HomeMy WebLinkAboutTR-44-87 TOWN OF NEWCASTLE
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MEETING: GENERAL PURPOSE & ADMINISTRATION COMMITTEE
DATE: June 15, 1987
REPORT #: TR-44-87 FILE #:
SUBJECT:
1987/88 INSURANCE RISK MANAGEMENT REPORT
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. That report TR-44-87 be received; and
2. That Frank Cowan Company Limited continue to be retained as the
Town of Newcastle's insurance carriers for the period from July lst
1987 to June 30th 1988, with a total premium renewal rate of
$187,794.00 (an increase of less than 1% over 1986/87 premium of
$186,790.00.) ; and
3. That, further to the above, the Frank Cowan Company be instructed
to add to the Town's Policies, a separate policy for Liability
Insurance for Community Recreation Affiliates, at an approximate
premium of $3501.010 per Community Board, (to be billed to each
Board) ; and
4. That the Fire-Fighters Accident Principal Sum for Loss of Life and
Capital sum for Dismemberment be increased from $30,000.00 to
$50,000.00 at an additional premium cost of $2,016.00; and
5. That the updated Fleet and Property schedules be forwarded to the
Frank Cowan Company as they are received from Department Heads;
and
6. That there be no other_ changes to the individual policies or
deductibles, as outlined in the 1987 Risk Management Report by the
Frank Cowan Company, which has been distributed to Department Heads
and Council Members under separate cover; and
7. That the 1987 Budget overprovision for insurance amounting to
$15,135.00 (which is net of the $2,016.00 premium for Fire-
Fighters Policy Adjustment) , be transferred to the Self-Insured
Losses Reserve.
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TR-44-87 Page 2
BACKGROUND AND COMMENT:
The overall minimal increase in the insurance premium for the 1987/88
premium year is a reflection of the improvement in the liability/loss
ratio over the past year. The trend, according to the Town's carriers,
is for these satisfactory results to continue, and that will result in
increased competition in the marketplace in the future.
The Frank Cowan Company continues to service the insurance needs of the
greater percentage of the municipalities in the province, and since
there has been no significant competition in the insurance marketplace
over the past premium year, they are considered to remain a solid risk.
Over the past year the question of insurance for the local Recreation
and Community boards has been addressed. The Frank Cowan Company has
reviewed the list of local boards as provided by the Community Services
Department, and has offered a "Community Recreation Affiliates" General
Liability Policy with a limit of $1 million. The cost would range from
approximately $240.00 for Non Sports Groups, to $350.00 for Sports
Groups (depending on the size and exposure) . The cost to obtain a
similar policy independently would be prohibitive, and since there has
been much concern displayed by the volunteers working these
organizations, it is recommended that the Town purchase the appropriate
policies on behalf of each of the local Boards, and bill them for their
share of the premium. Frank Cowan Company should therefore be requested
to provide a detailed cost analysis with the invoice for this policy.
The increase in the Fire Fighter's principal sum for loss of life or
dismemberment from $30,000 to $50,000 has been recommended for
consideration by the Frank Cowan Company and by the Fire Chief. The
additional premium is not significant for the increased coverage, and
staff feel the request is reasonable.
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TR-44 O7 Page ]
Department Heads are currently reviewing and updating the Fleet and
Property schedules that were included in the 1987 Risk Management
Report, and as they become available they will be reviewed and any
changes will be passed along to the Frank Cowan company so they may
update their records accordingly.
There were no significant changes in either the policies or premiums of
the other oIaoaeo of insurance and thus further iodeptb analysis is not
deemed to be warranted.
The combination of the 1987 Budget provision for insurance being a
conservative estimate at $203,085.00, and the premium year straddling
two fiscal years, results in an ovezpzoviaiou of $15,135.00 (after
considering the added premium of $2,016.00 for the change to the Fire-
Fighters Accident insurance) . As in prior years, this amount is
available for transfer to the Self-Insured Losses Reserve, to be used to
meet claims that fall within the current deductible levels maintained.
The balance in the Self-Insured Loaaao Reserve at May 31, 1987 is
approximately $59,000.00.
Note: A copy of this report has been provided to Dave Reed of Frank
Cowan Company in advance of the scheduled G8Ameetiug for
information purposes nuIl'r in order that be may be prepared
to answer any questions that may arise at that time.
Respectfully submitted, �
Treasurer Acting Director Community Services
Recommended for presentation
to tb C(mm\itt |
MAM/JRB/pp Chief Adml�istrative Officer
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