HomeMy WebLinkAboutCS 55-05PICKERING
REPORT TO
COUNCIL
Report Number: CS 55-05
Date: June 21,2005
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: 2005/2006 Property and Liability Insurance Program
Recommendation:
It is recommended that Report CS 55-05 of the Director, Corporate Services &
Treasurer be received and that;
the City of Pickering renew effective June 27, 2005, its property, liability and other
coverages through the Frank Cowan Company for the period July 1, 2005 to July
1, 2006 inclusive on terms and conditions acceptable to the Director, Corporate
Services & Treasurer;
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 within the total deductible limit where it is in the City's interest to do so;
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 order to protect the assets
of the City and it's elected officials and staff; and,
the appropriate officials of the City of Pickering be given authority 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 55-05
Subject: 2005/2006 Property & Liability Insurance
Date: June 21, 2005
Page 2
Financial Implications: The premium renewal cost has been provided for in the
various cost centers through the approval of the 2005 budget by Council and the
renewal premium cost is within the 2005 budgeted amount. The City's premium
renewal is currently below the industry renewal trend rate of 15% due to the City's long-
term business relationship with the insurance carriers ("loyalty discount") and due to the
City's claims history. Staff examined increasing the current deductible from $10,000 to
$25,000 but the corresponding savings in premiums did not warrant the additional risk.
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. This premium was also approximately
$98,000 less than the 1998 budget provision which, after claims under the increased
deductible were paid, resulted in a transfer of approximately $50,000 to the Self
Insurance Reserve.
From 1999 to 2003, staff have reviewed the deductibles, coverages, policies and
procedures to ensure that the City is financially protected. In 1999 approximately
$92,000 was transferred to the Insurance Reserve as a result of the continued savings.
In 2000 and 2001, the amount of $100,000 in each year was included as a revenue
item in the annual budget. For the 2002 budget, $50,000 was included as revenue
with the balance being used to offset premium increases. The 2003 Budget anticipated
a premium increase and therefore, no savings were transferred to the Self Insurance
Reserve. As a result the balance of the Reserve at December 31, 2004 was
approximately $940,000. The 2005 budget anticipated a premium increase based on
current industry trends and also due to the increase in assets covered through the
policy. Our renewal is below the budgeted amount which continues in part to reflect
our claims experience based on our risk portfolio or municipal services provided.
Recommendation 4 provides the Treasurer with the authority to continue to review and
adjust insurance coverages where appropriate during the year to reflect current market
and business environment conditions.
Current External Insurance Environment
Majority of insurance companies transfer part of their risk covered under insurance
policies to another insurer known as the "reinsurer". To put another way, insurance
companies try to spread or transfer part of their risk to another company. The transfer
of the risk is a prudent strategy to avoid a"bad year" when an insurance company may
be faced with claims greater than the premium collected. The global re-insurance
Report CS 55-05
Subject: 2005/2006 Property & Liability Insurance
Date: June 21,2005
Page 3
market consists of seven or eight major companies. Last year, natural disasters such
as hurricanes in Florida, typhoons and earthquake in Japan could generate claims in
excess of $15 Billion US. In addition, claim costs from Provincially downloaded
services such as ambulance and roads are now impacting the insurance/re-insurance
industry. These claims/payments will probably be covered by the reinsurance industry
which in-turn recovers these losses through higher premiums. Insurance companies
continue to experience, generally Iow returns from their investments where traditionally,
investment earnings have been used to offset or reduce premiums.
The Value of Lonq-term Business Relationship
After September 11, 2001, the insurance industry was faced with a "hard" market.
Some insurance companies left the municipal field and others demanded substantially
higher premiums. The City found itself in the enviable position of having maintained a
long standing business relationship with the Frank Cowan Company. This long-
standing business relationship has translated into lower premium increases or a loyalty
discount to the City in comparison to those municipalities who left the Frank Cowan
Company and then rejoined in 2002. The City is fortunate to have as an asset a long-
term business relationship with the Frank Cowan Company, which as proven to have
delivered lower premium increases to the City. The City also has an effective and
positive business relationship with its insurance adjuster (L.V. Walker & Associates).
Claims received by the City are quickly sent directly to the insurance adjuster and on
average the insurance adjuster follows-up with an initial or introductory contact within
two business days. The City's insurance adjuster has over 20 years of local municipal
insurance experience which the City uses as an asset to investigate and settle claims.
The City continues to reduce or manage risk through effective business processes and
or policies. Last year, the City implemented a revised City alcohol policy which now
requires any individual or organization to purchase $1.0 million general insurance
liability coverage and to employ bartenders who have the "smart serve" training. These
requirements not only reduce the City's risk, but more importantly protect the individual
or organization renting the City's facilities. Recently, City staff invited a representative
of the Frank Cowan Company (who has extensive special events experience) to review
the facility and events management of the Frenchman's Bay Festival. He inspected the
facility, reviewed the operation of the event with City staff and was satisfied with the risk
management strategy being implemented.
Attachment 1 provides a "program summary" of the various insurance coverages.
Conclusion
The City's Insurance and Risk Management Programs appear to be working
satisfactory. The City has benefited from its long standing relationship with the Frank
Report CS 55-05
Subject: 2005/2006 Property & Liability Insurance
Date: June 21, 2005
Page 4
Cowan Company especially during the current insurance market. Therefore, renewal
through the Frank Cowan Company with our present carriers is recommended.
Attachments:
1. Program Summary of Insurance Coverage
Prepared By:
Stan Karwowski
Manager, Finance & Taxation
Approved / Endorsed By:
Gillis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Attachment
Copy: Chief Administrative Officer
Recommended for the consideration of
PickeringCit Cou '
'~he"m~ ~.-Quir~Chief AdCninistrat~fficer '
Cowan
Frank Cowan Company
ATTACHMENI':N t~' TO I:LEPOP, T#?' ,_4'5"- Off
2005
Municipal Insurance Program
CORPORATION OF THE CITY OF PICKERING
Prepared by:
Mr. Randy Edwards, CIP, CAIB, CCIB, RIB (Ontario)
Regional Manager
Frank Cowan Company Limited
4 Cowan Street East
Princeton, ON N0J 1V0
This is a summary. Nothing herein alters the terms, conditions
and exclusions contained in the printed insurance contract(s).
REF: 60275/es
June 9, 2005
randy, edwards@frankcowan.com
1.800.265.4000
T/519.458.4331
F/519.458.4366
About the Frank Cowan Company
Leader in Public Entity Insurance
Since 1927, Cowan has grown to become one of Canada's leading providers of
public entity insurance. Cowan has been a pioneer in the development and
implementation of innovative insurance programs for the Municipal, Health Care,
and Education sectors.
Cowan Insurance Group
The Frank Cowan Company Limited is a wholly owned subsidiary of the Cowan
Insurance Group, whose other wholly owned subsidiaries include Cowan
Insurance Brokers Limited and Cowan Wright Beauchamp Limited, making the
Cowan Insurance Group one of the largest privately held companies of its type in
Canada. Cowan Insurance Brokers Limited provides personal insurance
products (home and automobile), and commercial insurance programs to
thousands of individuals and corporations across Canada. Cowan Wright
Beauchamp Limited provides pension, benefits, actuarial and human resource
consulting to corporations and public entities. The Cowan Insurance Group is a
wholly owned subsidiary of Princeton Holdings Limited, which also owns
controlling interest in The Guarantee Company of North America, an insurance
leader in surety bonding, corporate risk products and high value homeowner
coverages.
Outstanding Service
We are more than just an insurance provider...we are a trusted partner in
insurance and risk management. We work with our clients to develop
individualized programs including complete risk management, claims
management and 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. Our relationships and network allow us to
continually develop innovative, cost-effective products and services tailored to
the risks of individual clients.
Financial Stability
Cowan, as a Managing General Agent of public entity portfolios, represents a
group of select insurers of exceptional reputation and financial stability, which
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 Limited
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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 of
specialized services. Most often we can provide the services listed below at no additional
cost to the client.
Liability Hazard Assessment
Seminars & Staff Training
Our Municipal clients are involved in a wide range of
activities and operations designed to service the
needs of their constituents. The diverse nature of
these activities leads to various potential public
liability situations; we work with our clients to provide
specific hazard identification and analysis of these
exposures.
We deliver a wide range of presentations to our
Municipal clients on an ongoing basis that provide
continuous education for our clients.
Systems & Processes
We help our clients develop systems and processes
for consistency within their operations and specifically
focus on documentation, reporting and investigation
of claims and accidents.
Contractual Review
Publications, Bulletins &
Information Packages
Claims Management
Our experience contributes insight on the suitability
and effectiveness of liability transfers and appropriate
insurance and indemnity clauses within your various
contracts.
Because constant two way communication is
important, 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.
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. Throughout this process, your interests are
paramount and your input is sought. Detailed claims
progress reports are produced and can be organized
by type of loss or department to suit your needs.
Frank Cowan Company Limited
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MARKETPLACE CONDITIONS
The Public sector has experienced significant losses in the past few years. Some of
these losses have been driven by landmark cases, but overall, frequency and severity of
claims has 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 during this period at a rate in excess
of the premium growth. In addition, insurers and re-insurers have become extremely
cautious about public entity liabilities because of the continuing downloading of services
by the provincial government, namely roads and ambulance services. Insurers are now
experiencing the impact of the claims from these downloaded services and the impact
they are having on the public entity portfolio.
During the late 1990's, municipalities and other public entities have enjoyed favourable
insurance costs due to "soft market" conditions fuelled primarily by a good return on
investments by the insurance industry. We are now witnessing premium increases in
the general insurance industry driven by losses that have vastly outpaced premiums and
the reduction on investment income being received by the insurers. As a result, all
insurance buyers are being affected as insurers and re-insurers are requiring more
premium income to meet financial solvency requirements, creating a "hard market"
condition.
As a result of the current "hard market" conditions, a number of insurers have withdrawn
from the public entity marketplace or have had coverage limitations imposed upon them
by their markets that do not allow them to effectively address the needs of public entity
clients. Frank Cowan Company Limited, as long-term specialist in public entity
insurance, continues to receive the support and capacity of our markets. We continue to
provide a long term stability for the insurance and risk management needs of our public
entity clientele, with our policies and services ever changing to reflect the continuing
exposures brought about by downloading and new opportunities public entities now
enjoy as a result of the new Municipal Act.
Cowan has for many years been able to provide a consistent and continuously stable
market for public entities. We are confident that our product and pricing will continue to
reflect this position.
The terms and conditions for the 2005 Renewal will be subject to the following:
Continued support of our markets.
No major changes in the loss experience of your portfolio.
No major changes in the re-insurance market that would adversely affect the
underlying insurance.
Frank Cowan Company Limited
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PROGRAM SUMMARY
SUMMARY OF COVERAGES
LIMITS/AMOUNTS
PART A - CASUALTY
Municipal Liability
Limit of Protection per occurrence
(No Annual Aggregate Limit)
Third Party Claims Deductible including expenses
Sewer Backup Deductible including expenses
Wrongful Dismissal (defence costs) Limit per claim
Annual Aggregate Limit
Deductible
Municipal Marina Liability
Malpractice Liability
Voluntary Compensation
Errors and Omissions
Limit of Protection per claim
(No Annual Aggregate Limit)
Deductible including expenses
Non-Owned Automobile
Limit of Protection per occurrence
(No Annual Aggregate Limit)
Legal Liability for Non-Owned Vehicles (S.E.F. No, 94)
All Perils Physical Damage Limit
Deductible
Environmental Liability
Liability of Protection per claim
Annual Aggregate Limit
Self-Insured Retention
$ 25,000,000.
$
$
$
$
$
$
$
$
$
$
25,000.
25,000.
250,000.
250,000.
5,000.
Included
Included
Included
25,000,000.
10,000.
25,000,000.
500,000.
500.
1,000,000.
2,000,000.
10,000.
Frank Cowan Company Limited
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PROGRAM SUMMARY
SUMMARY OF COVERAGES
LIMITS/AMOUNTS
Comprehensive Crime
Commercial Blanket Bond
Counterfeit Paper
and Depositors' Forgery
Audit Expense (Sub-Limit $100,000.)
Money and Securities - Blanket any Location
Excess on Securities
$ 2,0OO,OOO.
Included
Included
Included
$ 100,000.
$ 100,000.
Councillors' Accident
- City MayodRegional Councillor, Three Regional Councillors
(Durham)/City Councillor, Three City Councillors and Nine Library
Board Members
Accidental Death & Dismemberment (24 Hour a Day Coverage)
(No Annual Aggregate Limit and No Deductible)
Weekly Income - Total Disability
Weekly Income - Partial Disability
$ 100,000.
$ 500.
$ 250.
Municipal Conflict of Interest
Percentage of Legal Fees and Expenses
Maximum Limit of Reimbursement per claim
(No Annual Aggregate Limit)
100%
$ 100,000.
Legal Expense
Percentage of Legal Fees and Expenses
Maximum Limit of Reimbursement per claim
Annual Aggregate Limit
100%
$ 100,000.
$ 25O,0OO.
Frank Cowan Company Limited
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PROGRAM SUMMARY
SUMMARY OF COVERAGES
LIMITS/AMOUNTS
PART B-PROPERTY
Property Insurance (including Data Processing Insurance)
Total Sum Insured *
Valuable Papers
Accounts Receivable (other than Data Processing)
Extra Expense (other than Data Processing)
Business Interruption
Rent or Rental Value Form
Gross Revenue Form
$ 125,211,000.
$ 500,000.
$ 500,O00.
$ 1,000,000.
$ 500,000.
$ 2,584,5O0.
Checkroom Liability
$ 5,000.
Data Processing
System and Equipment
Media
Extra Expense
$ 1,440,800.
$ 47,000.
$ 50,000.
Fine Arts Form
Exhibition Form
$ 2,000.
As Per Lists Provided
Deductible $
Exceptions:
Checkroom Liability, Fire Training Trailer, Fine Arts Form and Exhibition FormS
- Peril of Flood $
- Pedl of Earthquake 3% or Minimum $
*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.
10,000.
1,000.
25,000.
100,000.
Frank Cowan Company Limited
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PROGRAM SUMMARY
SUMMARY OF COVERAGES
LIMITS/AMOUNTS
Boiler and Machinery
Limit per Accident - Comprehensive $
Extra Expense $
Water Damage $
Ammonia Contamination $
Expediting Expenses
Hazardous Substance (including PCB Contamination) $
Business Interruption - Loss of Profits (Gross Revenue)
- All Buildings & Facilities, Greenwood Museum, Pickering $
- Don Beer Arena, 940 Dillingham Road, Pickering $
- Dunbarton Indoor Pool, 655 Sheppard Ave. E., Pickering $
- Pickering Recreation Complex, 1867 Valley Farm Road, Pickering $
Spoilage - Goods under Refrigeration $
Professional Fees $
Data and Media $
By-Law Cover
Deductible $
50,000,000.
500,000.
500,000.
50O,0OO.
Included
500,000.
94,500.
600,000.
100,000.
1,790,000.
50,000.
500,000.
10,000.
Included
10,000.
Frank Cowan Company Limited
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PROGRAM
SUMMARY
SUMMARY OF COVERAGES
LIMITS/AMOUNTS
i~ART C - AUTOMOBILE
Automobile Fleet
Liability Limit
Deductibles
Section 3 (Third Party)
Section 6 (Direct Compensation)
No Physical Damage applies to 1951 Antique Pumper (Parades)
All Perils applies to All Other Vehicles
$ 25,000,000.
$ 10,000.
$ 10,000.
$ 10,000.
Garage Automobile
Third Party Liability Limit
Customer VehicleS
Collision Limit
Deductible
Specified Perils Limit
Deductible
$ 3,O00,O00.
$ 200,000.
$ 5oo.
$ 300,000.
$ 5oo.
Frank Cowan Company Limited
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COMPREHENSIVE INSURANCE
PROGRAM
COVERAGE FEATURES
2005 - 2006
Frank Cowan Company Limited
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PART A
CASUALTY
Frank Cowan Company Limited
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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 furl policy limit, unless specified otherwise:
· Employers' Liability
· Contractual Liability
· Liquor Liability
· Tenants' Legal Liability
· Sewerback-up Liability
· Professional Liability on an Occurrence basis (e.g. Building Inspection Services,
Medical Malpractice).
· Malpractice Liability
· Watercraft Liability
· Products Liability
· Wrongful Dismissal coverage is included, subject to the limits specified in the
Summary of Coverage pages.
· 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.
Frank Cowan Company Limited
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ERRORS AND OMISSIONS
LIABILITY INSURANCE
Features
This is a claims-made poficy 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, to misrepresentation, abuse of power 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.
Frank Cowan Company Limited
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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.
The main coverage is as per S.P.F. No. 6--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. (Note: Unlike standard industry
wordings, we do not restrict this coverage to "hired" automobiles only.)
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company Limited
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ENVIRONMENTAL LIABILITY INSURANCE
Features
This is a claims-made policy that protects the municipality from environmental liability for
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.
Frank Cowan Company Limited
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CRIME INSURANCE
Features
Th/s 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, and
- Depositors Forgery.
· 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 compensatea.
· No deductible applies.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company Limited
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COUNCILLORS' ACCIDENT INSURANCE
Features
This policy provides accident insurance coverage for the benefit of the mun/cipality'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.
Frank Cowan Company Limited
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CONFLICT OF INTEREST INSURANCE
Features
This policy provides for the reimbursement of legal fees and expenses recurred by the
elected or appointed members of Council who are charged under the Municipal Conflict
of Interest Act, provided that a court finds (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.
Frank Cowan Company Limited
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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 Limited
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PART B
PROPERTY
Frank Cowan Company Limited
- 20 -
PROPERTY INSURANCE
Features
This policy provides "Afl 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.
· Permission 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.
Frank Cowan Company Limited
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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,
Summary of Coverage pages):
if applicable (please refer to the
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
Boiler and Machinery Insurance policies.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company Limited
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BOILER AND MACHINERY 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:
One deductible applies should thera be
Machinery and Property Insurance policies.
Extra Expense,
Water Damage,
Ammonia Contamination,
Expediting Expenses,
Hazardous Substance (including PCB Contamination),
Loss of Arena Revenues,
Spoilage,
Professional Fees,
Data and Media, and
By-Law Cover.
a loss involving both the Boiler and
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company Limited
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PART C
AUTOMOBILE
Frank Cowan Company Limited
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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,
- inappropriatelylicensed 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 Limited
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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 Limited
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