403-Collis5
(265-5475)
info@collisinsurance.ca

5 Things to look out for before you sign your next Commercial Lease

1.   It is common for the leasing agent/landlord to request that they be added an Additional Insured to your Commercial General Liability policy. Where your company has caused a loss through your negligence, if your client had been added as an Additional Insured then they will be protected under your policy for their defense costs if named in a lawsuit.  The Insurance Company is fine with this, as they are paying our due to your negligence. However, it is important to watch for the term “Named Additional Insured or Additional Named Insured” . These are a very different terms in insurance. In essence, this request will allow the third party to be a named insured on your policy and could pick up coverage for their operations without the landlord having to pay any premium. 2. It is also common to see a request in a lease requiring 30 days notice of cancellation on your policy and this is also not too much of a concern.  In this clause, your insurance company becomes obligated to notify the interested party if your policy is being cancelled, either at your request or if there is a material change to your policy and the insurance company wants to get off risk.  If you request the cancellation and there is a party with this clause, you will have to wait the 30 days to cancel the policy. If the insurance company is cancelling the policy, then the standard notice applies to you (15 days by registered letter or 5 days if hand delivered) but it will be extended to the interested party for a full 30 days. It is very important to watch out for the following: 3. What limit of liability the lease is requiring that you carry.  If it is higher than you are now carrying presently, you will want to get a quote before you say “I do”. Once you have signed the contract you have no choice but to carry the limit they have requested or be in breach of your lease.  This can get very expensive.  It is normal to see a request for $2,000,000 but some leases are $5,000,000 – so if your...

Review your contracts with your Insurance Broker

Quite often when you are negotiating a contract for work with a prospective client, under the insurance (or indemnity) section of contract, you will find a requirement for a “Waiver of Subrogation”.  It is very important to discuss this with your broker as this clause may be deemed contrary to the insurance contract by your Insurer. When your client(s) request a waiver of subrogation they are asking your insurance company to pay losses for which they or their employee may be negligent. In essence, your client is requesting coverage for their operations under your insurance policy.  If an insurance company pays out defense costs  and damages where you have been named in a loss suit and it has been determined that you have done nothing wrong, then the insurance company should be able to recoup these payments from the negligent party and their Insurance Company.  To deny your insurance company the ability to do this could be very costly to your Insurer which in turn could be more costly to you. We, at Collis Insurance, believe that the best course of action is to have the waiver of Subrogation clause removed entirely before you sign the contract.  This is the simplest and most equitable solution for all parties concerned. In order to do business with your clients and protect them in the event that they are named in a lawsuit with you, your client can usually be added as an additional insured on your Commercial General Liability policy.  This is another common requirement seen on contracts.  The intention of the Additional Insured clause is to pay defense costs on behalf of your client if it is determined that it was your company’s[1] negligence that caused the loss and they were found to be an innocent party. [1] Your company means you and your employees – please refer to the definition of an insured in your policy wording for a complete description As Always “Collis” with all your business insurance needs! Andrea & Staff [1] Your company means you and your employees – please refer to the definition of an insured in the wording for a complete...

Not Required to Carry Workers Compensation? Consider purchasing Employers Liability Coverage

A few years ago (ok maybe a few more than a few)  Pati was working for a company who was not required to carry Workers Compensation and opted not to purchase it . One of her co workers went into the storage/mail room to get some supplies. The room was over crowded and there were several boxes stacked on the floor. She had to reach a high shelf to get the supplies she required and although she used the step ladder, with the boxes on the floor she could not set it up properly. While on the ladder she leaned too far over and fell. She shattered her elbow on the cement floor. After many surgeries she was off work for more than a year and when she did finally return to work it was on very limited duties. Her arm has never been the same since.   Due to the employers negligence, they were legally obligated to pay compensatory damages to Pati’s co-worker for her injuries. Fortunately, the employer had purchased Employers Liability as an extension to their Commercial General Liability insurance so they put a claim in and the insurance company paid her damages. Under the Commercial General Liability policy there are limitations, conditions and exclusions relating to Employee injuries in the workplace. There is a specific exclusion relating to Employees covered by Workers Compensation. However, in the event  cover or benefits have been denied by any Canadian Workers’ Compensation Authority, the standard wording can offer coverage under an   extension called Contingent Employers Liability.  This is only available when workers compensation is purchased. Some type of industries are not required to carry Workers Compensation and can choose to purchase it or not, while other industries are required to by law in Canada.  Please visit your local Worker Compensation website to determine if you are exempt from carrying Workers Compensation or not.  If you are one of the industries not required to carry this and choose not to purchase it, you should consider carrying Employers Liability. This coverage will protect you as an employer if an employee is injured in the work place due to your negligence.  This extension can usually be added to a Commercial General Liability policy for a small additional premium. While the industries that...

Having a Plan in the Event of Disaster is Essential

In the last few years we have read about and watched many natural disasters destroy the comfortable environment that so many of us take for granted. When we watch this on the news the focus is on the victim’s homes but what is not often shown is the devastation to businesses. Just like a home, in many cases the years of careful planning and growth that have gone into your business can be destroyed in just a few moments. Like any good fire drill, a business should consider what can be done to sustain operations and provide for your staff in the event of a disaster. To help you with this, A Disaster Planning Checklist can found on our website. We hope you will find this checklist useful but also that you will never have to actually use it! Andrea &...

Japan Tsunami & Earthquake Relief Gala

Dear Friends, Clients & Blog Readers,  The Calgary Japanese Community Association is holding a special fundraiser on April 17, 2011,  to raise funds for relief efforts in Japan.  The Japanese have a legend that if a person folds 1000 origami cranes then that person will be granted a wish.  These wishes are often for things like long life or recovery from illness. Often  families and/or groups of people will get together to fold the 1000 cranes for their loved ones. It is believed that the more people involved,  the stronger the luck will be.  In the spirit of this legend, the event is called “Night of 1000 Cranes”  and all proceeds will go to the relief effort for Japan.  If you are interested in: – donating an item for the silent auction – being a sponsor of the event – buying ticket to attend this event – donating to this worthy cause please go to  www.1000cranes.ca  for more information. Whatever support you may be able to provide would be most...

Is Directors & Officers Insurance Something to Consider?

Recently in our professional society (Chartered Insurance Professionals) newsletter, there was an article on a study done regarding the responsibilities of Directors and Officers of a Corporation.  To read the article please go to http://cip.iic-iac.org/nmp/showUnderwriterNews.asp?newsDate=2/28/2011&newsStory=0  Directors & Officers Insurance is something that we, at Collis Insurance Services Group, have helped many of our clients understand the importance of and what is insured. Whether it is a public or privately held company or a non-profit organization, Directors & Officers of companies have important roles that have many legal obligations attached.  As such, it is very important that the Directors personal assets are properly protected from these legal obligations.    In fact, this is such an important coverage to Boards of Directors, that we routinely send out an information package developed specifically for Boards, including: –          A Directors Need for Insurance explanation, –          Claims examples (For-profit and Non-Profit) –          A highlight sheet outlining what type of coverage to look for.   If you or someone you know sits on a Board of Directors and does not have this type of information, please contact us at info@collisinsurance.ca or “Collis” 403-265-5475 for a complimentary copy of these documents.  Andrea &...