Is Special Risk Insurance Necessary?

In the insurance world, most contracts are made to cover normal risks: your house, your car, your business.

However, the reality of everyday life can be much more complicated. That’s where special risk insurance comes in. These are personalized solutions for unusual situations.

If you’re wondering what special risk insurance is and whether you need it, continue reading!

What Is Special Risk Insurance?

Special risk insurance, also known as “substandard insurance” or “non-standard insurance”, is designed to cover property or situations that are not eligible for conventional insurance policies.

This may be due to their unique nature, an inherently higher risk, or circumstances that make them less attractive to traditional insurers.

Why Is This Necessary?

There are many reasons why some insurers are reluctant to cover complex risks. Heritage buildings, high-value assets, high-risk industries, urban neighborhoods considered more dangerous, or areas prone to natural disasters… The situations are endless! 

That’s why the support of an insurance broker is essential to help you navigate these issues. 

Who Needs Special Risk Insurance?

The range of individuals and entities requiring this type of insurance is broad and affects both individuals and businesses: 

• Entrepreneurs and business owners: Especially in technological or non-conventional sectors. This also includes services with specific risks and new businesses. 

• Property owners: Especially for buildings with non-standard features (old, vacant, or non-compliant security systems).

• Complex insurance histories: Individuals who have trouble obtaining car or home insurance due to a policy cancellation or atypical profile.

• Owners of animals considered dangerous: Some breeds of dogs or reptiles may require specific coverage. 

• Those who run a business from home or rent out rooms: Activities such as running a daycare, a beauty salon, or renting out your home via Airbnb require an adjustment to your coverage. 

Common Challenges

It is common to encounter difficulties finding insurance when you are in a risky situation. Several reasons can explain this:

• Increased risk: According to Article 2466 of the Civil Code of Quebec, you are required to inform your insurer of any changes that could increase the risk of making a claim. A partner with a criminal record, a home office, a vacant house, or even the adoption of an animal such as a pit bull are examples of increased risks. These situations may result in a premium increase or even the termination of your insurance contract if the information is not disclosed. 

• Unfavorable history: A suspended license, driving under the influence of alcohol or drugs, many accidents, or failure to pay premiums can make it difficult to obtain a new insurance policy.

• New Business: It can be more difficult for a newly established company to find a traditional insurer.

• Old or non-compliant buildings: Buildings over 50 years old, made of combustible materials that have not been renovated, or with non-compliant heating systems are often considered high risks.

• Business type: Some commercial activities, such as welding, restaurants with less than three years of business, bars, or innovative businesses may be considered non-standard by regular insurers.

Fortunately, there are solutions for all these complicated situations. Brokers specializing in special risks work with insurers whose mission is to cover these unique needs. They are equipped to analyze each case in depth and obtain the best terms for the insured.

At AMR, We Know How to Handle Risks!

Not only is the insurance world complex, but special risks are even more so! If you find yourself in a situation where traditional insurers are hesitant, don’t worry. At AMR Assurances Multi-Risques, our independent brokers have the expertise and contacts necessary to find solutions suited to your needs when you face insurance problems.

Our role is to defend your interests, advise you and help you find the protection you need, at the best possible price.

AMR offers complete, personalized support for the challenges you face. Your case will be reviewed with respect in order to provide you with the insurance coverage you need.

Special risk insurance is there to protect what matters to you, no matter what your situation.