Client success story: Salt and the City

Jack rents space in a building for his business. In recent years, the building has been experiencing damage and Jack was unsure what was causing it.

He discovered the cause the other day and contacted us to determine if his insurance would cover the damage. Read to find out what happened next.

As it turned out, his municipality had built a lane way behind the building. They also constructed a curb between the lane and the building and left a gap between the curb and the building. As the building settled and shifted over time, the gap grew wider.

During winter, ice trucks scatter salt in the lane way and some of it lodged into the gap where it corroded the building.

Unfortunately, this kind of damage is not covered under Jack’s policy because his insurer views it as a maintenance issue. Jack decided to take legal action against the city. He has leverage to do so because his property policy has legal expense coverage.

Legal expense insurance is a new product that appeared in Canada a few years ago. The premise is that the insurer has partnered with a legal insurance company and they will cover up to $50,000 of legal expenses per claim up to a maximum of $250,000. There are options for even more coverage if need be.

What’s more, the legal insurance company offers options for cases not covered under its policies. In these situations, they refer customers to experts who can take on the cases and the referral grants customers a 25% discount.

We’re really happy Jack has access to a remedy for his troubles and we will continue to support him in his needs.

Legal expense insurance is an excellent option for pretty much everyone. Call us today to find out more.