GLENAVON, SASK. -- A Saskatchewan hotel owner had their insurance coverage pulled due to the financial liability created by COVID-19.
Carol McCallum runs the Sportsman’s Inn in Glenavon, with her son Chris. She recently received a letter from her insurance broker saying fire and liability coverage on the business will end August 1.
“In the letter it says that being the beverage liability thing and COVID-19, they are just cancelling my insurance,” said McCallum.
The hotel has been insured by Western Financial, through a group plan arranged by the Saskatchewan Hotel and Hospitality Association.
“You can only imagine, you know you’d think that all the things we’re being overwhelmed with regards to you know the pandemic, now we have another priority,” said Jim Bence, with the Saskatchewan Hotel and Hospitality Association.
McCallum has turned to another broker to find coverage but she says no company is willing to ensure the hotel, not even government owned SGI. She cannot operate without insurance.
“You know it just seems to me that the insurance companies are big money, banks are big money. What do you want, the banks to own everything? You know, okay, go ahead take my business,” said MacCallum.
Some small hotels and pubs may be forced to continue business without insurance. However, holding a policy is a mortgage condition and it might not be long before financing is cancelled as well.
