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Category Archives: Zavitz Blog

Do You Have Coverage for COVID-19 Office Closures?

With the RCDSO announcement to dentists yesterday, we have received many inquiries into what insurance, if any, covers such an event. Is closing your office an Overhead (OV) or Practice Interruption (PI) insurance claim? 

OV insurance, often referred to as Business Overhead or Professional Overhead Insurance, will reimburse regular office expenses should you be unable to perform the important or essential duties of your occupation due to an accident or sickness.  Therefore, if you contract COVID-19 and are unable to work due to the effects of the illness, OV insurance may provide a benefit payable should the illness extend beyond your elimination period.  OV insurance does not provide a benefit if a regulatory body recommends you close your office to protect your patients and the community at large.    

PI insurance is different and is typically included in your office’s commercial insurance package provided by your property and casualty insurance agency.   The PI component covers overhead expenses if the office cannot operate due to damage caused by a listed event, such as a fire or a flood.   It may include pandemic coverage, but the benefit is often restricted and is provided under very defined circumstances. 

Long story short, it is unlikely that any insurance coverage would be paid.  As we have seen over the past week, things are changing quickly and so too could this information. We will keep you apprised of any new developments.

Coverage for Dental Office Closures

Yesterday the RCDSO sent out a message strongly recommending that all non-essential and elective dental services be suspended, with emergency only treatment continued.  This has left everyone asking – Is closing my office an Overhead (OV) or Practice Interruption (PI) insurance claim? 
 
OV insurance, often referred to as Business Overhead or Professional Overhead Insurance, will reimburse regular office expenses should you be unable to perform the important or essential duties of your occupation due to an accident or sickness.  Therefore, if you contract COVID-19 and are unable to work due to the effects of the illness, OV insurance may provide a benefit payable should the illness extent beyond your elimination period.  OV insurance does not provide a benefit if a regulatory body recommends you close your office to protect your patients and the community at large.    
 
PI insurance is different and is typically included in your office’s commercial insurance package provided by your property and casualty insurance agency.  The PI component covers overhead expenses if the office cannot operate due to damage caused by a listed event, such as a fire or a flood.  It may include pandemic coverage, but the benefit is often restricted and is provided under very defined circumstances. 
 
While we are not affiliated with CDSPI, the following information can be found on their website today regarding their TripleGuard™ Insurance:
 
PANDEMIC OUTBREAK COVERAGE** To help offset your income loss during a pandemic outbreak, the TripleGuard™ Insurance plan’s practice interruption coverage automatically provides up to $1,000 per day after the first 24 hours (up to a $20,000 aggregate annual limit) when you are prohibited from entering your office by an order from a civil authority or public health official. For an extra premium, you can increase your pandemic outbreak coverage up to $2,500 per day (up to an aggregate annual limit of $50,000) or up to $5,000 per day (up to an aggregate annual limit of $100,000).
 
We will keep you apprised of any new developments.

Spotlight on Trudi St. Marie

 

 

 

 

 

Trudi joined the Zavitz family back in 2003, managing the group benefits department.  17 years later and could not imagine a team without her.  Her hard work and dedication have helped us develop our service model, build the business, and provide our clients with exceptional service and advice.

We have put her under the spotlight, so that you can get to know Trudi a little bit better.

1. What is your favourite part about working for Zavitz Insurance & Wealth (ZIW)?

My role allows me to work with employers and employees of our group clients every day.  This is truly my favourite part of the job.

2. What have you gained from working at ZIW?

We have weekly office meetings where we discuss concepts, industry changes and advancements, products, and financial matters.  These meetings allow me to continually learn in both the group and individual markets.

3. What is on your wishlist for the next 10 years?

Honestly… I would love to be able to retire within the next 10 years.

    4. Tell us about your community involvement and what drew you to the cause?

    Jesse’s Journey has always been a cause close to my heart.  My cousin’s son was diagnosed with Duchenne Muscular Dystrophy and I wanted to increase awareness, help the family and raise money for research to find a cure. During my 7 year involvement, I was able to personally raise $30,000.

    I am now involved with the Liver Foundation.  I recently lost a good friend to a rare liver disease called Caroli’s Disease.  Along with his children and other close friends, we are having a trivia night and Golf Tournament in his honor to help raise awareness and earn donations to support research into the disease.

    5. What career would you do, if you were not doing this?  

    I would love to be an Event Planner and Charity Fundraiser.

    6. What is your favourite family tradition?

    Having brunch and Easter Olympics with ALL members of my family including my Mom, sisters, brothers-in-law, nieces/nephews, great-nieces/nephews, children, spouse.

     

     

     

     

     

     

     

    New Year, New Financial Considerations!

     

     

     

     

     

     

     

     

    Many of us start the New Year with ambition.  Ambition towards new diets, new fitness regimes, good habits, and so on.  If your financial wellbeing has not made the list, give it some thought!  Knowing what savings and expenditures you need to work into your annual finances will help ensure that you do not over extend yourself and that you achieve your goals.

     

    When preparing your financial calendar, remember these key dates and figures:

    • 2019 RRSP contribution deadline is March 2, 2020.
      • 2019 RRSP contribution limit is 18% of 2018’s income, up to $26,500 max.
    • 2020 TFSA limit remains unchanged at $6000.
      • For those who have not started a TFSA account, the cumulative maximum is $69,500.
    • 2020 RRSP contribution maximum is $27,230.
      • Your 2019 salary must equal or exceed $151,278 to maximize your contribution room.
    • 2021 RRSP contribution maximum is $27,830.
      • Your 2020 salary must equal or exceed $154,611 to maximize your contribution room.
    • Your past TFSA and RRSP contribution room can be found by logging in to your CRA account.

     

    While we’re at it, let’s not forget about our kids. RESPs continue to be a great vehicle for tax-efficient education savings.  The annual contribution to maximize the government grant is $2500/child. 

    If tackling your financial health made your New Year’s resolution list, we at Zavitz Insurance & Wealth are here to help.  We can build your plan and provide the long-term strategy so that you can feel in control of your financial future. Contact us anytime to get the process started!

    Is Your Business Your Retirement Plan?

     

     

     

     

     

     

     

     

     

    Justine Zavitz

    Justine Zavitz

      If you own your business, you are likely banking on the fact that it has value, the value is increasing, and someone will buy it from you in the future.  You might even be relying on this sale to fund all or part of your retirement. Even if selling isn’t on your radar, having a valuation of your business can be important for your future planning.

    For anyone who has gone through a formal valuation, you know that it is a lengthy process that requires a lot of your time and money.  Once it’s done, you will likely avoid repeating the process unless it is absolutely necessary. Most valuations will give you exactly what you would expect – the value of your business, but have you ever stopped to think about how saleable your business is in the marketplace? A valuation means nothing if your business doesn’t appeal to a buyer when it comes time to sell!

    Let’s look at Sue and Mary – equal shareholders in a company. We have always made educated guesses on what their business is worth based on the “rules of thumb” in their industry.  Our estimates led to advice surrounding the tax liability of a sale; when they can retire and what kind of income they might expect; and how to organize their wills and insurance to leave their desired legacies.  On top of that, the key person and buy /sell insurance amounts were reflective of this estimate.  Long story short, a lot of planning was taking place around this assumed value.

    Recently, we were introduced to a company called Eksit (www.eksitoutlook.com), a software company that has taken the expensive, time-consuming process of a valuation and made it significantly easier and budget friendly.  The resulting report also includes a saleability score that demonstrates the appeal of the business in the marketplace, or, how easy it would be to sell.  When Sue and Mary went through this process, they discovered their business was worth much more than we had anticipated – causing us to re-examine all their planning, savings, shareholder agreement and insurances.  It also exposed the fact that the company lacked diversification of customers and that the customer relationships were tied to either Sue or Mary.  These factors resulted in a low saleability score, but at the same time, the report provided Sue and Mary with concrete suggestions on how to increase the business’s attractiveness to a potential purchaser.

    Knowing the importance that the value of your business has on your financial, retirement and estate planning, taking the short time span required to have a valuation and saleability score done through the Eksit program, makes good business sense.  The resulting saleability score and recommendations to improve your business’s appeal to others helps you to set goals to increase its value. 

    At Zavitz Insurance & Wealth we work with you, our valued clients, to assist with retirement, estate and financial planning, to maximize growth and build wealth at every stage of your career.   When we come across innovative companies like Eksit that can help with this planning, as well as increasing your net worth, we want you to know about them.  

     If you want to gain a better understanding of how your business valuation effects your retirement and estate planning, please don’t hesitate to contact us.