Parish Leadership 2014: Insurance and Risk Management

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  • Coverage Summary – as provided
  • 120 days permission for property to be vacant
    Vacancy – option to purchase “All Risks”
    Vacant – definition do not operate or have services
    Seasonal vs. Vacancy
  • 120 days permission for property to be vacant
    Vacancy – option to purchase “All Risks”
    Vacant – definition do not operate or have services
    Seasonal vs. Vacancy
  • 120 days permission for property to be vacant
    Vacancy – option to purchase “All Risks”
    Vacant – definition do not operate or have services
    Seasonal vs. Vacancy
  • 120 days permission for property to be vacant
    Vacancy – option to purchase “All Risks”
    Vacant – definition do not operate or have services
    Seasonal vs. Vacancy
  • 120 days permission for property to be vacant
    Vacancy – option to purchase “All Risks”
    Vacant – definition do not operate or have services
    Seasonal vs. Vacancy
  • 120 days permission for property to be vacant
    Vacancy – option to purchase “All Risks”
    Vacant – definition do not operate or have services
    Seasonal vs. Vacancy
  • - Not a frequency issue – severity issue
  • General
  • 120 days permission for property to be vacant
    Vacancy – option to purchase “All Risks”
    Vacant – definition do not operate or have services
    Seasonal vs. Vacancy
  • Insured to protect property
    Suzy
  • Suzy
    Clutter had built up in the electrical room, particularly in front of the electrical panels. This is in contravention of the Ontario Electrical Code. It is required that this room be kept clear of all combustible materials.
  • Parish Leadership 2014: Insurance and Risk Management

    1. 1. Welcome To The Annual Anglican Diocese Of Toronto, Parish administration Workshop Insurance and Risk Management March 8, 2014 – Trent Durham Suzy Furlan Marsh Canada Dan Paulikot Ecclesiastical Insurance
    2. 2. MARSH 2 Agenda Marsh to present: • Service Team; Partners In Protection • Insurance Contract • Property Insurance • Adequately Insured • Vacant Property • Agreements and Risk Management Reports • User Group Policies • Value Added Services Ecclesiastical to present: • Claims - Statistics – Property Claims - Leading Indicators • Loss Control - Services Provided - Mitigating/Preventing losses
    3. 3. MARSH CLIENT REPRESENTATIVE RISK PLACEMENT SERVICE Lyne Erwin 416-868-8881 lyne.erwin@marsh.com Effie Paraskevakos 416-349-4389 effie.paraskevakos@marsh.com SENIOR RELATIONSHIP OFFICER Claims Reporting Ecclesiastical CLIENT EXECUTIVE Suzy Furlan 416-349-6639 suzy.furlan@marsh.com Manish Bissa 416-349-4790 manish.bissa@marsh.com INSURANCE ASSISTANT Stephanie MacDonald 416-349-4885 stephanie.macdonald@marsh.com CLIENT REPRESENTATIVE Carl Murray 416-349-4721 carl.murray@marsh.com Anglican Diocese of Toronto Elizabeth Hardy Parishes Nick Brigis – Parishes Email: nbrigis@eccles-ins.com Tel: 416-484-3970 Bryan Floras 416-349-4399 bryan.floras@marsh.com Service Team CLAIMS ADVOCATE Art Ruston 416-868-8899 arthur.ruston@marsh.com 3
    4. 4. MARSH 4 Partners In Protection Marsh Ecclesiastical Northbridge All Sports (Lloyd’s) Broker Insurer (Package) Property Commercial General Liability Abuse Directors’ & Officers” Insurer Umbrella Liability Insurer (Third Parties) Indemnifies, Pays for damages Where does the parish report claims Who does the parish call with day to day questions/ concerns * Who negotiates competitive coverage and pricing Who can the parish call for insurance documents (Certificates, policy, etc.)
    5. 5. MARSH 5 Who forms part of the Insurance Contract? Contract or Insurance Policy First Party: Insured or Parishes Second Party: Insurer or Insurance Company Third Party: If accident, injury or loss is to someone else
    6. 6. Property Insurance
    7. 7. MARSH 7 Principal Perils Property Insurance Typically covers property, owned and leased, against a broad range of perils. Property Covered Flood Windstorm Fire Lightning Building Contents Equipment Property of Others
    8. 8. MARSH 8 Policy Forms • Provides financial protection against the loss or damage to real or personal property covered by an insured peril. • Your policy is written on a Broad Form Basis – “All Risks” of direct physical loss or damage unless otherwise excluded Property Excluded includes, but not limited to,  Vacant Property, if not reported within 120 days of being vacant  Automobiles  Property illegally acquired Perils Excluded includes but not limited to, damage caused by  Seepage*  Insects, rodents, vermin*  Settling, expansion, contraction, moving, shifting or cracking* * Unless caused by or resulting from a peril not excluded • Property of Every Description as reported by church on Statement of Values.
    9. 9. MARSH 9 Adequately Insured? Property: How do you determine the insurance limit for your churches’ property •Local contractor’s estimate •Professional building appraisal •Keep track of renovations, building additions, improvements •Why is it important to insure to the full replacement value? Liability: You can transfer and/ or mitigate your risk by: •Requesting a Certificate of Insurance from 3rd parties (using/ renting your property) •Following Sexual Misconduct Policy •Hiring qualified contractors
    10. 10. MARSH 10 Vacant Properties Definitions: Vacant: Not occupied and without contents Unoccupied: Not inhabited, unused or shut down Named Perils: Includes (as further defined in the policy wording) I. Fire or Lightning II. Explosion III. Impact by Aircraft, Spacecraft or Land Vehicle IV. Riot, Vandalism or Malicious Acts V. Smoke VI.Leakage from Fire Protective Equipment VII. Windstorm or Hail Church:_______________ Certificate No.:____________ Location No:_____ Name of Location: _________________________________________________ Occupancy (church, rectory, etc.): _____________________________________ Date Location Became Vacant/Unoccupied: _______________________________________________________ Anticipated Duration of Vacancy/Unoccupancy: _______________________________________________________ Reason for Vacancy/Unoccupancy: _______________________________________________________ Perils Insured (please check one): □ “All Risks” – if this option is chosen, property rate/premium will double □ Named Perils Vacant/Unoccupied Location Reporting Form COMPLETION OF THIS FORM IS NOT REQUIRED FOR SEASONAL PROPERTIES Your policy contains a provision which states that a location is allowed to be vacant or unoccupied up to 120 days. NO COVERAGE after 120 days unless vacancy questionnaire received and approved by Ecclesiastical Insurance Office. It is therefore imperative that you report all vacant/unoccupied locations to Marsh immediately after the location has become vacant or unoccupied to allow sufficient time for the Marsh to arrange the appropriate coverage.Please report all vacant/unoccupied properties by completion of this form. PLEASE COMPLETE THE ATTACHED QUESTIONNAIRE & RETURN BOTH THIS REPORTING FORM & THE QUESTIONNAIRE TO MARSH
    11. 11. MARSH 11 Contact your broker to report that the building is vacant/unoccupied and confirm effective date of vacancy. Locations in Urban/Rural Areas • Is heat maintained above 10 C for all parts of building, 24 hours per day during the heating season? Yes No • Is water shut off? (Drain pipes, toilet tanks and bowls, radiators and piping and water heater) Yes No • Is hot water heater turned off? Yes No • Is the premises checked every 72 hours? Note: Keep a written log recording the date and time the building was checked and any action taken. Yes No • If water is left on due to heating requirements, is property checked every 24 hours? Note: Some heating systems require water and therefore water cannot be shut off during the heating season in these circumstances. Yes No • Is snow/ice removed from walkways and driveways leading to the building? Is the area salted and sanded? Yes No Yes No Locations in Remote Areas (a location is considered to be in a remote area if it is located more than 10 km from the boundary of the closest town, village or city, or if it is inaccessible during certain times of the year) • Is the premises checked once a week? Keep a written log recording the date and time the building was checked and any action taken. Yes No • Are the windows boarded and doors locked? Yes No • Is heat shut off? (Drain rads and piping if heat is hot water radiator heating) Yes No • Is water shut off? (Drain pipes, toilet tanks and bowls, radiators and piping and water heater) Yes No • Is hot water heater turned off? Yes No Other Steps to Consider to Safeguard Your Property Designate a person to be responsible for checking the building and conducting regular maintenance as follows: □ Premises should be kept free of debris and combustible materials (e.g. Gas for lawnmower) removed. □ Ensure that all doors are locked and dead-bolted and that all windows are closed and locked. □ Ensure that timers are set to turn lights on/off on the inside/outside of the building or have someone alternate the front/back door lights to give the impression that the building is occupied. □ Ensure that security and fire alarm systems are operational □ Remove mail and advertisements. Have mail cancelled or re-routed. Vacant/Unoccupied Building Questionnaire THIS QUESTIONNAIRE DOES NOT APPLY TO SEASONAL PROPERTIES Requirements for the Care and Protection of Vacant/Unoccupied Buildings In the event of a loss, ensure that the incident is immediately reported to Ecclesiastical Insurance at 416-484-4555 or through our after-hours claims number at 1-888-693-2253 (1-888-MyEccle). Vacant Properties
    12. 12. MARSH 12 Vacant Properties • Vacancy/Unoccupied Defined: – Vacancy is not occupied and without contents – Unoccupied is similar to vacant but allows for contents to be inside. Concerns: – Vandalism – Fire – Water Damage • Requirements for Vacancy: – Notify Marsh immediately – Complete Ecclesiastical Vacancy Questionnaire and Reporting Form. • Only 120 days Permission – if not reported NO Cover.
    13. 13. MARSH 13 Agreements/ Risk Management Reports Agreements When should parishes engage Marsh in their Agreement? • Effective inception • Volunteers should not be acting as contractors • Contractors should be hired based on expertise and qualification for project. Risk Management/ Property Valuations What is it? – A report offering dedicated health and safety and risk management services as well a building valuation specifically for individual churches. • Conducted by Ecclesiastical at no addition fee or premium • Building valuation is based on replacement cost and not market valuation • Recommendations • Requirements
    14. 14. MARSH 14 User Group Policies What is this policy for: • Responds to damages resulting from bodily injury or property damage arising from the activities of the individual or group user conducted on the premises of the church Who should purchase this policy? • Third Party (User Groups or Individuals) renting or using church property Why should I ask Third Parties using church property for this policy? • Best Practices and it is mandated by the Diocese (please refer to licensing agreements on the Diocesan website). • If Third Parties do not purchase a Liability policy, church’s policy may respond. Where would a third party apply for this policy? • On line at www.marsh.ca/CUG-AnglicanToronto
    15. 15. MARSH 15 Value Added Services – At No Additional Cost to the Parishes Marsh  Risk Awareness Bulletins: Sewer Pumps; Event Risks; Winter Events, copies included in Appendix A  Claims Advocacy – Art Ruston dedicated Claims Consultant  Insurance Contract Reviews Ecclesiastical  Risk Management/ Property Valuation Reports  ProfessionalAssist: Consellors who offer advice on matters of health, safety, employment disputes 1-888-325-4633  LegalConnex: Lawyers who offer advice on matters such as taxes, compliance, real estate, employment issues as it relates to your organization 1-866-263-0256
    16. 16. Claims
    17. 17. MARSH 17May 5, 2014 Claims Statistics as at January 31, 2013 - 237 Churches in the Diocese of Toronto - Average # of all Claims per Year = 42 - Loss Ratio – All Lines (does not include abuse) - 1 year = 53% - 5 year = 98% - 2013 - High Number of Weather Related claims - Toronto had largest “cat” in history - July, 2013 - $850MM - 55 claims reported, 65% weather related - water damage, sewer back-up, lightning, wind - 2009 – All Saints, Arson - $5 MM to repair
    18. 18. MARSH 18May 5, 2014 Claims Statistics … (cont’d) • Highest Number of Claims - water damage - sewer back-up - wind damage - vandalism • Severity - fire/arson - water damage - sewer back-up
    19. 19. MARSH 19 Property Claims - Mitigating/Preventing Claims • Third Party Users – damage your property • Vacant Properties – at higher risk for a claim • Property Maintenance (including rectory/cemetery) – water damage – sewer back-up – wind damage – Lightning – fire • Insuring to Value – Property Coverage only attached to locations listed on the policy
    20. 20. MARSH 20May 5, 2014 Property Claims - Leading Indicators • Aging infrastructure • Environmental - Unpredictable weather patterns • Aging buildings • New Construction • Parts manufactured world-wide • Volunteers
    21. 21. MARSH 21May 5, 2014 Property Claims - Leading Indicators
    22. 22. MARSH Can You Spot What is Wrong in this Photo? 22May 5, 2014
    23. 23. MARSH 23 • Prompt reporting of a claim can assist in protecting the property and expediting a claim. Contact Ecclesiastical with: – All known Information to support claim – Physical evidence – Witnesses • Ecclesiastical can assist by providing access to professionals to mitigate/manage claim • Claims are to be reported directly to Ecclesiastical • Phone: 1-888-693-2253 or Fax at 416-484-6352 email: claimsservices@eccles-ins.com Claim Reporting
    24. 24. Loss Control
    25. 25. MARSH 25 Purpose of Loss Control & Valuations • Number of Inspections – over 140 completed to date • Top 5 overall property recommendations – Prevent water damage – Fire protection – Security – Management Systems – Housekeeping
    26. 26. MARSH 26 Low Cost, No Cost Recommendations • Ensure location of water shut off valves are known • Direct water away from buildings • Daily checklist upon closure of church • Better key control system needed • Fire Extinguisher use training required • Accident reporting procedures lacking • Combustible storage • Conduct fire drills • Winter – clear snow/salt and record when completed
    27. 27. MARSH 27May 5, 2014 Higher Cost – But Still A Good Idea •Roof Repair / Replacement and Check Roof Drains •Sewer Backflow Prevention •Sump Pump Alarm •Outsourcing to Contractors •Asbestos Audit •Balcony Railing Height •Kitchen Range Filter and Duct Cleaning
    28. 28. MARSH 28 Can You Spot What Is Wrong in this Photo?
    29. 29. MARSH 29 Can You Spot What is Wrong in this Photo?
    30. 30. Appendix A
    31. 31. MARSH 31May 5, 2014
    32. 32. MARSH 32May 5, 2014
    33. 33. MARSH 33May 5, 2014
    34. 34. MARSH 34May 5, 2014
    35. 35. MARSH 35May 5, 2014
    36. 36. MARSH 36May 5, 2014
    37. 37. Handout
    38. 38. MARSH 38May 5, 2014 Summary of Coverage
    39. 39. MARSH 39May 5, 2014 Umbrella: • Provides excess insurance over General Liability Policy (except as excluded) o Excludes Abuse Liability o Excludes Errors & Omissions Liability o Excludes Directors & Officers Liability • Limit of Liability - $5,000,000 per occurrence Abuse: • Covers liability arising out or resulting from actual or threatened “abuse” (except as excluded) • Limit of Liability $2,000,000 per Occurrence and Aggregate. o Option to increase limit to either $3,000,000 or $5,000,000 • Occurrence Form: Coverage is triggered at the time the insured caused the injury. These claims must be reported during that policy term. • Retain copies current and historical Commercial General Liability/Umbrella and any excess liability policies Crime: • Covers loss of money, securities and other property as follows: o $75,000 – Employee Dishonesty • (Loss of money or other property caused by fraudulent/dishonest acts of an employee). o $25,000 Money Coverage (Inside, Outside and In Transit) o $25,000 Incoming Cheque Forgery o $25,000 Third Party Computer Theft and Fund Transfer Fraud o $1,000 Theft From Donation Boxes D&O: • Who is an Insured: o Directors, officers (Churchwardens and Incumbents), volunteers, employees of the Diocese. • What is Covered: o Actual or alleged breach of duty, neglect, error or misrepresentation. • Limits of Liability o $2,000,000 per claim/aggregate with option to increase to $3,000,000 or $5,000,000 • Claims Made Policy o Coverage will respond to incidents arising and reported during the current policy term. Full Prior Acts. Summary of Coverage
    40. 40. Thank You! Any Questions?
    41. 41. This document and any recommendations, analysis, or advice provided by Marsh (collectively, the “Marsh Analysis”) are intended solely for the entity identified as the recipient herein (“you”). This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modeling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or reinsurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Marsh is one of the Marsh & McLennan Companies, together with Guy Carpenter, Mercer, and Oliver Wyman. Copyright © 2014 Marsh Canada Limited and its licensors. All rights reserved. www.marsh.ca | www.marsh.com 140204vg

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