# Roughley Insurance Brokers Ltd. — full reference

> Independent, family-owned insurance brokerage serving Ontario since 1945. Personal, commercial, and surety insurance from licensed Ontario brokers (an independent broker, not a direct insurer). Below: product pages and the full insurance glossary with definitions.

## Insurance products
- Cannabis & Beverage Producer Insurance — https://roughleyinsurance.com/commercial/cannabis-brewery-insurance
- Commercial Auto Insurance — https://roughleyinsurance.com/commercial/commercial-auto
- Contractor & Trades Insurance — https://roughleyinsurance.com/commercial/contractor-insurance
- Fleet Insurance — https://roughleyinsurance.com/commercial/fleet-insurance
- Landscaping Insurance — https://roughleyinsurance.com/commercial/landscaping-insurance
- Media & Entertainment Insurance — https://roughleyinsurance.com/commercial/media-entertainment-insurance
- Pollution Liability Insurance — https://roughleyinsurance.com/commercial/pollution-liability
- Professional Liability Insurance in Ontario — https://roughleyinsurance.com/commercial/professional-liability
- Restaurant Insurance in Ontario — https://roughleyinsurance.com/commercial/restaurant-insurance
- Retail Insurance — https://roughleyinsurance.com/commercial/retail-insurance
- Snow Removal Insurance — https://roughleyinsurance.com/commercial/snow-removal-insurance
- Sports & Fitness Insurance — https://roughleyinsurance.com/commercial/sports-fitness-insurance
- Winery Insurance in Ontario — https://roughleyinsurance.com/commercial/wineries
- Construction & Developers Insurance in Ontario — https://roughleyinsurance.com/commercial/construction-developers
- Commercial Farming Insurance — https://roughleyinsurance.com/commercial/agricultural-insurance
- Crop Farm Insurance in Ontario — https://roughleyinsurance.com/commercial/crop-farm
- Cyber Liability Insurance in Ontario — https://roughleyinsurance.com/commercial/cyber-insurance
- Dairy Farm Insurance in Ontario — https://roughleyinsurance.com/commercial/dairy-farm
- Directors and Officers (D&O) Insurance in Ontario — https://roughleyinsurance.com/commercial/directors-officers-insurance
- Engineering Insurance Ontario: E&O & CGL Coverage — https://roughleyinsurance.com/commercial/engineering-insurance
- Commercial General Liability Insurance (CGL) in Ontario — https://roughleyinsurance.com/commercial/general-liability
- Landlord Insurance — https://roughleyinsurance.com/commercial/landlord-insurance
- Manufacturing Insurance — https://roughleyinsurance.com/commercial/manufacturing-insurance
- Poultry Farm Insurance in Ontario — https://roughleyinsurance.com/commercial/poultry-farm
- Professionals & Consultants Insurance — https://roughleyinsurance.com/commercial/professional-services
- Roofer Insurance — https://roughleyinsurance.com/commercial/roofer-insurance
- Small Business Insurance — https://roughleyinsurance.com/commercial/small-business-insurance
- Technology Insurance — https://roughleyinsurance.com/commercial/technology-insurance
- Builder's Risk Insurance (Course of Construction) — https://roughleyinsurance.com/commercial/builders-risk
- Certificate of Insurance (COI) in Ontario — https://roughleyinsurance.com/commercial/certificate-of-insurance
- Commercial Property and Equipment Insurance in Ontario — https://roughleyinsurance.com/commercial/commercial-property
- Employment Practices Liability Insurance (EPLI) in Ontario — https://roughleyinsurance.com/commercial/epli-insurance
- Auto Garage Insurance — https://roughleyinsurance.com/commercial/garage-insurance
- Healthcare Insurance — https://roughleyinsurance.com/commercial/healthcare-insurance
- Hobby Farm Insurance — https://roughleyinsurance.com/commercial/hobby-farm-insurance
- Non-Profit Insurance — https://roughleyinsurance.com/commercial/non-profit-insurance
- Cottage Insurance, Your Home Away from Home — https://roughleyinsurance.com/personal/cottage-insurance
- Group Health & Dental Benefits — https://roughleyinsurance.com/personal/group-health-insurance
- High Value Home Insurance — https://roughleyinsurance.com/personal/high-value-home-insurance
- Life Insurance — https://roughleyinsurance.com/personal/life-insurance
- Personal Cyber Insurance — https://roughleyinsurance.com/personal/personal-cyber-insurance
- Rental Property & Airbnb Insurance — https://roughleyinsurance.com/personal/rental-property-insurance
- Snowmobile & ATV Insurance — https://roughleyinsurance.com/personal/snowmobile-atv-insurance
- Travel Insurance — https://roughleyinsurance.com/personal/travel-insurance
- Auto Insurance in Ontario — https://roughleyinsurance.com/personal/auto-insurance
- Condo Insurance in Ontario — https://roughleyinsurance.com/personal/condo-insurance
- Electric Vehicle Insurance — https://roughleyinsurance.com/personal/electric-vehicle-insurance
- Critical Illness & Disability Insurance — https://roughleyinsurance.com/personal/living-benefits-insurance
- Motorcycle Insurance — https://roughleyinsurance.com/personal/motorcycle-insurance
- Travel Trailer & RV Insurance — https://roughleyinsurance.com/personal/rv-insurance
- Boat Insurance in Ontario — https://roughleyinsurance.com/personal/boat-insurance
- Classic Car Insurance in Ontario — https://roughleyinsurance.com/personal/classic-car-insurance
- High Value Vehicle Insurance — https://roughleyinsurance.com/personal/high-value-vehicle-insurance
- Home Insurance, Be Confident You're Covered. — https://roughleyinsurance.com/personal/home-insurance
- Tenant Insurance in Ontario — https://roughleyinsurance.com/personal/tenant-insurance
- bond-application — https://roughleyinsurance.com/surety/bond-application
- express-bid — https://roughleyinsurance.com/surety/express-bid
- labour-material-bonds — https://roughleyinsurance.com/surety/labour-material-bonds
- performance-bonds — https://roughleyinsurance.com/surety/performance-bonds
- surety-bond-insurance-ontario — https://roughleyinsurance.com/surety/surety-bond-insurance-ontario
- bid-bonds — https://roughleyinsurance.com/surety/bid-bonds

## Insurance glossary (full definitions)

### Accident Benefits (SABS)
URL: https://roughleyinsurance.com/glossary/accident-benefits

Accident Benefits are no-fault coverages on every Ontario auto policy that pay for medical care, rehabilitation, income replacement, and other support if you are injured in a collision — no matter who caused it. They are governed by Ontario’s Statutory Accident Benefits Schedule (SABS).

Standard benefit levels are set by the province, and you can buy optional increases. Because the basic limits may fall short after a serious injury, it is worth reviewing your optional accident benefits with your broker. See the FSRA auto insurance resources for details.

### Actual Cash Value (ACV)
URL: https://roughleyinsurance.com/glossary/actual-cash-value

Actual Cash Value (ACV) is what your property is worth today: its replacement cost minus depreciation for age and wear. An ACV settlement pays that depreciated value, so it is usually less than the cost of a brand-new replacement.

ACV is common for things that lose value over time, such as roofs, vehicles, and contents. It contrasts with replacement cost coverage, which pays to replace the item new without deducting depreciation. Ask your broker which basis your policy uses.

### Additional Insured
URL: https://roughleyinsurance.com/glossary/additional-insured

An additional insured is a person or business added to someone else’s policy so they are covered for liability arising from that policyholder’s work — common when a client or landlord requires it in a contract. It is usually confirmed on a certificate of insurance.

### Aggregate Limit
URL: https://roughleyinsurance.com/glossary/aggregate-limit

An aggregate limit is the most your policy will pay for all covered claims during the policy term, no matter how many claims occur. It works alongside the per-occurrence limit (which caps any single claim) — once the aggregate is used up, the policy pays no more until it renews.

### Agreement to Bond
URL: https://roughleyinsurance.com/glossary/agreement-to-bond

An Agreement to Bond is a surety’s written commitment, provided at bid time, confirming it will issue the required performance and payment bonds if the contractor wins the contract. Owners often require it with a bid as proof that the contractor can be bonded for the job.

### Bid Bond
URL: https://roughleyinsurance.com/glossary/bid-bond

A bid bond is a surety bond that guarantees you will honour your bid and enter into the contract if you win. It protects the project owner if a contractor backs out after being awarded the job, and is commonly required to bid on public and larger private construction projects.

If a winning bidder backs out, the bid bond pays the owner the difference between that bid and the next-lowest qualified bid, up to the bond amount. A bid bond is usually the first step toward performance and labour & material payment bonds on the same project.

### Binder
URL: https://roughleyinsurance.com/glossary/binder

A binder is temporary proof of insurance confirming coverage is in place before the full policy documents are issued. It states the key terms — coverage, limits, and dates — and is legally binding until the policy is delivered or the binder expires.

### Business Interruption
URL: https://roughleyinsurance.com/glossary/business-interruption

Business interruption coverage replaces lost income and pays ongoing expenses when a covered event, like a fire, forces your business to close or scale back. It helps cover payroll, rent, and lost profits during the time it takes to return to normal operations.

Business interruption is usually added to a commercial property policy and responds only when there is covered physical damage. Getting the indemnity period and income limit right matters — your broker can size it to how your business actually operates.

### Certificate of Insurance (COI)
URL: https://roughleyinsurance.com/glossary/certificate-of-insurance

A Certificate of Insurance (COI) is a one-page summary proving you have active coverage — the policy types, limits, and dates. Clients, landlords, and general contractors commonly require one before you start work or sign a lease.

### Claim
URL: https://roughleyinsurance.com/glossary/claim

A claim is a formal request to your insurer for payment after a covered loss. Once you report it, an adjuster reviews the damage, applies your coverage and deductible, and determines the settlement.

### Claims Advocacy
URL: https://roughleyinsurance.com/glossary/claims-advocacy

Claims advocacy means your broker works on your behalf during a claim — helping you report it, pushing for a fair settlement, and explaining your options. As an independent broker, Roughley advocates for you, not the insurer.

### Coinsurance
URL: https://roughleyinsurance.com/glossary/coinsurance

Coinsurance is a clause — common on commercial property — that requires you to insure your property to a set percentage of its value (often 80–100%). If you are underinsured below that level, your claim payment is reduced by a penalty, even on a partial loss.

For example, with an 80% coinsurance clause on a $1,000,000 building you must carry at least $800,000 of coverage. Carry only $600,000 and a partial-loss payout is cut proportionally. Review your building values with your broker to avoid a coinsurance penalty.

### Collision Coverage
URL: https://roughleyinsurance.com/glossary/collision-coverage

Collision coverage pays to repair or replace your vehicle after it hits another vehicle or object, or rolls over — regardless of fault. It is optional in Ontario but usually required if your vehicle is financed or leased.

### Commercial General Liability (CGL)
URL: https://roughleyinsurance.com/glossary/commercial-general-liability

Commercial General Liability (CGL) insurance is the foundational liability policy for Ontario businesses. It covers third-party bodily injury, property damage, and personal injury (such as libel or slander) arising from your operations, premises, or products, plus legal defence.

CGL is what most clients, landlords, and municipalities require before you can work or rent — often asking to be named as an additional insured on a certificate of insurance. It does not cover professional advice (that is E&O) or damage to your own property.

### Comprehensive Coverage
URL: https://roughleyinsurance.com/glossary/comprehensive-coverage

Comprehensive coverage pays for damage to your vehicle from non-collision events — theft, vandalism, fire, hail, falling objects, and animal strikes. It is optional in Ontario and is often bought together with collision coverage.

### Deductible
URL: https://roughleyinsurance.com/glossary/deductible

A deductible is the amount you pay out of pocket on a claim before your insurance starts paying. A higher deductible usually lowers your premium; a lower deductible means less out-of-pocket cost when you claim.

For example, with a $1,000 deductible on a $5,000 covered loss, you pay the first $1,000 and your insurer pays $4,000. Deductibles apply per claim (not per year), and different coverages on the same policy can carry different deductibles.

### Depreciation
URL: https://roughleyinsurance.com/glossary/depreciation

Depreciation is the loss in value of property as it ages and wears out. On an actual cash value claim, your insurer subtracts depreciation from the replacement cost, so older items pay out less than the cost of buying new.

### Direct Compensation – Property Damage (DCPD)
URL: https://roughleyinsurance.com/glossary/direct-compensation-property-damage

Direct Compensation – Property Damage (DCPD) is the Ontario auto coverage that pays for damage to your vehicle and its contents when another driver is at fault. It is called “direct” because you deal with your own insurer, who pays you directly.

DCPD applies when the accident happens in Ontario, both vehicles are insured, and another party is at least partly at fault. It is a standard part of Ontario auto policies and works alongside your collision coverage — your broker can explain how the two fit together.

### Duty to Defend
URL: https://roughleyinsurance.com/glossary/duty-to-defend

A duty to defend is a contractual obligation to defend another party against claims, paying their legal costs as soon as an allegation is made and before fault is decided. It is broader than a duty to indemnify, which applies only once liability is established.

How insurable a duty to defend is depends on the policy. On a commercial general liability (CGL) policy, naming the other party as an additional insured can support it. On a professional liability (E&O) policy there is no additional-insured mechanism, so a promise to defend another party usually means paying their legal bills yourself. Our engineering contract review guide covers the E&O case.

### Endorsement
URL: https://roughleyinsurance.com/glossary/endorsement

An endorsement (also called a rider) is an add-on that changes your policy by adding, removing, or adjusting coverage. In Ontario auto, standardized endorsements are called OPCFs (Ontario Policy Change Forms).

### Errors & Omissions (E&O)
URL: https://roughleyinsurance.com/glossary/errors-and-omissions

Errors & Omissions (E&O), also called Professional Liability, covers claims that your professional advice, design, or service caused a client financial loss. It is essential for consultants, engineers, brokers, and other advice-based businesses.

E&O responds to economic loss from your professional work: a flawed design, a missed deadline, a calculation error, or advice that did not perform. It also pays to defend you, which matters even when an allegation is groundless, because professional disputes are costly to fight. It does not cover bodily injury or property damage, which belong to CGL, and it does not cover fraud or intentional wrongdoing. E&O runs on a claims-made basis. The policy that responds is the one in force when the claim is made, not when the work was done. Coverage for past work reaches back only to your retroactive date, and if you retire or cancel without an extended reporting period, often called tail coverage, a claim that surfaces later can land uninsured. Continuity matters more with E&O than with almost any other commercial policy. Many Ontario professionals cannot practise without it. The Law Society, CPA Ontario, RECO, FSRA and several health colleges set mandatory coverage for their members, and PEO requires engineers to disclose to clients whether they carry it. Even where it is optional, client contracts and RFPs routinely require proof of $1 million to $2 million in coverage on a certificate of insurance before work starts. Roughley arranges E&O through our professional liability insurance practice, matching limits to your contracts, your regulator, and the way your firm actually works.

### Exclusion
URL: https://roughleyinsurance.com/glossary/exclusion

An exclusion is something your policy specifically does not cover. Reading the exclusions matters as much as reading what is covered — common examples include normal wear and tear, certain water damage, and intentional acts.

### Hazard Insurance
URL: https://roughleyinsurance.com/glossary/hazard-insurance

Hazard insurance is the part of a property policy that covers physical damage to your home or building from perils like fire, wind, and hail. The term is used mostly by U.S. mortgage lenders; in Ontario it is simply the property-damage portion of a standard home or commercial policy.

### Indemnity (Indemnification)
URL: https://roughleyinsurance.com/glossary/indemnity

Indemnity, also called indemnification, is a contractual promise by one party to cover another party’s losses, costs, or liabilities. It runs through insurance and commercial contracts of every kind, from construction agreements and commercial leases to vendor, service, and professional contracts. The key question is always scope: how far the promise reaches, and whether that exposure is insurable.

A narrow, negligence-based indemnity, covering losses you actually caused, generally lines up with what liability insurance will pay. A broad-form indemnity that also assumes the other party’s negligence, adds a duty to defend, or reaches losses unrelated to your fault can create exposure your policy will not follow, because insurance responds to the liability you would have had without the contract. Have a lawyer review the wording and your broker confirm what is covered. For a worked example in an engineering context, see our engineering contract review guide.

### Independent Broker
URL: https://roughleyinsurance.com/glossary/independent-broker

An independent broker represents you, not a single insurance company. Because they work with many carriers, they can shop the market for the right coverage and price, give unbiased advice, and advocate for you at claim time — unlike a captive agent or a direct insurer that only sells its own policies.

### Labour & Material Payment Bond
URL: https://roughleyinsurance.com/glossary/labour-material-payment-bond

A labour and material payment bond guarantees that a contractor will pay its subcontractors, workers, and suppliers on a project. It protects those parties from non-payment and helps keep the project free of liens, and is usually issued alongside a performance bond.

### Liability Coverage
URL: https://roughleyinsurance.com/glossary/liability-coverage

Liability coverage pays for bodily injury or property damage you are legally responsible for, plus the cost of defending you. It is a core part of home, auto, and business policies and protects your assets if you are sued.

### Limitation of Liability
URL: https://roughleyinsurance.com/glossary/limitation-of-liability

A limitation of liability clause caps the total amount one party can be required to pay the other under a contract, often set to the contract value, the available insurance, or an agreed dollar amount. Common in professional services, technology, and other commercial agreements, it is one of the most valuable protections to negotiate when your fee is small relative to the potential loss.

Ontario courts generally enforce clearly worded limitation of liability clauses between commercial parties, provided they are unambiguous and do not try to exclude fraud or wilful misconduct. It pairs well with a mutual waiver of consequential damages. More in our engineering contract review guide.

### Loss of Use (Additional Living Expenses) (ALE)
URL: https://roughleyinsurance.com/glossary/loss-of-use

Loss of use coverage, also called Additional Living Expenses (ALE), pays the extra costs of living elsewhere — such as a hotel and meals — when a covered loss makes your home temporarily uninhabitable. It covers the gap between your normal expenses and the higher costs you face while displaced.

### Multi-Line Discount (Bundling)
URL: https://roughleyinsurance.com/glossary/multi-line-discount

A multi-line discount, or bundling, is a reduced rate for insuring more than one policy with the same insurer — most often home and auto together. Bundling can lower your overall premium and simplify billing and claims.

### Named Insured
URL: https://roughleyinsurance.com/glossary/named-insured

The named insured is the person or business listed on the policy as the policyholder. They hold the rights and responsibilities under the contract; others may be covered as additional insureds or household members, but the named insured controls the policy.

### Named Perils vs. All-Risk
URL: https://roughleyinsurance.com/glossary/named-perils-vs-all-risk

Named perils and all-risk describe how broadly a policy covers causes of loss. A named-perils policy covers only the perils it lists; an all-risk policy covers all causes except those it explicitly excludes — broader protection, usually at a higher premium.

### Occurrence
URL: https://roughleyinsurance.com/glossary/occurrence

An occurrence is an event — or repeated exposure to the same harmful conditions — that causes covered injury or damage during the policy period. Most liability policies are written on an occurrence basis, so they respond to incidents that happen while the policy is in force, even if the claim is reported later.

### Overland Water
URL: https://roughleyinsurance.com/glossary/overland-water

Overland water coverage protects your home when water enters from the surface — heavy rain, spring melt, or an overflowing lake or river. It is an optional add-on in Ontario; standard home policies generally exclude this kind of flooding.

Overland water is usually offered alongside sewer backup coverage and priced by your property’s flood risk. With more frequent severe weather in Ontario, it is worth asking your broker whether your home qualifies. See IBC’s water-damage guidance.

### Performance Bond
URL: https://roughleyinsurance.com/glossary/performance-bond

A performance bond guarantees that a contractor will complete a project according to the contract. If the contractor defaults, the surety steps in to see the work finished or compensates the owner, up to the bond amount (often a large percentage of the contract value).

Performance bonds protect owners from the cost and delay of a contractor failing mid-project. They are typically issued together with a labour & material payment bond, and follow the bid bond once a contract is awarded.

### Peril
URL: https://roughleyinsurance.com/glossary/peril

A peril is a specific cause of loss a policy may cover — for example fire, theft, windstorm, or water damage. Policies are written either as named perils (only listed causes are covered) or all-risk (everything is covered except stated exclusions).

### Policy Limit
URL: https://roughleyinsurance.com/glossary/policy-limit

Your policy limit is the most your insurer will pay for a covered loss. Limits can apply per claim, per coverage, or as an aggregate over the policy term, so choosing adequate limits is key to avoiding out-of-pocket gaps.

### Premium
URL: https://roughleyinsurance.com/glossary/premium

Your premium is the amount you pay your insurer for coverage, usually monthly or annually. It is priced on your risk, the coverages and limits you choose, your deductible, and any discounts you qualify for.

### Renewal
URL: https://roughleyinsurance.com/glossary/renewal

Renewal is when your policy term ends and continues for another term, usually a year. Your insurer re-rates the policy at renewal, so premiums and terms can change — a good moment to review your coverage with your broker and shop the market.

### Replacement Cost
URL: https://roughleyinsurance.com/glossary/replacement-cost

Replacement cost coverage pays to repair or replace damaged property with new materials of similar kind and quality, without deducting depreciation. It usually costs a bit more than actual cash value coverage but pays more at claim time.

Many Ontario home policies offer replacement cost on the building and contents, sometimes with conditions (for instance, you may have to actually replace the item to collect the full amount). Compare it with actual cash value when choosing coverage.

### Retroactive Date
URL: https://roughleyinsurance.com/glossary/retroactive-date

On a claims-made policy such as professional liability, the retroactive date is the earliest date of work the policy will cover. Claims arising from services performed before the retroactive date are excluded, even if the claim is reported while the policy is active.

Keeping a consistent retroactive date matters when you switch insurers: if a new policy’s retroactive date is later than your old one, work done in between loses coverage. It works alongside tail coverage for past work after you stop practising. Our Ultimate Guide to Engineering Insurance in Ontario covers claims-made timing in depth.

### Sewer Backup
URL: https://roughleyinsurance.com/glossary/sewer-backup

Sewer backup coverage pays for damage when water or sewage backs up into your home through drains, sewers, or a failed sump pump. It is an optional endorsement on most Ontario home policies and is separate from overland water coverage.

Backups often happen during heavy rain or rapid snowmelt and can cause expensive basement damage. Many insurers require or discount for a working backwater valve and sump pump. Ask your broker to confirm your limit and any conditions.

### Standard of Care
URL: https://roughleyinsurance.com/glossary/standard-of-care

Standard of care is the level of skill, care, and diligence the law expects from a professional, such as an engineer, architect, accountant, or consultant. It is negligence-based: what a reasonable, similarly qualified professional would do under the same circumstances. It is a duty of competence, not a promise of perfect work.

This matters for insurance because errors & omissions (E&O) coverage responds to a failure to meet that ordinary standard. Contract wording that raises the bar to “best,” “highest,” or “first-class” service can create a duty beyond negligence that your policy will not cover. Our guide to engineering contract clauses explains how to keep the standard reasonable.

### Subrogation
URL: https://roughleyinsurance.com/glossary/subrogation

Subrogation is the process where your insurer, after paying your claim, pursues the at-fault party (or their insurer) to recover the money. It is why your insurer may ask for details about who caused the loss.

### Umbrella Policy
URL: https://roughleyinsurance.com/glossary/umbrella-policy

An umbrella policy adds extra liability limits on top of your home, auto, or business policies. It kicks in when a large claim exceeds the underlying policy’s limit, protecting your assets against major lawsuits.

### Underwriting
URL: https://roughleyinsurance.com/glossary/underwriting

Underwriting is how an insurer evaluates your risk to decide whether to offer coverage, on what terms, and at what price. Underwriters weigh factors like your claims history, the property or vehicle details, and the kind of business you run.

### Waiver of Subrogation
URL: https://roughleyinsurance.com/glossary/waiver-of-subrogation

A waiver of subrogation is a clause where your insurer gives up its right to recover a claim payment from a specific third party — often required in commercial contracts so the parties do not sue each other after a loss. It is commonly requested alongside being named an additional insured.