HomeMy WebLinkAboutFIN 27-13 Cal/00 Resolution #150/13 Report to
I Dated December 9, 2013 Executive Committee
PI KERI G Report Number: FIN 27-13
Date: December 2, 2013
From: Paul Bigioni
Director, Corporate Services & City Solicitor
•
Subject: 2014 Property and Liability Insurance Renewal
Recommendation:
1. That Report FIN 27-13 of the Director, Corporate Services & City Solicitor
regarding the 2014 property and liability insurance renewal be received;
2. That the proposal No RFP-13-2013 submitted by Jardine Lloyd Thompson
Canada Inc. (JLT) for general insurance and risk management services for the
period January 1, 2014 to December 31, 2014 in the amount of$624,503 (plus
applicable taxes) be accepted;
3. That the insurance coverage through JLT be for a period of one (1) year with an
option in favour of the City to extend the coverage on the same terms and
conditions for four (4) consecutive one year renewal terms, each subject to
Council approval;
4. That L.V. Walker & Associates be confirmed as the City's Adjuster of Record for
property, liability and other insurance and related matters;
5. That the Division Head, Finance & Treasurer be authorized to settle any claims
including any adjusting and legal fees, where it is in the City's interest to do so;
6. That the Division Head, Finance & Treasurer be authorized to purchase
additional insurance, make changes to deductibles and existing coverages, and
alter terms and conditions as becomes desirable or necessary to limit potential
liability exposure and to protect the assets of the City and its elected officials and
staff; and,
7. That the appropriate officials be authorized to take the necessary actions to give
effect thereto.
Executive Summary: Over the summer months, City staff interviewed and
selected an insurance consultant. An insurance consultant was required to prepare the
RFP and to analyze the various submissions and policy provisions.
Report FIN 27-13 December 2, 2013
Liability Insurance
Renewal Page 2
Subject: 2014 Property and y 9
the City issued an RFP for general insurance and risk
On September 16, 2013, y g
management services for the period January 1, 2014 to December 31, 2014, with an
option to extend the coverage for an additional term of up to four(4) one year renewals.
The RFP closing date was October 23, 2013 and a total of four proposals were
received.
An Evaluation Committee made up of City staff with the assistance of the insurance
consultant reviewed all the proposals against the criteria outlined in the RFP. The
proposal of JLT was the highest scoring proposal and also offered the lowest annual
premium of the four proponents. JLT offered an annual insurance premium of$624,503
(before applicable taxes) for 2014, which is a cost savings of$180,885 compared to the
annualized premium paid to the City's incumbent insurer in 2013.
While the City has been very well served by its insurance incumbent, Frank Cowan
Company, the recommendation to move to JLT as the new insurance provider, will
provide significant cost savings over the next year. Although there are some notable
differences in their policies, these are not significant enough to recommend against the
lowest annual premium offered by JLT. It is therefore recommended that the proposal
submitted by JLT be accepted.
Financial Implications: The insurance premium will be provided for in the City's
2014 current budget to be approved by Council. The premium decrease is
approximately 22% compared to the current year's annualized premium.
Discussion: At the June 17, 2013 Council Meeting, Council approved the renewal
of the City's property, liability and other insurance policies through the Frank Cowan
Company for the period July 1, 2013 to January 1, 2014. The insurance renewal term
was for six months in contrast to the City's traditional twelve month renewal period. A
shorter renewal period was chosen to allow City staff to issue a request for proposal for
its general insurance and risk management program.
Informal quotations were requested from three industry insurance consultants to assist
City staff in the preparation and evaluation of the insurance RFP. Interviews were
undertaken with the consultants and after a thorough review of the scope of services
and associated fees, the quotation submitted by Programmed Insurance Brokers Inc.
was accepted.
Programmed Insurance Brokers Inc. was engaged to assist with the RFP to ensure that
the City would receive the best possible insurance program within its budget. The
consultant also reviewed the various insurance policy terms, coverages, exclusions and
conditions submitted by the proponents to ensure that the City is adequately protected.
This was a crucial step in the RFP process due to the fact that the true value of an
insurance program is reflected in the policy terms and conditions.
Report FIN 27-13 December 2, 2013
Subject: 2014 Property and Liability Insurance Renewal Page 3
A Request for Proposal for Insurance and Risk Management Services was issued
On September 16, 2013, the City issued a RFP for general insurance and risk
management services. Seven insurance providers, including the Durham Municipal
Insurance Pool, were invited to obtain the RFP Terms of Reference. An advertisement
was placed on the City's website to generate additional interest and competition. Two
addendums were issued in response to clarifying questions received from the various
proponents and to extend the closing date by one week. The RFP closed on October
23, 2013.
The RFP communicated the City's policy requirements regarding the type of coverage,
limits, exclusions, deductibles so as to ensure that the City maintains or improves
coverage for its property and exposures through the RFP process. The City's existing
insurance program consists of the following:
• Property Insurance
• Equipment Breakdown Insurance
• General Municipal Liability
• Errors and Omissions (E&O) Liability insurance
• Non-Owned Automobile insurance
• Environmental Liability Insurance
• Crime Insurance
• Councillors, Board Members Accident Insurance
• Conflict of Interest Insurance
• Legal Expense Insurance
• Automobile Fleet Insurance
• Garage Automobile Insurance
The City received proposals from Frank Cowan Company; BFL Canada; Ontario and
Municipal Insurance Exchange (OMEX); and Jardine Lloyd Thompson Canada Inc.
(JLT). The RFP closing date was extended by one week to give all proponents
additional preparation time.
• RFP Evaluation Results
On November 8, 2013, an Evaluation Committee consisting of Program Insurance
Brokers Inc., the (Acting) Manager, Internal Audit & Budgets; the Manager, Supply &
Services and the Senior Purchasing Analyst, reviewed the proposals against the criteria
(see Attachment) outlined in the RFP. The proposal of JLT was the highest scoring
proposal and offered the lowest premium of the four proponents. It is recommended
that Council accept this proposal.
JLT offered an annual insurance premium of$624,503 (before tax) for 2014 which is a
cost savings of$180,885 as compared to the annualized premium paid to the City's
incumbent insurer, Frank Cowan Company, in 2013.
Report FIN 27-13 December 2, 2013
Subject: 2014 Property and Liability Insurance Renewal Page 4
The coverages and services offered by the City's incumbent insurer and JLT are similar
in many respects, as are the qualifications of their staff. However, there are a number
between the coverages offered by Frank Cowan Company and those
of differences y p Y
9
offered by JLT. Below is a summary of the notable differences.
Insurance Program Differences
Highlights
Frank Cowan Company JLT
General.Municipal & E&O Liability
There is no overall annual limit on the There is an overall annual limit of$25 million
maximum amount of losses that the on the amount of losses that the insurer will
insurer will cover. pay for Products and Completed Operations
and E&O coverage.
No premium guarantee. Three year premium guarantee subject to
certain conditions.
Environmental Liability
The coverage for Environmental Insurance The coverage for Environmental Insurance
liability is limited to $1 million per incident. liability is limited to $2.5 million per incident.
There is an overall annual limit of$2 There is an overall annual limit of$5 million
million on the amount of losses that the on the amount of losses that the insurer will
insurer will pay for Environmental Liability pay for Environmental Liability coverage.
coverage.
Automobile Fleet Insurance
In the event of a loss, the insurer will pay In the event of a loss, the insurer will pay
replacement cost for vehicles up to 25 replacement cost for vehicles up to 20 years
years old. old. For vehicles over 20 years old, any
losses would be on the basis of actual cash
value. For fire trucks between 20 and 25
Y ears old, the insurer will pay the purchase
price or the appraised value. For vehicles
over 25 years old, the insurer will pay actual
cash value.
Property Insurance (including Equipment
Breakdown)
No rate guarantee. Two year rate guarantee subject to certain
conditions.
Two separate policies are in force for The coverage for equipment breakdown is
P p 9
Property (buildings, contents and combined with the property insurance
equipment) and Boiler and Machinery exposures and has a limit of$184 million.
(equipment breakdown). The property
policy has a limit of $186 million and the
equipment breakdown policy has a
separate limit of$50 million.
Report FIN 27-13 December 2, 2013
Subject: 2014 Property and Liability Insurance Renewal Page 5
For historical or unique buildings, For historical or unique buildings,
replacement cost coverage is provided reconstruction coverage is available upon
which rebuilds/replaces with similar receipt of independent appraisals.
materials to preserve heritage value.
General Municipal & Errors & Omissions (E&O) Liability
General Municipal Liability provides the City with coverage for a broad range of
exposures (e.g., trip and fall) and the majority of claims made against the City fall in this
area. The E&O liability coverage protects the City for wrongful acts that cause financial
loss to a third party (e.g., alleged building inspection error).
With respect to municipal liability and E&O claims, the policies for both Frank Cowan
Company and JLT provide the City coverage for losses to a limit of$25 million for each
incident. JLT provides an overall annual limit of$25 million on the amount of losses that
the insurer will pay for Products and Completed Operations and E&O coverages. This
means that JLT's policy would pay out a maximum of$25 million for any one claim
during the policy term and it would pay out a maximum of$25 million in total for all
claims during the one year policy period. However, this overall annual limit is not a
significant exposure based on the City's claims history and the nature of its claims.
JLT's overall annual limit of$25 million on losses does not apply to the statutory
responsibilities which the City has to perform for or on behalf of third parties including
road maintenance, snow removal, tree maintenance, street cleaning and building
inspections. Most of the insurance claims against the City fall within the City's statutory
responsibilities and, therefore, the overall annual limit of$25 million would not apply to
them. The City may be exposed if it goes outside the municipality and sells products or
services to others, but we are not aware of any exposure in this area.
Regarding E&O claims, the City has experienced only seven E&O claims in the last 10
years of which six incidents were investigated and no claims payment made. JLT
coverage provides E&O protection to an overall annual limit of$25 million while the
Frank Cowan Company has no such limit, and allows multiple incidents of up to $24
million each. On the basis of the City's history or even that of other Ontario
municipalities, the chance of this occurring is extremely remote and if it did occur, the
City would be able to purchase replacement coverage at an additional cost for any
future claims.
Auto Fleet Insurance
The automobile fleet insurance coverage offered by JLT is comparable to the City's
existing coverage with the exception of replacement cost.
In the event of losses, Frank Cowan Company pays the cost to replace vehicles up to
25 years old with no deduction for depreciation. JLT will only pay replacement cost for
vehicles less than 20 years. For vehicles over 20 years old, any losses would be paid
•
Report FIN 27-13 December 2, 2013
Subject: 2014 Property and Liability Insurance Renewal Page 6
on the basis of actual cash value. For fire trucks between 20 and 25 years old, JLT will
pay the purchase price or the appraised value. For vehicles over 25 years old, JLT will
pay actual cash value. This coverage restriction would not likely impact the City as it
typically replaces vehicles before they reach 20 years of age. This restriction may apply
in the case of some fire trucks, however, fire trucks are usually taken out of service
before this date.
Environmental Liability
Environmental liability coverage protects the City from claims because of bodily injury,
property damage and the prevention, control, repair, clean-up or restoration of
environmental contamination.
JLT is offering greater protection from losses from environmental liability claims by
increasing the City's current limits. The City's coverage is increased from $1 million to
$2.5 million for each incident and the overall annual limit on the amount of losses paid
by the insurer is increased from $2 million to $5 million.
Property Insurance (including equipment breakdown)
Currently, the City is insured for protection of its own assets valued at approximately
$185,732,900. The key points to consider when evaluating property insurance
coverage include:
• Blanket Limit (all losses insured up to policy limit)
• Replacement cost protection (new for old)
• No Co-insurance (no shortfall if property is under insured)
• Newly acquired (automatic coverage for new property to a limit)
The property coverage provided by both Frank Cowan Company and JLT include the
above requirements to protect the City's assets.
JLT provides the City with greater protection for losses from equipment breakdown by
increasing the current limit from $50 million to $184 million. This is possible because
JLT has combined its Property insurance and Equipment Breakdown insurance into one
policy.
For historical or unique buildings, the City's current replacement cost coverage is to
rebuild/replace with similar materials to preserve heritage value. JLT will also provide
similar coverage for historical or unique buildings, but the City must provide
independent appraisals.
Report FIN 27-13 December 2, 2013
Subject: 2014 Property and Liability Insurance Renewal Page 7
Future Premium Increases
Please find below a percentage breakdown of the City's insurance premium by major
categories.
Insurance Premium Breakdown (%) by Major Categories
25%
63%
❑Liability ®Automobile ❑Property
As the above chart indicates, the liability insurance policy is the largest premium cost
component. Future premium increases will be based on the City's claim history (ten
years) and satisfactory resolution of open claims. The 2015 premium increase will be
based on nine years experience with the Frank Cowan Company and one year with
JLT.
The City can, to some degree, limit future premium increases by being pro-active in
reducing its high risk areas. The 2011 to 2013 budgets included every year an
investment of$200,000 for sidewalk and curb replacements to reduce slip and fall
claims. The proposed 2014 budget will only require $75,000 for sidewalk replacements
as the sidewalk repair backlog has been substantially reduced. The City has also
invested in a "GPS" system for its vehicles and snow removal equipment to assist in
providing valuable information to defend insurance claims. The City will have to
continue to invest in insurance risk mitigation strategies to keep future insurance
premium increases to a minimum. The property insurance premium will increase over
time as the City adds new assets such as the indoor soccer dome.
Recommendation
While the City has been very well served by its insurance incumbent, Frank Cowan
Company, the recommendation to move to JLT as the new insurance provider will
provide significant cost savings over the next year. Although there are some notable
differences in the coverages provided, these are not significant enough to recommend
against the lowest annual premium offered by JLT. It is therefore recommended that
Council accept the proposal submitted by JLT for general insurance and risk
management services for the period January 1, 2014 to December 31, 2014 in the
amount of$624,503 (plus applicable taxes).
•
Report FIN 27-13 December 2, 2013
Subject: 2014 Property and Liability Insurance Renewal Page 8
Attachments:
1. Memorandum dated October 24, 2013 from the Manager, Supply & Services
regarding Request for Proposal No. RFP-13-2013
2. Memorandum dated November 8, 2013 from the Manager, Supply & Services 1
regarding Request for Proposal No. RFP-13-2013
3. Summary of Coverage, Limits and Deductibles
Prepared By: Approved/Endorsed By:
Aft"( )kzatr.6,
James Halsall Stan Karwowski
(Acting) Manager, Budgets & Division - --•, Finance & Treasurer
Internal Audit
Paul Bigioni `■
Director, Co po ate ,ervices & City Solicitor
Recommended for the consideration
of Pickering Ci Council
iljet,-. 613r 2013
Tony Prevedel, P.Eng.
Chief Administrative Officer
ATTACHMENT# 1 TO REPORT# 21'13
Citii 00
• Memo
PICKERING
To: James Halsall October 24, 2013
Manager, Budgets & Internal Audit
From: Vera A. Felgemacher.
Manager, Supply & Services
Copy: Division Head, Finance & Treasurer
Senior Purchasing Analyst
Consultant
Subject: Request for Proposal No. RFP-13-2013
General Insurance and Risk Management Services
File: F-5300-001
Request for Proposals were invited from four (4) companies and was posted on the City website.
Four(4) companies responded by the official submission date and time. Two (2) addenda were
issued.
Evaluation of proposals is performed in four (4) stages.
Reference: Part 3, Evaluation of Proposals
3.3 Stage I — Mandatory Requirements, Submission and Rectification
3.3.1 Submission and Rectification Date
Other than inserting the information requested on the mandatory submission forms set out in the
RFP, a proponent may not make any changes'to any of the forms. Proponents submitting
proposals that do not meet the mandatory requirements will be provided an opportunity prior to the
Rectification Date to rectify any deficiencies.
3.4 Stage II — Evaluation of Rated Criteria
Proponents should refer to Appendix D — RFP Particulars— Section D. Rated Criteria for a
breakdown of the Rated Criteria.
3.5 Stage Ill— Evaluation of Pricing
Proponents should refer to the Rate Bid Form at Appendix C and Appendix D — RFP Particulars —
Section E. Pricing. .
3.6 Cumulative Score and Selection of Highest Scoring Proponent
At the conclusion of Stage III, all scores from Stage II and Stage III will be added together and the r`
. highest ranked proponent will be selected for negotiations in accordance with Part 4 —Terms and
Conditions of the RFP process.
3.7. Tie Score
In the event of a tie score, the selected proponent willbe determined in accordance with the City's ,
Purchasing Procedures.
All four (4) proposals will proceed to Stage II.
The following documentation is included to proceed with evaluation:
1. Evaluation Form — Stage I ,
2. Evaluation Form — Stage II (to be used by Evaluation Committee Members)
3. Evaluation Form — Stage II Rating Criteria
4. Copies of Proposals
Please co-ordinate an appropriate date and time for a meeting of the evaluation committee. Each
member should review the submissions carefully according to the rating criteria before the meeting
time.
In accordance with Purchasing Policy Item 06.12, where the compliant quotation or tender meeting
specification and offering best value to the City is acceptable•or where the highest scoring proposal
is recommended and the estimated total purchase price is over$125,000.00, the Manager, may
approve the award, subject to the approval of the Director, Treasurer, CAO and Council.
Please prepare a Report to Council to include the following items:
(a) the appropriate account number(s) to which this work is to be charged;
(b) the budget amount(s) assigned thereto;
(c) Treasurer's confirmation of funding; •
(d) related departmental approvals; and
(e) related comments specific to the project. - ,
Please do not disclose any information to enquiring proponents during this time -they will be advised
of the outcome in due course. Please direct inquiries to Supply & Services.
If yo require further information, please feel free to contact me or a member of Supply & Services.
VAF/bk
Attachments:Evaluation Form -Stage I .
Evaluation Form —'Stage II
Evaluation Form —Stage II Rating Criteria .
Copies of Proposals _ .
October 24, 2013 Page 2 of 2
Request for Proposal No. RFP-13-2013 .,
General Insurance and RisI( anagement Services - ((
Request for Proposal
General Insurance and Risk Management Services
No. RFP-13-2013
Stage 1 — Evaluation Form
Stage I will consist of a review to determine which proposals comply with all of the
mandatory failing to satisfy the mandatory requirements as of
the Submission Date will be provided an opportunity to rectify any deficiencies.
Proposals failing to satisfy the mandatory requirements as of the Rectification Date will
be excluded from further consideration.
Proposals are to include the following mandatory requirements: •
A. The Proponent shall submit one (1) original signed by an authorized official, and
five (5) copies of the proposal by the closing date and time in a sealed package
(Part 3 - Item 3.1.2)
B. Acknowledge Addendum (Part 4 - Item 4.2.2)
C. Submission Form (Appendix B)
D. Rate Bid Form (Appendix C)
E. Table of Contents (Appendix D - Item C)
Company , Item A Item B Item C Item D Item E
Ontario Municipal ' ✓ ✓ ✓ ✓ ✓
Insurance Exchange
Frank Cowan ✓ ✓ ✓
Company
BFL Canada ✓ ✓ ✓ ✓ ✓
Jardine Lloyd ✓ ✓ ✓ ✓
1.Thompson Canada
Request for Proposal
General Insurance and Risk Management Services
•
No. RFP-13-2013
D. Rated Criteria
The following is an overview of the categories and weighting for the rated criteria of the
•
RFP.
Rated Criteria Category Weighting (Points)
Qualifications 15
Insurance Coverage 20
Service Requirements 25
Pricing 40
Total Points 100
Qualifications (15 points)
Proponent Experience
Team Expertise
Insurance Coverage(20 points)
Meeting the Request for Proposal Specifications
Scope of Coverage & Enhancements
Financial Stability of Insurers
Service Requirements (25 points)
Minimum Service Requirements
Risk Management
Claims Management
Pricing
Pricing will be scored based on a relative pricing formula using the Total All Coverages —
Annual Premium price as set out in the Rate Bid Form.
Each proponent will receive a percentage of the total possible pointsiallocated by
dividing that proponent's price into the lowest bid price. For example, if a proponent bids
. $120.00 and that is the lowest bid price, that proponent receives 100% of the possible
points (120/120 = 100%). A proponent who bids $150.00 receives 80% of the possible
points (120/150 = 80%), and a proponent who bids $240.00 receives 50% of the
possible points (120/240 = 50%).
Lowest rate
x Total available points = Score for proposal with second-
lowest rate
Second-lowest rate
Lowest rate
x Total available points = Score for proposal with third-lowest
rate
• Third-lowest rate
And so on, for each proposal. -
•
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ATTACHMENT#_PTO REPORT# 4I4 a)-13
cal 00
ytq N�!_
li[11113. .�1 , . Lei Memo
To: James Halsall November 8, 2013
Manager, Budgets & Internal Audits
From: Vera A. Felgemacher
Manager, Supply & Services
Copy: Division Head, Corporate Services &Treasurer
Subject: Request for Proposal No. RFP-13-2013
General Insurance & Risk Management Services
File: F-5300-001
Further to memo dated October 23, 2013, four proposals proceeded to Stage II of the evaluation
process. Each member of the Evaluation Committee has completed evaluating the four
proposals, completing Stage II of the evaluation process.
An Evaluation Committee meeting was held Friday, November 8, 2013 at 9:30 a.m. and a
combined average score for the proposals received was determined. The combined average
score of the proposal then proceeded to Stage III of the evaluation process. Stage III consists of a
scoring of the price submitted. At the conclusion of Stage III, all scores from Stage II and Stage III
of each proposal have been added together, for an overall score for each proposal. ,
During Stage IV, Cumulative Score, and in accordance with Part 3, Evaluation of Proposals, Item
3.2.4, at the'conclusion of Stage III, all scores from Stage II and Stage III were added together,
providing a highest ranking proponent.
The highest ranking proponent selected is Jardine Lloyd Thompson Canada Inc. with a price of
$624,503.00 (HST extra)for the provision of General Insurance & Risk Management services.
In accordance with Purchasing Policy Item 06.12, where the compliant quotation meeting
specification and offering best value to the City is acceptable or where the highest scoring
proposal is recommended and the estimated total purchase price is over $125,000.00, the
Manager, may approve the award, subject to the approval of the Director, Treasurer, CAO and
Council.
Please include the following items in the Report to Council:
(a) the appropriate account number(s) to which this work is to be charged; -
(b) the budget amount(s) assigned thereto;
' confirmation of -
(c) Treasurer's funding;
(d) c g,
( ) related departmental approvals; and
(e) related comments specific to the project.
Please do not disclose any information,to proponents. Enquiries may be redirected to Supply &,
Services.
VAF/bk .
Attachments: Evaluation Committee Summary of Average Total Scores — Stage II
Evaluation.Committee Summary of Average Scores — Stage II (blank)
Evaluation Committee Summary Total Score (blank)
•
P
•
•
•
November 8, 2013 Page 2
Request for Proposal No RFP-13-2013
General Insurance and Risk Management
Services
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ATTACHMENT#. 3 TO REPORT# Fit J 1 - 13
4JLT
Jardine Lloyd Thompson Canada Inc.
SUMMARY OF COVERAGE, LIMITS AND DEDUCTIBLES
Name of Insured: Corporation of the City of Pickering
Policy Period: January 1, 2014 to January 1, 2015
12:01 a.m. local time at the mailing address of the Named Insured
CANADIAN COUNCILS LIABILITY
General Liability: $ 5,000,000 any one Occurrence and
LIMIT OF LIABILITY in the Annual Aggregate for
Products and Completed
Operations during the Policy Period
Extension Limit
EXTENSIONS Employers' Liability $ 5,000,000 any one Claim
OF COVERAGE Tenant Legal Liability $ 5,000,000 any one Occurrence
Employee Benefit Liability $ 5,000,000 .any one Claim
Incidental Medical Malpractice $ 5,000,000 any one Claim
Retro Date: November 15, 1993
Voluntary Medical Payments $ 50,000 any one Claim and in
the Annual Aggregate during the Policy
Period
Forest Fire Fighting Expense $ 1,000,000 any one Occurrence
and in the Annual Aggregate during the
Policy Period
Voluntary Payment for Property $ 50,000 any one Occurrence
Damage and in the Annual Aggregate during the
Policy Period
Incidental Garage Operations $ 250,000 any one Occurrence
and in the Annual Aggregate during the
Policy Period
Municipal Marina Legal Liability $ 100,000 any one Pleasure Craft
$ 1,000,000 in the Annual
Aggregate for Legal Liability for
Property Damage during the Policy
Period
Wrongful Dismissal (Legal $ 250,000 any one Claim
Expense) and in the Annual Aggregate during
the Policy Period
Conflict of Interest and Legal $ 100;000 any one Claim and
Expense Reimbursement : $ 500,000 in the Annual
• Aggregate during the Policy Period
Non-Owned Automobile (including $ 5,000,000 any one Occurrence
Contractual Liability for Hired .
Autos)
Legal Liability for Damage to $ 250,000 any one Occurrence
Hired Autos
1
-� J LT
Jardine Lloyd Thompson Canada Inc.
•
Endorsement Limit
ENDORSEMENTS Municipal Errors and Omissions $ 5,000,000 any one Claim and in
Liability the Annual Aggregate during the Policy
Retroactive Date: Unlimited Period
subject to completed
questionnaire
Environmental Impairment Liability $ 2,500,000 any one Claim and
Retroactive Date: $ 5,000,000 in the Annual
November 15, 1993 Aggregate during the Policy Period
Abuse /Molestation Liability $ 250,000 any one Claim and
Retroactive Date: January 1, 2014 $ 500,000 in the Annual
Aggregate during the Policy Period
Voluntary Compensation As per Endorsement No. 4—Schedule
of Benefits
Applicable Coverage - Deductible
DEDUCTIBLE(S) Public Entity General Liability $ 100,000 per Occurrence except
per Claimant in respect of Sewer
Backup
Extensions of Coverage $ 100,000 per Occurrence/per
Claimant for all Extensions of Coverage
except: $NIL with respect to Non-
Owned Automobile Liability, Conflict of
Interest and Legal Expense
Reimbursement, and Voluntary
• Compensation;
$ 1,000 with respect to Legal
• Liability for Damage to Hired Autos
$ 5,000 with respect to
Wrongful Dismissal (Legal Expense)
Municipal Errors and Omissions $ 100,000 per Claim
Liability
Environmental Impairment Liability $ 100,000 per.Claim
Abuse /Molestation Liability $ 100,000 per Claim
Ai
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Jardine Lloyd Thompson Canada Inc. ��
Checkroom Liability Endorsement—Included
3 Year Long Term Agreement
Primary CAD 5,000,000 / CAD 100,000 Deductible
The policy will be renewed annually for a period of two years expiring on 01 January
2017 on the existing terms and conditions with the premiums paid annually in
advance, as follows:-
01 January 2014 to 01 January 2015 CAD 325,000(Gross)
01 January 2015 to 01 January 2016 CAD 325,000(Gross)
01 January 2016 to 01 January 2017 CAD 325,000 (Gross)
•
However terms and conditions may be reviewed 60 days prior to annual renewal if
any of the following apply:
• Pertinent changes in reinsurance cover
ENDORSEMENTS • there is an increase of 15%or more in population numbers
• there are legislative changes that may impact upon the value or frequency of
claims against the policy
• there is a change in the exposure of the insured (as per the business
description)or;
• the value of Incurred Claims exceeds 40% of net premium (excluding Taxes)for
any one Period of Insurance to which this agreement relates.
• there has been significant adverse development on historical loss record in any
of the prior 7 policy years whereby Incurred Claims exceed 50% of the Net
Premium.
The term"Incurred Claims"means the total cost of claims including actual claim
payments(including medical, legal and other costs and expenses)and reserves set
by the Insurers on outstanding claims(also including such costs and expenses).
"Net Premium"means the premium received by the Insurers net of tax and any
commissions or other deductions.
All other terms and conditions remain unaltered.
POLICY FORM PK1302509000 (2013) UMR B0753PK1302509000
INSURER(S)AND,
PROPORTION OF Certain Lloyd's Underwriters (Syndicate 1886)—100%
PARTICIPATION(S)
1
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Jardine Lloyd Thompson Canada Inc.
1. Environmental Impairment Liability—coverage is available for
underground storage tanks approved by the insurer. A list of tanks is
required along with evidence of appropriate test results and will be
SUBJECT TO endorsed onto the policy.
2.Abuse & Molestation—background checks in place for employees
implemented into hiring process
3. Completion of Casualty Questionnaire
4. Terms will remain as indicated subject to no claims deterioration as of
January 1, 2014
•
•
•
•
f '
1
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Jardine Lloyd Thompson Canada Inc. •
CANADIAN COUNCILS UMBRELLA LIABILITY
$20,000,000 any one Occurrence
$20,000,000 in the Annual Aggregate in respect of Products&Completed
Operations
LIMITS OF LIABILITY $20,000,000 in the Annual Aggregate in respect of Municipal Errors and
Omissions Liability
$20,000,000 in the Annual Aggregate in respect of Employee Benefits
Liability
EXCESS OF Underlying Coverage Underlying Limit
UNDERLYING General Liability $ 5;000,000 any one Occurrence
COVERAGE(S) AND Incidental Medical $ 5,000,000 any one Claim
LIMIT(S) Malpractice
Non-Owned Automobile $ 5,000,000 any one Occurrence
Liability
Municipal Errors & $ 5,000,000 any one Claim
Omissions Liability
Owned Automobile Liability $ 5,000,000 any one Occurrence
Garage Automobile Liability $5,000,000 any one Occurrence
Employee Benefits Liability $ 5,000,000 any one Claim
RETAINED LIMIT $ Nil
ENDORSEMENTS Endorsement#1 -Standard Excess Automobile Liability Policy SPF No. 7
Follow Form Named Insured
POLICY FORM PK1302510000 (2013) UMR B0753PK1302510000
INSURER(S)AND
PROPORTION OF Certain Lloyd's Underwriters (Syndicate 1886)— 100%
PARTICIPATION(S)
SUBJECT TO Terms will remain as indicated subject to no claims deterioration as of
January 1, 2014
•
•
1
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Jardine Lloyd Thompson Canada Inc.
•
•
•
COMBINED PHYSICAL DAMAGE & MACHINERY BREAKDOWN
COVERAGE Property Of Every Description—All Risks of Direct Physical Loss or Damage
(Subject to Policy Exclusions)
$184,070,900 Limit of Loss on Blanket Property of Every Description
including Machinery Breakdown
$ 1,659,90.0 Computer/Electronic Data Processing
(Included in Blanket Limit)
LIMITS $ 794,500 Business Interruption—Profits (Included in Blanket Limit)
$ 1,562,400 Mobile Unlicensed Equipment(Included in Blanket Limit)
$ 2,180,000 Bridges (Not Included in Blanket Limit)
EXTENSIONS The Limits shown below are included in the Blanket Limit shown above:
OF COVERAGE Extension Limit
Valuable Papers $ 500,000
Extra Expense $ 1,000,000
Accounts Receivable $ 500,000
Gross Rentals $ 500,000
Computer Media $ 500,000
Fine Arts (Agreed Value) $ 25,000
Ammonia Contamination $ 500,000
Water Escape $ 500,000
The Limits shown below are in addition to the Blanket Limit shown above:
Extension Limit
Newly Acquired Property $ 1,000,000
Buildings in the Course of Construction $' 1,000,000
Property in Transit $ 500,000
Unnamed Locations • $ 1,000,000
Expediting Expense $ 500,000
Contingent Business Interruption $ 1,000,000
Fire Extinguishing Materials and Fire
Fighting Expense $ 100,000
Professional Fees $ 500,000
Hacking Event or Computer Virus attack
-any one Random Attack or Any One
Specific Attack, any one event_or total $ 100,000
loss in a policy year for the combined
total loss or damage
Jardine Lloyd Thompson Canada Inc. 4JLT .
EXTENSIONS The Limits shown below are in addition to the Blanket Limit shown above:
OF COVERAGE Extension Limit
CONTINUED Master Key $ 10,000
Land and Water Pollution Clean Up $ 100,000
Expense
Stock Spoilage $ 100,000
Consequential Damage $ 100,000
Off Premises Service Interruption $ 1,000,000
Exhibition Floater $ 100,000
Hazardous Substance $ 500,000
Property of Councillors', Board $ 5,000 any one loss
Members' and Employees' ($25,000 maximum annual policy
limit)
TWO(2)YEAR TERM RATE GUARANTEE ENDORSEMENT
ENDORSEMENTS
It is understood and agreed that:
1. Upon the expiry date of the policy to which this Agreement is attached, the
Insurer shall submit to the Insured a statement showing loss ratio produced
for the account for the 12 month period preceding the anniversary date. The
rate increase on the above policy, excluding reinsurance costs, shall beheld
to 0%subject to the following:
a. Providing the loss ratio on the account is less than or equal to 40%
b. No material change in risk
2. The term"loss ratio"as used herein shall mean the ratio of losses incurred
to premiums earned under all policies expressed as a percentage.
3. The term"loss occurred"as used herein shall mean actual paid losses,
allocated loss adjustment expenses, legal expenses, as well as loss reserves
as estimated by the Insurer for unpaid losses, including losses reported and
reserved after each expiry date. The Insurer's loss runs shall be considered
accurate for this purpose.
Except as otherwise provided in this endorsement all limits, terms, conditions,
provisions, definitions and exclusions shall have full force and effect.
4JLT •Jardine Lloyd Thompson Canada Inc.
DEDUCTIBLE(S) $ 10,000 each Occurrence for All Losses except:
$ 25,000 each Flood Loss
5% of total loss or$100,000 minimum,whichever is greater, each Earthquake
occurrence.
$ 2,500 each Fine Arts&Mobile Unlicensed Equipment loss
POLICY FORM Municipal Insurance Program -Master Policy (July 2013)
Physical Damage:
Aviva Insurance Company of Canada —70%
The Sovereign General Insurance Company— 12.2%
INSURER(S)AND
PROPORTION OF Certain Lloyd's Underwriters - 17.8% UMR B753PG1300907000
PARTICIPATION(S) (Participation of Lloyd's Underwriter is based on Blanket Limit and Limits in
Addition to the Blanket Limit)
Machinery Breakdown:
Aviva Insurance Company of Canada — 100%
1. Schedule of Locations including breakdown of values, construction,
protection and occupancy.
2. Schedule of Miscellaneous Tools and Contractors Unlicensed Equipment.
3. All cooking facilities are ULC wet chemical compliant with semi-annual
maintenance contract and Class K portable extinguisher.
SUBJECT TO 4. Unless specifically agreed, all heritage properties are covered for
Replacement Cost only. For Heritage Replacement Cost, a professional
appraisal must be provided for approval by the insurer.
5. All locations may be subject to Engineering Inspection.
6. Terms will remain as indicated subject to no claims deterioration as of
January 1, 2014
$ JLT
Jardine Lloyd Thompson Canada Inc.
COMPREHENSIVE CRIME
$ 1,000,000 Employee Dishonesty-Form A
$ 200,000 Broad Form Loss of Money(Inside Premises)
$ 200,000 Broad Form Loss of Money(Outside Premises)
LIMITS $ 200,000 Money Orders&Counterfeit Paper Currency
$ 1,000,000 Depositors Forgery
$ 200,000 Professional Fees/Audit Expenses
$ 200,000 Computer Fraud or Funds Transfer Fraud
DEDUCTIBLE $Nil per Loss
POLICY FORM Master Crime Wording (Apr. 2012)
INSURER(S)AND
PROPORTION OF Aviva Insurance Company of Canada — 100%
PARTICIPATION(S)
Important:
1. Bank Accounts NOT being reconciled by the same person(s) authorized
to deposit and withdraw funds.
SUBJECT TO 2. All cheque requisitions and issued cheques containing dual signatures.
If the above is not part of your internal Financial controls, please provide
explanation(s).
`3. Completed Crime application.
'4. Terms will remain as indicated subject to no claims deterioration as of
January 1, 2014 •
1
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Jardine Lloyd Thompson Canada Inc.
EXCESS CRIME
$ 1,000,000 Employee Dishonesty—Form A
LIMITS excess of Aviva's $1,000,000 primary limit
ENDORSEMENTS T3DE.014 Excess over Underlying Indemnity Rider
T3DE.018 Fixed Term Rider •
DEDUCTIBLE $Nil per Loss
POLICY FORM Comprehensive Dishonesty, Disappearance & Destruction Bond
T3DE.001 (03/06)
INSURER(S)AND
PROPORTION OF Trisura General Insurance Company— 100%
PARTICIPATION(S)
Minimum Retained Premium — 10% of annual premium
SUBJECT TO Terms will remain as indicated subject to no claims deterioration as of,
January 1, 2014
•
4JLT
Jardine Lloyd Thompson Canada Inca
AUTOMOBILE INSURANCE (ONTARIO)
Liability—Bodily Injury/Property Damage Limit: $5,000,000
Deductible: $10,000
Accident Benefits—Basic Benefits Limit as stated in Policy
COVERAGE
APPLICABLE Uninsured Automobile Limit as stated in Policy
Direct Compensation —Property Damage Limit as stated in Policy
Deductible: $10,000
Loss or Damage—All Perils Deductible: $10,000
Notice of Cancellation Ninety(90) Days
Replacement Cost Endorsement on all vehicles 20 Years and newer
unless otherwise agreed
Fire Trucks-over 20 years, up to and including 25 years old—Guaranteed
Amount (purchase price to be used unless professional appraisal provided)
- over 25 years old—Actual Cash Value
OPCF 20 Loss Of Use—Applicable to Fifty-seven (57) Light Units
OPCF 21 B Blanket Fleet Endorsement—No Annual Adjustment
OPCF 31 Non-Owned Equipment
•
OPCF 24 Freezing of Fire-Fighting Apparatus.
ENDORSEMENTS OPCF 44 Family Protection Endorsement:
(Applicable only to Private Passenger Vehicles, Light Commercial Vehicles,
Skidoos and All Terrain Vehicles, and Police Vehicles)
Additional Endorsements:
OPCF 3 Drive Government Automobiles
OPCF 4A Permission to Carry Explosives
OPCF 4B Permission to Carry Radioactive Material
OPCF 5 Permission to Rent or Lease
OPCF 32 Use of Recreational Vehicles by Unlicensed Drivers
Tarmac Exclusion
POLICY,FORM Provincial Statutory Owner's Policy
INSURER(S)AND
PROPORTION OF Aviva Insurance Company of Canada— 100%.
PARTICIPATION(S)
Provision of updated vehicles and drivers list to insurer
SUBJECT TO Completed Automobile application
Terms will remain as indicated subject to no claims deterioration as of
( January 1, 2014 •
4JLT
Jardine Lloyd Thompson Canada Inc.
GARAGE AUTOMOBILE (ONTARIO)
Section 1 $3,000,000 Third Party Liability Inclusive Limit
Section 2 Accident Benefits—Included
Section 3 Uninsured Automobile—Included
• Section 4 Direct Compensation Property Damage—Included
LIMITS OF Section 5 Liability Damage to Customer's Automobile
COVERAGE Collision-Limit any One Automobile $200,000
•
Deductible: $500
Specified Perils —Limit of Liability-Any One Occurrence
$300,000
Deductible: $500
OEF 71 Excluding Owned Automobiles Endorsement
ENDORSEMENTS OEF 77 Comprehensive Damage to Customer's Automobiles including
Open Lot Theft
OEF 81 Garage Family Protection Endorsement
POLICY FORM Provincial Statutory Garage Automobile Policy OAP 4
INSURER(S) AND
PROPORTION OF Aviva Insurance Company of Canada— 100%
PARTICIPATION(S)
SUBJECT TO Terms will remain as indicated subject to no claims deterioration as of
January 1, 2014
•
4JLT
Jardine Lloyd Thompson Canada Inc.
COUNCILLORS' ACCIDENT COVERAGE
LIMITS OF $ 250,000 Principal Sum
COVERAGE
Number of Councillors: Seventeen (17) Persons
INCLUDED
COVERAGE 24 Hour Coverage
POLICY FORM Insurer's Standard Form •
INSURER(S)AND
PROPORTION OF AIG Insurance Company of Canada — 100%
PARTICIPATION(S)
$2,500,000 Aggregate Limit of Indemnity Per Accident
SUBJECT TO Terms will remain as indicated subject to no claims deterioration as of
January 1, 2014
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•
Ai.
Jardine Lloyd Thompson Canada Inc.
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RISK MANAGEMENT
ELECTED OFFICIAL,
DIRECTORS AND Included
DEPARTMENTAL
SEMINARS
AUTOMOBILE Risk and Driver Assessment included
FLEET SERVICES
•
PREMIUM SUMMARY
TOTAL ANNUAL
PREMIUM
(OPTIONS NOT . $624,503 plus any applicable provincial sales tax
INCLUDED)
•
TFA
eSCRIBE eSCRIBE Workflow Status: eSCRIBE Approval Workflow
MEETIOGS,EVOLVED
Workflow Information
Initiator: Webster,Valerie Document: FIN 27-13 Property and Liability Insurance Renewal
Started: 11/15/2013 3:10 PM Status: Approved
Last run: 11/18/2013 3:21 PM
Tasks
The following tasks have been assigned to the participants in this workflow.Click a task to edit It.You can also view these tasks in the list Tasks.
`?Assigned To Title Due Date Status Related Content Outcome
Bigioni,Paul FIN 27-13 Property and Liability Insurance Renewal.docx Review 11/17/2013 Completed FIN 27-13 Property and Liability Insurance Renewal Approved
Prevedel,Tony FIN 27-13 Property and Liability Insurance Renewal.docx Review 11/19/2013 Completed FIN 27-13 Property and Liability Insurance Renewal Approved
Workflow History
The following events have occurred in this workflow.
E Date Occurred Event Type User ID Description Outcome
11/15/2013 3:10 PM Workflow Initiated Webster,Valerie eScribe Approval Started
11/15/2013 3:10 PM Task Created Bigioni,Paul Approval Task Assigned
11/15/2013 3:24 PM Task Completed Bigioni,Paul Document Approved
11/15/2013 3:24 PM Task Created Prevedel,Tony Approval Task Assigned
11/17/2013 3:25 PM Comment System Account Task Overdue Reminder Sent Task Overdue
11/18/2013 3:21 PM Task Modified Donaldson,Margaret Task Changed Task Assignments Changed
Task assigned to Prevedel,Tony had a delegate added Donaldson,Margaret
11/18/2013 3:21 PM Task Completed Donaldson,Margaret Document Approved Approved By Delegate:Donaldson,Margaret
11/18/2013 3:21 PM Workflow Completed System Account Document was Approved
•