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Frequently asked questions about Insurance

Have a question related to business or personal insurance? Ask one of our experts. But before you do, take a look at past questions – the answer you’re looking for might already be below.

Personal Insurance

Everybody makes mistakes…. Wouldn’t it be great if you could get a “get out of jail free card”? Well, accident forgiveness is basically that. Each company that offers the coverage treats it slightly differently, so please discuss it with your broker. From an insurance perspective, it basically means your first accident is forgiven from a pricing perspective. So even after your first accident, you would be treated as if you had an accident free driving record with your existing insurance company, which could save you a lot of money.

To lower your premium, you could consider the following:

  • Increasing your deductible – by increasing the amount you are willing to pay, you will decrease your premium
  • Dropping collision coverage on an older car
  • Bundling your car and home insurance
  • Installing an alarm system in your home or an approved theft deterrent system in your vehicle
  • Buying a car with a lower-cost insurance
  • Consider UBI (User-Based Insurance) which measures your driving behaviour and offers discounts based on good driving

Consult with your Rhodes & Williams insurance broker today if you would like to pursue any of the savings strategies listed above.

Liability is basically the limit of coverage for when you are found legally responsible for damage to someone else or their property. Generally speaking, $1 million has been a pretty standard limit for third-party liability coverage. Recently, however, we believe that clients should strongly consider choosing at least $2,000,000 limits. Many claims can now exceed $1 million, especially if there are long-term injuries involved. The difference in price for doubling coverage in this area is very affordable and may only amount to a few dollars a month added to your insurance costs. Some clients should even consider higher levels offered in an umbrella insurance policy.

YES! – When we are shopping for your best car insurance quote, we need as much information as you can provide. This allows us to have a full picture and provide the best price and the best advice. Insurance companies value experience. Over time, we all get better at things as we gain more experience. By being able to prove past insurance history, even when listed on your parent’s policy, it may allow us to find a lower price with some insurance companies. Ask questions and give us as much information as possible so we can find you the cheapest car insurance with maximum discounts that fits your coverage needs.

Your car insurance company is saying you were either responsible for this collision (“at fault”) or not responsible for it (“not at fault”). No matter how big or small a collision, your car insurance company will assign a percentage of fault to you and a percentage to the other driver involved. They base this percentage on a strict set of collision scenarios that have been established over time and are included in an official document called: “Fault Determination Rules”. Fault is not a judgment call and your insurance broker does not have the ability to change your at-fault rating. If you are considered fully (or even partially) at fault, your car insurance company is required to mark “at fault” on your insurance record. For further explanation, contact your Rhodes & Williams Insurance Broker.

Your insurer considers an unoccupied dwelling riskier than an occupied one. Depending on how long you are away from your home, you may need to make arrangements to ensure you are taking the precautionary steps outlined within your policy. During the heating season, the common things you need to consider are turning off your water and draining the pipes, keeping your heat turned up or having your dwelling checked regularly. In some circumstances, you may need to inform your insurer.

If your home will be unoccupied, we recommend you speak with your broker about the specific requirements for your insurance company and policy.

Business Insurance

It depends upon your type of business. A professional insurance broker will help you analyze and understand your business’s risks and the insurance products available to address these risks. We invite you to consult with one of our experienced professionals.

Maybe. What was routinely offered for past insurance programs may not adequately address today’s exposures. For example, cyber liability did not exist a few years ago but today is considered by many a necessary coverage. Kidnap and ransom, manufacturers E&O and environmental liability are some coverages that have evolved over the past few years and may warrant your consideration. Our insurance professionals can help you determine the specialized solution right for your business.

Possibly. Deductibles are often imposed by insurance companies as an underwriting consideration. When you increase your deductible, you may benefit from a premium reduction… but not always. Claims can also have an impact on your deductible. If you’ve had a number of claims, a higher deductible may be a condition imposed by the insurance company in order to continue your insurance coverage. Consult with us about the options available to you.

A variety of factors can result in a premium increase. Higher building limits or the purchase of additional equipment can often result in a premium increase. An increase in your revenues or expanding your business operations can also impact your insurance costs. Your claims experience can also have an impact on your premium. To learn more about the factors that can influence your insurance costs, contact us today.

No, buying insurance does not prevent lawsuits. But insurance can help you pay defense costs, and judgments for damages or injuries to others. Good business practices reduce the probability of a lawsuit but ultimately you can be sued whether it’s frivolous or justified.

The limit of insurance purchased for Directors & Officers (D&O) coverage is dependent upon several factors. Is your company or entity not-for-profit, private or public? Publicly traded entities traditionally purchase higher limits of insurance compared to not-for-profit and private companies.

There has been a shift in limit purchases from $1,000,000 to $2,000,000 to $5,000,000. Higher limits are being purchased because D&O premiums have been decreasing or remaining flat for the last 5-10 years. The costs of defending and settling claims have been increasing steadily, as legal fees continuously increase year over year. A $1,000,000 limit may be insufficient in a lengthy legal dispute.

If your business provides consultation, sales, design or services to clients, you should consider errors and omissions insurance. E&O insurance, sometimes called professional liability or malpractice insurance, offers protection if a client claims that your product or service has caused a financial injury. It could also respond to a breach of contract if a client claims your product does not perform the way you said it would. This coverage is often purchased because of a contractual requirement. It does not replace the need for a general liability policy. Consult with one of our knowledgeable business insurance professionals about the coverage that’s right for you.


Presented here is a general response to your query. Our response is a brief discussion of the subject and does not constitute insurance advice. Insurers offer a number of different policy forms and it is impossible to offer professional insurance advice on specific circumstances without details of all circumstances, policy wordings and related court decisions. Even with all this information, it is difficult to predict how some circumstances will be interpreted in relation to a policy wording.

Our response is not intended to be a description of coverage, and does not include details of the coverage nor the terms, conditions, qualifications, limitations and exclusions applicable. Policies should be reviewed in their entirety and related to your specific operations. As insurance advice must be tailored to the specific circumstances of each situation, nothing provided herein should be used as a substitute for the advice of a competent insurance broker. IN NO EVENT WILL RHODES & WILLIAMS LIMITED BE LIABLE FOR ANY DAMAGES WHATSOEVER, INCLUDING SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THE INFORMATION PRESENTED IN THIS FORUM.

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