an introduction to dasbusiness - das canada...you own a retail business with two locations …...

A member of the DAS Group

An Introduction to DASbusiness

April 2016

DAS Canada

Session Objective

Our objective is to help you understand:

1. Common legal risks facing business owners

2. DASbusiness value proposition

3. Elements of coverage & claims examples

4. Claims process

5. Pricing & limits of indemnity

6. How to start the conversation with clients

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DAS Canada

In Canada there are …

Sources: Statistics Canada, CANSIM Table 551-0006 as of June 2014 & CANSIM Table 282-0012 as of YE 2013

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1.2 millionSmall businesses

(with 1-99 employee’s)

2.7 millionSelf-employed Canadians

DAS Canada

Of all those Business Owners…

1 out of 10Personally know another business owner who lost

their business due to a legal dispute

Source: 2015 DAS Canada & Ipsos Small Business Owner Research

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DAS Canada

Hiring & firing staff Wrongful dismissal action

Signing contracts &

making deals

Contract disputes with

suppliers &/or customers

Maintaining an office or

job site

Property damage,

trespassing or bodily injury

Adhering to ever-changing

government regulations

Investigations by government

regulatory boards

Maintaining licensing

requirements

Statutory license

revocation

Keeping the tax man happy Tax audits by the CRA

Common Legal Risks

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DAS Canada

Over The Past 3-Years….

3 out of 10Business owners faced a legal dispute whereby they

& the other party engaged lawyers to resolve


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DAS Canada

You own a retail business with two locations …

• Your lawyer advises you have a reasonable chance of being awarded $35,000 to

recoup costs associated with a supplier failing to deliver merchandise in a sellable

condition & on-time

• However, it would take 18 months and cost $15,000 in legal fees. Also, you may

face adverse costs if you lose your case, so the total potential bill could be

$30,000.

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What Would You Do?

A. Walk away?

B. Cut back operating expenses?

C. Take a profit hit?

DAS Canada

The Value Proposition

We empower business owners when they face unforeseen legal issues.

A DASbusiness policy:

Allows your clients to defend or pursue their legal rights

Protects your clients from costly legal expenses

Gives them unlimited access to legal advice at any time

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DAS Canada

It’s surprising that …

29%of business owners did not have legal representation

when going to court to resolve a legal dispute

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DAS Canada

Employment Disputes

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DAS Canada

Employment Disputes

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We will pay legal costs for disputes related to:

• The dismissal of an employee

• An employment contract with an employee or ex-employee

• An alleged breach of statutory rights of an employee or ex-employee

DAS Canada

Employment Disputes: Claims Examples

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Kate is a DAS policyholder who was sued for wrongful dismissal by one of

her ex-employees. The former employee alleged that he had been

discriminated against; he was seeking $40,000 in damages. Kate was

depressed, as she knew her business could not afford to pay $40,000.

Kate called DAS and a claim was opened. A DAS lawyer contacted the former employee, who agreed to

drop the case. Thanks to her DASbusiness policy, Kate avoided spending approximately $10,000 in legal

fees, if this had gone to court.

DAS Canada

Employment Disputes

Exclusions and conditions:

• An employee received oral or written warnings 180 days preceding policy inception date

• 180 day waiting period for a lay-off or job elimination

• 90 day waiting period for other employment disputes

• Any claims or disputes relating to:

• Business transfers

• Negotiation of a collective bargaining agreement or arising from a work disruption

• Due to death, illness, bodily injury and/or property damage

• $2,500 deductible for legal proceedings whereby a union is acting on behalf of a

unionized employee or ex-employee

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DAS Canada

Legal Defence

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DAS Canada

Legal Defence

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We will pay your client’s legal costs to defend their business for:

• Investigations by occupational health and safety boards

• Notices of Investigation or Violation issued by the CRTC in relation to Canadian Anti-Spam

Legislation (CASL)

• Police investigations

• Criminal offences

• Breach of privacy legislation

• Appeal of statutory notice

• Civil action being taken against a trustee of a pension fund set up for the benefit or the

insured’s employees

DAS Canada

Legal Defence: Claims Examples

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Donald is the owner of a large industrial supplies distributor, and tragically one

of his employees was killed during an accident at work.

DAS immediately appointed a lawyer to assist Donald with the resulting health and safety investigation, to

gather all the evidence and make submissions on his company’s behalf. The lawyer also defended the

supervisor on duty at the time of the accident, who was under investigation for potential criminal

negligence causing death. In the end no charges were pressed. This was an extremely complicated

matter, during an emotional time for Donald and his employees, and would have cost Donald’s business in

excess of $100,000 in legal fees, if he was not a DAS policyholder.

DAS Canada

Legal Defence


• Breach of highway traffic laws or regulations in connection with the ownership, use,

or operation of a motor vehicle

• Specific sections within and/or appeals to the Federal Court or other courts with

respect to CASL

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DAS Canada

Statutory Licence Protection

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DAS Canada


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We will pay your client’s legal costs to appeal to a regulatory or statutory authority, court

or tribunal for:

• A suspension of a statutory licence

• A refusal to renew a statutory licence

• A cancellation of a statutory licence

DAS Canada20

Statutory Licence Protection: Claims Examples

Brigitte and her husband Shaun own a golf course. At the start of the season, the

local health inspector visits the club house and 9th hole snack bar. He immediately

orders the them closed for food preparation and cleanliness bylaw violations and

suspends the restaurant operating license for 30 days. Brigitte and Shaun want to

appeal the suspension on the grounds the inspector’s decision was extreme in

relation to what they perceived as minor violations. Plus they immediately instituted

a training program for the large number of new staff that had started, and within

seven days, policies and training were in place to address the original violations.

Brigitte called DAS and we immediately helped by appointing a lawyer to appeal the inspector’s decision

and the restaurant’s operating licence was reinstated in less than 30 days.

DAS Canada


• Original application or application renewal

• A licence appeal relating to a:

• Motor vehicle

• Professional licence issued to an individual

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DAS Canada

Property Protection

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DAS Canada

Property Protection

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We will pay your client’s legal costs to pursue civil action relating to their physical

business property for:

• Physical damage to the property

• Legal nuisance

• Trespass

DAS Canada

Property Protection: Claims Examples

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Jackson owns a popular café and next door a bar opens up. Over the next few

months, Jackson is faced with the problem of the bar’s customers parking in

front of his café. Plus rowdy and drunk bar patrons had fights in front of his café.

Jackson is seeing a drop in customer visits and sales, and his business

neighbour is refusing to do anything about it.

We helped Jackson by appointing a lawyer who drafted a letter to the bar owner requesting overflow

parking be stopped and unruly patrons be better managed. The letter requested a written response and

steps to be taken within 30 days or court action would start. After 30 days, no reply was received and there

was no change in patron activity. The DAS appointed lawyer started court action against the bar owner

seeking an injunction.

DAS Canada


• A claim relating to a contract entered into by your client

• When a governmental, quasi-governmental, public, or local authority:

• Places restrictions or controls on your client’s property

• Legally takes your client’s property away from them

• Does work on their property

• Motor vehicles

• Defending your client’s legal rights, other than in a counter-claim

• Mining, subsidence, heave, or landslide

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Property Protection

DAS Canada

Bodily Injury

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DAS Canada

Bodily Injury

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We will pay your client’s legal costs to pursue legal action following a specific or

sudden accident which causes:

• Death, illness or bodily injury

DAS Canada

Bodily Injury: Claim Example

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Victoria is the top sales rep from a small printing company. While on her client’s

premises, she trips and falls as a result of lose extension cords lying on the

ground. She suffers a concussion and neck injuries that keep her off work for 6

weeks. With their top sales rep out of action, the printing company’s sales drop.

Plus the company’s group benefits plan does not include short term disability

coverage, which means Victoria also lost income, as 50% is based on

commission.

Both Victoria and the printing company want to pursue legal action for the client’s negligence. In this case

DAS would cover all legal costs and provide a lawyer to pursue legal action on behalf of the business and

Victoria to recoup lost income.

DAS Canada


• Any claim relating to a dispute with any provincial workers’ compensation board

• Claims arising from your client’s use or ownership of a motor vehicle

• Defending your client’s legal rights, other than in a counter-claim

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Bodily Injury

DAS Canada

Tax Protection

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DAS Canada

Tax Protection

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We will pay your client’s legal costs for a tax appeal or tax audit relating to:

• Liability for income tax, GST, PST, or HST arising from your client’s business operations

• Payroll deductions compliance

DAS Canada

Tax Protection: Claim Example

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Jas was contacted by the Canada Revenue Agency, who said her business owed

$560,000 in untaxed income after underpaying its taxes for three years. Jas

believed her business had been overvalued, but was unsure how to respond to

the CRA or navigate the tax court system, so she contacted DAS.

We assigned a tax lawyer to respond and provided Jas with an accountant to assist with the audit. The

lawyer was able to negotiate the amount of undeclared income down to $280,000, cutting Jas’s tax bill in

half. Thanks to her DASbusiness policy, Jas also saved $15,000 in legal fees!

DAS Canada


• $500 deductible

• Any legal costs in excess of $25,000

• Any claim:

• Arising from a tax avoidance scheme

• Caused by your client’s failure to register for GST, PST, HST

• Arising from an investigation by the CRA into alleged gross negligence, dishonesty, or

criminal offences

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Tax Protection

DAS Canada

Contract Disputes & Debt Recovery(Optional coverage)

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DAS Canada

Contract Disputes & Debt Recovery(Optional coverage)

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We will pay your client’s legal costs to either defend or pursue their legal rights for

disputes related to:

• Selling or buying goods

• Providing or obtaining services

Plus for debt recovery disputes, your client keeps 100% of the monies collected.

• Unlike collection agencies which can charge up to 30%

DAS Canada36

Contract Disputes: Claims Examples

Sheila was involved in a dispute over the quality of work done by a subcontractor

that she engaged to pour a concrete foundation on a job. Sheila was seeking

around $12,000 in damages as a result of delays and cost overruns to fix the

foundation; which the sub-contractor refused to pay.

After calling the legal advice helpline, DAS appointed a lawyer who represented Sheila’s business all the way

through to the hearing in the small claims court. The judge awarded Sheila the $12,000 she asked for. If

Sheila did not have a DASbusiness policy, she would have paid out-of-pocket about $9,000 in legal and

disbursement fees.

DAS Canada


• Dollar value of the dispute must exceed $500

• 90-day waiting period

• Any claims or disputes relating to:

• Contracts involving motor vehicles

• Terms of property lease or tenancy, if your client is the landlord

• Settlement amount payable under an insurance policy

• Loans, mortgages, pensions or any other financial products

• An insured person’s breach of professional duty

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Contract Disputes & Debt Recovery- Optional coverage -

DAS Canada

Unlimited Telephone Legal Advice

Easy 24 / 7 access

General legal advice provided

Like a law firm on retainer

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DAS Canada

One Major Claims Criteria

Reasonable Prospects

For civil cases, “reasonable prospect of success” means

we agree it is always more likely than not that an insured

person will recover losses or damages (or obtain other

legal remedy which we have agreed to) or make a

successful defence.

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51%

DAS Canada40

1

It starts with a

phone call

2

Legal advice

is given

3

Claims

determination

4

Panel lawyer

is assigned

Claims Process

DAS Canada

Our Panel Firms

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• National coverage

• Strict service standards

DAS Canada

Limits of Indemnity

$200,000Per claim

$1,000,000In aggregate per policy period

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DAS Canada

Pricing & Commission

Premium is based on:1. Revenue

2. Payroll

3. Business class

17.5%Broker commission

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+$1,200Is the average premium for DASbusiness

DAS Canada

Based on a one sentence description …

58%Of business owners said they would purchase

a Legal Expense Insurance policy

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DAS Canada

Of those who would buy…

57%Would be willing to pay

at least $1,260 to purchase

a legal expense insurance policy

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DAS Canada

Quoting & Binding a Policy

Visit the DAS Broker Portal www.das.ca

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DAS Canada

Surprisingly, only …

12%Of business owners felt they had sufficient commercial

insurance coverage if sued or taken to court by an employee,

supplier, customer, government agency or general public

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DAS Canada

Starting the Conversation

• How much was spent on legal fees last year?

• Could your business afford the financial impact of two-day civil action that

would cost $37,000?

• Have you ever been subject to an investigation by an occupational health and

safety board?

• Have you experienced issues concerning contractual obligations or collection of

money owed?

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DAS Canada

Starting The Conversation

• Would you have the time and resources to defend your business if someone

pursed legal action against you?

• Do you know someone who lost their business due to the legal fees and

damages associated with a lawsuit?

• Do you know there are legal expense gaps in your current commercial

insurance portfolio?

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DAS Canada

The Value Proposition

We empower business owners when they face unforeseen legal issues.

A DASbusiness policy:

Allows your clients to defend or pursue their legal rights

Protects your clients from costly legal expenses

Gives them unlimited access to legal advice at any time

50

DAS Canada

D & OCGL

EPLFleet PropertyLife

Legal Expense

Complete the Financial Protection Portfolio

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DAS Canada

Contact your DAS Broker Consultant

or visit www.das.ca/broker

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DAS Canada

Our Partner Panel Firms: Ontario

• Gowlings

• McCague Borlack LLP

• Miller Thomson

• Edward L. Burlew

• Pace Law

• Devry Smith Frank LLP

• House Law

• Szemenyei MacKenzie

Group LLP

• X Police

DAS Canada

Our Partner Panel Firms: Manitoba

• D’Arcy & Deacon LLP

DAS Canada

Our Partner Panel Firms: Saskatchewan

• Miller Thomson

• McDougall Gauley LLP

• Holash Logue McCullagh

DAS Canada

Our Partner Panel Firms: Alberta

• Brownlee LLP

• Parlee McLaws LLP

• Scott Venturo LLP

DAS Canada

Our Partner Panel Firms: British Columbia

• Gowlings

• Access Law Group

• Lesperance Mendes

• Smeets Law Corporation

• Whitelaw Twining Law Corporation

DAS Canada

Our Partner Panel Firms: Quebec

• Boro Polnicky Lighter

• Kugler Kandestin

• Langlois Kronström Desjardins

• Robinson Sheppard Shapiro

DAS Canada

Our Partner Panel Firms: Atlantic Canada

• Cox & Palmer (NS)

• Ritch Durnford Lawyers(NS)

an introduction to dasbusiness - das canada...you own a retail business with two locations …...

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