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June 23, 2020

Dominic Clarke and David Mackenzie speak to The Globe and Mail about growing liability insurance premiums for companies

Dominic Clarke and David Mackenzie, Partners in Blaneys Insurance Practice, were quoted in The Globe and Mail in an article entitled "Reopening companies face growing liability insurance premiums due to coronavirus risk."

The article discusses changes to third-party liability insurance that have or may result from the novel coronavirus, as well as the impact on businesses as they reopen across the country.

David Mackenzie quoted, "While it is technically possible for some businesses to operate without liability insurance, very few can or will...If not an actual statutory requirement, liability insurance is generally a contractual requirement placed on businesses through their commercial relationships – whether through landlords, suppliers, buyers or other commercial partners.” 

Dominic Clarke quoted, "In some cases, cash-strapped businesses may look to cut costs on insurance, by increasing their deductibles or payout limits or buying less comprehensive policies...One would not be surprised to see that happening. On the other hand, it may be biggest penny-wise, pound-foolish decision that insureds make...There clearly are exposures with opening up...and cutting back on insurance could be the worst decision you could make.