melloInsurance

Serving our clients, Serving our community

Lyndon Block

Snowmobile Insurance, Safety & Underage Drivers


Well it seems like the winter season wants to continue to hang on. Like that toddler that won’t let go of your leg, or your ex-boyfriend or ex-girlfriend that keeps blowing up your text messages. “JUST LEAVE ME ALONE ALREADY!”

Since it’s still here, let’s talk about something winter related….again. Snowmobiling rules and insurance regulations. AWE FUN! Let’s do it with a fun Q&A format.

“Am I legal to operate a snowmobile?”

If you were born before 1989, if you are 12 years or older, you are allowed to operate a snowmobile without a snowmobile safety course. If you were born after 1989, and do not have a driver’s license (ages 12-15+), you are required to have completed the snowmobile safety course. This snowmobile safety course is similar to the boaters exam. You can take it online here, at a charge of $45. Upon completion of the course, you will obtain a certificate which will allow you to drive immediately. If they are under the age of 15, they are required to operate under supervision of someone who has a valid driver’s license.

Children ages 12-15 cannot drive a snowmobile on any travelled portion of a road or street, except to cross it. Operators that are 15 and hold a Class 7 learner’s licence can operate on the travelled portion of the road when permitted by a local bylaw; as long as they are accompanied or supervised by someone who holds a valid driver’s licence. Other than on streets and roads, these underage operators can operate snowmobiles under the same conditions as a licensed driver, provided they have successfully completed a snowmobile safety course and are supervised by someone who holds a valid Saskatchewan driver’s licence.

“Are there any limits on what type or size of snowmobile I can drive? Like there are with motorcycles?”

Currently, there are no limitations or restrictions on what type or size of snowmobile you operate as long as you are abiding by the licensing requirements.

“If I buy a snowmobile, what are the steps to getting it registered?”

Once you have a bill of sale from purchasing your new or used sled, you can bring that bill of sale into any SGI issuers office and register the snowmobile under your name. Make sure you bring in your driver’s license for photo identification. The snowmobile will be registered under whomever’s name the purchaser is on the bill of sale. The seller’s signature, date, year, make, model and serial number must be on the bill of sale. Just remember, with the Saskatchewan Governments changes to PST, you will be responsible to pay PST upon registration as ALL snowmobile sales over $5000 will require PST, unless previously paid to a dealer.

When the registration is purchased, $110 of the registration is designated for the Saskatchewan trail permits, safety, grooming/trail maintenance and growing Saskatchewan snowmobiling across the province. Your registration also includes $200,000 liability coverage in the event that you were negligent and damaged someone’s property or caused bodily injury to someone while operating the snowmobile. The registration DOES NOT include any insurance coverage for your snowmobile. It also DOES NOT include any injury coverage to the operator of the snowmobile.  You will receive a license plate to mount to your snowmobile. Most people attach it to the snow flap, however, this usually gets ripped off from driving. Be sure to secure it to a place that will not be damaged.

“So if I don’t have any snowmobile insurance on the registration, how do I insure my sled?”

In order to insure your snowmobile for perils such as: Collision, Theft, Vandalism or Fire, you will need to purchase an extension policy or “auto pak” on your snowmobile. The coverage, deductible and liability limit can be added/increased on this extension policy and can be designed to fit your needs. SGI Canada and Got Toys Insurance are great options for insurance coverage on your snowmobile. If your snowmobile is purchased brand new from a dealer, you can purchase “Replacement Cost” coverage on the unit for the first 2 years.

These policies vary in price depending on: Drivers Claims Experience / Driving record, year, size of engine & value of snowmobile, coverage selected, deductible selected and liability limit selected. Please contact your broker to obtain a personalized quote.

“Now that I’m ready to ride, is there anything else I should know?”

As previously mentioned, snowmobile registration does not include any injury benefits with the registration. Typically this is covered under our “No Fault” insurance for our regular vehicles. However, they have excluded it under snowmobile registration and it is your responsibility to purchase injury/disability coverage on your own. Maybe your employer has coverage for you under your benefits package. Check with them to find out if their policy would cover your recreational activities outside of work.

Your snowmobile needs to be registered while operating on any crown land: Lakes, Rivers, Ponds, Roads, Ditches, Highways, etc. If you are unregistered and operate on any crown land, you can be fined for driving an unregistered vehicle AND if you cause an accident, you can be personally liable for ALL injuries and damages. Please make sure you are protecting yourself from these types of risks.

“What type of gear and safety measures should I be aware of?”

With our cold weather, it is important to wear multiple layers of clothing to keep yourself warm. There are different types of layering material that will benefit you. Many brands like “FXR” or “KLIM” will have a great selection of under layers, jackets, pants, boots, balaclavas and gloves to make sure you’re warm no matter what the weather. A good helmet is also important. Always carrying some food and an additional jerry can of fuel and matches is important to make sure you will be able to stay warm if you get stranded. Your phone may not always work in the areas you are riding, so make sure people are expecting you and know the route you are coming from. It is always best to be prepared and think ahead.

With that all being said, it is important to ride safe and enjoy the rest of the winter. I mean, it’s not going to last forever…..we hope. Have fun & take care!

The Cyber world, am I exposed?

With the reading week / winter break underway. There is nothing better than kicking your feet up and reading a blog about cyber coverage. Am I right? (I know I am). Well let’s begin.

What are the risks?

With business becoming more and more prevalent on the internet. We are exposing ourselves online, by giving personal information to the general public. Whether it is through social media (Facebook, Instagram, LinkedIn), through emails or through website data collection. Businesses are needing to do most of their collection through online portals to compete with other online companies. Therefore, with this data, it is possible for hackers and other con-artist enthusiasts, to access your data and start on their process to leverage it against you.

Some malware through spam emails or other pop-up websites, lock down your computer and charge you a “ransom” for you to access your data again. This “ransomware” can cost a lot of money, and if that data is valuable, you may have to pay it to obtain it. There is very little you can do once this ransomware locks your computer. Talk to your IT guy to see what you can do to prevent this, otherwise, the data may be lost.

Other exposures are through the methods of identity theft and credit card fraud. There are so many ways people can do this, that it is almost impossible to prevent it. If you have any suspicions whatsoever, close your browser or email and go directly to the source to see if the “phishing expedition” is actually legit or not. Anytime people ask you to re-confirm your identification or your credit card, you should have your guard up. If you don’t filter through these types of requests, it can end up costing you a ton of money to recapture your identity and prove that you are who you say you are. This maybe sounds easy, but through people’s past experiences that we have seen firsthand, you are pretty much guilty until proven innocent and the process is grueling.

How can I protect myself?

These examples are a very small sample of what is possible online, and the methods people use to hack into your online world. We can’t prevent everything. As fast as we learn about it, someone is hacking a different way. However, we can protect ourselves from the loss that occurs when someone does attack you. Cyber coverage is available with almost every insurance company. Through your personal home, farm or business policies, you can purchase cyber coverage to protect your personal identity and data as well as the information stored by your commercial business. A data breach could strongly affect your business, by attacking the stored customer information on file. There are many implications to this, including: costs to reach out to your clients to inform them of the breach, the costs to recover the data or pay the ransom along with all the public relations costs that will occur, due to the breach. It is one thing when the data breach results in the loss of your information, it is a completely different ballgame when they steal customers information under your care and control.

What does this data and cyber coverage actually insure me for?

Every company has different variations of this coverage; these are the highlights:

  • Costs of recovering from the computer attack, such as: recovery of data, repair of systems, loss of business and public relations expense.
  • Protection in the event of a third party suit or claim from policyholders first party triggering event.
  • Forensic IT and legal consultation expenses
  • Expenses related to notifying affected individuals and regulatory authorities
  • Fraud alert and case management services to affected individuals
  • Costs to recover data and restore systems
  • Payments and assistance in responding to Cyber Extortion
  • Covers online fraud that results in direct financial loss

With this online world, there are so many opportunities to grow your business and stay globally connected. However, with that ability to connect with others, it gives online criminals the ability to take information out of your “back pocket” without you knowing. Give us a call if you want to learn more or have this coverage added to your policy. Make sure you are doing your part to protect yourself, your family and your customers.

The “Need-to-knows” for Solid Fuel Heating

-52, -46, -38, -37, -42; Those are just some of the recent temperatures we have been gifted. As a whole, the winter has been surprisingly gentle. However, when these winter temperatures arrive with little warning, we need to be prepared. This goes a step further than scheduling your thermostat in your home to a few degrees warmer. As a precaution, many people install backup heating in their house in case of these low temperatures, especially if they come alongside a power outage. We recommend having a backup plan in case this situation were to ever arrive. Blowing out your water lines to prevent freezing/rupture would be a good idea if you are unable to warm your home. If you are deciding to add a solid fuel heating device to your home for backup heating, this is what you need to know.

Step 1 – What should I buy or install?

If you are deciding between a fireplace or woodstove, here are some things to note. If you install a zero clearance fireplace (whether it is wood, propane or nat. gas), we do not need to inspect the unit, and it does not add a surcharge to your policy. We do, however, need to be notified that this has been added to increase the replacement cost of your home, and to notify the insurance company that there has been a material change. Any time you make changes to your policy that have been defined as “substantial,” you need to immediately notify your insurance broker as this may increase the risk of insuring your property. If you do not notify the insurance company, this change could potentially VOID your coverage due to the changes.


If you decide to purchase a wood stove, here is some information you’ll need to know.

  • The unit must be CSA, ULC or Warnock Hersey approved
  • The unit will need to be installed to meet manufacturers specifications
  • The unit must sit on a non-combustible floor pad meeting CSA requirements
  • If an unapproved unit is being purchased, you must follow B365-17 requirements of an unapproved installation.
  • Any wood stove used as auxiliary heat comes with a surcharge that is added to their home insurance. This can range between 10 – 35% of your home insurance premium.
  • A high-temp CSA approved chimney is required to be used for the wood stove, meeting manufacturers requirements.
  • If you are purchasing a used unit, make sure the unit has been ONLY burning wood. Some people use these units to burn garbage or other items that can cause distress to the integrity of the stove as the burn more inconsistently than wood.

STEP 2 – Installation

When you install your new or used unit, you need to follow the manufacturer’s guidelines stipulated on the manual of the wood stove. If your unit does not come with a manual, these clearances are indicated on the back of the stove on a steel decal riveted to the stove. NOTE: If the stove does not have that decal on the stove, the unit is NO LONGER CSA approved and you will have to follow the unapproved clearances listed in the B365-17 manual. A example of this decal is shown in the photo below. 


If you want your unit WETT inspected, please contact a WETT inspector near you. Lyndon Block in our office is WETT certified and can do that inspection for you. If you have your insurance policy with our brokerage, he will inspect it as a service to you. Otherwise, there is a small charge for the costs incurred to do the inspection. Some things an inspector will look at include:

  • Installation of unit, stovepipe and chimney meeting manufacturers requirements
  • Stove pipe construction, direction of piping and angle/slope.
  • Stove pipe joint security and allowance for flexibility
  • How many elbows (max 2 elbows – 180 degrees of change)
  • Non-combustible floor pad (construction, clearance)
  • Distance to fuel/combustibles
  • Wall pass-through & ceiling bucket installation (thimble)
  • Chimney clearance above roof and other neighbouring roofs
  • Installation & material of wall shielding to reduce clearances of stove and stovepipe to combustibles (Diagram below)

Those are the main things, however, every installation and situation can vary, please contact your broker or WETT inspector to find out more information on how to properly install your unit.

STEP 3 – Insurance Approval

To insure the new unit, your insurance broker/company will need to have someone inspect the unit and take photos indicating the clearances and installation matches the requirements indicated by your wood stove manufacturer. Once the company has approved the installation, ONLY THEN are you allowed to start using it. Talk to your broker to see what the insurance company you are currently with charges for having a wood stove installed in your dwelling.

If you are installing a wood stove in your cabin or seasonal cottage, this has very different implications. A surcharge is very rarely applied as this will be used more infrequently, sometimes an inspection is not even required, depending on the company and the situation. Having your broker review some photos is usually a good idea to show the installation and confirm there isn’t any potential fire hazard.

STEP 4 – Using the solid fuel heating device & maintenance

Burning only wood, (particularly seasoned/low moisture wood) helps burn more effectively, giving your home a warmer, cleaner burn. By having a cleaner burn, you reduce the chance of creosote building up in the chimney/stove pipe. It is important to clean the unit and chimney regularly. Having a chimney sweep done before and after the heating season is a good habit to have. Also, DO NOT burn any accelerants, or garbage of any kind in the stove as this will hurt the integrity of the stove and reduce life expectancy of the stove greatly.

There is a lot that goes into installing a solid fuel heating device. A lot of preparation to make sure the unit is a good fit for your home, your home insurance and if you are prepared for the financial implications that come along with it. This may seem like a lot of work and red tape, but there is a reason for everything, and we want you to make sure that the installation of your unit is done properly for you and your family’s safety. Stay warm and stay safe.

Is it time for my roof to be updated?

In Saskatchewan, we have many elements of weather. Whether (no pun intended) it is wind, hail, snow, ice, cold, hot or all of the above. We get hammered with it all at different times of the year. To have a building withstand all these elements is quite an accomplishment. However, it does result in a quicker lifetime for many materials in this climate. I don’t know about you, but if I’m working in -30’C or in gale force winds, my efficiency and work ethic takes a bit of a hit. Here is some information for you and how it affects your insurance policy.

Effective 2018, SGI Canada and many insurance companies decided to take a new approach to adjust roof claims. They were now going to apply “depreciation” to roofing materials/labour if damaged by wind or hail. Depreciation is the loss in value due to wear and tear on that particular item.  The reason for this change was that that there is a direct result of the roofs of buildings being worn down due to years of brutality from the elements and factors in our Canadian climate. This causes the life expectancy of our building materials (particularly roofs) to drop.  Here is comparison between an architectural shingle and a typical 3-tab shingle. 

If you have a roof that is 16 years or older, and you have a roof claim for wind or hail, a certain percentage will be deducted from your settlement based on the roofing materials installed on the roof. The table below shows what kind of depreciation will come off your roof in an insurance claim, depending on the materials used. If you are unsure about whether your roof should be replaced or not, contact a contractor through our Kijenga app on our claims section, or find a local roofing contractor to give you an estimate. You don’t want to have a “seepage” issue in your home due to old shingles leaking. Seepage is typically not covered on most policies. 

Roofing Material Used Annual Depreciation
% after 15 years
Asphalt/fibreglass composition shingles (Class 1-3)

10%
Asphalt/fibreglass composition shingles (Class 4)

7%
Architectural Shingles

7%
Membrane Roofing

5%
Metal, Rubber, Synthetic, Polymer, Tiles, Slate, Concrete

2%
Wood Shingles or Shakes

4%
Built-up (Tar & Gravel)

30%
Other

9%
Soffit, fascia, eavestroughs, downspouts connected to eavestroughs

5%

NOTE: Maximum depreciation is 80%, regardless of age.

For example, you have a 19 year old roof with architectural shingles. In this case, SGI Canada would pay to have your roof repaired or replaced, minus 28% depreciation (7% per year for 4 years).

If you have qualified and purchased the SGI Canada “Prestige” policy this would not apply to your home and you would qualify for full replacement coverage for the damages. Please contact us to see if you qualify for this package or want to know more about it. Next week, we will discuss more about this Prestige package and what protection it can offer you and your family.

How can business interruption insurance protect me?

There are many interruptions in life, some are good, some are bad. Children interrupting you, although cute, can be slightly annoying. Someone who is talking to you is interrupted by their cell phone ringing; quite common. An unborn child coming sooner than the expected “birthdate;” exciting, terrifying, all the emotions.  A Tornado deciding to drop by and remove half of your barn & re-locating your livestock; slightly inconvenient. Or a boiler explosion in your manufacturing plant. “Heads up!” These are scary scenarios that can cause some serious disruption in your day to day and can interrupt your business workflow.

What can be done?

The first few scenarios can be handled by adjusting your expectations. For the later two, you might need an actual game plan. Typically, people insure their buildings, equipment, tools, vehicles & finished products (stock) and that is mostly what they are concerned with. However, there are many businesses that would be in serious trouble if they do not insure for “business interruption.”  

Okay, so what is this “business interruption” coverage?

Business Interruption Insurance covers the loss of income that a business suffers after a disaster. Despite insuring the assets of your business, you may be unable to continue your business operation for 6 to 12 or even 18 months after the loss. While the demolition/rebuild is underway, you are continuously losing revenue. The unfortunate part is that you will likely continue having expenses throughout this time: Payroll, Mortgage, Taxes, Other business Loans, Utilities, etc. Now, if you aren’t able to bring in revenue, how will these expenses get paid? This is when business interruption coverage kicks in.

There are different types of business interruption coverage terms to keep in mind:

  1. Gross Profits Form – This covers the loss of net profit following the reduction in revenue, standing charges and any increased costs of business. For example, you need to rent a building or equipment to continue business operations temporarily. This is suitable for businesses in retail & manufacturing sectors.
  2. Gross Revenue Form – This covers the reduction in revenue following the loss and any increased costs. This is suitable for businesses in the service industry – accountants, solicitors, hotels.
  3. Actual Loss Sustained – This covers the actual loss sustained by the insured as a result of the physical loss insured by the policy. This only applies when the insured actually sustains a business interruption. If he is able to continue operations immediately following the loss, this coverage does not kick in.
  4. Extra Expense – a necessary expense that the insured was required to make, to prevent further damages in an unexpected loss. For example, you have a sewer backup and you quickly react by buying a sump pump, rent a hydro vac and other expenses to prevent the sewer backup from hitting your mechanical room and equipment therein. If sewer backup coverage is on the policy, the loss is covered and the costs to prevent further damage will also be covered under this extra expense provision.
  5. Period of Restoration – this is to determine how long your business could be down during a loss; aka: “Worst Case Scenario.” With this timeframe in mind, the value of business interruption coverage can then be calculated.  

So let’s use an example:

You have a kitchen-cabinet business. You generate $600,000 Gross, annually. Your shop value with debris removal is $500,000. You have $200,000 in tools and equipment and $150,000 of pre-finished cabinets finished inside. You have purchased a comprehensive contractors policy with business interruption and data recovery. Some dust catches fire by the saw in the shop and burns down the shop, equipment, tools and pre-built cabinets. As predicted, the main items are insured and covered on the policy. You’re now looking at how you can continue business while your shop and equipment is rebuilt/re-ordered. The expected timeframe to get the debris cleaned up and another shop built and operational is 12 months. Two months later you are able to find another shop in town to rent use their tools. This coverage extends to the time you were down without any income while searching for the shop. It covers the rent payments for the rented shop/equipment and it covers any additional business costs that are required to continue business operations as usual.

Calculations:

  • 2 month down = $100,000 revenue lost to cover cost of expenses (Payroll, Mortgage, etc.)
  • Shop/Tool Rental is $7000 per month for 10 months = $70,000.
  • Additional costs to transport products to/from rental shop = $10,000
  • Debris Removal Costs = $20,000
  • Shop Rebuild = $480,000
  • Cost to replace tools & equipment = $200,,000
  • Inventory/Stock = $150,000
  • Data Loss / Recovery (Accounts Receivable, Payables, etc.) = $25,000

Total insurable loss = $1,055,000                   Total business interruption loss: $180,000

So who needs this coverage?

This is  decided on a case by case basis. Not every business is the same and therefore the risks are all different. You may have a welding shop or be a mobile welder, and so one may require this coverage and the other may or may not depending on his circumstances. It is important to be as thorough as possible when explaining the nature of your business to your insurance broker, this will help us design the coverage that will best fit your business. We do not want you left stranded in a pile of ashes with bills piling up. We are here to help bail you out of those terrible situations. Being detailed with us, helps us to make sure those loopholes are filled.

When tragedy or crisis hits, the last thing you want to be worrying about is where are you going to find your next paycheck. Let us take care of those details for you so you don’t have to. As always, thanks for reading and take care!

My truck just fell through the ice….now what!?


We live in Saskatchewan. Which means 3 things: you bleed green, you know what a combine is, and you know how to survive winter 11 months of the year. I might have exaggerated………just on the combine one, the point is, winter is here and it is here for a while. So we have to make the most of it. That means it is time to go out for a rip to the fishing shack!

If you live in this glorious province that has an unlimited bounty of frozen lakes and tundra, you may know, or in fact, BE, a die hard ice-fisher (New word of the day). Get the ice-auger and a few beverages and make your way across the frozen pond, where you can enjoy yourself trying to catch that elusive slippery fish.

Now this is all fine and dandy, but what happens in the event that the ice isn’t as thick as you thought and your trailer or truck ends up falling through the ice? We have all seen the instagram or snapchat photo showing some redneck digging a truck out of the ice-water with a backhoe. We don’t want that to be you! But if that redneck turns out to be you or a close relative, you may need to know if you’re actually covered on your insurance.

Truth is, SGI does not have a magic number of how thick the ice needs to be for you to be “approved” to drive onto the ice. We were able to find a guide to show an approximate thickness allowance for certain vehicles. This is shown below. Even though these guidelines are complete speculation, they give you an idea of what weight can be placed on certain thicknesses of ice.  

SGI states that if a claim were to occur from a vehicle falling through the ice: “As long as it was reasonable for the customer to believe that the ice would hold the weight of the vehicle, then you should be covered for any loss or damage to your vehicles. If the customer saw large patches of open water or he tried to hydroplane his snowmobile or anything risky; those would be scenarios where a claim could be denied.”

Try to break up the winter with some quality ice fishing time, and just know that, as long as you believe the ice is thick enough for your vehicles, then you’ll be covered. It is better to be safe than sorry, so it wouldn’t hurt to check out the depth of the ice prior to driving your new Super Duty onto it. Cheers!