Reinsurance News

Munich Re’s HSB Canada announces new commercial service line coverage

9th June 2022 - Author: Jack Willard

Munich Re’s HSB Canada has announced the introduction of Commercial Service Line – a new coverage that will bridge a potentially costly gap, so that building owners can minimize losses resulting from service line breakdowns.

HSB’s Commercial Service Line will be available to partner insurers, and also offer comprehensive coverage for exterior underground service line failures.

Whilst a number of different services enter commercial buildings via buried service lines, including water, sewer, natural gas, electrical, communications, and compressed air, when damage to these utility lines occurs within property lines, it is generally the building owner’s responsibility.

However, according to HSB research, 70% of those who have experienced a service line failure mistakenly believed someone else would be financially responsible for the repairs.

Service line damage can occur due to a number of different reasons, such as root invasion, freezing, penetration by a shovel or backhoe, erosion, and wear and tear. However, by incorporating business interruption, expediting expenses, and spoilage coverages, this new offering from HSB Canada can also help business owners minimize disruption and losses.

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This makes HSB Canada the first insurer to offer a comprehensive turn-key solution, that addresses costly exposures for underground piping breakdowns.

“When an exterior underground service line fails, building owners can find themselves responsible for thousands of dollars in repair costs,” said Terry Smith, Vice President, Treaty Client Management at HSB Canada.

“The standard commercial property policy does not cover buried utility lines, and if there is coverage, it is often quite limited.”

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