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HomeMy WebLinkAboutCSD-08-031 - Facility User Group Municipal Liability Insurance Program ) R Community Services Report To: Date of Meeting: Submitted By: Community Services Comittee March 31 , 2008 Prepared By: Mark Hildebrand, Director Community Programs and Services Ext. 2687 Wynne Hughes, District Facilitator Downtown Community Centre, Ext. 2755 All Ward(s) Involved: Date of Report: Report No.: Subject: March 5, 2008 CSD-08-031 FACILITY USER GROUP MUNICIPAL LIABILITY INSURANCE PROGRAM RECOMMENDATION: That the Mayor and City Clerk be authorized to execute an agreement with Cowan Company Limited, broker for K&K Insurance Canada, and the Corporation of the City of Kitchener, to use "The Facility Users group Liability Insurance Program", subject to the satisfaction of the City Solicitor; and, That in subsequent years, the General Manager of the Community Services Department be authorized to execute the signing of the agreement with Cowan Company Limited, broker of K&K Insurance Canada, subject to the satisfaction of the City Solicitor. BACKGROUND: At their meeting November 20, 2006, Council directed staff to investigate the possibility of facilitating an Insurance program for groups renting City of Kitchener facilities, which would allow them to purchase appropriate insurance at the same time that the user was booking the facility. This option was available to our user groups in the past however as of July, 2006, H.L. Staebler changed the process. Rather than City of Kitchener staff facilitating the group's purchase of insurance through H.L. Staebler while booking a rental, at the request of the broker, groups were asked to contact the insurer directly to obtain the appropriate insurance once the rental was booked. The new process added an extra step for the rental group to follow and was initiated in an effort by H.L. Staebler to better oversee and understand the events that were being insured. Council made the request to investigate other options to ensure that the standard of customer service, and the ease of renting our facilities, was maintained. Report No. CSD-08-031 Page 2 REPORT: All high risk rental events at our facilities are required to have liability insurance that also names the City of Kitchener as an additional insured. High risk rentals include, but are not limited to, all licensed events, events having 100 or more people in attendance and/or events in our facilities that include high risk activities. It is important for renters of municipal facilities to secure liability insurance to protect themselves and the City from lawsuits that may occur as the result of the event. The Frank Cowan Company, in partnership with K & K Canada, offers this type of liability protection through their Facility Users Group Liability Insurance Program. More importantly, the insurance can be arranged at the same time that the user rents a municipal venue, providing our customers the option of "one-stop shopping" rather than being required to make one or more calls to find the appropriate insurance for their event. Staff found that this was one of the only programs that allowed the issuance of certificates to renters on site when they are booking our facilities. For the City to arrange the availability of this insurance program, it will be necessary to provide an up front deposit premium of $1 ,000 per policy which is expected to be recovered by the premiums assessed against renters. Each policy will have a computer operated program which will collect all the relevant, important information from a renter wishing to use our facility, and calculate the cost to issue the insurance coverage for the specific event. The cost will be collected by City of Kitchener staff at the particular facility as they print the certificate of insurance for the renter. Staff estimate that two user policies/computer programs will be necessary to effectively manage the facility rentals across the City, which all facilities will have access to as they have need. It should be noted that only one facility can access the computer program/policy at one time, to issue insurance coverage. It is felt that two policies will be adequate to deal with the number of rentals that are processed through the City, however adjustments can be made if additional policies are required to ensure timely customer service. FINANCIAL IMPLICATIONS: The City of Kitchener is required to provide a deposit premium of $1 ,000 per policy. However, this service is intended to be a cost recovery program and it is expected that the initial $2,000 will be recovered as rental groups use this service. COMMUNICATIONS: Presently the City advises renters that appropriate coverage is available through H.L. Staebler Company Limited and that they should contact them directly, or their own insurance provider, to obtain the appropriate insurance for their event. The new program, if implemented, will be communicated to the rental customers as they inquire about booking our facilities. Rental customers will also be advised that they may contact their own insurance provider, if they so desire. Mark Hildebrand Director, Community Programs and Services G/.~"~.~";"--,..-- ..:~,;t."f: Cowan ,.:~~t-!~~? ,-::::;ik:~r~~ ..8Wfff?f::~1.' -::::::::::::::r:~':- Facility Users Group Liability Insurance Program Information Sheet for Facility Users Liability Insurance Protection: It has become more important in recent years for event organizers to secure liability insurance, main]y due to the rising number of lawsuits. The Frank Cowan COlnpallY , ill partnership with K&K Canada, can now help the event organizers who use municipal facilities to secure Liability protection through our Facility Users Group Liability Insurance Program, which can be purchased at the same time that the user rellts a municipal venue. Commercial General Liability Policy Highlights: · Injury to Participants · Liquor Liability · Occurrence Form · Broad Form Property Damage · Incidental Malpractice · Medical Payments · Contingent Employers Liability · Employees as Additional Insureds · Cross Liability, Severability of Insureds · Products/Colnpleted Operations · Blanket Contractual Limits of Liability: · Each Occurrence - $2 million · Personal Injury - $2 million · Medical Payments (per person) - $2,500 · Tenant's Legal Liability - $1 million · Deductible - Nil K&K,..".. '" ..M' 'c. INSURANCE c:; $l. n t' J' CANADA How can I get more information about the Facility Users Group Liability Jnsurance Program? Please contact Frank Cowan Company at 1-800-265-4000. 4 Cowan Street East Princeton, ON NO] 1 va Phone: 519-458-4331 Fa~: 519-458-4366 Toll free: 1-800-265-4000 www.frankcowan.com How do I report a claim? Please call The Sovereign General Insurance COlnpany. Phone: 416-365-1818 Toll Free: 1-800-365-4430 Fax: 4]6-365-1817 After hours call: 1-877-268-5888 www.sovereigngeneral.com G!-.,--',"","";';;::tJffiih C &;11 owan J0t1tff$};" Frank Cowan Company Since 1927: Frank Cowan Company has been a leader in providing specialized insurance and risk managenlent solutiol1S to mUllicipalities, l1ealthcare facilities, educational institutions, and organizations providing services to the public. We are part of the Cowan family of companies. With over 100 employees, we continue to grow our business across Canada. KftK Canada K&K Canada is considered a leading provider of specialty sport, leisure and entertainment insurance for associations and business organizations across Canada. With origins dating back to 1952, K&K's goal is to provide qualit~ professional commercial insurance products and risk solutions to every aspect of the markets they serve. K&K ,'.....,., ". . ....' ',. INSURANCE U Jl () 1;; J' CANADA Insurer The insurance carrier for this progralTI is The Sovereign General Insura11ce Co. Notes: 1. Liqu01'" Liability is excluded unless purchased 2. Exclusions: Abuse/Molestation/Harassment Exclusion Fireworks Exclusion Total Asbestos Exclusions Data Exclusion Terrorism Exclusion Limited Fungi and Fungal Derivatives Coverage Please refer to the polil)J document for all terms, conditions and exclusions. G..,..-._..."""';<:.:o," ....'~f'.~'.~} Cowan .-.~t.~;i;PJt ,,;;f1;f!(;;i:1,.F'V:" K&K---...,... -..... .... INSlJRAN~E CANADA Facility Users Group Liability Insurance Program Liability Insurance Protection: From a banquet at a community centre, to a family reunion in the park, to a pickup hockey game, individuals and groups use municipal facilities to meet their needs and enhance the feeling of commUl1ity. Due to a rising number of lawsuits and increased settlements awarded, it has become even III ore important in recent years for event orga.nizers to secure liability insurance for their own protection. Municipalities require proof of insurance from the organizer it1 order to rent the facility and seek a consistent method for ellsuring this protection is in place. We have the solution - the Frank Cowan Company Facility Users Group Liability Insurance Program. In partnership witl1 K&K Canada, we can now help organizers secure protection froIn possible claims, and give peace of mUld to them and the municipality. limits of Liability: · Each Occurrence - $2 million · Personal Injury - $2 million · M,edicaI Payments (per person) - $2,500 · Tenant's liability - $1 million · Deductible - Nil Commercial General Liability Policy Highlights: · Injury to Participants · Uquor Liability · Occurrence form · Broad Form Property Dan1age · Incidental Malpractice Medical Paytnents · Contingent Employers liability Employees as Additional Insureds · Cross Uability, Severability of Insureds · Products/Completed Operations · Blanket Contractual Coverage - Made Easy Frank Cowan Compan~ in partnership witll K&K, has eliminated the complicated application process with user-friendly computer software that allows the municipality to confirrn that the users of their facilities have insurance coverage. Our software allows for easy input of information about the event, the organizer(s) and attendees. Once the answers have been cornpleted, the software will automatically generate a fee representative of the premium that the municipality has paid for their facilities user's group policy. It will also produce a certificate of insurance confirming coverage for the event. (t) CO"'!~i!:' K&K"..,." '" ..".., '.. INSURANCE .:; ~ {) C J' CANADA Examples of events covered: - Dances - Weddings/Buck & Does - Festivals and Parades - Reunions - Hockey - Soccer - Baseball - Wheelchair Sports Frank Cowan Company Since 1927, Frank Cowan Company has beel1 a leader in providing specialized insurance and risk management solutions to municipalities, healthcare facilities, educational institutions, and organizations providing services to the public. We are part of the Cowan family of companies. With over 100 employees, we continue to grow our business across Canada. How can I get more information about the Facility Users Group Liability Insurance Program? Please contact Frank Cowan Company at 1-800-265-4000. K8K Canada K&K Canada is considered a leading provider of specialty sport, leisure and entertainment insurance for associations and bllsiness organizations across Canada~ With origins dating back to 1952, K&Kls goal is to provide quality, professional commercial insurance products and risk solutions to every aspect of the ll1arkets they serve. 4 Cowan Street East Princeton, ON NO] 1 va Phone: 519-458-4331 Fax: 519-458-4366 Toll free: 1-800-265-4000 Insurer The insurance carrier for tllis progralTI is The Sovereign General Insurance Co. www.frankcowan.com How do I report a claim? Please call The Sovereign General Insurance COlnpany. Notes: 1. Liquor Liab'ility is excluded unless purchased P}10ne: 416-365-1818 Toll Free: 1-800-365-4430 Fax: 416-365-1817 After hours can: 1-877-268-5888 www.sovereigngeneral.com 2. Exclusions: Abuse/Molestation/Harassment Exclusion Fireworks Exclusion Total Asbestos Exclusions Data Exclusion Terrorism Exclusion Please refer to the policy document for all termsf C01tditions and exclusions. ~~} Cowan ~~, ,If:fi$3t'. K&K,".~"n~ ... ~~..n ,~_ INS~~~ CANADA Municipal InforInation Facility User Group Liability Insurance Program Policy and Certificate Issuance 1. The program provides liability coverage for the Municipality, Lessee of the municipal facility, and participants of the event. 2. The Named Insured is the Lessee of the municipal facility, as identified by certificate issued under this policy. The Municipality is an additional Named lnsured. The Municipality has therefore purchased an insurance policy for itself and on behalf of the Lessees. 3. All Lessees should be offered insurance for their own protection and to avoid liability issues that may arise through an uninsured participant. If the Lessee declines insurance, the municipality should document accordingly. The municipality should have signed document confirming that insurance was declined. 4. The Municipality will be charged a deposit premium. The deposit premium will be estimated based on expected usage of municipal facilities. The actual premium charged for the year will be based on a reconciliation of certificates issued under the policy. 5. The Master policy will be a 2 year policy, but be reissued annually. In this way the policy will accommodate rentals that extend beyond the first policy year. 6. When the Lessee purchases insurance, they will be issued a Certificate confirming coverage. The certificate will provide a Master policy number, certificate number and an outline of terms and conditions. The certificate will also confirm coverage by signature of authorized representative of the Frank Cowan Company and provide contact information for the Frank Cowan Company, and a number to report a claim to Sovereign General. 7. The software generates the insurance fee for coverage of the event, as well as the certificate number. The fee is also shown on the certificate. Please recognize that the fee represents a recovery of the insurance premium paid by the Municipality to the insurers on behalf of the certificate holder. 8. Please note that certificate numbers are randomly generated and are not sequential. 9. Each transaction will generate 3 copies of the certificate. Upon purchase of the certificate all Lessees must be provided a copy of the certificate along with information brochure provided by the Frank Cowan Company. One copy is for the Municipality's records, and one copy for Cowan. Reporting Certificate Information to Frank Cowan Company 1. The software will automatically generate a bordereaux of certificates issued. This is simply a spreadsheet identifying certificates, information about the facility and event and fees charged under each certificate. 2. Bordereaux needs to be submitted to the Frank Cowan Company on the first of each month, along with a copy of each certificate issued. 3. When the bordereaux identifies that the deposit premium has been exceeded, the municipality will be invoiced additional premium. 4. If a certificate needs to be cancelled, the municipality will have to make separate notation and advise Frank Cowan Company when the bordereaux is submitted with supporting documentation signed by the program administrator. A cancellation form is provided. Exclusions 1. Excluded coverage is listed on the certificate 2. Some types of events are also excluded, and the software will identify these by preventing you from proceeding further in the program. Generally excluded events may be underwritten by K&K but will require separate underwriting application. You can also contact your broker to see if insurance is available. 3. Liquor Liability will be shown on the certificate when purchased by the Lessee, when not required, Liquor Liability will be shown as an exclusion. Security of information 1. The software along with a password will be provided to the Municipality before the policy goes into effect. The password should be provided only to the individuals that are accountable for issuing certificates. The software contains macros. The software can be put on a server so that multiple facilities can access it, however it will only allow one user at a time. In this case municipal staff will need to exit the program when not in use. If this becomes cumbersome Cowan can issue a policy to individual locations. 2. The Municipality will need to agree with Cowan that the software will not be duplicated, or provided to anyone external to the Municipality for which the policy was issued. 3. The Facility Users Group Liability Insurance Program offered by Cowan and K&K Insurance Canada is available only to municipalities insured with Cowan.