HomeMy WebLinkAboutCS 36-06
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REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 36-06
Date: June 26, 2006
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
2006/2007 Property and Liability Insurance Program
Recommendation:
1. It is recommended that Report CS 36-06 of the Director, Corporate Services &
Treasurer be received;
2. That the City of Pickering renew effective June 26, 2006, its property, liability and
other coverages through the Frank Cowan Company for the period July 1, 2006 to
July 1, 2007 inclusive on terms and conditions acceptable to the Director,
Corporate Services & Treasurer;
3. That the Director, Corporate Services & Treasurer, as part of the Risk
Management Program, be authorized to continue the Reimbursable Deductible
Program through the Insurance Adjuster and the Frank Cowan Company and
further, that the Director be authorized to settle any claims including any adjusting
and legal fees within the total deductible limit where it is in the City's interest to do
so;
4. That the Director, Corporate Services & Treasurer be authorized to purchase
additional insurance, make changes to deductibles and existing coverages, and
alter terms and conditions as becomes desirable or necessary in order to limit
potential liability exposure and to protect the assets of the City and it's elected
officials and staff; and,
5. That the appropriate officials 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 36-06
Date: June 26, 2006
() 31:
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Subject: 2006/2007 Property & Liability Insurance
Page 2
Financial Implications: The premium renewal cost has been provided for in the
various cost centers through the approval of the 2006 budget by Council and the
renewal premium cost is within the 2006 budgeted amount. The City's premium
renewal represents a $40,000 increase over last year while maintaining the City's
deductible at a reasonable level. Staff investigated having higher deductible limits, but
the risk outweighed the potential savings and or benefits.
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 and a budget increase of approximately $100,000 was avoided. As a result
the balance of the Reserve at December 31, 2006 was approximately $915,000. The
2006 budget anticipated a premium increase based on current industry trends and also
due to the increase in assets covered through the policy. Our renewal premium is
below the budgeted amount which continues in part to reflect our claims experience
based on our risk portfolio or municipal services provided. Another key aspect of the
City's program is the fact that our deductibles are at a reasonable level within the City's
level of affordability.
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.
Weather Related Events & Current External Insurance Environment
Natural (i.e. weather-related) catastrophes, although unpredictable have now become
an annual event. Weather patterns have brought severe weather conditions in various
parts of the world - torrential rainstorms, flooding and hurricanes. Canadians can not
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Report CS 36-06
Date: June 26, 2006
Subject: 2006/2007 Property & Liability Insurance
Page 3
expect to be exempt from severe weather events. Last year there was flooding in
Calgary and Edmonton and on August 19, 2005 a rainstorm cut a relatively narrow
swath through southwestern Ontario and the Toronto area resulting in estimated losses
of $500 million. Unfortunately, natural or weather-related catastrophes are not limited
to municipal boundaries. Instead, when these events occur, as mentioned above, they
can affect several or many municipalities.
Basic risk management states that you should diversify your risk. Many insurance
companies have customers throughout the Province or Canada to diversify the risk
associated with a local catastrophic event. With the City of Pickering being a direct
customer of the Frank Cowan Company (who has customers throughout the Province
and beyond) the geographical risk diversification is achieved and maintained.
Natural weather related catastrophes can generate claims in the billions of dollars.
Hurricane Katrina has been the most destructive of all hurricanes which damaged the
New Orleans levee system and resulted in massive flooding and is estimated to have
caused $70 billion worth of insured damage. These claims/payments will probably be
covered by the reinsurance industry which in-turn recovers these losses through higher
premiums. The chart below illustrates the relationship among the three principles in
the insurance relationship.
Reinsurance Relationship
(Insured)
Frank
Cowan
(Insurer)
Reinsurer
City of Pickering
The Frank Cowan Company through a reinsurance contract transfers a portion of its
risks to the reinsurer in order to achieve a balanced "risk" portfolio. Historically,
insurance companies have relieved on investment income to generate funds to offset
premium increases. Currently, insurance companies continue to experience, generally
low returns from their investments which translates into potentially higher premiums.
Service to Our Residents
Regrettably, insurance claims or incidents are made on a regular basis. A key strategic
advantage of the City's insurance and risk management program is that every claim is
processed with a customer service attitude. After a claim or incident is received, City
staff quickly contact (within 24 hours) the claimant to advise them that the City has
received the claim and to ensure them that the claim is being investigated by the City's
Report CS 36-06
Date: June 26, 2006
Subject: 2006/2007 Property & Liability Insurance
Page 4
236
insurance adjuster. 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's insurance adjuster service standard is to make contact with the claimant
within two business days. Sometimes, the claimants may not be completely satisfied
with the outcome and City staff may review the claim and or to intervene to work
towards a solution. The strategic advantage of the "local service delivery model" is that
claims are handled quickly professionally and with a customer service perspective. In
addition, the current "local" service delivery model allows City staff "hands on"
participation in the claims process to better serve claimants which in many cases are
City residents.
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
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:
Approved I Endorsed By:
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Gillis A. Paterson
Director, Corporate Services & Treasurer
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Stan Karwowski
Manager, Finance & Taxation
GAP:vw
Attachment
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Council
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I~TTACHMENT #-1-.. TO REPORT # C.S ~...O~
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RECE'VED
CITY OF PIr.~¡::R'NG
JUN 0 L 2006
.CORPORATE SERVICES
2006
Municipal Insurance Program
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PICIΠ... ~
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 NOJ I VO
This is a summary, Nothing herein alters the term~. conditions and
exclusions contained in the printed insurance comract(s).
REF: 60275/rc
May 30, 2006
randy ,edwards@frankcowan.com
1.800.265.4000
T /519.458.4331
F/519.458.4366
About the Frank Cowan Company
?38
Leader in Public Entity Insurance
Since 1927, The Frank Cowan Company has grown to become one of Canada's leading
providers of Insurance and Risk Management solutions for public entities. 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 providing
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 ITom our affiliations with lawyers, adjusters and others that specialize
in the public sector. The combination of our service network and internal expertise allow
us to continually develop innovative, cost-effective solutions and services tailored to the
risks of individual clients.
Financial Stability
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-tenn, 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
Systems & Processes
Contractual Review
Publications, Bulletins &
Information Packages
Claims Management
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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.
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We deliver a wide range of presentations to our Municipal
clients on an ongoing basis that provide continuous
education for our clients.
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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.
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Our experience contributes insight on the suitability and
effectiveness of liability transfers and appropriate
insurance and indenmity clauses within your various
contracts.
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Because constant two way communication is
important, our website is available on a 24 hour basis
for access to infonnation 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
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The Canadian Property & Casualty Insurance marketplace continues to be susceptible to losses
that have outpaced preITÚums coupled with reduced investment income. Increased storm and
natural catastrophe activity in 2005 will put upward pressure on rates. Insurance markets continue
to focus on specific types of business risks. This has reduced the number of specialty insurers,
who are willing to underwrite risks such as public entity. As a result, all insurance purchasers are
affected.
The Public sector has experienced significant losses in the past few years. Some of these losses
have been driven by landmark cases, but overall, :trequency 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 :trom these
downloaded services and the impact they are having on the public entity portfolio.
As a result of market conditions, a number of insurers have withdrawn :trom the public entity
marketplace or had coverage limitations imposed upon them by their markets. This does not
allow them to effectively address the needs of public entity clients. Frank Cowan Company
Limited, a long-term specialist in public entity insurance, continues to receive the support and
capacity of our markets. We continue to provide long term stability for the insurance and risk
management needs of our public entity clientele. Our policies and services continue to evolve 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 2006 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
msurance.
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
V oluntary 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 (SEF. No. 94)
Third Party Deductible
All Perils Physical Damage Limit
Deductible
Environmental Liability
Liability of Protection per claim
Annual Aggregate Limit
Self-Insured Retention
Frank Cowan Company Limited
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$ 25,000,000.
$ 50,000.
$ 50,000.
$ 250,000.
$ 250,000.
$ 5,000.
Included
Included
Included
$
25,000,000.
$
50,000.
$
25,000,000.
$
$
$
10,000.
500,000.
500.
$
$
$
1,000,000.
2,000,000.
50,000.
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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
$ 2,000,000.
Included
Included
Included
$ 100,000,
$ 100,000.
Councillors' Accident-
City MayorlRegional 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.
250,000.
Frank Cowan Company Limited
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PROGRAM SUMMARY
SUMMARY OF COVERAGES
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
Checkroom Liability
Data Processing
System and Equipment
Media
Extra Expense
Fine Arts Form
Exhibition Form
Deductible
Exceptions:
Checkroom Liability, Fire Training Trailer, Fine Arts Form and Exhibition Form
- Peril of Flood
- Peril of Earthquake
3% or Minimum
LIMITS/AMOUNTS
$ 131,497,200.
$ 500,000.
$ 500,000.
$ 1,000,000.
$ 500,000.
$ 2,584,500.
$ 5,000.
$
S
$
1,440,800.
47,000.
50,000.
$
2,000.
As Per Lists Provided
$
10,000.
$
$
$
2,500.
25,000.
100,000.
*Note: Please refer to the insurance contract for an itemized list of assets containing specific limits of
insurance or that are excluded from the policy,
Frank Cowan Company Limited
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PROGRAM SUMMARY
SUMMARY OF COVERAGES
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 Fann Road, Pickering
Spoilage - Goods under Refrigeration
Professional Fees
Data and Media
By-Law Cover
Deductible
Frank Cowan Company Limited
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LIMITS/AMOUNTS
$ 50,000,000.
$ 500,000.
$ 500,000.
$ 500,000.
Included
$ 500,000.
$ 94,500.
$ 600,000.
$ 100,000.
$ 1,790,000.
$ 50,000.
$ 500,000.
$ 10,000.
Included
$ 10,000.
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PROGRAM SUMMARY
SUMMARY OF COVERAGES
LIMITS/AMOUNTS
PARrC2.: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 $ 3,000,000.
Customer Vehicles
Collision Limit $ 200,000.
Deductible $ 500.
Specified Perils Limit $ 300,000.
Deductible $ 500.
Frank Cowan Company Limited
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COMPREHENSIVE INSURANCE
PROGRAM
COVERAGE FEATURES
2006 - 2007
Frank Cowan Company Limited
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PART A
CASUALTY
Frank Cowan Company Limited
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MUNICIPAL LIABILITY INSURANCE
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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 fonn DefInition of Insured applies, including: Councillors, Employees, Statutory
OffIcers, FirefIghters, Volunteers, Boards, Commissions, and Committees,
· Cross Liability is included.
· Coverage applies Worldwide.
The following coverages are included to the full policy limit, unless specified otheJWise:
· Employers' Liability
· Contractual Liability
· Liquor Liability
· Tenants' Legal Liability
· Sewer back-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 policy that protects the municipality from liability imposed upon it by a
court of civil law for compensatory damages because of a wrongful act causingfinancialloss 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 fonn 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 Linúted
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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 arisingfrom a sudden and accidental event,
· Separate limits ofliability apply specifically to this coverage.
· Broad fonn Definition of Insured applies, including: Councillors, Employees, Statutory
Officers, Firefighters, Volunteers, Boards, Commissions, and Committees.
· Broad definition of Environmental Impainnent 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 impainnent 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
This policy provides protection to the municipality for the loss of money, securities and other
property through the fraudulent or dishonest acts of employees and others.
· Coverage is provided on a Commercial Blanket Bond package, and may include:
Employee Dishonesty,
Loss of Money and Securities,
Money Order and Counterfeit Paper Currency, 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 compensated.
· 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 municipality's elected
officials, All benefits are payable in addition to any other benefits that the injured person may be
in receipt of
· Coverage applies while the individual is acting within the scope of their duties, including all
travel required.
· No aggregate limit applies.
· No age restriction applies.
· Coverage is not limited to "authorized" travel only.
· Weekly indemnities are paid in full regardless of the individual's employment status (e.g,
retired, self-employed, etc.).
· Weekly indemnity for Total Loss of Time is payable for life,
· A schedule ofDismemberrnent 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 incurred 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
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PROPERTY INSURANCE
Features
This policy provides "All 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 deftnition 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 speciftcally 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.
Pennission is granted for the following:
to make additions, alterations and repairs (no limit other than the policy limit),
for any property to remain vacant or unoccupied,
to use any property for any purpose, and
to keep and use materials as usual and necessary.
Sewer back-up coverage is included.
By-law coverage is included to the policy limit.
Debris removal (including EnvironmentaL'Pollution Clean-up) is included to the policy limit.
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Frank Cowan Company Limited
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Property Insurance Features continued
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The following coverages, if applicable, are included to the limit specified in the Summary of
Coverage pages:
Valuable Papers,
Accounts Receivable,
Extra Expense (including Interruption by Civil Authority), and
Media (unless included under Data Processing Rider)
.
The following coverages are also available, if applicable (please refer to the Summary of
Coverage pages):
Data Processing System and Equipment, along with Media and Extra Expense,
Fine Arts,
Exhibition Form, and
Business Interruption.
.
If a single loss involves both the Automobile and Property Insurance policies, the Property
policy deductible is waived only on any insured property attached to the automobile.
.
One deductible applies should there be a loss involving both the Property and the 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:
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.
· One deductible applies should there be a loss involving both the Boiler and Machinery and
Property 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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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 Mwricipality to protect their
licensed vehicles from physical damage caused by an insured peril.
· Coverage is automatically extended to include:
newly acquired vehicles,
inappropriately licensed drivers,
pennission to carry explosives,
pennission to rent or lease,
damage caused by freezing of Fire-Fighting Apparatus, and
pennission to carry -passengers for compensation.
· Our Replacement Cost coverage is wrique. 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 mwricipality 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 automoþile 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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