Bylaw Coverage

Bylaw (often shown as "by-law") coverage gives your business the additional financial protection to bring your building up to code requirements following a covered loss. It can also become necessary for the costs that result from an ordinance or regulation that prevents you from rebuilding to exactly what it was prior to the situation that caused the damage.

Examples would include: requirement for handicap accessible entrance, requirement for a handicap accessible washroom facility, or a change regarding parking accessibility. The bylaw may even have a limit stating how much of a building must be damaged before it can no longer be rebuilt.

It is important that your insurance policy have this extra coverage noted. It is not necessarily built in to pay the extra expenses that result. Your policy may have a limited amount, say 5% of the building value or $10,000 and you may wish to increase this to match your exposure.

Be aware that bylaws can also affect your personal property policy. Find out if you are rezoned or the impact if rezoning is coming to your neighborhood.

Talk to your agent, broker or risk manager. Take control of your insurance by asking the questions and get the answer to satisfy the necessary reconstruction needs of your business and building.