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HomeMy WebLinkAboutFIN 25-18Cl DICKERING Report to Council Report Number: FIN 25-18 Date: December 10, 2018 From: Stan Karwowski Director, Finance & Treasurer Subject: Insurance Renewal — January 1, 2019 to December 31, 2019 Recommendation: 1. That the City of Pickering renew its liability, property and other insurance policies through Jardine Lloyd Thompson Canada Inc. (JLT) for the period January 1, 2019 to December 31, 2019 in the amount of $558,615 (plus applicable taxes) and inclusive of terms and conditions acceptable to the Director, Finance & Treasurer; 2. That the Director, 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; That L.V. Walker & Associates be confirmed as the City's Adjuster of Record for property, liability and other insurance and related matters; 4. That the Director, Finance & Treasurer be authorized to settle any claims including employing resources to investigate and defend claims, adjusting and legal fees, where it is in the City's best interest to do so; That the Treasurer be authorized to extend the City's insurance contract for its liability, property and other insurance policies for three further one-year terms (2020 to 2022) provided that it is in the best interests of the City and the premium for the liability coverage does not exceed the rate of inflation; and That the appropriate City of Pickering officials be authorized to take the necessary actions as indicated in this report. Executive Summary: The City's insurance program continues to operate successfully and the above recommendations provide for a renewal of the policies essentially on the same or improved terms and conditions as in past years, with coverage that includes the Library, its Board and its employees. FIN 25-18 December 10, 2018 Subject: Insurance Renewal — January 1, 2019 to December 31, 2019 Page 2 In general, insurance premiums in the municipal insurance, market have historically reflected an upward direction in costs. In 2013, the City's insurance premium peaked at $771,448 (plus applicable taxes). From 2013 to 2018, the City's insurance premiums have steadily fallen due to successful City risk management practices and favorable claims experience. These significantly lower premiums have resulted in a total savings of $980,000 to the City over the 2013 premium peak. In 2018, the global insurance market hardened due to a series of weather related catastrophic events in 2017. In a hard market, premiums are relatively high, fewer insurers are competing to write policies and insurers are less inclined to negotiate premium reductions. However, JLT is holding the line on the City's insurance premium for 2019 (excluding coverage changes) and is not increasing the premium due to the City's favourable claims experience and its risk management practices to reduce the likelihood of claims. Financial Implications: For the 2019 renewal, finance staff successfully negotiated the premium at the 2018 level, by stressing the benefits of the existing relationship between the City and JLT (loyalty discount). The insurance premium for 2019 is $558,615 (plus applicable taxes) and is the same amount as last year's insurance premium (excluding coverage changes). The 2019 insurance renewal premium will be provided for in the City's 2019 current budget to be approved by Council. Discussion: The City provides a wide variety of public services and programs to its residents including but not limited to fire, roads and sidewalks maintenance, parks, recreation and cultural services, storm water management, planning services, building services and animal services. The City's capital assets have an insured value of $209 million. The City is exposed to many potential risks and claims through the provision of services to the public and by allowing public access to its facilities and infrastructure. As these claims may be significant, the City maintains financial stability with a combination of risk management practices and insurance coverage. The City's current insurance provider was obtained through a competitive Request for Proposal process in 2013. The successful proponent was Jardine Lloyd Thompson (JLT), which was the highest ranked and lowest priced proponent. Council approved the award of the City's insurance program to JLT for a period of one year (January 1, 2014 to December 31, 2014) with an option in favor of the City to renew its insurance contract on the same terms and conditions for four consecutive one year renewal terms (2015 - 2018), each subject to Council approval. Subsequently in 2018, Council approved the renewal of the City's insurance coverage through JLT for a period of one year with an option to extend the coverage on the same terms and conditions for two further one year renewal terms (2019 - 2020) subject to Council approval. FIN 25-18 December 10, 2018 Subject: Insurance Renewal — January 1, 2019 to December 31, 2019 Page 3 Current Coverage The City's current insurance coverage is very broad and includes: - General Municipal Liability - Cyber Liability - Property and Equipment Breakdown - Automobile Fleet - Non -Owned Automobile - Errors and Omissions - Environmental Liability - Comprehensive Crime - Councillors' and Board Members' Accident - Conflict of Interest - Garage Automobile The City's current insurance coverage has a general liability limit of $50 million and a deductible of $100,000. The City's auto coverage has a liability limit of $5 million and a $10,000 deductible. With respect to auto accidents in which the City is not at fault, there is no deductible. The City's property coverage has a $25,000 deductible. 2019 Insurance Premiums Changes to the total cost of insurance can be split into three categories: experience, asset and coverage changes. 1) Premium changes are typically based on the City's claims experience and municipal insurance market changes. 2) Asset changes are due to adding or removing assets to/from the policy, such as buildings, automobiles and equipment, and changes in asset value due to inflation. 3) Coverage changes occur when the City adds or removes coverages, changes coverage limits and/or changes deductible limits. The new Operations Centre is an example of a new asset that will be added to the City's portfolio of insured property inventory once its construction is completed next year. The new Operations Centre is expected to be completed in the fall of 2019 and will result in a small increase in the City's property insurance premium for 2019. FIN 25-18 December 10, 2018 Subject: Insurance Renewal — January 1, 2019 to December 31, 2019 Page 4 City Insurance Costs (Before Applicable Taxes) 2013-2019 $800,000 $771,448 $750,000 $700,000 $650,000 $600,000 $550,000 $500,000 $642,553 $639,415 $643,632 $558,615 $558,615 2013 2014 2015 2016 2017 2018 2019 As the above chart illustrates, the City's proposed 2019 insurance premium is Tess than the City's insurance costs in 2013. The significantly lower premiums translates into a total savings of $980,000 over the 2013 premium peak. To facilitate an "apples to apples" cost comparison between 2013 and 2019, the $558,615 premium adjusted to 2013 dollars would be $486,000. In addition, the value of the City's insured capital assets have increased from $184 million in 2013 to $209 million in 2018. Although the value of these insurable assets increased by 13.6 per cent during this period, the City's annual insurance costs have decreased by 20 per cent since the 2013 premium peak. This is mainly attributable to the City's favorable claims experience and its risk management practices to reduce the likelihood of claims. Due to a series of weather related catastrophic events in 2017, global insurers are preparing for catastrophic loss payments which has translated into a hardening of the insurance market in 2018. In a hard market, premiums are relatively high, fewer insurers are competing to write policies and insurers are less inclined to negotiate premium reductions. However, JLT is holding the line on the City's insurance premium for 2019 (excluding coverage changes) and is not increasing the premium due to the City's favourable claims experience as noted above. City staff believe that the proposed premium for 2019, which is the same amount as last year's premium (excluding coverage changes), is reasonable and therefore recommend that the City renew its property, liability and other insurance policies through JLT for the period January 1, 2019 to December 31, 2019 in the amount of $558,615 (plus applicable taxes). FIN 25-18 December 10, 2018 . Subject: Insurance Renewal — January 1, 2019 to December 31, 2019 Page 5 Attachments: 1. Summary of Coverage, Limits and Deductibles Prepared By: James Halsall, CPA, CA Manager, Budgets & Internal Audit Approved/Endorsed By: Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevde , ng. Chief Administrative Officer Jardine Lloyd Thompson Canada Inc. ATTACHMENT # 1 TO REPORT# I S v1S -1 4JLT Public Sector Division Box 3, Suite 1200, 55 University Avenue, Toronto, ON M5J 2H7 Phone: 416 941 9551 Toll Free: 800 268 9189 Fax: 416 941 9022 MUNICIPAL INSURANCE PROGRAM PROPOSAL Corporation of the City of Pickerinq Date of Issue: October 31, 2018 Prepared by: Andrea Bartels Direct phone line: 416-644-4826 E-mail address: abartels@jltcanada.com Page 1 of 20 Jardine Lloyd Thompson Canada Inc. JLT IMPORTANT — PLEASE NOTE THE FOLLOWING This proposal should be read in conjunction with the JLT Canada "Business Protocols" booklet. DUTY OF DISCLOSURE In addition to providing all basic information necessary to enable us to place the risk, you must ensure that you are complying with your legal duty of disclosure of all material matters relating to the risk. In particular, you must satisfy yourself as to the accuracy and completeness of the information you provide to insurers. In this respect, you must provide all information relating to the risk, whether favorable or not, which would influence the judgement of a prudent insurer in determining whether he will take the risk, and, if so, for what premium and on what terms. If all such information is not disclosed by you, insurers have the right to void the policy from its inception which may lead to claims not being paid. PAYMENT TERMS Premiums are due and payable on receipt of a JLT invoice. Payment should be made immediately to avoid any possible cancellation for non-payment of premium. PERIOD OF VALIDITY OF QUOTE This offer remains open for acceptance by the Insured until the expiry of the current Municipal Insurance program policy (ies). BREACH OF WARRANTY OR SUBJECTIVITY If any of the terms and conditions contained in this proposal are identified as a "warranty" or as a subjectivity to binding or continuing cover, you should be aware that if the terms of the warranty as stated are breached or the subjectivity is not met, insurers may have the right to void the applicable coverage and deny any resulting or subsequent losses as a result. UNDERINSURANCE It is important that all policy limits and amounts insured be reviewed carefully and at least annually to be certain they are adequate to provide full recovery in event of a loss. UNDERWRITING / BINDING AUTHORITY Certain portions of this quotation of cover have been provided by JLT acting in an underwriting capacity on behalf of the Insurer who, under a binding authority agreement, has given us authority to quote and confirm insuring terms, conditions and premiums. JLT Canada is not acting as an insurance broker in this instance and is not providing alternative terms or markets for the cover other than as quoted. For covers where JLT does not act in an underwriting capacity nor has a binding authority agreement with the Insurer, coverage cannot be bound with those Insurers unless a request is made to the Insurer and confirmation of coverage is subsequently received by JLT Canada from the Insurer. MATERIAL CHANGES FROM EXPIRING POLICY You should carefully note any items identified in the "Changes from Expiry" section under each coverage as they represent material changes in cover from your previous policy. Page 2 of 20 Jardine Lloyd Thompson Canada Inc. 4 JLT RISK AND CLAIMS INFORMATION This proposal has been based on the risk and claims information provided and/or verified by you to JLT. If any of this information is not correct or has changed in the interim, you must advise us immediately as the terms quoted may therefore be invalid and cover cannot be bound as quoted. TAXES PAYABLE BY INSUREDS: The following taxes as prescribed by federal and/or local laws and regulations will apply to all or certain portions of the premiums quoted and will be charged by JLT in addition to the premiums quoted: Provincial Sales Tax Page 3 of 20 Jardine Lloyd Thompson Canada Inc. $JLT SUMMARY OF COVERAGE, LIMITS AND DEDUCTIBLES Name of Insured: Corporation of the City of Pickering Policy Period: January 1, 2019 to January 1, 2020 12:01 a.m. local time at the mailing address of the Named Insured CANADIAN COUNCILS LIABILITY LIMIT OF LIABILITY EXTENSIONS OF COVERAGE General Liability (including Sudden And Accidental Pollution): Extension $ 5,000,000 any one Occurrence and in the Annual Aggregate for Products and Completed Operations during the Policy Period Limit Employers' Liability $ 5,000,000 any one Claim Tenant Legal Liability $ 5,000,000 any one Occurrence Employee Benefit Liability $ 5,000,000 any one Claim Incidental Medical Malpractice Retro Date: November 15, 1993 $ 5,000,000 any one Claim Voluntary Medical Payments $ 50,000 any one Claim and in the Annual Aggregate during the Policy Period Forest Fire Fighting Expense $ 2,000,000 any one Occurrence and in the Annual Aggregate during the Policy Period Voluntary Payment for Property Damage Incidental Garage Operations $ 50,000 any one Occurrence and in the Annual Aggregate during the Policy Period $ 250,000 any one Occurrence and in the Annual Aggregate during the Policy Period Municipal Marina Legal Liability Wrongful Dismissal (Legal Expense) $ 100,000 any one Pleasure Craft $ 1,000,000 in the Annual Aggregate for Legal Liability for Property Damage during the Policy Period $ 500,000 any one Claim and in the Annual Aggregate during the Policy Period Conflict of Interest Reimbursement Expenses $ 100,000 any one Claim Legal Expense Reimbursement Expenses $ 100,000 any one Claim $ 500,000 in the Annual Aggregate Page 4 of 20 Jardine Lloyd Thompson Canada Inc. 4 JLT CANADIAN COUNCILS LIABILITY DEDUCT(BLE(S) Non -Owned Automobile (including Contractual Liability for Hired Autos) $ 5,000,000 any one Occurrence Legal Liability for Damage to Hired Autos $ 250,000 any one Occurrence Wrap-up Liability — Difference in Conditions and Difference in Limits Endorsement $ 5,000,000 any one Occurrence Limit Municipal Errors and Omissions Liability Retroactive Date: Unlimited $ 5,000,000 any one Claim and in the Annual Aggregate during the Policy Period Environmental Impairment Liability Retroactive Date: Unlimited $ 2,500,000 any one Claim and $ 5,000,000 in the Annual Aggregate during the Policy Period Abuse / Molestation Liability Retroactive Date: January 1, 2014 $ 250,000 any one Claim and $ 500,000 in the Annual Aggregate during the Policy Period Voluntary Compensation Police Officer Assault Applicable Coverage As per Endorsement No. 4 — Schedule of Benefits $ 5,000,000 any one Occurrence Deductible 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) $ 5,000 with respect to Checkroom Liability per Claim Municipal Errors and Omissions Liability $ 100,000 per Claim Environmental Impairment Liability $ 100,000 per Claim Abuse / Molestation Liability $ 100,000 per Claim Police Officer Assault $ 100,000 per Occurrence Page 5 of 20 Jardine Lloyd Thompson Canada Inc. JLT CANADIAN COUNCILS LIABILITY ENDORSEMENTS POLICY FORM 3 Year Long Term Agreement Primary CAD 5,000,000 / CAD 100,000 Deductible The policy will be renewed annually for a period of three years expiring on 01 January 2020 on the existing terms and conditions with the premiums due in advance. 01 January 2017 to 01 January 2018 01 January 2018 to 01 January 2019 01 January 2019 to 01 January 2020 However terms and conditions may be reviewed 60 days prior to annual renewal if any of the following apply: • Pertinent changes in reinsurance cover • 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. EK1601219000 (2016) UMR B0901EK1802697000 INSURER(S) AND PROPORTION OF PARTICIPATION(S) Certain Lloyd's Underwriters (Syndicate 1886) — 100% Terms will remain as indicated subject to no claims deterioration as of January 1, 2019 Page 6 of 20 Jardine Lloyd Thompson Canada Inc. AJLT CANADIAN COUNCILS UMBRELLA LIABILITY LIMITS OF LIABILITY $ 45,000,000 any one Occurrence $ 45,000,000 in the Annual Aggregate in respect of Products & Completed Operations $ 45,000,000 in the Annual Aggregate in respect of Municipal Errors and Omissions Liability $ 45,000,000 in the Annual Aggregate in respect of Employee Benefits Liability EXCESS OF UNDERLYING COVERAGE(S) AND LIMIT(S) Underlying Coverage Underlying Limit General Liability $ 5,000,000 any one Occurrence Incidental Medical Malpractice $ 5,000,000 any one Claim Non -Owned Automobile Liability $ 5,000,000 any one Occurrence Municipal Errors & Omissions Liability $ 5,000,000 any one Claim 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 EK1601216000 (2016) UMR B0901EK1802696000 INSURER(S) AND PROPORTION OF PARTICIPATION(S) Certain Lloyd's Underwriters (Syndicate 1886) — 100% SUBJECT TO ` Terms will remain as indicated subject to no claims deterioration as of January 1, 2019 Page 7 of 20. Jardine Lloyd Thompson Canada Inc. 4 JLT COMBINED PHYSICAL DAMAGE & MACHINERY BREAKDOWN COVERAGE EXTENSIONS OF COVERAGE EXTENSIONS OF COVERAGE CONTINUED Property Of Every Description — All Risks of Direct Physical Loss or Damage (Subject to Policy Exclusions) $208,679,887 Limit of Loss on Blanket Property of Every Description including Machinery Breakdown $ 1,659,900 Computer/ Electronic Data Processing (Included in Blanket Limit) Business Interruption — Profits (Included in Blanket Limit) $ 2,584,500 $ 2,773,327 Bridges (Not Included in Blanket Limit) The Limits shown below are included in the Blanket Limit shown above: Extension Valuable Papers Limit $ 500,000 Extra Expense $ 1,000,000 Accounts Receivable Gross Rentals Computer Media $ 500,000 $ 500,000 $ 500,000 Fine Arts (Agreed Value) $ 25,000 The Limits shown below are in addition to the Blanket Limit shown above: Extension Newly Acquired Property Limit $ 1,000,000 Buildings in the Course of Construction $ 1,000,000 Property in Transit $ 500,000 Unnamed Locations Expediting Expense $ 1,000,000 $ 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 loss in a policy year for the combined total Toss or damage $ 100,000 The Limits shown below are in addition to the Blanket Limit shown above: Extension Limit Master Key $ 10,000 Land and Water Pollution Clean Up Expense $ 100,000 Page 8 of 20 Jardine Lloyd Thompson Canada Inc. 4 JLT COMBINED PHYSICAL DAMAGE & MACHINERY BREAKDOWN ENDORSEMENTS DEDUCTIBLE(S) POLICY FORM INSURER(S) AND PROPORTION OF PARTICIPATION(S) Stock Spoilage $ 100,000 Consequential Damage $ 100,000 Off Premises Service Interruption $ 1,000,000 Exhibition Floater $ 100,000 Ammonia Contamination $ 500,000 Water Escape $ 500,000 Hazardous Substance $ 500,000 Property of Councillors', Board Members' and Employees' $ 5,000 any one loss ($25,000 maximum annual policy limit) Automobile Replacement Cost Deficiency Endorsement $ 25,000 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. $ 1,000 each Fine Arts Loss Municipal Insurance Program - Master Policy (February 1, 2017) Physical Damage: Aviva Insurance Company of Canada — 70% The Sovereign General Insurance Company — 30% Machinery Breakdown: Aviva Insurance Company of Canada — 100% Page 9 of 20 Jardine Lloyd Thompson Canada Inc. 4 JLT 1. Schedule of property including Construction, Occupancy, Protection and Exposure information for all locations over $1,000,000 2. 911 addresses for all locations including postal codes 3. All cooking facilities are ULC wet chemical compliant with semi-annual maintenance contract and Class K portable extinguisher. 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, 2019 Page 10 of 20 Jardine Lloyd Thompson Canada Inc. JLT COMPREHENSIVE CRIME $ 1,000,000 $ 200,000 $ 200,000 $ 200,000 $ 1,000,000 $ 200,000 $ 200,000 $Nil per Loss Employee Dishonesty — Form A Broad Form Loss of Money (Inside Premises) Broad Form Loss of Money (Outside Premises) Money Orders & Counterfeit Paper Currency Depositors Forgery Professional Fees / Audit Expenses Computer Fraud or Funds Transfer Fraud Master Crime Wording (Apr. 2012) INSURER(S) AND PROPORTION OF PARTICIPATION(S) Aviva Insurance Company of Canada — 100% Important: 1. Bank Accounts NOT being reconciled by the same person(s) authorized to deposit and withdraw funds. 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. Terms will remain as indicated subject to no claims deterioration as of January 1, 2019 Page 11 of 20 Jardine Lloyd Thompson Canada Inc. JLT AUTOMOBILE INSURANCE COVERAGE APPLICABLE Liability — Bodily, injury,/ Property Damage Accident Benefits — Basic Benefits Uninsured Automobile Direct Compensation —Property Damage Loss or Damage- All Perils Notice of Cancellation Ninety (90) Days Limit: $5,000,000 Deductible: $ Nil Limit as stated in Policy Limit as stated in Policy Limit as stated in Policy Deductible: $ Nil Deductible: $ 10,000 OPCF 43R Removing Depreciation Deduction- 24 Months New OPCF 20 Loss Of Use — Applicable to Light Units OPCF 21B Blanket Fleet Endorsement — No Annual Adjustment OPCF 31 Non -Owned Equipment OPCF 24 Freezing of Fire -Fighting Apparatus 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 PARTICIPATION(S) Aviva Insurance Company of Canada — 100% Terms will remain as indicated subject to no claims deterioration as of January 1, 2019 Page 12 of 20 Jardine Lloyd Thompson Canada Inc. 4 JLT GARAGE AUTOMOBILE (ONTARIO) LIMITS OF COVERAGE Section 1 $5,000,000 Third Party Liability Inclusive Limit Section 2 Accident Benefits — Included Section 3 Uninsured Automobile — Included Section 4 Direct Compensation Property Damage — Included Section 5 Liability Damage to Customer's Automobile Collision — Limit any One Automobile $200,000 Deductible: $500 Specified Perils — Limit of Liability - Any One Occurrence $300,000 Deductible: $500 ENDORSEMENTS OEF 71 Excluding Owned Automobiles Endorsement 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 PARTICIPATION(S) Aviva Insurance Company of Canada — 100% SUBJECT TO Terms will remain as indicated subject to no claims deterioration as of effective date January 1, 2019 Page 13 of 20 Jardine Lloyd Thompson Canada Inc. 4 JLT COUNCIL ACCIDENT COVERAGE LIMITS OF COVERAGE INCLUDED COVERAGE POLICY FORM $ 250,000 Principal Sum Number of Insured Persons: Six (6) Councillors and One (1) other 24 Hour Coverage Insurer's Standard Form INSURER(S) AND PROPORTION OF PARTICIPATION(S) AIG Insurance Company of Canada — 100% 1. $2,500,000 Aggregate Limit of Indemnity Per Accident 2. Terms will remain as indicated subject to no claims deterioration as of January 1, 2019 MUNICIPAL VOLUNTEERS ACCIDENT COVERAGE LIMITS OF COVERAGE POLICY FORM INSURER(S) AND PROPORTION OF PARTICIPATION(S); $ 50,000 Principal Sum — Volunteers of the Policyholder While on Duty Only under the age of 80 Insurers Standard Form AIG Insurance Company of Canada — 100% 1. $1,000,000 Aggregate Limit of Indemnity Per Accident 2. Terms will remain as indicated subject to no claims deterioration as of January 1, 2019 Page 14 of 20 Jardine Lloyd Thompson Canada Inc. 4 JLT MUNICIPAL CYBER LIABILITY CYBER INCIDENT RESPONSE INCIDENT RESPONSE COSTS Limit of liability: CAD1,000,000 each and every claim Deductible: CADO each and every claim LEGAL AND REGULATORY COSTS Limit of liability: CAD1,000,000 each and every claim IT SECURITY AND FORENSIC COSTS Limit of liability: CAD1,000,000 each and every claim CRISIS COMMUNICATION COSTS Limit of liability: CAD1,000,000 each and every claim PRIVACY BREACH MANAGEMENT COSTS Limit of liability: CAD1,000,000 each and every claim THIRD PARTY PRIVACY BREACH MANAGEMENT COSTS Limit of liability: CAD1,000,000 each and every claim POST BREACH REMEDIATION COSTS Limit of liability: CAD50,000 subject to a maximum of 10% of all sums paid as a direct result of the cyber event, each and every claim FUNDS TRANSFER FRAUD Limit of liability: CAD250,000 each and every claim THEFT OF FUNDS HELD IN ESCROW Limit of liability: CAD250,000 each and every claim THEFT OF PERSONAL FUNDS Limit of liability: CAD250,000 each and every claim EXTORTION Limit of liability: CAD1,000,000 each and every claim CORPORATE IDENTITY THEFT Limit of liability: CAD250,000 each and every claim TELEPHONE HACKING Limit of liability: CAD250,000 each and every claim PHISHING Limit of liability: CAD50,000 each and every claim Page 15 of 20 Jardine Lloyd Thompson Canada Inc. JLT MUNICIPAL CYBER LIABILITY SYSTEM DAMAGE AND BUSINESS INTERRUPTION NETWORK SECURITY & PRIVACY LIABILITY MEDIA LIABILITY SYSTEM DAMAGE AND RECTIFICATION COSTS Limit of liability: CAD1,000,000 each and every claim SYSTEM BUSINESS INTERRUPTION Limit of liability: CAD1,000,000'each and every claim CONSEQUENTIAL REPUTATIONAL HARM Limit of liability: CAD1,000,000 each and every claim LOSS ADJUSTMENT COSTS Limit of liability: CAD25,000 each and every claim NETWORK SECURITY LIABILITY Aggregate limit of liability: CAD1,000,000 in the aggregate, including costs and expenses PRIVACY LIABILITY Aggregate limit of liability: CAD1,000,000 in the aggregate, including costs and expenses MANAGEMENT LIABILITY Aggregate limit of liability: CAD1,000,000 in the aggregate, including costs and expenses REGULATORY FINES Aggregate limit of liability: CAD1,000,000 in the aggregate, including costs and expenses PCI FINES, PENALTIES AND ASSESSMENTS Aggregate limit of liability: CAD1,000,000 in the aggregate, including costs and expenses DEFAMATION Aggregate limit of liability: CAD1,000,000 in the aggregate, including costs and expenses INTELLECTUAL PROPERTY RIGHTS INFRINGEMENT Aggregate limit of liability: CAD1,000,000 in the aggregate, including costs and expenses Page 16 of 20 Jardine Lloyd Thompson Canada Inc. JLT MUNICIPAL CYBER LIABILITY COURT ATTENDANCE COSTS POLICY FORM INSURER($) AND PROPORTION OF' PARTICIPATION($) Aggregate limit of liability: CAD100,000 in the aggregate, sub -limited to CAD2,000 per day JLT Amendatory Clause $25,000 Each and every claim except for $0 for Incident Response Costs $25,000 each and every claim, including costs and expenses for Network Security & Privacy Liability and Media Liability $0 for Court Attendance Costs Insurers Standard Form CFC Underwriting Limited — 100% Page 17 of 20 Jardine Lloyd Thompson Canada Inca 4 JLT RISK MANAGEMENT ELECTED OFFICIAL, DIRECTORS AND DEPARTMENTAL SEMINARS AUTOMOBILE FLEET SERVICES. Included Risk and Driver Assessment included Page 18 of 20 Jardine Lloyd Thompson Canada Inc. 4JLT MUNICIPAL OPTIONS Automobile Insurance Out of Province Emergency Medical Public Entity Recovery Assistance Plan (Critical Illness) Accident Benefits: OPTION A. Medical & Rehabilitation (Non -Catastrophic) increase Limit $130,000 - Annual Additional $838 OPTION B. Catastrophic Injury — Med Rehab and Attendant Care increase Limit from $1,000,000 to $2,000,000 - Annual Additional $584 OPTION C. Medical Rehab and Attendant Care increase Limit from $1,000,000 to $2,000,000 - Annual Additional $1,676 Caregiver Benefit Limit up to $250 per week plus $50 each additional dependant - Housekeeping and Home Maintenance — Limit up to $100 per week up to 2 Years - Non -Catastrophic Impairment -Annual Additional $1,876 Income Replacement Limit (choose amount) $600/$800/$1,000 Annual Additional $9,100/$18,200/$27,300 Death and Funeral Benefits $50,000 Lump sum to an eligible spouse; $20,000 lump sum to each dependant; maximum $8,000 for funeral benefits - Annual Additional $1,950 Dependant Care up to $75 per week for the first dependant and $25 per week for each additional dependant to a maximum $150 per week Annual Additional $3,250 Indexation Benefit — Annual Adjustment according to the Consumer Price Index for Canada - Annual Additional $7,800 Added Coverage to Offset Tort Deductible — OPCF 48 Total Annual Additional Premium — $1,552 Based on Seventeen (17) Members — under the age of 80 — Annual Additional $1,020 To increase the Trip Duration from 15 days to 30 days — Annual Additional $1,190 Based on Seventeen (17) of Members — age 69 or less $5,000 limit — Annual Additional $1,856 $10,000 limit — Annual Additional $2,903 Remove Age Restriction of 80 — Annual Additional $250 Page 19 of 20 Jardine Lloyd Thompson Canada Inc. Page 20 of 20 $JLT