousands of dollars and doesn’t guarantee coverage. Instead, the insurer will come to the party requesting coverage with a proposed policy, which will then be negotiated between the applicant and the insurer.

Another benefit is collegiality. When a buyer is protected by an R&W policy, it can maintain better relations with the executive staff who stay on after a transfer of ownership. For example, say a financial discrepancy is discovered. With an R&W policy, the new owner would not have to sue the seller’s former management, which might include the CFO who moved with the buyer as part of the sale (and is a current employee). The new owner could turn to their insurance instead.

Your costs

As mentioned, there are some substantial costs associated with underwriting an R&W insurance policy. The policyholder will also have to take on a retention, the amount of risk the company is willing to bear. This could be a percentage or a dollar amount. The higher the amount of financial risk the policyholder takes on, the lower the cost of the policy. Often, insurers will allow the policyholder to take on a high retention for just a portion of the duration of the policy in exchange for a lower premium.

The amount held in escrow also affects the coverage price. More money in escrow means less financial risk to the insurer, which reduces the insurance policy premium.

The premium also depends on the coverage limits. While 10% of the transaction amount is standard, large deals may seek lower percentage limits since the dollar amount of the limit in a large transaction is still high. In cases where an acquisition is based on a pharmaceutical development, an invention or some other IP, the coverage limit could be a much higher percentage of the acquisition price. That’s because one relevant error could gut the seller’s value.

Protect your M&A with insurance

R&W insurance is an investment in the future of your acquisition and protection for your assets. Don’t be shocked by the amount of data and diligence expected of both parties to the M&A deal. In the end, it will be worth the effort.