Spark Insurance
  • Email
  • Phone
    604 699 2259
  • Address
    Suite 1275 Two Bentall Centre
    555 Burrard Street Vancouver
    v7X 1M9

COVERAGE DEFINITIONS


Spark offers an à la carte selection of nine insurance options so you can customize your coverage and choose the best fit for you. That's insurance done differently!

Please note coverage definitions are for reference only. For full details of coverage, including any conditions and limitations, please read the policy wordings.

Umbrella Liability insurance for host liquor events addresses one-time special events liquor policies to make it easier for your nonprofit or charity. This annual policy can be purchased to cover your host liquor liability exposures should you ever hold a liquor license for events such as beer gardens, wine tastings, pub nights or other events where you’re serving alcohol. We offer host liquor sub-limits of $250,000 or $1,000,000 for your convenience.

What are some examples of Host Liquor claims?

Directors’ and Officers’ (D&O) insurance is liability insurance for the decisions of the board and other officers of the nonprofit including employees. D&O is designed to pay for legal defense and any award or settlement resulting from decisions such as wrongful dismissal, wrongful discipline, discrimination (age, race, religion, sex etc.), sexual harassment and misrepresentation.

Who is Insured?

The definition of insured person includes duly elected or appointed directors, officers, trustees, employees, or managers of the business. It also extends coverage to spouses and estates of those listed above.

What is Insured?

For the purposes of simplicity the insurance company defines “Wrongful Act” and then uses it in the below categories. Wrongful acts means any actual or alleges error, misstatement, misleading statement, act, omission, neglect, or breach of duty by an insured individual. It can also mean a breach of employment contract, discrimination, harassment, retaliation, wrongful job action, or other workplace legal incidents actually or allegedly committed.

Side A: Directors, Officers & Corporate Liability

The insurance company will pay for wrongful acts committed by directors, employees and other officers, as well as on behalf of the organization itself.

Side B: Employment Practices Liability 

The insurance company will pay in connection with a wrongful act arising from an employment practices claim brought by an employee or arising from a wrongful third party act.

Employment practices claim means a written demand for monetary or non-monetary relief, a civil proceeding, or a formal, administrative, investigative, regulatory or mediation proceeding by a government agency enforcing employment standards legislation.

Side C: Fiduciary Liability

The insurance company will pay in connection with a wrongful act arising from  a claim resulting from management or oversight of a benefits program as established under any applicable employee benefit law. This can include failure to notify employees of a plan.

Side D: Outside Executive Liability

The insurance company will pay in connection with a wrongful act by an insured person while serving as an outside person.

What are some Directors & Officers claim examples?

CGL is broken into four major coverage areas (A-D) plus an auto component. The insurance company will pay for damages and legal costs related to third party claims of bodily injury, property damage, or personal and advertising injury arising out of your activities. The policy also extends to medical expenses and automobiles rented or borrowed by the organization. The policy will pay for damages as well as legal fees related to defending lawsuits for damages.

Third party refers to an individual or organization who is not an employee of the insured small business.

CGL Coverage A: Bodily Injury and Property Damage

Bodily Injury means:

Physical injury, sickness, or disease sustained by a person, including death. The definition also includes mental anguish or mental injury resulting from a physical injury. Most bodily injury claims happen due to slips, falls or injuries at the organizations premises or events.

Property Damage means:

Physical injury to tangible property including loss of use and theft.  These claims can occur from negligence or accusations of theft, including negligence where an activity damages the property or assets of another.

CGL Coverage B. Personal and Advertising Injury

This means injury arising from a variety of factors including:

a) Libel or slander which disparages a person or organization

b) Oral or written publication which violates a person’s right of privacy

c) Use of another’s advertising idea in your advertisementor copyright infringement in your advertisement. Advertisement means a notice or broadcast published to the general public which could mean material disseminated electronically or traditionally.

Personal and Advertising Injury coverage is excluded for organizations whose business is:

a) Advertising, broadcasting, publishing or telecasting

b) Designing or determining content of web-sites for others

c) Internet search, access, content, or service providers

As a result, oganizations whose business fits this criteria, or who have significant operations in these areas should purchase a Media Liability insurance policy.

CGL Coverage C. Medical Expenses

The insurance company will pay for medical expenses related to an accident or injury on your premises, on the way to your premises, or because of your operations.  These expenses are typically first on the scene responses but can be incurred up to one year after the accident and include:

a) First aid administered at the time of the accident

b) Necessary medical, surgical, x-ray and dental services including prosthetic devices

c) Necessary ambulance, hospital, professional nursing and funeral services.

Medical expenses will be paid without any fault established.

Coverage D. Tenants Legal Liability

The insurance company will pay for damages (or defense costs) to the property damages of premises of others rented to you or occupied by you. This might be the space you lease or a rented event venue. Sometimes damages are caused by negligence such as a leaking cooler damaging floors. The damage has to be caused in Canada and during the policy period.

Non-Owned Automobile Insurance 

Non-owned & hired auto liability covers bodily injury and property damage caused by a vehicle you hire (including rented or borrowed vehicles). Often small businesses rely on employee or volunteer’s personal cars for transportation which is the key point of this coverage. Many auto insurance policies won’t pay for claims related to business activity.

Occurence Limit vs Aggregate Limit

The occurrence limit is the most the insurance company will pay for one single claimed incident. The aggregate limit is how much they will pay over the course of the policy term. This means a small business could have multiple claims throughout one year which each individually will be limited by the occurrence limit, and over the course of the year added together can’t exceed the aggregate.

What are some Commercial General Liability claim examples?

Legal Expense Insurance (LEI) offers unlimited access to a general legal advice helpline and using the helpline will not impact your premium. Plus you have up to $100,000 in legal expense coverage for the categories below. Unlike other insurance, a claim does not always need to be made against you to use the policy. Instead, some of the categories below empower you to pursue your small business’s legal rights.

Telephone Legal Advice Line

From 8:00 am to midnight, seven days a week and 24/7 in emergency situations, you have access to a lawyer to answer your legal questions even if your situation is not covered by the policy.

Employment Disputes

Deal with employment disputes for alleged breach of employment contracts, sexual harassment, discrimination or invasion of privacy, breach of employment legislation.

Legal Defense

Covers legal costs related to employment-related criminal investigations or charges, healthy and safety investigations, privacy act violations and anti-spam allegations made by the CRTC.

Statutory License Protection

Appeal a suspension, alteration or cancellation of your operating license(s).

Contract Disputes & Debt Recovery

If you face a dispute with a client or supplier in regards to a breach of contract. Plus, for debt recovery disputes, you receive 100% of the money recovered.

Bodily Injury

If you or one of your employees is injured on the job as a result of someone else’s negligence.

Property Protection

If someone else causes damage, legal nuisance or trespasses on your organization’s property.

Tax Protection

Tax audit and appeal protection from provincial or federal tax authorities.

What are some Legal Expense claim examples?

Media Liability insurance is specific coverage that extends to the broadcasting, publishing and media activities of your small business. This is a form of errors & omissions (E&O) liability insurance designed to cover above and beyond General Liability for media-related claims such as:

a) Any form of defamation or other tort related to disparagement or harm to the character, reputation or feelings of any person or organization, including libel, slander, product disparagement, trade libel, infliction of emotional distress or outrage

b) Any form of invasion, infringement or interference with rights of privacy or publicity, including false light and public disclosure of private facts

c) Any form of infringement or dilution of title, slogan, trademark, trade name, trade dress, service mark or service name

d) Any form of infringement of copyright, violation of Droit Moral/Moral Rights (means the creator’s rights to attribution and the integrity of a work), passing-off, plagiarism, piracy or misappropriation of ideas under implied contract

e) Breach of agreement, breach of confidentiality or promissory estoppels, in connection with the failure to maintain the confidentiality of a source or materials furnished by a source or the failure to portray a source or a subject in a certain light

f) Failure to attribute authorship or provide credit

i) Negligent supervision of an employee, but only when alleged in conjunction with a claim covered above

k) Negligent transmission of a computer virus or malicious code, or any unauthorized access to or posting on a covered website of an Insured that results in a claim

What are some Media Liability claim examples?

Your small business or nonprofit owns things such as equipment, stock,  costumes, musical scores, office furnishing as desks and computers or publishing and radio equipment. Contents and Assets insurance is designed to pay for sudden and accidental damage or loss of your property as a result of fire, theft and water damage.

Spark Insurance automatically includes coverage for:

  • Flood
  • Earthquake
  • Sewer Backup
  • Glass

What are some Contents & Assets claim examples?

Crime Liability insurance covers exposures resulting from employee infidelity, money inside and outside of the main premises, computer fraud and currency fraud.

What are some Crime Liability claim examples?

Cyber Liability insurance covers certain online operations of small businesses and nonprofits including the digital storage of information such as volunteer names, client, supplier and donor financial information. The standard Spark policy covers up to $50,000 for Network Security Liability, Privacy Violation Liability, Cyber Extortion, and Crisis Management. Increased limits and coverage are also available.

What are some Cyber Liability claim examples?

Volunteer Injury insurance, also known as Accidental Death and Dismemberment (AD&D) insurance, provides your small business’s volunteers with some coverage should they be injured while volunteering. Spark insurance policies cover up to $100,000 of payments depending on the injury sustained.

What are some Volunteer Injury claim examples?