On September 30th, National Day for Truth and Reconciliation, we recognized the lost children and Survivors of residential schools, their families, and communities. Acknowledging Indigenous experiences and commemorating the history and ongoing impacts of residential schools is a vital component of the reconciliation process.&nbsp;&nbsp;
Watch keynote speaker&nbsp;<a href="https://www.linkedin.com/in/tim-fox-bb897849/" target="_blank" rel="noopener">Tim Fox</a>, VP of Indigenous Relations and Equity,&nbsp;<a href="https://calgaryfoundation.org/" target="_blank" rel="noopener">Calgary Foundation</a>&nbsp;discuss the importance and impact of decolonization and reconciliation.

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While Pride Month shines a spotlight on the LGBTQ2S+ community each June, meaningful inclusion is a year-round effort. For Jessica Lavigne, Manager of Underwriting Assistants at Sovereign Insurance, Pride is an everyday, lived experience, so it&rsquo;s crucial that her workplace is an open, welcoming and safe place.&nbsp;
Jessica is involved with Sovereign&rsquo;s Proud of You Employee Resource Group (ERG), which supports the LGBTQ2S+ community within the organization. We spoke with Jessica about what diversity means to her, how being a part of this community has shaped her workplace experience and why representation matters.&nbsp;
What does diversity mean to you?
To me, diversity means individuals of all kinds&mdash;whether it&rsquo;s sexual orientation, disability, nationality, language and more&mdash;who come together in an environment where we can share our thoughts and learn from each other. Through these exchanges, we all become more inclusive individuals. Diversity is also what brings people&rsquo;s curiosity out and opens the door to a wealth of knowledge that benefits the whole organization.&nbsp;
What is your experience in insurance as a member of the LGBTQ2S+ community?&nbsp;
Overall, my experience in this industry has been positive. At times, some people are unsure or surprised when they hear I have a wife. But as we get to know each other, they see that I&rsquo;m a regular person, just like everyone else. Professional social gatherings can sometimes feel a bit challenging, but the more we talk openly about LGBTQ2S+ topics, the more it helps normalize who we are and makes things more comfortable for everyone. &nbsp;
How has this impacted your role at Sovereign?&nbsp;
I&rsquo;ve never felt like being who I am is a &lsquo;bad&rsquo; or negative thing. In fact, I&rsquo;ve seen how many opportunities are available to me here, and I feel like a valued and welcomed part of the larger organization. That has empowered me in my role to help create a safe and positive space for those around me.&nbsp;
Why did you get involved with the Proud of You ERG?
I joined Proud of You as a way to step outside my comfort zone and connect with others at Sovereign in the LGBTQ2S+ community. I&rsquo;m proud to be part of a group that helps build more awareness, knowledge and understanding across the organization. For me, it&rsquo;s about supporting others and sharing experiences to create a deeper sense of community.&nbsp;
Why does LGBTQ2S+ visibility and representation matter, especially in professional spaces?
Visibility helps create a culture of openness and acceptance. It creates space for people to speak openly and honestly about the struggles they face, encouraging mentorship and support within the community. But it&rsquo;s much more than a conversation. Seeing LGBTQ2S+ colleagues in senior or leadership roles has a positive impact by showing that being part of this community is not a barrier to growth and success. Pride Month is a great time to celebrate progress and share those stories, but what really stands out to me is how that support continues throughout the year at Sovereign. It&rsquo;s not limited to one month&mdash;it&rsquo;s part of our culture every day. And that&rsquo;s what makes people in this community truly feel like they belong. &nbsp;

Living proud every day: Jessica Lavigne on LGBTQ2S+ inclusion at work 

Ten years ago, most businesses thought of equipment breakdown insurance in terms of boilers and busted belts. Today, the risks are more complex &mdash; and far more critical to operations.
&ldquo;Businesses are more automated, more reliant on digital systems, and increasingly exposed to frequent unpredictable weather events like extreme heat, cold and humidity, that can impact their equipment,&rdquo; explains <a href="https://www.sovereigninsurance.ca/our-team/toronto/allen-babista" title="" target="">Allen Babista</a>, Senior Manager, National Distribution, Equipment Breakdown, with Sovereign Insurance.
The equipment itself has evolved. A single sensor or piece of circuitry can now bring an entire machine &mdash; or an entire operation &mdash; to a halt. And with inflation pushing up repair and replacement costs, the stakes have never been higher.
<h4>Emerging risks and overlooked gaps</h4>
In this new environment, businesses can&rsquo;t afford to make traditional assumptions about equipment breakdown. &ldquo;The conversation used to be about mechanical breakdowns or fire,&rdquo; Babista explains. &ldquo;Now we&rsquo;re seeing failures in smart components, sensors, hybrid systems, and HVAC units &mdash; the kinds of risks that weren&rsquo;t even on the radar five or 10 years ago.&rdquo;
Too often, he says, these risks are underestimated. &ldquo;Equipment breakdown is sometimes treated like an afterthought. Clients don&rsquo;t realize that losses from these types of failures usually aren&rsquo;t covered by standard commercial property policies &mdash; and the impacts can be major.&rdquo;
In fact, climate-related claims are revealing just how vulnerable businesses have become. Heat waves and longer operating seasons strain HVAC systems. Extended cold snaps test machinery not designed for prolonged downtime. And the ripple effects, which can include costly business interruption, are often overlooked until it&rsquo;s too late.
<h4>From hardware to networks: what brokers should ask</h4>
Babista encourages brokers to help clients think beyond physical machines. &ldquo;Most equipment today is connected, whether to a cloud system, a network, or a remote sensor,&rdquo; he says. &ldquo;Ask clients, &lsquo;What happens if your equipment needs to run longer due to a changing climate? What if it doesn&rsquo;t start up after months of dormancy?&rsquo;&rdquo;
Equally important, brokers should review whether clients have the right business interruption coverage. &ldquo;That&rsquo;s their revenue stream,&rdquo; Babista points out. &ldquo;If the
equipment fails, they need to make sure they can still make ends meet and recover quickly.&rdquo;
<h4>Supporting smarter protection</h4>
Sovereign takes a tailored approach to equipment breakdown coverage, offering broad protection that includes mechanical, electrical, and electronic failures.
&ldquo;Whether it&rsquo;s production machinery or small devices, we work with our broker partners to understand what the client&rsquo;s actual equipment exposure is, and how best to protect it,&rdquo; he says.
Its dedicated underwriters, jurisdictional inspections, and in-house risk engineering teams help Sovereign identify and manage exposures before they lead to a costly claim. That prevention-first model is a key part of Sovereign&rsquo;s value proposition. &ldquo;Our goal is to take the worry off the client&rsquo;s plate so they can focus on running their business,&rdquo; Babista says.
<h4>Start with relevance, not hard sell</h4>
When brokers dig deeper and reframe equipment breakdown as a critical part of risk strategy, not just an add-on, they help clients build real resilience.
However, it can be challenging to bring these insights to clients who may not see equipment breakdown as a priority, Babista says.
&ldquo;Real-life examples go a long way. If a broker can say, &lsquo;Here&rsquo;s a claim that happened to a similar business and here&rsquo;s how it could&rsquo;ve been prevented,&rsquo; it opens the door to a value-driven conversation,&rdquo; he says.
Sovereign can support brokers with such examples and provide expert engineering insights and tailored risk advice. &ldquo;Being informed is the best way to be proactive, and we&rsquo;re here to help brokers do just that. Because protecting businesses today isn&rsquo;t just about replacing what&rsquo;s broken, it&rsquo;s about anticipating what can go wrong, preventing unnecessary downtime, and keeping operations running when the unexpected hits,&rdquo; Babista says. &ldquo;It&rsquo;s not just about the equipment. It&rsquo;s about everything that depends on it.&rdquo;
<a href="https://youtu.be/zwTD32BwWQQ">WATCH: Sovereign Insurance&rsquo;s expert provides top risk management tips to guide your next client conversation on equipment breakdown</a><o:p></o:p>

Are your clients ready for today’s equipment breakdown risks?

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Managing Risk

There&rsquo;s a lot keeping business leaders up at night. Among the reasons are economic uncertainty, inflation, supply chain pressures, and rising operating costs, which are all pushing Canadian businesses to reassess their expenses. As clients look for savings, some are turning to their insurance policies &mdash; and that, says <a href="https://www.sovereigninsurance.ca/our-team/calgary/chris-charlton" title="" target="">Chris Charlton</a>, Assistant Vice-president of Commercial Solutions (Western Region), with Sovereign Insurance, is where things can start to unravel.<o:p></o:p>
&ldquo;In this environment, we&rsquo;re seeing more businesses trying to manage their absolute cost spend, not just their rates and exposures,&rdquo; he says. &ldquo;Insurance gets lumped in with utilities or supplier costs, but that&rsquo;s a mistake. Insurance is not a commodified item. It behaves very differently &mdash; especially when you need it.&rdquo;<o:p></o:p>
The shift has been real &mdash; and it&rsquo;s especially concerning when insurance is treated like a simple line item on a budget sheet, Charlton adds.<o:p></o:p>
<h4 class="MsoNormal">The most common cutbacks<o:p></o:p></h4>
The temptation to cut coverage can show up in subtle ways, says Charlton. &ldquo;We&rsquo;re seeing changes around building valuations, stock and work-in-progress, and indemnity periods for business interruption,&rdquo; he explains. &ldquo;Some clients are reducing limits or skipping contingent business interruption entirely.&rdquo;<o:p></o:p>
There&rsquo;s also a growing trend of questioning the value of specialty coverages. &ldquo;Is Cyber really essential? Do I need Directors and Officers or Employment Practices Liability? That&rsquo;s the conversation we&rsquo;re seeing more of &mdash; a shift in mindset around what&rsquo;s considered &lsquo;core&rsquo; and what&rsquo;s considered optional.&rdquo;<o:p></o:p>
The challenge, he says, is that these levers &mdash; reducing limits, scaling back coverage, or relying on outdated valuations &mdash; are easy to pull, but the long-term consequences can be significant.<o:p></o:p>
<h4 class="MsoNormal">The real cost of cutting corners<o:p></o:p></h4>
&ldquo;When a business needs to recover from a loss, the decision to underinsure can create a massive resource drain,&rdquo; Charlton says. &ldquo;That includes deductible gaps, waiting periods, and shortfalls from undervalued assets or inadequate indemnity periods.&rdquo;<o:p></o:p>
The ripple effects go even deeper. &ldquo;In a tight labour market, your employees are your most valuable asset. If your recovery plan is delayed or underfunded, it puts strain on your team &mdash; and that can be devastating to morale, operations, and retention,&rdquo; he adds.<o:p></o:p>
There&rsquo;s also reputational fallout. &ldquo;Underinsurance creates friction in claims. It damages trust. When expectations aren&rsquo;t met &mdash; even if those expectations were never clearly discussed &mdash; it reflects poorly on everyone involved.&rdquo;<o:p></o:p>
<h4 class="MsoNormal">From price to value: reframing the conversation<o:p></o:p></h4>
Charlton believes the conversation should be shifted away from cost and back toward value.<o:p></o:p>
&ldquo;The best tool brokers have is their time,&rdquo; he says. &ldquo;If your client interaction is limited to an email at renewal, you&rsquo;ve missed the chance to add value. But if you take the time to understand [your client&rsquo;s] evolving risks, you can guide a more nuanced discussion, one that focuses on what&rsquo;s actually being protected and why.&rdquo;<o:p></o:p>
He encourages brokers to look for red flags, like static valuations, outdated indemnity periods, and business interruption limits that haven&rsquo;t changed despite fluctuations in revenue. &ldquo;Ask yourself, &lsquo;Is this business accurately insured?&rsquo; Not under or over &mdash; but accurately.&rdquo;<o:p></o:p>
<h4 class="MsoNormal">Supporting smarter risk decisions<o:p></o:p></h4>
As a niche commercial insurer laser-focused on midsize to large industries &mdash; including manufacturing, construction and contracting, wholesale, warehousing and transportation, and energy and resources &mdash; Sovereign recognizes there isn&rsquo;t a one-size-fits-all solution.<o:p></o:p>
&ldquo;We continue to invest in our industry-specific expertise, risk engineering, and localized underwriting &mdash; not just to quote policies, but to help brokers and clients protect what matters most,&rdquo; Charlton says. &ldquo;Having underwriters who live and work in the same regions as our clients enables us to understand those market nuances &mdash; and they&rsquo;re empowered to make decisions that reflect it.&rdquo;<o:p></o:p>
Sovereign&rsquo;s team takes time to explain policy design and coverage trade-offs, he adds. &ldquo;We&rsquo;re not here to commodify. We&rsquo;re here to enable smart underwriting decisions, supported by technology, not dictated by it.&rdquo;<o:p></o:p>
In today&rsquo;s climate of complexity and uncertainty, underinsurance isn&rsquo;t just risky &mdash; it&rsquo;s avoidable, he adds.<o:p></o:p>
&ldquo;This process doesn&rsquo;t lend itself to shortcuts,&rdquo; Charlton says. &ldquo;It demands attention, time, and nuance. By collaborating with our broker partners, we can turn risk conversations into real-world resilience, and make it easier for Canadian businesses to navigate complexity and avoid costly missteps.&rdquo;&nbsp;

How can brokers help clients see the true cost of underinsurance?

Construction and Contracting,Energy and Resources,Manufacturing,Wholesale Warehousing and Transportation

Automobile,Claims,Management Liability,Equipment Breakdown,Liability,National Risk Engineering Services,Professional Liability,Property,Technology and Cyber,Cross Border Protection

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