Construction-related disruption is accelerating across York Region, hitting small businesses from Markham to downtown Toronto. For Elaine Chan (pictured), branch manager at Chat Insurance, the implications go far beyond temporary inconvenience.
“It’s all over York Region. It’s not just one project. It’s actually everywhere,” she said. With transportation upgrades like the Viva lines expansion, or the current watermain and sewer replacements, Chan warned that brokers need to help clients reassess their coverage before exposures turn into claims.
“When there is an existing retail business or even commercial buildings, we have to be proactive about doing the risk assessment again,” she said. “It could be reduced foot traffic, limited access, debris falling – it doesn’t have to be from your site. It could be something from the neighboring plaza or the store next to you.”
Each of these factors can increase liability, particularly around injuries to staff or customers. “There’s more chance that somebody will get injured, whether it’s a customer or an employee,” Chan said.
She urged brokers to begin with a thorough risk reassessment and then review current policies for gaps. “The key thing here is always the business interruption insurance,” she noted. “Owners have to look at business interruption – what is covered, and what is not covered.”
Standard policies often fall short when third-party vendors or supply chains are affected. “Contingent business interruption... it’s not even just for your direct damages,” she said. “Relationships between your suppliers or key partners may also be impacted.”
If businesses must relocate during construction, Chan recommends additional layers of protection. “There’s extra expense coverage if you do need to move out of your location and temporarily work elsewhere,” she said. Equipment floater coverage is also important for any gear used or stored offsite.
Nearby infrastructure work can cause hidden damage or disrupt basic operations. “You always have to conduct some sort of review and say – this type of construction – does it cause both direct and indirect property damage?” Chan said.
Non-structural risks like vibration, dust infiltration, and utility interruptions should be on the radar. Brokers must also revisit liability limits. “Maybe that $2 million liability isn’t enough anymore,” she said. “Maybe you should up it to $5 million because you want to be prepared.”
She added that service disruptions and delivery delays must also be considered. “There’s going to be delays in meeting your deadlines,” she said. “What if you do local deliveries, and then now your routes change?”
Older buildings come with unique challenges that many brokers overlook. “Not a lot of brokers have experience with insuring this type of building and/or the tenants,” Chan said.
Because heritage buildings may not meet modern codes, Chan recommends bylaw coverage. “Maybe you can’t use this certain type of wiring or even type of window,” she said. Without this endorsement, the cost difference for mandated upgrades often falls to the owner.
She also urges clients to reassess the insured value of their heritage sites. “If you think it costs $10,000 to renovate this place back and repair it... you probably may want to look at a higher limit,” she said.
These properties also tend to see more foot traffic, increasing the potential for liability. “Equipment and fixtures may be dated and have heavier wear and tear. Over time the foundation for heritage properties may shift or crack, causing floors to be uneven,” Chan said, stressing that regular maintenance must be in place.
Mixed-use developments pose another layer of complexity. “There are many gray areas that brokers shy away from because it can quickly become tedious work,” Chan said.
She cautioned that insurers typically assume single-unit occupancy unless otherwise disclosed. “That risk assessment is completely different,” she said. Without full disclosure, claims may be denied.
Chan makes a point of reviewing lease agreements and condo bylaws to identify risk boundaries. “We need to know for the tenant – if the tenant is my client – where do their responsibilities begin and where do they end?”
She also stressed the importance of formalizing risk allocation. “Who is responsible for snow removal? Because that’s a big one,” she said. Clauses like additional insured, cross-liability, and waiver of subrogation are essential tools to coordinate coverage across shared spaces.
As infrastructure development continues to transform urban and suburban corridors, brokers have a clear mandate: revisit existing policies, flag overlooked exposures, and guide clients through complex insurance terrain before disruption becomes loss.
