Canada’s Struggling Hospitality Businesses Face ‘Perfect Storm’ as Insurers Flee

Canada’s Struggling Hospitality Businesses Face ‘Perfect Storm’ as Insurers Flee
Patrons eat in a restaurant as the Quebec government has ordered all restaurants, bars and casinos to close for 28 days effective midnight September 30 as coronavirus disease (COVID-19) numbers continue to rise in Montreal, on Sept. 30, 2020. Reuters/Christinne Muschi/File Photo
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TORONTO—Canadian hospitality businesses, already reeling from the downturn sparked by the coronavirus pandemic, are facing yet another existential threat as insurance companies spike premiums or exit the space, citing losses and the sector’s risks.

Even before COVID-19, insurers globally were scaling back from riskier businesses to improve performance. The pandemic’s profit hits have accelerated the trend and led underwriters to exit from, or raise premiums in, select categories.