Accidents happen
Togo's owner learns importance of insurance

Glen Korstrom
Northern News Services

INUVIK (Feb 26/99) - Denis Savoie now spends his days on his living room couch, unable to walk much less take care of his restaurant, Togo's.

Walking back from the Return of the Sun festival Jan. 6, Savoie was hit by a snowmobile, which was travelling fast enough to break his leg in three places and pop out his knee cap. He was left with a pin permanently in his shin.

The crash also impacted Savoie in another way. Since he had no business insurance, he has had to hire two additional staff, costing him $4,000 per month.

"If I would have known I would have had insurance coverage," he says.

"Business is tough. I was just getting back on my feet and now, 'bang,' I can't take care of my business."

Small-business owners are not eligible for employment insurance benefits and workers compensation only kicks in for certain injuries and work-related accidents.

Insurance is also available for loans that business owners take out at banks. That insurance is bought when the loan is signed and covers varying time periods if the recipient has an injury and cannot continue to make the payments.

Savoie had life insurance but no insurance for injury or for his business loan so he is bored and frustrated, particularly since there was nothing he could have done to prevent his injury.

His lawyer is currently negotiating with the insurance company covering the snowmobile, which was driven by a teenager.

"Sometimes insurance can make you more competitive," says Patricia Black, who is general manager of Western Arctic Business Development Services.

"That way you can have a benefits package to offer employees."

Black says WABDS has coverage through a chamber of commerce plan through the NWT financial group that covers accidental death, weekly indemnities, long-term indemnities and extended health, but not dental because "we feel we all have really good teeth."

The cost is $360 per month and the four-person business development organization splits the cost with employees by paying half.

Costs vary depending on how many participants are in the plan, the types of coverage included, job type and income levels, single versus family coverage, age and whether employees smoke.

But the chamber of commerce plan offers small businesses the option of insurance, which would be unavailable otherwise since most insurance brokers usually will not cover businesses with fewer than 10 employees, Black says.

To join the plan, Inuvik businesses must be members of Western Arctic Trade and Tourism, which has an annual $100-membership fee.

"There's no safety net for business people," Black says.

"You have to buy it yourself."