Loading...
HomeMy WebLinkAboutCOD-026-04 . CI~-!!Jgron REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: June 7, 2004 Report #: COD-026-04 File#_ get;: l~i4 - c;J'!i'vCJ-i By-law # Subject: Workplace Safety Insurance Board Independent Operators Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-026-04 be received; and 2. THAT Council adopt the attached policy for Workplace Safety and Insurance Board Coverage for all Municipality of Clarington contractors. / Submitted by: t#.A..l0:) - arie Marano, H.B.Sc., C.M.O. Director of Corporate Services '" . ,~~Q ~G.Jz~ Reviewed by:---- Franklin Wu, Chief Administrative Officer MMILABlkm 1201 REPORT NO.: COD-026..Q4 PAGE 2 BACKGROUND AND COMMENT The existing procedure for contractors working for the Municipality of Clarington is that the Company's personnel must be covered by the insurance plan under the Workplace Safety and Insurance Act, 1997, or must provide an identified number from Workplace Safety and Insurance Board (WSIB) verifying their status as an "Independent Operator". In addition the Municipality requests of all contractors that they provide a "Letter of Good Standing" commonly known as a Certificate of Clearance from WSIB every sixty days. While this practice ensures WSIB coverage of all contractors that have employees it does not ensure coverage of the sole independent contractor for the owner of a company who also works on site even though the company may have coverage for their employees. By not insisting that these independent contractors! owners! operators have the WSIB coverage, the Municipality is exposed to the potential of being held financially liable should the contractor have an accident on site while performing work for the Municipality of Clarington. There are basically two options that are available to the independent contractors to obtain insurance coverage is the event of a workplace accident. The first option is for the contractor to take out long term disability coverage from an insurance company. While this aiternative provides the contractor with coverage should there be an accident. It does not prevent them from taking legal action against the Municipality for damages resulting from the workplace injury. The second and recommended option is for the contractor to pay for optional insurance coverage from WSIB. While this option is more expensive for the contractor, it does somewhat prevent them from taking legal action against the Municipality for personal injury resulting from a workplace accident. In order to protect the Municipality to the extent possible, it is recommended that Council endorse this as the Municipal Policy when hiring independent contractors! owners! operators. The cost for the contractors to obtain this insurance varies depending on the industry, trade and risk associated for example, for contractors performing electrical work this charge is $3.03 for every hundred dollars of coverage, where as for roofing contractors it is $12.34 per hundred dollars. The total amount of coverage is based on their annual profitable earnings. 1202 , REPORT NO.: COO-026-o4 Paae 3 Adoption of this policy will affect some of the Municipality of Clarington's small independent contractors! owners! operators in that they will need to incur additional cost to provide the required coverage and may in fact increase some of the prices paid by the Municipality as a result of this cost being passed on. Purchasing, will therefore advise all Municipality of Clarington's current contractors affected by this change in pOlicy and will assist them in the process to obtain their required coverage. In addition, this topic will be added to the agenda for the Supplier Information Night to be heid on June 24th, 2004, with a representative from WSIB in attendance to answer any questions. The Municipality of Clarington, Manager of Human Resources has reviewed this policy and is in agreement. 1203 CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T(905)623-3379 F (905)623-4169 . f WORKPLACE SAFETY AND INSURANCE BOARD (WSIB) POLICY FOR MUNICIPALITY OF CLARINGTON CONTRACTORS This policy applies to all contractors working for and on the Municipality of Clarington's property. All of the Contractor's personnel must be covered by the insurance plan under the Workplace Safety and Insurance Act, 1997, or must provide an identification number from the WSIS verifying their status as an "Independent Operator". Upon request by the Municipality of Clarington, an original Letter of Good Standing from the Workplace Safety and Insurance Board shall be provided prior to the commencement of work indicating all payments by the Company to the Board have been made. Prior to final payment, a Certificate of Clearance must be issued indicating all payments by the Company to the Board in conjunction with the subject Contract have been made and that the Municipality will not be held liable to the Board for future payments in connection with the company's fulfilment of the contract. Further Certificates of Clearance or other types of certificates shall be provided upon request. For Independent Contractors / Owners / Operators who do not have WSIB coverage, the following shall be provided upon request by the Calling Agency: . Single Independent Contractors / Owners / Operators shall provide a letter from the Workplace Safety & Insurance Board confirming independent operator status and identification number. To obtain this, contractors must complete the form "Determining Worker/Independent Operator Status", issued by the Workplace Safety & Insurance Board. (For more information, please contact your local Workplace Safety & Insurance Board Office and refer to this clause.) · Single Independent Contractors / Owners / Operators must also provide a certificate from the Workplace Safety and Insurance Board confirming they have purchased the optional WSIB coverage. · The Municipality of Clarington has the right to reject any bid it deems to provide sufficient coverage. 12tH