Commercial Heritage

Sep 2022

Commercial Heritage Protection:

Understanding the complications associated with calculating the complexities of damage and/or replacement cost value for heritage properties and structures requires specialized experience.

This important base of knowledge can alleviate what are often tragic outcomes of insufficient insurance, determining appropriate insurance, replacement costs, actual cash value, etc., that complicate coverage in evolving times.

Canadian Heritage and its portfolio organizations play a vital role in the cultural, civic and economic life of Canadians. Culture and heritage represent more than $57 billion in the Canadian economy and close to 673,000 jobs in sectors such as film and video, broadcasting, music, publishing, archives, performing, heritage institutions, festivals and celebrations.

Replacement Cost Valuations for Qualifying Risks:

While many heritage buildings in Canada continue to serve their communities as originally intended, many heritage buildings have been re-purposed; transformed into schools, libraries, hotels, shops, and other commercial ventures.

In addition, many older buildings are at risk for property damage due to wind, flood, rain, snow, and other weather events. Depending on their age, location, prior maintenance, and other factors, some buildings are more susceptible than others to environmental damage.

Thousands of artefacts disappear from museums, churches, private collections, public institutions or archaeological sites. From antique weapons to paintings; from coins to watches; from religious objects to archaeological finds; tens of thousands of specimens forming part of the world’s archaeological and cultural heritage, are stolen or looted annually.

Trafficking in items dating back to previous generations began thousands of years ago. However, over the past few decades, the phenomenon has, unfortunately, become a problem of epidemic proportions.

Estimates of the size and profitability of black markets in looted, stolen and smuggled works of art and antiquities are notoriously unreliable; however, specialists agree that this is one of the world’s largest illegal enterprises, worth billions of U.S. dollars. Regretably, this market has attracted interest from organized crime, as well as military and terrorist group.

Combating this illegal trade requires the dedicated mobilization of customs administrations, as well as, specified knowledge to identify illicit transactions. Enforcement authorities have experienced tremendous challenges due to the lack of expertise in determining the quality of the objects they locate; coupled with the issue of assessing the value and the authenticity of their provenance.

As a result, there is a growing need for cooperation with relevant stakeholders, including professionals and experts, committed to the protection of cultural heritage.

Ø In 2020, growth in the entertainment and recreation sector in Canada decreased by 2.5 % over the prior year; $15.6 billion to $7.3 billion. By comparison, GDP for all Canadian industries fell by 5.6% over the same period.

Ø The pandemic has also had a direct impact on the labour market in the culture, heritage and sports sectors which shed 180,500 jobs between February and May 2020, a decline of 57.7%.

Ø In comparison, total employment in Canada fell by approximately 20% over the same period. Despite a steep rise in employment (+65,500) in June, July and August, employment in entertainment and recreation was 36.4% below its February 2020 level.

In partnership with a leading Canadian specialist at appraising, underwriting, restoring and rebuilding heritage storied structures, SWG now offers highly comprehensive coverage for commercial heritage sectors that has been developed with the input of customers to ensure that it meets with precise protection.

Program Overview:

Coverage Highlights:

Appetite Overview: