Insurance company failures, although rare, can and do occur. That’s why Canada’s property and casualty (P&C) insurance companies fund a special program, approved by government regulators, to protect policyholders and claimants. In the unlikely event of the collapse of a P&C insurer in Canada, the industry-funded, non-profit Property and Casualty Insurance Compensation Corporation (PACICC) will respond to claims of policyholders under most policies issued by P&C companies. You don’t need to apply for protection; it is extended automatically to eligible policies.