Parish Leadership 2014: Insurance and Risk Management

Welcome To The Annual Anglican Diocese Of Toronto, Parish administration WorkshopInsurance and Risk ManagementMarch 8, 2014 – Trent Durham

Suzy Furlan

Marsh Canada

Dan Paulikot

Ecclesiastical Insurance

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

MARSH

CLIENT REPRESENTATIVE

RISK PLACEMENT SERVICE

Lyne Erwin416-868-8881

[email protected]

Effie Paraskevakos416-349-4389

[email protected]

SENIOR RELATIONSHIP OFFICER

Claims ReportingEcclesiastical

CLIENT EXECUTIVE

Suzy Furlan416-349-6639

[email protected]

Manish Bissa 416-349-4790

[email protected]

INSURANCE ASSISTANT

Stephanie MacDonald416-349-4885

[email protected]

CLIENT REPRESENTATIVE

Carl Murray416-349-4721

[email protected]

Anglican Diocese of

Toronto

Elizabeth Hardy

Parishes

Nick Brigis – ParishesEmail: [email protected]

Tel: 416-484-3970

Bryan Floras416-349-4399

[email protected]

Service Team

CLAIMS ADVOCATE

Art Ruston416-868-8899

[email protected]

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mailto:[email protected]

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.)

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

Property Insurance

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

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.

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

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 LightningII. ExplosionIII. Impact by Aircraft, Spacecraft or Land VehicleIV. Riot, Vandalism or Malicious ActsV. SmokeVI.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 FormCOMPLETION 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

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 PropertyDesignate 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 PROPERTIESRequirements for the Care and Protection of Vacant/Unoccupied BuildingsIn 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

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.

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

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

http://www.marsh.ca/CUG-AnglicanToronto

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

Claims

MARSH 17April 10, 2023

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


Claims Statistics … (cont’d)

• Highest Number of Claims- water damage- sewer back-up- wind damage- vandalism

• Severity- fire/arson- water damage- sewer back-up

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


Property Claims - Leading Indicators

• Aging infrastructure

• Environmental - Unpredictable weather patterns

• Aging buildings

• New Construction

• Parts manufactured world-wide

• Volunteers


Property Claims - Leading Indicators

MARSH

Can You Spot What is Wrong in this Photo?

22April 10, 2023

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 416-484-6352email: [email protected]

Claim Reporting

mailto:[email protected]

Loss Control

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

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


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

MARSH 28

Can You Spot What Is Wrong in this Photo?

MARSH 29

Can You Spot What is Wrong in this Photo?

Appendix A

Handout


Summary of Coverage


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 Forgeryo $25,000 Third Party Computer Theft and Fund Transfer Fraudo $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 Liabilityo $2,000,000 per claim/aggregate with option to increase to $3,000,000 or $5,000,000• Claims Made Policyo Coverage will respond to incidents arising and reported during the current policy term. Full Prior Acts.

Summary of Coverage

Thank You!Any Questions?

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.

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Parish Leadership 2014: Insurance and Risk Management

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