The Insurance Committee is a sub-committee of the Finance Committee
CCRA’s Insurance Programme is administered by the Insurance Committee, a Sub-Committee of Finance. The Insurance Committee Chair is Ed Richards who has extensive background experience working in the Canadian Property and Casualty insurance industry and is considered well qualified to give guidance and advice to the Board of Directors on insurance related matters affecting CCRA.
The current insurance programme is placed through Taylor Forder Insurance Brokers Ltd, a local Port Perry insurance Broker and is underwritten by two reputable and financially stable insurance companies.
In order to obtain appropriate and broad insurance coverage protection, to fit the special needs of CCRA and its Members, the Insurance Committee has prepared detailed coverage specifications and negotiated certain changes in standard insurance industry policy wordings. The result has been to produce what is referred to as a ‘tailor made’ policy.
The following are highlights of the coverage CCRA has purchased to protect both CCRA assets and potential liability exposures.
Property Coverage – Underwritten by Economical Mutual Insurance Company
- Policy covers building, equipment and contents against all risks of loss or damage subject to certain exclusions and limitations. The deductible per claim is $1,000.00 with larger deductibles for flood and earthquake losses.
- Policy covers loss of monies and securities due to fraudulent or dishonest conduct.
Notes Applicable to Property Coverage Item 1
In the event of loss or damage, coverage is based on the actual cost of repairs or replacement without deduction for depreciation.
The policy limit (amount of insurance) is kept up-to-date by two methods. At each annual renewal our insurance company automatically applies a variable percentage increase in the amount of insurance to recognize any increased costs for labour and materials that have taken place since the last renewal. In addition, every three years we are required by our insurance company to obtain an independent inspection and valuation of The Centre, including the in ground pool and postal kiosk. This inspection and valuation is done for the purpose of establishing a current cost estimate to replace these structures in the event they suffer serious damage and have to be replaced.
Directors and Officers Liability Coverage – Underwritten by Encon Group Inc.
- Policy limit is $3 million per claim with a $3 million annual aggregate covering liability, including investigation and legal defense costs, for wrongful acts, actual or alleged, committed by any individual who is a director, officer, trustee, volunteer or member of any duly constituted Committee of CCRA. Coverage is subject to certain conditions and limitations.
Commercial General Liability Coverage – Underwritten by Economical Mutual Insurance Company
- Policy limit is $10 million covering liability, including investigation and legal defense costs, for injury or damage arising from CCRA activities and ownership of property. Coverage is subject to certain conditions and limitations including a $1,000.00 deductible per claim.
Notes Applicable to Commercial General Liability Coverage
Coverage has been extended under this policy section to not only include protection for CCRA but also any person while acting in a position, carrying out or performing any functions, activities, duties or responsibilities on behalf of CCRA. This includes any person who serves on a committee or sub-committee established by, at the direction of, or with the approval of CCRA, including volunteer workers, while carrying out, acting, or performing any functions or duties related to such committee or sub – committee, work or responsibilities.
It is CCRA policy to insist that all trades, contractors, service providers (i.e.: caterers, entertainers with equipment) and suppliers to CCRA – with certain Board permitted exceptions – provide proof of in force liability insurance for limits of not less than $2 million covering their operations and activities.
Why do we need to do this?
Simply put it provides proof that anyone doing work or providing a service for CCRA will be in a position to have their own liability insurer handle and pay claims for any potential wrongdoing that results in injury and/or damage arising from the work or service performed for CCRA. Without insurance coverage, or sufficient personal or business assets to deal with claims, the very real possibility exists that unresolved claims would be redirected against CCRA and its liability insurers, alleging contributory negligence on the part of CCRA using various supporting legal arguments. Such claims against CCRA may be without merit but would still have to be investigated and defended at significant cost. This would negatively impact CCRA’s excellent claims record and inevitably lead to increased premiums.
The requirement for “proof of in force liability insurance” is quite a common requirement in various business situations, is viewed as a financially prudent practice and has the full support of CCRA’s insurance broker and insurance company. We believe it is necessary in order to assist our insurance broker in securing the needed level of insurance protection for CCRA at a reasonable and competitive premium. It also serves to protect the interests of CCRA Members.
Last updated August 8, 2022