HomeMy WebLinkAboutCS 24-07
REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 24-07
Date: June 11, 2007
lot
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
2007/2008 Property and Liability Insurance Renewal
Recommendation:
1. That Report CS 24-07 of the Director, Corporate Services & Treasurer be
received;
2. That the City of Pickering renew effective June 29, 2007, its property, liability and
other coverages through the Frank Cowan Company for the period July 1, 2007
to July 1, 2008 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 be authorized to take the necessary actions to give
effect thereto.
Executive Summary: The City's insurance program continues to operate
successfully and the above recommendations provide for a renewal of the policies
basically on the same or improved terms and conditions in the past years which also
provides coverage for the Library, its Board and its employees.
Report CS 24-07
June 11, 2007
Subject: 2007/2008 Property and Liability Insurance Renewal
Page 2
~ , 101
Financial Implications: The premium renewal cost has been provided for in the
various cost centers through the approval of the 2007 budget by Council and the
renewal premium cost is below the 2007 budgeted amount. The favourable renewal
terms are due to favourable claims history as a result of City's management of its
insurance responsibilities both through the efforts of staff and its insurance adjusting
firm. However, as Members of Council are aware, claims activity and insurance market
conditions have a high degree of uncertainty and today's current positive scenario could
easily change due to catastrophic events such as weather related events. To put
another way, if the insurance industry experiences another hurricane similar to Katrina
in 2007, insurance premiums will probably increase in 2008.
Sustainability Implications: Insurance renewal provides the City with financial
security and is therefore better able to maintain financial sustainability.
Background: Each year on July 1, the City's general liability and property insurance
policies come up for renewal. As approved by Council at the time of the 1998 renewal,
the Treasurer undertook an extensive review of all aspects of the City's insurance
program. The City of Pickering embarked in a Risk Management Program, the initial
phase of which involved negotiating renewing premiums with the City's broker. The
result of the negotiations was a decrease of approximately $75,000 or 20 percent, in
the premiums from that of the prior year. 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, however 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.
Our renewal premium is below the budgeted amount which continues in part to reflect
our claims experience based on our risk portfolio or municipal seNices 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.
Report CS 24-07
June 11, 2007
Subject: 2007/2008 Property and Liability Insurance Renewal
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Page 3
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 and Canadians can
not expect to be exempt from these events. Two year's ago, 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.
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.
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.
Service to our Residents
Regrettably, insurance claims or incidents are made on a frequent 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 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. In addition, the City's Insurance Adjuster has many year's of Pickering
experience which helps reduce claims cost due to his knowledge and or his familiarity
with the City, its policies and procedures. The Insurance Adjuster's service standard is
to make contact with the claimant within two business days. Sometimes, the claimants
may not completely agree with the outcome and City staff may review the claim and/or
to intervene to work towards a solution. The strategic advantage of the "local service
delivery modE~I" 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
Report CS 24-07
June 11 , 2007
Subject: 2007/2008 Property and Liability Insurance Renewal
Page 4
.. 103
Conclusion
The City's Insurance and Risk Management Programs are 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
Stan Karwowski
Manager, Finance & Taxation
GAP:vw
Attachment
Recommended for the consideration of
Pickering Cit C c
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104
~ C2~~~ompany
j.\TTACHMEi-J'" #L TO REPORT#CS<:J~'''O-7
2007
Municipal Insurance Program
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PICKERlN1J
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 1 VO
This is a summary. Nothing herein alters the terms, conditions and
exclusions contained in the printed insurance contract(s).
REF: 60275/sl1
May 15, 2007
randy .edwards@frankcowan.com
1-800-265-4000
T/519-458-4331
1'/519-458-4366
About the Frank Cowan Company
t.j
105
Leader in Public Entity Insurance
Since 1927, Frank Cowan Company has grown to become one of Canada's leading
providers of Insurance and Risk Management solutions for public entities. Frank Cowan
Company has been a pioneer in the development and implementation of innovative
insurance programs for the Municipal, Health Care, Voluntary and Education sectors.
Cowan Insurance Group
Frank Cowan Company is a wholly owned subsidiary of the Cowan Insurance Group
Ltd., whose other wholly owned subsidiaries include Cowan Insurance Brokers Limited
and Cowan Benefits Consulting, 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 Benefits
Consulting 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
Weare more than just an insurance provider. Weare a trusted partner in providing
insurance and risk management services. We work with our clients to develop
individualized programs including complete risk management, claims management and
an array of other services. Our mandate is clear.. .help our clients reduce risk.
Clients also benefit from our affiliations with lawyers, adjusters and others that specialize
in the public sector. The combination of our service network and internal expertise allow
us to continually develop innovative, cost-effective solutions and services tailored to the
risks of individual clients.
Financial Stability
Frank Cowan Company, as an Underwriting Agent of public entity business, represents a
group of select insurers of exceptional reputation and financial stability. This creates a
very stable market for your insurance requirements, and gives our customers the comfort
of knowing that they will always be protected by long-term, high-quality continuous
service.
Frank Cowan Company Limited
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MARKETPLACE CONDITIONS
The Canadian Property & Casualty Insurance marketplace continues to witness consolidation yet
remains one of the most saturated insurance markets in the world, with over 200 players.
However, amongst the majority of the insurers operating in Canada, specialization continues to be
the trend. Only a limited number of insurers are willing to risk their capital on high liability
exposure classes such as municipalities, hospitals and public entity sectors. While the last few
years have brought some stability for the general Property & Casualty market, speciality classes
continue to trend upwards.
The Public Entity sector has experienced significant losses in the past few years. Some of these
losses have been driven by landmark cases, but overall, frequency and severity of claims has
increased dramatically. As well, the overall cost of claims, which takes into account escalating
court awards, claims administration expenses and the ever-increasing replacement costs of assets,
has continued to rise during this period. Insurers and Reinsurers have become extremely cautious
about public entity liability exposures due in part to the continued downloading of services by
senior levels of government, along with the fact that these organizations continue to be asked to
fill more and more public needs. Insurers are now experiencing the negative impact that the claims
from these services are having on public entity insurance results.
Reacting to these deteriorating results, a number of insurers have either imposed coverage
restrictions or withdrawn from the public entity market entirely. Frank Cowan Company, a
specialist in public entity insurance, continues to receive the support and capacity of our insurers.
We continue to provide long-term stability for the insurance and risk management needs of our
public entity clientele. Our policies and services continue to evolve in response to the exposures
faced by our clients.
Cowan continues to provide a consistently stable insurance program for public entities. Weare
confident that our product and pricing will reflect this position.
Frank Cowan Company Umited
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PREMIUM AND COVERAGE SUBMISSION
IMPORTANT NOTICE
We have quoted tenns and conditions to you based on the following assumptions:
No major changes in the loss experience of your portfolio.
No major exposure changes prior to Renewal.
Continued support of our insurers.
No changes in the reinsurance terms or conditions available to our insurers that would
affect the terms we have quoted.
Any changes to the above assumptions prior to renewal may result in changes to our quotation.
Frank Cowan Company Limited
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108
PROGRAM SUMMARY
SUMMARY OF COVERAGES
PlRilr:i~~
Municipal Liability
Limit of Protection per occurrence
(No Annual Aggregate Limit)
Third Party Claims Deductible including expenses
Sewer Backup Deductible including expenses
Wrongful Dismissal (defence costs) Limit per claim
Annual Aggregate Limit
Deductible
Municipal Marina Liability
Malpractice Liability
Voluntary Compensation
Errors and Omissions
Limit of Protection per claim
(No Annual Aggregate Limit)
Deductible including expenses
Non-Owned Automobile
Limit of Protection per occurrence
(No Annual Aggregate Limit)
Legal Liability for Non-Owned Vehicles (S.E.F. No. 94)
Third Party Deductible
All Perils Physical Damage Limit
Deductible
Environmental Liability
Liabililty of Protection per claim
Annual Aggregate Limit
Self-Insured Retention
Frank Cowan Company Limited
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LIMJTS/ AMOUNTS
$ 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.
PROGRAM SUMMARY
SUMMARY OF COVERAGES
',J 108
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
Councillors' Accident-
- City Mayor/Regional 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 DrAiuctible)
Wee1dy Income - Total Disability
Weeldy Income - Partial Disability
Municipal Conflict of Interest
Percentage of Legal Fees and Expenses
Maximum Limit of Reimbursement per claim
(No Annual Aggregate Limit)
Legal Expense
Percentage of Legal Fees and Expenses
Maximum Limit of Reimbursement per claim
Annual Aggregate Limit
Frank Cowan Company Limited
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$
$
$
$
$
$
$
2,000,000.
Included
Included
Included
100,000.
100,000.
$
$
100,000.
500.
250.
100%
100,000.
100%
100,000.
250,000.
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PROGRAM SUMMARY
SUMMARY OF COVERAGES
LIMITS/AMOUNTS
PARTBf~noijR'!Jii
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
$ 139,461,400.
$ 500,000.
$ 500,000.
$ 1,000,000.
$ 500,000.
$ 2,584,500.
$ 5,000.
Checkroom Liability
Data Processing
System and Equipment
Media
Extra Expense
$
$
$
1,440,800.
47,000.
50,000.
Fine Arts Form
$
2,000.
Exhibition Form
As Per Lists Provided
Deductible
Exceptions:
Checkroom Liability, Fire Training Trailer, Fine Arts Form and Exhibition Form $
- Peril of Flood $
- Peril of Earthquake 3% or Minimum $
$
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
111
LIMITS/AMOUNTS
Boiler and Machinery
Limit per Accident - Comprehensive
Extra Expense
Water Damage
Ammonia Contamination
Expediting Expenses
Hazardous Substance (including PCB Contamination)
Business Interruption - Loss of Profits (Gross Revenue)
- All Buildings & Facilities, Greenwood Museum, Pickering
- Don Beer Arena, 940 Dillingham Road, Pickering
- DWlbarton Indoor Pool, 655 Sheppard Ave. E., Pickering
- Pickering Recreation Complex., 1867 Valley Farm Road, Pickering
Spoilage - Goods Wlder Refrigeration
Professional Fees
Data and Media
By-Law Cover
Deductible
Frank Cowan Company Limited
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$ 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/ AMOUNfS
pBT1U~:imOJmfiiiE
Automobile Fleet
Liability Limit
Deductibles
Section 3 (Third Party)
Section 6 (Direct Compensation)
All Perils
$ 25,000,000.
$ 10,000.
$ 10,000.
$ 10,000.
Garage Automobile
Third Party Liability Limit
Customer Vehicles
Collision Limit
Deductible
Specified Perils Limit
Deductible
$ 3,000,000.
$ 200,000.
$ 500.
$ 300,000.
$ 500.
Frank Cowan Company Limited
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COMPREHENSIVE INSURANCE
PROGRAM
COVERAGE FEATURES
2007 - 2008 .
Frank Cowan Company Limited
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113
114
PART A
CASUALTY
Frank Cowan Company Limited
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MUNICIPAL LIABILITY INSURANCE
Features
The Cowan Municipal Program incorporates a comprehensive and broadly worded liability
policy which was designed specifically to meet the needs of municipalities and their
corresponding risks which are quite different and unique from other commercial risks that are
insured under a Commercial General Liability (CGL) policy. When comparing fonns of
coverage, it is important to note that unless the coverage is specifically excluded, it is generally
covered, subject to the terms and conditions of the policy.
. Liability coverage provided for Bodily Injury, Property Damage, and Personal Injury.
. Separate Limit of Liability applies.
. No Annual Aggregate limit is applicable
. Coverage is provided on an Occurrence basis.
. Broad form Definition of Insured applies, including: Councillors, Employees, Statutory
Officers, Firefighters, Volunteers, Boards, Commissions, and Committees.
· Cross Liability is included.
. Coverage applies Worldwide.
The following coverages are included to the full policy limit, unless specified otherwise:
.
Employers' Liability
Contractual Liability
Liquor Liability
Tenants' Legal Liability
Sewer 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 form Definition of Insured applies, including: Councillors, Employees, Statutory
Officers, Firefighters, Volunteers, Boards, Commissions, and Committees.
· Administration of Employee Benefit Programs is included to the full policy limit (no
aggregate limit applies).
· Coverage applies Worldwide.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company Limited
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NON-OWNED AUTOMOBILE INSURANCE
117
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 ofliability 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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~ 118
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 limita municipality to claims arisingfrom a sudden and accidental event.
.
Separate limits of liability apply specifically to this coverage.
.
Broad form Definition of Insured applies, including: Councillors, Employees, Statutory
Officers, Firefighters, Volunteers, Boards, Commissions, and Committees.
.
Broad definition of Environmental Impairment applies.
.
Coverage is included for sudden and accidental events and for liability resulting from events
that occur gradually and over a period of time (i.e. not limited to sudden and accidental
claims).
.
Coverage is included for liability arising out of the escape of contaminants from properties
previously owned, leased or operated by the municipality.
.
Coverage is included for impairment caused by owned watercraft.
.
Coverage applies Worldwide.
.
No exclusion fi)r 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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119
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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'" 12()
COUNCILLORS' ACCIDENT INSURANCE
F ea tures
This policy provides accident insurance coverage for the benefit of the municipality's elected
officials. All benefits are payable in addition to any other benefits that the injured person may be
in receipt of
.
Coverage applies while the individual is acting within the scope of their duties, including all
travel required.
.
No aggregate limit applies.
.
No age restriction applies. ..
.
Coverage is not limited to "authorized" travel only.
.
Weekly indemnities are paid in full regardless of the individual's employment status (e.g.
retired, self-employed, etc.).
.
Weekly indemnity for Total Loss of Time is payable for life.
.
A schedule of Dismemberment Benefits is provided and payable as set out in the policy.
.
Funeral expenses are included up to $10,000.
.
Blanket Accident expenses are included up to $10,000. and include dental, chiropractic,
registered nurse, podiatrist, ambulance, drugs, crutches, etc.
Please refer to the insurance contract for all limits, terms, conditioDi; and exclusions that apply.
Frank Cowan Company ll.imited
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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 courtfinds (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 defmed 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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121
..i
122.
IJEGAL 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 (exceptfor 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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PARTB
PROPERTY
Frank Cowan Company Limited
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123
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124
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 defInition of property insured is included.
· No co-insurance clauses apply.
· Insured is not required to provide a signed statement of values and policy does not contain a
stated amount clause.
· Replacement Cost coverage is provided (unless specifIcally stated otherwise).
· Worldwide coverage is included.
· Replacement on same site is not required.
· No restriction on property in transit and coverage is provided to policy limit.
· Newly acquired property is automatically included with no limit other than the policy limit.
· 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 EnvironmentallPollution Clean-up) is included to the policy limit.
Frank Cowan Company Hooted
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Property Insurance Features continued
125"
· 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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126
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, (:onditions and exclusions that apply.
Frank Cowan Company l..limited
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PART C
AUTOMOBILE
Frank Cowan Company Limited
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127
128 AUTOMOBILE FLEET INSURANCE
Features
This policy provides protection for all claims arising out of the use or operation of licensed
automobiles owned or leased by the municipality. Coverage is provided as per the Statutory
Automobile Owner's Policy. A special Cowan endorsement is added to enhance the basic policy
coverage.
· Coverage is provided for Liability, Accident Benefits, Uninsured Automobile, and Direct
Compensation - Property Damage.
· Loss or Damage coverages are available as requested by the Municipality to protect their
licensed vehicles from physical damage caused by an insured peril.
· Coverage is automatically extended to include:
newly acquired vehicles,
inappropriately licensed drivers,
permission to carty explosives,
permission to rent or lease,
damage caused by freezing of Fire-Fighting Apparatus, and
permission to carty passengers for compensation.
· Our Replacement Cost coverage is unique. It provides repairs or replacement of vehicles with
no deduction for depreciation.
On a partial loss, repair estimates are calculated by using all new parts to repair
damage.
On a total loss, the municipality has the option of purchasing a new vehicle, or
accepting a cash settlement for the amount it would cost to purchase a new vehicle.
· Guaranteed Amount coverage can be provided on specified vehicles. Repairs or replacement
will be undertaken without deduction for depreciation up to the Guaranteed Amount shown on
the automobile schedule attached to the policy.
· Valued coverage can be provided on specified vehicles, usually those that are obsolete, would
not be replaced, or would be replaced with a used vehicle.
· Actual cash value (ACV) coverage can be provided on specified vehicles.
· If a single loss involves both the Automobile and Property Insurance policies, the Property
policy deductible is waived only on any insured property attached to the automobile.
Please refer to thle insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company Limited
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GARAGE AUTOMOBILE INSURANCE
129
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, Unfusured Automobile, and Direct
Compensation Property Damage.
· Loss or Damage coverage is available as requested by the municipality to protect its legal
liability for a customer's automobile from physical damage caused by an insured peril, while
in the care, custody or control of the municipality.
· Physical damage coverage for customer vehicles can include Collision, and Comprehensive or
Specified Perils coverage. Please refer to the limits and deductibles for the selected coverage
as specified in the Summary of Coverage pages.
Please refer to the insurance contract for all limits, terms, conditions and exclusions that apply.
Frank Cowan Company Limited
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