COVID-19 and insurance: questions and answers

As announced in a press release, IBC members are committed to supporting and assisting their insureds during the COVID-19 crisis. Here are the most frequently asked questions related to insurance issues since the beginning of the pandemic as well as the answers to these questions.

Note that, as it is up to each insurer to determine the measures it puts in place, that these can vary and that they are specific to the needs of each insured (individual and company). As each case is unique, the insured experiencing difficulties must contact their insurer to discuss their situation.

1. I’ve lost my job and won’t be able to pay my premium. What should I do?

Under the present circumstances, IBC member insurers have undertaken to make their policyholders’ lives easier by offering them various payment options, or allowing them to defer their payments.

Contact your insurer to see what arrangements can be made.

2. Since I wasn’t able to make my insurance payment, will my insurer cancel my insurance policy?

Your insurer must send you a notice before cancelling your insurance policy. Because of the current exceptional situation, a number of insurers have decided not to cancel insurance policies for non-payment, but you should inform your insurer immediately.

Contact your insurer to see what arrangements can be made given your situation.

Auto Insurance

3. I no longer use my car as I’m now working from home. How does that affect my auto insurance?

If the use of your vehicle has changed significantly, you can get a reduction on your auto insurance premium.

Contact your insurer to find out about the terms and conditions.

4. Because of COVID-19, I now use my vehicle to go to work.

Your auto insurance premium is based on how many kilometres you travel every year and what use you make of your vehicle.

It’s important to contact your insurer to have your policy adjusted if you’re now using your vehicle to go to work.

5. I have no job. I’m thinking of cancelling my auto insurance policy.

Before you cancel your insurance policy, you should think about the financial consequences of a loss. Talk to your broker or insurer about your situation to look at possible arrangements and make the right decision under the circumstances.

If you own your vehicle, you’re required to have mandatory liability coverage. It’s the law. And, if you took out a car loan, you may be required to maintain certain coverage.

6. I lost my job. I’ve decided to use my car to make deliveries. Am I insured?

Not automatically. We recommend that you contact your insurer to discuss the terms and conditions, depending what you use it for.

Home insurance

7. Who insures my employer’s computer or equipment while I use them to work from home?

The employer is responsible for insuring the professional equipment it makes available to its employees. 

8. As I’m now working from home, I decided to work from my cottage and rent out my apartment. Am I insured?

Not automatically, since your home was insured for your personal activities and not to earn an income. Talk to your broker or insurer about the new use of your apartment to make sure you’re covered.  


Updated February 22, 2021