HomeMy WebLinkAboutCS 22-09
City REPORT TO
EXECUTIVE COMMITTEE
PICKERING Report Number: CS 22-09
170 Date: June 8, 2009
From: Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: 2009/2010 Property and Liability Insurance Renewal
Recommendation:
1. That Report CS 22-08 of the Director, Corporate Services & Treasurer be
received;
2. That the City of Pickering renew effective June 16, 2009, its property, liability and
other coverages through the Frank Cowan Company for the period July 1, 2009
to June 30, 2010 inclusive on terms and conditions acceptable to the Director,
Corporate Services & Treasurer;
3. That the Director, Corporate Services & Treasurer, as part of the Risk
Management Program, be authorized to continue the Reimbursable Deductible
Program through the Insurance Adjuster and the Frank Cowan Company and
further, that the Director be authorized to settle any claims including any
adjusting and legal fees where it is in the City's interest to do so;
4. That the Director, Corporate Services & Treasurer be authorized to purchase
additional insurance, make changes to deductibles and existing coverages, and
alter terms and conditions as becomes desirable or necessary in orderlo limit
potential liability exposure and to protect the assets of the City and it's elected
officials and staff; and,
5. That the appropriate officials be authorized to take the necessary actions to give
effect thereto.
Executive Summary: The City's insurance program continues to operate
successfully and the above recommendations provide for a renewal of the policies
basically on the same or improved terms and conditions in the past years which also
provides coverage for the Library, its Board and its employees.
Report CS 22-09 June 8, 2009
Subject: 2009/2010 Property and Liability Insurance Renewal Page 2
171
Financial Implications: The premium renewal cost has been provided for in the
various cost centers through the approval of the 2009 budget by Council and the
renewal premium cost is within the 2009 budgeted amount.
Sustainability Implications: Insurance renewal provides the City with financial
security and is therefore better able to maintain financial sustainability.
Background: Each year on July 1, the City's general liability and property insurance
policies come up for renewal. As approved by Council at the time of the 1998 renewal,
the Treasurer undertook an extensive review of all aspects of the City's insurance
program. The City of Pickering embarked in a Risk Management Program, the initial
phase of which involved negotiating renewing premiums with the City's broker. The
result of the negotiations was a decrease of approximately $75,000 or 20 percent, in
the premiums from that of the prior year. The savings were transferred to the Self
Insurance Reserve. In our opinion, this program has served the city well, and today
there is almost $1 million in this reserve.
Recommendation 4 provides the Treasurer with the authority to continue to review and
adjust insurance coverages where appropriate during the year to reflect business
requirements and current market and business environment conditions.
Insurance Market
The insurance industry is going through some difficult times. Loss of equity in world
stock markets has translated into lower return on investments which has traditionally
been used to offset insurance company costs/claims. Property insurance markets have
suffered catastrophic losses in Europe and the USA. The end result is that the
municipal insurance market is becoming tighter. In addition, municipalities continue to
be the target for the litigiously inclined through the "deep pocket" theory of joint and
several liability where one per cent of the liability can result in the municipality assuming
100% of the cost of the claim. The insurance market has always been subject to cycles
of "soft" and "hard" due to the unpredictable nature of an insurance. We can not predict
when the next major catastrophic event will occur.
Basic risk management states that you should diversify your risk. Many insurance
companies have customers throughout the Province or Canada to diversify the risk
associated with a local catastrophic event. With the City of Pickering being a direct
customer of the Frank Cowan Company (who has customers throughout the Province
and beyond) the geographical risk diversification is achieved and maintained.
Report CS 22-09 June 8, 2009
Subject: 2009/2010 Property and Liability Insurance Renewal Page 3
172
Service to our Residents
Regrettably, insurance claims or incidents do occur. A key strategic advantage of the
City's insurance and risk management program is that every claim is processed with a
customer service attitude. After a claim or incident is received, City staff quickly contact
(within 24 hours) the claimant, to advise them that the City has received the claim and
to ensure them that the claim is being investigated by the City's Insurance Adjuster.
The City's Insurance Adjuster has many years of local municipal insurance experience
which the City uses as an asset to investigate and settle claims. The City's Insurance
Adjuster is familiar with the City and its municipal infrastructure and this experience has
assisted in reducing claims cost due to his knowledge and or his familiarity with the City,
its policies and procedures. The Insurance Adjuster's service standard is to make
contact with the claimant within two business days. Sometimes, the claimants may not
completely agree with the outcome and City staff may review the claim and/or to
intervene to work towards a solution. The strategic advantage of the "local service
delivery model" is that claims are handled quickly professionally and with a customer
service perspective. In addition, the current "local" service delivery model allows City
staff "hands on" participation in the claims process to better serve claimants who, in the
majority of situations are City residents.
Attachments:
1. Program Summary of Insurance Coverage
Prepared By: Approved / Endorsed By:
Stan Karwowski Gillis A. Paterson
Manager, Finance & Taxation Director, Corporate Services & Treasurer
SK:vw
Recommended for the consideration of
Pickering City Council
Thomas J Qutative , RD CMM 1117
Chief Adminis Officer
ATTACHMENT#j
L_TO REPORT# C 5 u
73
Cowan
Frank Cowan Company
2009
MUNICIPAL INSURANCE PROGRAM
ctpr 00
CORPORATION OF THE CITY OF PICKERING
Prepared by: Mr. Viano Ciaglia, C.I.P., C.R.M.
Account Manager
Frank Cowan Company Limited
4 Cowan Street East
Princeton, ON NOJ 1 VO
This is a summary. Nothing herein alters the terms, conditions and viano.ciaglia@frankcowan.com
exclusions contained in the printed insurance contract(s). 1-800-265-4000
REF: 60275/sh T/519-458-4331
May 15, 2009
F/519-458-4366
1r/4
About Frank Cowan Company
Leader in Public Entity Insurance
Frank Cowan Company has grown to become one of Canada's leading providers of Insurance and
Risk Management solutions for public entities. For over 80 years Frank Cowan Company has been
a pioneer in the development and implementation of innovative insurance programs for the
Municipal, Health Care, Education and Social Services sectors.
Frank Cowan Company is affiliated with Cowan Insurance Group, the Guarantee Company of
North America and Millennium CreditRisk Management through common ownership under
Princeton Holdings Limited.
Cowan Insurance Group provides insurance and risk management products and services to
businesses, organizations, and individuals. Cowan Insurance Group is one of the largest
privately owned business and personal insurance brokerage operations in Canada, and provides
retirement and group benefits assistance to employers, as well as financial advice on life
insurance, disability management, critical illness and long term care. The Guarantee Company of
North America specializes in commercial and contract surety, fidelity, directors' and officers'
liability and personal lines insurance including it's high value Guarantee Gold coverage.
Millennium CreditRisk Management specializes in trade credit and political risk insurance.
Outstanding Service
We are more than just an insurance provider. We are a trusted partner in providing insurance and
risk management services. We work with our clients and their affiliated associations to develop
individualized risk management and claims management programs, advise on procedural or
regulatory change as well as an array of other services. Our mandate is clear...help our clients
reduce risk.
Clients also benefit from our affiliations with lawyers, adjusters and others that specialize in the
public sector. The combination of our service network and internal expertise allow us to
continually develop innovative, cost-effective solutions and services tailored to the risks of
individual clients.
Financial Stability
Frank Cowan Company, as an Underwriting Agent, represents a select group of financially strong
Canadian based insurers that have made a long-term commitment to public sector risk. Our
business model creates a very stable market for your insurance requirements, and gives our
customers the comfort of knowing that they will always be protected by long-term, high-quality
continuous service.
Frank Cowan Company
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Cowan Service Solutions
More Than Just Insurance
Cowan offers a full range of services to assist in the management and reduction of risk, which is
equally vital to our clients. Risk Management, Claims Management and our other value-added
services were initiated by Cowan and have evolved throughout our history. Most often we can.
provide the services listed below at no additional cost to the client.
Liability Hazard Assessment ta• Our Municipal clients are involved in a wide range of
diverse activities to serve the public. These lead to various
potential public liability situations. We work with our
clients to provide specific hazard identification and
analysis of these exposures.
Building Valuations We conduct periodic detailed inspections of property and
buildings with formal reports, replacement cost valuations
for insurance purposes, photographic inventory with
recommendations to correct potential hazards.
Seminars & Staff Training ttY We deliver a wide range of presentations to our Municipal
clients on an ongoing basis that provide continuous
education for our clients.
Risk Audits rb- We help our clients audit systems and processes to reduce
potential losses within their operations and specifically
focus on documentation, reporting and consistency with
accepted standards and practices.
Contractual Review ;b- Our experience contributes insight on the suitability and
effectiveness of liability transfers and appropriate
insurance and indemnity clauses within your various
contracts.
Publications, Bulletins & Ab, Because constant two-way communication is important,
Information Packages our website is available on a 24 hour basis for access to
information on our Services, Publications and programs.
Anyone in your organization can visit us at
www.frankcowan.com to keep informed of common
issues and solutions.
Claims Management ib We handle your claim fairly and efficiently. Claims that
are made against you are handled with the consistent
strategy of defending or discouraging those claims that are
without merit, or reaching a reasonable settlement on
claims that do merit payment. Detailed claims progress
reports are produced and can be organized by type of loss
or department to suit your needs.
Frank Cowan Company
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MARKETPLACE CONDITIONS
The Canadian Property & Casualty Insurance marketplace continues to witness consolidation yet
remains one of the most saturated insurance markets in the world, with over 200 players.
However, amongst the majority of the insurers operating in Canada, specialization continues to be
the trend. Only a limited number of insurers are willing to risk their capital on high liability
exposure classes such as Municipal, Healthcare, Education and Social Services sectors. While the
last few years have brought some stability for the general Property & Casualty market,, specialty
classes continue to present unique Underwriting and Claims Management challenges.
The Public Entity sector continues to experience significant losses. Some of these losses have
been driven by landmark cases, but overall, frequency and severity of claims have increased
dramatically. As well, the overall cost of claims, which takes into account escalating court
awards, claims administration expenses and the ever-increasing replacement costs of assets,.has
continued to rise. Insurers and Reinsurers are extremely cautious about public entity liability
exposures due impart to the complexity of services provided by public sector organizations.
A number of insurers have either imposed coverage restrictions or withdrawn from the public
entity market entirely. Frank Cowan Company, a specialist in public entity insurance, continues
to receive the support and capacity of our insurers. We continue to provide long-term stability for
the insurance and risk management needs of our public entity clientele. Our policies and services
continue to evolve in response to the exposures faced by our clients.
We are confident that our product, service and pricing will reflect our continued commitment to
this sector.
Frank Cowan Company
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COMPREHENSIVE INSURANCE
PROGRAM
2009 - 2010
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CHANGES TO YOUR
INSURANCE PROGRAM
Please be advised of the following changes to your insurance program that now apply:
a Crime Policy
■ The Crime package policy has been extended to include a limit of $ 200,000. for
Computer Fraud or Funds Transfer Fraud.
■ Property Policy
■ Property values have been increased in order to reflect inflationary trends.
■ EE uipment Breakdown Insurance Policy
■ A Collision and Upset Exclusion will apply on the Restored Tractor Engine at the
Museum.
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PROGRAM SUMMARY
SUMMARY OF COVERAGES LIMITS/AMOUNTS
PART A CASUALTY
Municipal Liability
Limit of Protection per occurrence $ 25,000,000.
(No Annual Aggregate Limit)
Third Party Claims Deductible including expenses $ 50,000.
Sewer Backup per Claimant Deductible including expenses $ 50,000.
Wrongful Dismissal (legal expense) Limit per claim $ 250,000.
Annual Aggregate Limit $ 250,000.
Deductible $ 5,000.
Voluntary Compensation Included
Municipal Marina Liability Included
Malpractice Liability Included
Errors and Omissions
Limit of Protection per claim $ 25,000,000.
(No Annual Aggregate Limit)
Deductible including expenses $ 50,000.
Non-Owned Automobile
Limit of Protection per occurrence $ 25,000,000.
(No Annual Aggregate Limit)
Legal Liability for Non-Owned Vehicles (S.E.F. No. 94)
Third Party Liability Deductible $ 10,000.
All Perils Physical Damage Limit $ 500,000.
Deductible $ 500.
Environmental Liability
Liability of Protection per claim $ 1,000,000.
Annual Aggregate Limit $ 2,000,000.
Self-Insured Retention $ 50,000.
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PROGRAM SUMMARY
SUMMARY OF COVERAGES ' LIMITS/AMOUNTS
Comprehensive Crime
Commercial Blanket Bond $ 2,000,000.
Counterfeit Paper Included
and Depositors' Forgery Included
Audit Expense (Sub-Limit $ 100,000.) Included
Money and Securities - Blanket any Location $ 100,000.
Excess on Securities $ 100,000.
Computer Fraud or Funds Transfer Fraud $ 200,000.
Councillors' Accident
One City Mayor/Regional Councillor, Three Regional Councillors (Durham)/
City Councillor and Three City Councillors and Nine Library Board Members
Accidental Death & Dismemberment $ 100,000.
(No Annual Aggregate Limit and No Deductible)
Weekly Income - Total Disability $ 500.
Weekly Income - Partial Disability $ 250.
Twenty-Four Hour a Day Coverage applies. .
Municipal Conflict of Interest
Percentage of Legal Fees and Expenses 100%
Maximum Limit of Reimbursement per claim $ 100,000.
(No Annual Aggregate Limit)
Legal Expense
Percentage of Legal Fees and Expenses 100%
Maximum Limit of Reimbursement per claim $ 100,000.
Annual Aggregate Limit $ 250,000.
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PROGRAM SUMMARY
SUMMARY OF COVERAGES LIMITS/AMOUNTS
PART B - PROPERTY
Property Insurance (including Data Processing Insurance)
Total Sum Insured * $ 173,484,165.
Valuable Papers $ 500,000.
Accounts Receivable $ 500,000.
Extra Expense (other than Data Processing) $ 1,000,000.
Business Interruption
Rent or Rental Value Form $ 500,000•
Gross Revenue Form $ 2,584,500.
Checkroom Liability $ 5,000.
Data Processing
System and Equipment $ 1,440,800•
Media $ 47,000.
Extra Expense $ 50,000.
Fine Arts Form $ 2,000.
Exhibition Form As Per Lists Provided
Builders' Risk Insurance Broad Form $ 3,500,000.
(Addition & Renovation Project - Recreation Complex,
1867 Valley Farm Road, Pickering)
Deductible $ 10,000.
Exceptions:
- Fine Arts Form and Exhibition Form $ 2,500.
- Checkroom Liability $ 2,500.
- Fire Training Trailer $ 2,500.
- Peril of Flood $ 25,000.
- Peril of Earthquake 3% or Minimum $ 100,000.
*Note: Please refer to the insurance contract for an itemized list of assets containing specific limits of
insurance or that are excluded from the policy.
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PROGRAM SUMMARY
SUMMARY OF COVERAGES LIMUS/AMOUNTS
Equipment Breakdown
Limit per Accident - Comprehensive:
- Steam Engine At Greenwood Museum, 2365 6`h Concession, Greenwood, ON $ 10,000.
- All Other Locations $ 50,000,000.
Extra Expense $ 500,000,
Spoilage - Goods under Refrigeration $ 50,000.
Business, Interruption - Loss of Profits (Gross Revenue)
- All Buildings & Facilities, Greenwood Museum, Pickering, Ontario $ 94,500.
- Don Beer Arena, 940 Dillingham Road, Pickering, Ontario $ 600,000.
- Dunbarton Indoor Pool, 655 Sheppard Ave. E., Pickering, Ontario $ 100,000.
- Pickering Recreation Complex, 1867 Valley Farm Road, Pickering, Ontario $ 1,790,000.
Expediting Expenses Included
By-Law Cover Included
Errors and Omissions $ 100,000.
Hazardous Substance (including PCB Contamination) $ 500,000.
Ammonia Contamination $ 500,000.
Water Damage $ 500,000.
Professional Fees $ 500,000.
Data Restoration $ 25,000.
Denial of Access 2 Weeks
Deductible $ 10,000.
Frank Cowan Company
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PROGRAM SUMMARY
SUMMARY OF COVERAGES LIMITS/AMOUNTS
PART C - AUTOMOBILE
Automobile Fleet
Liability Limit $ . 25,000,000.
Deductibles
Section 3 (Third Party) $ 10,000.
Section 6 (Direct Compensation) $ 10,000.
No Physical Damage applies to:
-1951 Antique Pumper (Parades)
All Perils $ 10,000.
Garage Automobile
Third Party Liability Limit $ 3,000,000.
Customer Vehicles
Collision Limit $ 200,000.
Deductible $ 500.
Specified Perils Limit $ 300,000.
Deductible $ 500.
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PROGRAM OPTIONS
Options are available as outlined below. Please note that in addition to these options, you may
also have other exposures that require or may benefit from specific insurance forms, such as:
marina liability, aviation liability, etc. Alternate deductibles and limits may also be available.
1. CRIME INSURANCE - THIRD PARTY BOND EXTENSION
With respect to Crime Insurance, coverage may be extended to include a Third Party
Bond Extension. Should this form of coverage be required, please advise us accordingly
in order that we may provide you with a cost quotation.
2. SELF-INSURANCE - DEDUCTIBLE PROGRAMS
For comparison purposes we are setting out optional deductible programs that the Insured
may wish to consider.
CLASSIFICATION PRESENT OPTIONAL CREDITS
DEDUCTIBLE DEDUCTIBLE AVAILABLE
Property $ 10,000. $ 25,000. $ 5,341.
(Bldg., Cnts. & Equip., Data
Processing Insurance & Bldrs. Risk)
(All Deductibles will remain the same
Equipment Breakdown $ 10,000. $ 25,000. $ 865.
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COVERAGE FEATURES
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PART A
CASUALTY
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MUNICIPAL LIABILITY INSURANCE
Features
The Cowan Municipal Program incorporates a comprehensive and broadly worded liability
policy which was designed specifically to meet the needs of municipalities and their
corresponding risks which are quite different and unique from other commercial risks that are
insured under a Commercial General Liability (CGL) policy. When comparing forms of
coverage, it is important to note that unless the coverage is specifically excluded, it is generally
covered, subject to the terms and conditions of the policy.
■ Liability coverage provided for Bodily Injury, Property Damage, and Personal Injury.
■ Separate Limit of Liability applies.
■ No Annual Aggregate limit is applicable
■ Coverage is provided on an Occurrence basis.
■ Broad form Definition of Insured applies, -including: Councillors, Employees, Statutory
Officers, Firefighters, Volunteers, Boards, Commissions, and Committees.
■ Cross Liability is included.
■ Coverage applies Worldwide.
The following coverages are included to the full policy limit, unless specified otherwise:
■ Employers' Liability
■ Contractual Liability
■ Liquor Liability
■ Tenants' Legal Liability
• Sewer backup Liability
• Please be advised that deductibles indicated for sewer backup claims are on a per claimant
basis. Therefore, if there are sewer backup claims, you could be responsible for multiple
deductibles for those claims, up to the number of claimants.
■ Professional Liability on an Occurrence basis (e.g. Building Inspection Services, Medical
Malpractice).
■ Malpractice Liability
■ Watercraft Liability
■ Products Liability
• Wrongful Dismissal legal expense coverage is provided only if a specific amount is shown for
this coverage in the Program Summary section of this report.
■ No exclusion for sexual, physical or mental abuse applies to the entity.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
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1
ERRORS AND OMISSIONS
LIABILITY INSURANCE
Features
This is a claims-made policy that protects the municipality from liability imposed upon it by a
court of civil law for compensatory damages because of a wrongful act causing financial loss to a
third party.
Claims for Wrongful Acts causing financial loss to a third party can range from, but are not
limited to, negligence in building inspection, zoning, planning, passing by-laws, failing to enforce
by-laws, misrepresentation, abuse ofpower and acting in bad faith.
■ Separate Limit of Liability applies.
■ No Annual Aggregate limit is applicable.
Broad form Definition of Insured applies, including: Councillors, Employees, Statutory
Officers, Firefighters, Volunteers, Boards, Commissions, and Committees.
■ Administration of Employee Benefit Programs is included to the full policy limit (no
aggregate limit applies).
■ Coverage applies Worldwide.
Please refer to the Insurance contract for all limits, terms, conditions and exclusions that apply.
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NON-OWNED AUTOMOBILE INSURANCE
Features
This policy provides liability protection against claims arising out of accidents involving vehicles
not owned by the municipality, but operated on its behalf. Coverage is provided as per the
Statutory Non-Owned Automobile policy.
A separate limit of liability applies.
Coverage is extended to provide excess automobile liability insurance, to the policy limit, for
Councillors, Board Members, Officers, Employees, and even Volunteers for claims arising
while driving their own vehicles on municipal business.
■ Physical damage coverage, as specified in the Summary of Coverage pages, is provided for
the municipality's contractual and legal liability for damage to vehicles not owned by the
corporation or any other insured.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
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ENVIRONMENTAL LIABILITY INSURANCE
Features
This is a claims-made policy that protects the municipality from environmental liabilityfor claims
because of bodily injury, property damage and the prevention, control, repair, clean-up or
restoration of environmental impairment. Cowan's comprehensive wording, among other things,
does not limit a municipality to claims arising from a sudden and accidental event.
• Separate limits of liability apply specifically to this coverage.
• Broad form Definition of Insured applies, including: Councillors, Employees, Statutory
Officers, Firefighters, Volunteers, Boards, Commissions, and Committees.
■ Broad definition of Environmental Impairment applies.
• Coverage is included for sudden and accidental events and for liability resulting from events
that occur gradually and over a period of time (i.e. not limited to sudden and accidental
claims).
• Coverage is included for liability arising out of the escape of contaminants from properties
previously owned, leased or operated by the municipality.
■ Coverage is included for impairment caused by owned watercraft.
■ Coverage applies Worldwide.
■ No exclusion for landfill sites, open or closed.
■ No exclusion for fuel tanks, above or underground.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
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CRIME INSURANCE
Features
This policy provides protection to the municipality for the loss of money, securities and other
property through the fraudulent or dishonest acts of employees and others.
■ Coverage is provided on a Commercial Blanket Bond package, and may include:
- Employee Dishonesty,
- Loss of Money and Securities,
- Money Order and Counterfeit Paper Currency,
- Depositors' Forgery, and
- Computer Fraud or Funds Transfer Fraud.
■ Audit expense coverage is in addition to the overall bond limit, to the maximum amount
provided in the Summary of Coverage pages.
■ The definition of "employee" is extended to include all persons holding positions in the
municipality's service who are not compensated, and includes Members of Council, Members
of all Boards, Commissions and Committees appointed by and under Council's jurisdiction.
■ The definition of "messenger" is also extended to include persons not compensated.
■ No deductible applies unless specified in the Program Summary.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
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COUNCILLORS' ACCIDENT INSURANCE
Features
This policy provides accident insurance coverage for the benefit of the municipality's elected
officials. All benefits are payable in addition to any other benefits that the injured person may be
in receipt of.
■ Coverage applies while the individual is acting within the scope of their duties, including all
travel required.
` No aggregate limit applies.
■ No age restriction applies.
■ Coverage is not limited to "authorized" travel only.
■ Weekly indemnities are paid in full regardless of the individual's employment status (e.g.
retired, self-employed, etc.).
■ Weekly indemnity for Total Loss of Time is payable for life.
■ A schedule of Dismemberment Benefits is provided and payable as set out in the policy.
■ Funeral expenses are included up to $10,000.
■ Blanket Accident expenses are included up to $10,000. and include dental, chiropractic,
registered nurse, podiatrist, ambulance, drugs, crutches, etc.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
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CONFLICT OF INTEREST INSURANCE
Features
This policy provides for the reimbursement of legal fees and expenses incurred by the elected or
appointed members of Council who are charged under the Municipal Conflict of Interest Act,
provided that a courtf:nds (1) there has been no contravention, or (2) contravention has occurred
by reason of inadvertence, remoteness, or insignificance, or (3) contravention has occurred by
reason of a bona fide error in judgement.
■ Coverage is provided in respect of each individual Insured's claim to the maximum limit
specified in the Summary of Coverage pages.
■ Separate limit of insurance applies to this coverage.
■ No annual aggregate limit applies.
■ Coverage is extended to include any member of a Board, Commission, or Committee of the
Insured as defined in the Municipal Conflict of Interest Act.
■ Coverage is also included for any subsequent proceedings under this Act.
■ The Insured selects and instructs legal counsel with no intervention by the insurer.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
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LEGAL EXPENSE INSURANCE
Features
This policy provides for the reimbursement of legal fees including disbursements incurred by the
insured in defence of charges laid for an alleged offence under any Statute of the Province of
Ontario (except for the Highway Traffic Act and the Municipal Conflict of Interest Act).
Some of the more common Statutes where exposure exists include: Environmental Protection Act,
Freedom of Information and Protection of Privacy Act, Occupational Health and Safety Act,
Ontario Water Resources Act, and Pesticides Act.
■ Broad form Definition of Insured applies, including: Councillors, Employees, Statutory
Officers, Firefighters, Volunteers, Boards, Commissions, and Committees.
■ Separate limits of insurance apply to this coverage.
■ Coverage applies to both "guilty" and "not guilty" outcomes if applicable.
■ The Insured selects and instructs legal counsel with no intervention by the insurer.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company
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PART B
PROPERTY
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PROPERTY INSURANCE
Features
This policy provides "Ali Risk" coverage to protect the municipality's assets from direct physical
loss or damage. Coverage is provided on a blanket basis, which means that the municipality will
not be jeopardized should the value of an asset be undervalued in the schedule and suffer a total
loss. Rather, the municipality will enjoy the protection of the blanket limit of all assets combined.
Another key feature of the Cowan wording is that the replacement cost coverage provides
replacement of historical or unique buildings with materials as similar as possible to preserve
their heritage.
■ Broad definition of property insured is included.
■ No co-insurance clauses apply.
■ Insured is not required to provide a signed statement of values and policy does not contain a
stated amount clause.
■ Replacement Cost coverage is provided (unless specifically stated otherwise).
■ Worldwide coverage is included.
■ Replacement on same site is not required.
■ No restriction on property in transit and coverage is provided to policy limit.
• Newly acquired property is automatically included with no limit other than the policy limit.
■ Percussion is granted for the following:
- to make additions, alterations and repairs (no limit other than the policy limit),
for any property to remain vacant or unoccupied,
- to use any property for any purpose, and
- to keep and use materials as usual and necessary.
■ Sewer back-up coverage is included.
• By-law coverage is included to the policy limit.
■ Debris removal (including Environmental/Pollution Clean-up) is included to the policy limit.
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Property Insurance Features continued
■ The following coverages, if applicable, are included to the limit specified in the Summary of
Coverage pages:
- Valuable Papers,
- Accounts Receivable,
- Extra Expense (including Interruption by Civil Authority), and
Media (unless included under Data Processing Rider)
■ The following coverages are also available, if applicable (please refer to the Summary of
Coverage pages):
- Data Processing System and Equipment, along with Media and Extra Expense,
- Fine Arts,
- Exhibition Form, and
- Business Interruption.
■ If a single loss involves both the Automobile and Property Insurance policies, the Property
policy, deductible is waived only on any insured property attached to the automobile.
■ One deductible applies should there be a loss involving both the Property and the Equipment
Breakdown Insurance policies.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
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EQUIPMENT BREAKDOWN INSURANCE
Features
This policy insures sudden and accidental mechanical breakdown to boilers, pressure vessels, and
other equipment including resulting damage, all of which is generally excluded under a Property
Insurance policy. Examples of common types of breakdowns insured would include: cracking:
bulging, burning, explosion, mechanical breakdown and electrical burnout. This insurance also
provides inspections and certification services as required by law.
■ Comprehensive Blanket coverage provided.
• Broad definition of Object, includes communication equipment and production machinery.
■ Settlement is based on repair or replacement cost (no depreciation factor).
■ Broad definition of Accident applies.
■ New locations and newly installed objects are automatically included.
• Computer Control Equipment is included when used solely to control or operate an insured
object.
• The following coverages, if applicable, are included to the limit shown on the Summary of
Coverage pages:
- Extra Expense,
- Water Damage,
- Ammonia Contamination,
- Expediting Expenses,
- Hazardous Substance (including PCB Contamination),
- Loss of Arena Revenues,
- Spoilage,
- Professional Fees,
- Data Restoration,
- By-Law Cover,
- Errors and Omissions, and
- Denial of Access.
■ One deductible applies should there be a loss involving both the Equipment Breakdown and
Property Insurance policies.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company
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PART C
AUTOMOBILE
Frank Cowan Company
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200
AUTOMOBILE FLEET INSURANCE
Features
This policy provides protection for all claims arising out of the use or operation of licensed
automobiles owned or leased by the municipality. Coverage is provided as per the Statutory
Automobile Owner's Policy. A special Cowan endorsement is added to enhance the basic policy
coverage.
■ Coverage is provided for Liability, Accident Benefits, Uninsured Automobile, and Direct
Compensation - Property Damage.
■ Loss or Damage coverages are available as requested by the Municipality to protect their
licensed vehicles from physical damage caused by an insured peril.
■ Coverage is automatically extended to include:
- newly acquired vehicles,
- inappropriately licensed drivers,
- permission to carry explosives,
- permission to rent or lease,
damage caused by freezing of Fire-Fighting Apparatus, and
- permission to carry passengers for compensation.
■ Our Replacement Cost coverage is unique. It provides repairs or replacement of vehicles with
no deduction for depreciation.
- On a partial loss, repair estimates are calculated by using all new parts to repair
damage.
- On a total loss, the municipality has the option of purchasing a new vehicle, or
accepting a cash settlement for the amount it would cost to purchase a new vehicle.
■ Guaranteed Amount coverage can be provided on specified vehicles. Repairs or replacement
will be undertaken without deduction for depreciation up to the Guaranteed Amount shown on
the automobile schedule attached to the policy.
• Valued coverage can be provided on specified vehicles, usually those that are obsolete, would
not be replaced, or would be replaced with a used vehicle.
■ Actual cash value (ACV) coverage can be provided on specified vehicles.
■ If a single loss involves both the Automobile and Property Insurance policies, the Property
policy deductible is waived only on any insured property attached to the automobile.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company
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201
GARAGE AUTOMOBILE INSURANCE
Features
This policy provides protection for all claims arising out of a municipality's garage operations
and its legal liability for customer vehicles. Coverage is provided as per the Statutory Garage
Automobile Policy. Garage operations include not only repair garages, but also storage garages
and parking lot operations.
■ Coverage is provided for Third Party Liability for bodily injury or property damage as per the
limit specified in the Summary of Coverage pages.
■ Coverage is also provided for Accident Benefits, Uninsured Automobile, and Direct
Compensation Property Damage.
■ Loss or Damage coverage is available as requested by the municipality to protect its legal
liability for a customer's automobile from physical damage caused by an insured peril, while
in the care, custody or control of the municipality.
■ Physical damage coverage for customer vehicles can include Collision, and Comprehensive or
Specified Perils coverage. Please refer to the limits and deductibles for the selected coverage
as specified in the Summary of Coverage pages.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company
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