HomeMy WebLinkAboutTR-46-83 W5
CORPORATION OF THE TOWN OF NEWCASTLE
40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
L1C3A6 TELEPHONE 623-3379
REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING
HELD ON JULY 4, 1983.
TR-83-46
SUBJECT: INSURANCE COVERAGE 1983-84
RECOMMENDATION:
It is respectfully recommended:
1 . That this report be received; and
2. That the present insurance coverages held with the Frank Cowan
Company Limited be renewed for the period of July 1st, 1983 to
June 30th, 1984.
3. That the following amendments to the municipality's insurance
coverane be made at this time to be effective upon Council approval
of these recommendations for amendments:
(i ) The present blanket bond limit be increased from $250,000.00
to $500,000.00 at an additional annual cost of $579.00; and
(ii ) That present insurance coverages not be extended to include
an "All Risk" form of insurance for protection from flood
and earthquake damage to building at an annual cost of
$1 ,369.00. v
(iii ) That present deductible limits be maintained at $2,500.00
for another year and then be reviewed; and
(iv) That the present electronic data processing insurance be
reviewed to insure all municipaly owned elements are included
in the coverage.
4. That Committee consider the advisability of including an excess layer
of liability insurance with 'a single limit of $5,000,000.00 over all
of the underlying limits at an annual cost of $3,794.00;
5. That Committee consider the advisability of increasing The Principal
Sum for loss of Life and Capital Sum for Dismemberment from $22,500.00
to a greater amount. The amounts and associated additional annual cost
is set out below:
Voluhteer Firefighters
Principal Sum/Capital Sum Additional Cost
(i ) $25,000. $219.00 j) 1/4i`
(ii ) $30,000. $657.00 00v
(iii ) $50,000. $2,409.00
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TR-83-46
July 4, 1983
Insurance Coverage 1983-84
6. That the various departments review the lists of replacement values
and other aspects of the coverages and advise The Treasury Department
of any necessary amendments. The resultant changes in premium costs,
if any, shall become part of the annual premium costs.
BACKGROUND AND COMMENT:
Members of Staff have reviewed the "Risk Management Report" presented by
the Frank Cowan Company and made the following comments in support of staff
recommendations with regard to the recommendations contained within the 1983
Risk Management Report.
1 . Given the size of the municipal budget, the crime insurance bond should
be increased to $500,000.00. This is an improvement in coverage which
was to be reviewed and updated annually to provide sufficient protection
for the municipality from defalcations in all locations.
2. The extended coverage for flood and earthquake damage to buildings is
not seen as a necessary coverage at this time. Our exposure to this
risk is not considered to be sufficient to warrant this expense.
3. For the past year we have had a deductible limit of $2,500.00 per
incident. Staff feel we must monitor the effects of that deductible
limit for another year and review our actual costs incurred, before we
can recommend a change in the limits again.
4. With the installation of the data processing equipment in January of
1982, coverage was extended to include such equipment. Staff are in
the process of updating the inventory and advising the insurer of
same to ensure the equipment is adequality covered.
5. The insurer has recommended that an excess layer of liability insurance
be secured to provide for claims which exceed our present liability
limit of $5,000,000.00. This item was also recommended in 1982-83 and
wasdeferred -to the 1983-84 premium year.
At this time no judgements in excess of $5,000,000.00 have been awarded
by The Courts. It is the opinion of the insurer that The Town has
considerable exposure in the area, because of the geographical. area
and its numerous facilities and recreational parks. There have been
numerous writs issued against other municipalities for anywhere from
$4.5 Million to $40 Million for various claims for bodily injury,
errors and omissions, inadequacy of firefighting equipment etc.
6. In light of the insurance coverage provided to full -time employees and
Members of Council , staff feel that serious consideration should be
given to increased coverage for the volunteer firemen who risk their
lives in the service of the Town. This coverage would respond in the
case of accidental death or dismemberment of a volunteer fireman while
attending any emergency alarm including responding and returning to base.
. . ./3
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TR-83-46
July 4, 1983
Insurance Coverage 1983-84
7. All departments have reviewed the various replacement values, and
other aspects of the coverage and staff have prepared amendments
for the insurer, as required.
In conclusion, staff find the insurance coverages adequate for the needs
of the Town, but have made recommendations based on the perceived need for
extended coverages and updated coverages to meet the c.rh,angesin risk exposures.
Respectfully submitted,
Kathryn A. Campbell , C.A. , B.Comm. ,
Treasurer
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