SISL News – December 2011
SISL NEWS DECEMBER 2011
Simmlands Extends Base of Expertise
Simmlands is pleased to welcome Paul Best as the primary aviation underwriter for the 11/12 term, replacing Dominique Wilson, who is on maternity leave.
“I am delighted to be part of the Simmland’s team and I look forward to extending its scope of service in the area of aviation general liability and beyond.”
Paul will be underwriting both aviation general liability and hull and liability risks for Simmlands, and he can be reached at (416) 628-6647 or bestp@simmlands.com. Simmlands Aviation specializes in:
- Aviation General Liability, covering premises, products and hangarkeepers liabilities.
- The Aviation General Liability (AGL) policy can include spares, airport contractors’ liability and non-owned aircraft liability coverage.
- The AGL also includes non-owned automobile (SPF No. 6) and liability for damage to “Hired Automobiles” (SEF 94).
- This year the AGL has been extended to include legal expenses and limited pollution coverage.
- In 2011 we have added capacity for Aircraft Hull and Liability for private and commercial aircraft operators (Private aircraft are subject to a minimum premium of $7,500; for commercial it’s $25,000).
In particular, Paul brings clients 40 years of experience and specialization in aviation insurance as both underwriter and broker. Over that period he has specialized in all forms of aviation, including airlines, corporate jets, commercial and private aircraft operators, international & regional airports, manufacturers and maintenance organizations, and banks and major leasing companies. Additionally, he serves as a Civil Expert on Aviation Insurance to NATO – Civil Emergency Planning. Previously, Paul chaired a committee of major insurers to develop a standardized approach to new regulations with the Canadian Transport Commission, acted as a member of a specialized team that responded to the events of 9/11 and associated difficulties in the war risk market and has published articles in various trade publications.
WHY K&R PROTECTION IS NOT JUST FOR CORPORATIONS
It is that time of year when people get ready to steal away from the daily grind and enjoy some time off. And while conventional travel insurance has become fairly standard, Kidnap, Detention, Extortion and Hijack protection (K&R) is a more peripheral consideration that actually provides value and peace of mind for individuals and families preparing to travel.
With high profile news reports about kidnappings, drug wars and hostage scenarios, in popular vacation destinations like Mexico, Jamaica, Dominican Republic and even parts of Europe, travelers are becoming savvier in their planning process.
The repercussions of these unexpected events are devastating to families. Securing the release of a hostage or kidnap victim is an emotional, delicate, sophisticated and costly balancing-act. The stresses of practical considerations such as raising ransom monies, dealing with local and national law enforcement agencies, relevant governments and the media, mount with each passing hour. In light of this, the benefit of having a specialist crisis management team, included with insured coverage, is truly invaluable. ASI Global Response will act independently of the Insurer, with their sole priority being the victim’s safe release while managing the expectations and concerns of the family.
K&R is not merely a corporate product. Families planning vacation travel into high-risk zones may want to consider buying coverage to have peace of mind in the face of an unexpected crisis. Families with young adult children who plan to take a year off to travel the world during or following their undergraduate studies, would also be good candidates, particularly young women traveling alone or in small groups.
Special coverage extensions speak well to this market including:
- Disappearance Investigation and Expense
- Express Kidnapping
- Child Abduction
- Threat Response
- Hostage Crisis
For more information about K&R coverage for families and individuals, contact Sophie Egnatis at 416.408.5465 or egnatiss@simmlands.com.
DON’T GET LOST IN THE DETAILS – KNOW YOUR HEALTHCARE CONTRACT
Healthcare contracts and agreements are complicated and sophisticated even under the most standard of circumstances. But add outsourced, private service providers to the equation, and an organization’s insurance coverage can be affected in ways that brokers cannot always anticipate.
To preserve the integrity of the coverage, contracts between Allied Health Care organizations and their professional contract services providers need to clarify the intent of responsibility and indemnification in the event that something untoward takes place with one of their patients.
For instance:
- Is it the intention of the Insured to accept responsibility for the contracted service professional’s errors?
- If not, how does the contract address the requirements of contracted service professionals and insurance? Are they required to carry professional liability insurance?
- Is the limit of insurance adequate for the services they are providing? Is the contract professional required to provide proof of adequate insurance to the Insured?
- How do the insurance and indemnification conditions in the contract measure up to the conditions of the Insured’s insurance coverage?
- Does the existing insurance coverage need to be revised to respond to conditions established in the contract?
Brokers don’t always have the time or resources to identify these issues and respond to them effectively. Simmlands offers expertise in this particular niche area of service. The Simmlands healthcare team brings decades of experience with contract reviews and can recognize if healthcare organizations are vulnerable to circumstances that compromise the insurance coverage they maintain. And most importantly, Simmlands can determine how best to resolve these conflicts and fill the gaps strategically and effectively.
For more information, contact Janet Saunders at 416.408.5654 or saundersj@simmlands.com.
LOVE YOUR CLUBS – NO-FAIL STRATEGIES TO ENSURE THEY SURVIVE THE WINTER SEASON
While a golf club or driving range policy may provide comprehensive coverage, there may be certain circumstances that put golf clubs at risk. Especially during the winter season, golf clubs become vulnerable to environmental influences that can have negative impact.
There are preventative steps that golf facilities can undertake to make certain that they are protecting their clubs and guarding against these risks.
Simmlands is pleased to share these constructive suggestions:
- Keep heat levels to a minimum to prevent pipes from freezing.
- Turn off draining pipes in parts of the building that are not visited regularly in the winter months.
- Clear snow off roofs and structures to prevent their collapse.
- Take regular tours to survey the property and ensure its safety and soundness.
If you follow these preemptive steps, then your clubs will be protected through the winter months and ready for game play when the golf season begins!
For more information, contact Connie Vaccaro at 416.408.5461 or vaccaroc@simmlands.com.
CASE STUDY – HOW CANCELLATION POLICIES SPARE YOU GRIEF IN THE FACE OF UNEXPECTED CIRCUMSTANCES
We have all heard those horrible stories of last minute catastrophes and unanticipated mishaps that have forced event planners to cancel major concerts and presentations. The news is riddled with tales of collapsed stages, performer walkouts and last minute weather disruptions.
But when these cancellations occur, the grief and frustration incurred by the organizers and investors could have been spared by the purchase of a simple cancellation policy.
Simmlands’ cancellation products are perfect for event organizers, planners, theatres, performers, tour organizers and venue operators.
Specifically, the policy provides coverage for:
- Cancellation or Abandonment of the Event due to causes beyond the organizer’s control (including adverse weather)
- Loss of the venue as a result of physical damage to the event
- Loss of revenue or costs incurred to re-schedule or reimburse tickets sales
- Non-appearance of the artist as a result of accident or illness
In the case of cancellation, the costs incurred for the loss of income for future concerts planned, loss of deposits to rental locations, and reimbursements to ticketholders, etc. can be easily avoided.
For more information contact Mike McDermott at 416.408.5460 or mcdermottm@simmlands.com.
SISL NEWS – August 2011
VOLUNTEER ACCIDENT INSURANCE
As many of you know, we acquired Hunter McCorquodale Inc., a Special Risk Accident and Health underwriter, in late 2010, but it may not have been immediately obvious to our customers how this acquisition may enhance our ability to serve our P&C customers. As such, we will endeavour to share with you some coverage ideas where we were recently able to support our broker community. This month’s focus will be on Volunteer Accident Insurance.
Many organizations rely on volunteers to enhance their success, however, need intelligent ways to manage the risk of accidents in their activities without involving their General Liability or Workers’ Compensation policies (where the law allows). Volunteer Accident Insurance covers volunteers while participating in an assignment for an organization and/or traveling to and from the assignment location.
Coverage can include:
- Accidental Death & Dismemberment (AD&D)
- Accident Medical Expense (Excess of Provincial Medical)
- Accident Dental Expenses
- Payments for catastrophic injuries such as Paralysis or Permanent Total Disablement
- Weekly Accident Indemnity for injuries resulting in total disability
Claims paid under the accident program do not affect an organization’s general liability or workers’ compensation program experience and are provided without individual underwriting and minimal administration.
Let us help you to provide this coverage to your clients’ volunteers and provide the volunteers the comfort of knowing that they will be protected in the event of unforeseen accidents.
For further information, please contact:
Sophie Strezos-Egnatis
Vice President, Business Development
(416) 408-5465
egnatiss@simmlands.com
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SIMMLANDS ANNOUNCES OUR AIRCRAFT HULL AND LIABILITY POLICY
Both private aircraft owners and companies involved in aircraft operations face the risk of potential loss or damage to a valuable asset as well as litigation involving bodily injury or property damage when one of their aircraft is involved in an accident.
Simmlands is pleased to announce our capability to underwrite Aircraft Hull and Liability risks through Berkley Insurance Company.
Click here to read more about the policy features, target risks, maximum limits, minimum premium, and coverage territory.
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NEW COVERAGE FEATURES FOR SPECIALTY AVIATION GENERAL LIABILITY POLICY
Thanks to continued support from our brokers, we have enjoyed a very productive year for our Specialty Aviation General Liability insurance product since our launch in June 2010.
We are pleased to include 2 updates to our AGL wording going forward:
- Coverage Extension: Limited Pollution Extension
- Coverage Extension: Legal Expense Insurance
Click here to read more about these new policy features.
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ATTENTION ONTARIO BROKERS
Simmlands now has a new RIBO accredited Educational Seminar for Professional Liability Insurance. Your brokers can receive two (2) Technical Credits for attendance. The session deals with a number of critical Professional Liability issues including occurrence and claims-made policies, incident and claim reporting matters, and risk management initiatives for both broker and Insureds.
Please contact either Neil McRuer or Janet Saunders for more details and on-site sessions.Simmlands now has a new RIBO accredited Educational Seminar for Professional Liability Insurance. Your brokers can receive two (2) Technical Credits for attendance. The session deals with a number of critical Professional Liability issues including occurrence and claims-made policies, incident and claim reporting matters, and risk management initiatives for both broker and Insureds.
Please contact either Neil McRuer or Janet Saunders for more details and on-site sessions.
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NOTES FROM THE GOLF WORLD…
Simmlands has long been involved with the Canadian golf industry. Our oldest client is the Canadian Professional Golfer’s Association – soon to be called the PGA of Canada (you heard it here first). Last month yours truly along with John Barclay, Neil McRuer and Suzanne Forgues attended the PGA’s Centennial Celebrations in Ottawa. Two days of golf were highlighted by a Gala Dinner that saw numerous golf luminaries from around the world in attendance. Honored guests included Joe Steranka, the CEO of the PGA of America, immediate past president of the PGA of America, Jim Remy and CEO of the PGA of Great Britain and Ireland Sandy Jones. More importantly we were able to spend time with key directors and staff of the PGA of Canada as well as related Canadian golf associations. It was a memorable experience overall and our 44 year involvement with them was recognized on a number of occasions.
The week following the Centennial Suzanne and her assistant Elaine Viau hosted a dozen of our key brokers in Quebec in a pro-am at Atlantide Golf Club. As the third year sponsor of this successful event we are hopeful of expanding the concept to other provinces over time.
While on the subject of pro-ams we are delighted to report that the 5th Annual Simmlands’ Pro-Am for the PGA of Canada’s Women’s Championship will take place on August 30th and is already a complete sell-out. Proceeds go to WICC and our many brokers and industry partners enjoy a tremendous day in the company of a woman professional who might be an LPGA player, from the Futures Tour or a club professional. The feedback each year is tremendous and all for a good cause.
John Simmonds
Chairman
Plan for Canada Post Strike
Canadian Postal workers will have a right to strike as of June 2nd, 2011. The following procedures will be in effect to continue to service our Brokers and Advisors as efficiently as possible, should they move to a strike position.
Document Issuance & Delivery (For Brokers and Advisors who do not have ICS courier):
- All new policies will be issued electronically via email.
- The actual policy will be sent via courier to the Advisor.
- Liability (pink cards) will be provided to policyholders by the broker via a 30 day temporary card.
Cancellations due to Underwriting Reasons
- Where a policy or coverage should be cancelled by registered letter for underwriting reasons, the cancellation will be processed after the strike is over giving the required notice period.
- In the event more immediate action is required, the 5 day hand delivered cancellation process may be used.
- Policies that do not meet our renewal underwriting criteria will be lapsed after the strike is over and the required notice period will be provided.
Premium Payment
- For HMI Lloyd’s policies, we can have clients pay by Wire Transfer at their banks. (Call us for wire transfer details.)
- For HMI SecureLife policies, we need a Void Cheque and the payment will be taken from the client’s bank account once policy is in force.
- For HMI Transition LTD and Secure DI Advisors can pick up a Cheque for the first premium (along with a completed PAC form) and courier that to Hunter McCorquodale Inc. Subsequent payments will be deducted by PAC from client’s bank account.
- For all other policies, payment can be made via courier or drop your cheque off at Simmlands / Hunter McCorquodale office.
Billing and Rejection Notices
- Brokers to receive broker copies of billing/rejection notices through ICS or email
- Brokers to communicate details of notices to the insured.
Cancellations for Non-Payment Only
- Temporarily placed on hold.
- Registered letters will be issued for all policies pending cancellation once the strike has ended.
- Depending on the duration of the strike, this process will be reviewed and changes communicated as needed to our brokers.
Refunds
- All refunds will be held until the end of the strike.
- Arrangements for pick up or courier delivery can be made for urgent requests can be made.
- Depending on the duration of the strike, this process will be reviewed and changes communicated as needed to our brokers.
Claims Payments
In an effort to minimize any hardships to our clients, we will work with our Insurance Company partners and their Claims staff to obtain a cheque delivery instructions and solutions. Options will include a pick up at Simmlands / Hunter McCorquodale office; the Insurance Company office or via courier (extenuating circumstance only).
FOR FURTHER INFORMATION, PLEASE CONTACT YOUR UNDERWRITER.
SISL NEWS – May 2011
THE SIMMLANDS SPECIALTY AVIATION GENERAL LIABILITY POLICY – What Makes Us Different
Because companies working in support of the aviation industry require specialized insurance, they have traditionally not benefited from the same level of competition between insurers as has the general commercial industry. Over the years, price is not the only thing that has suffered. Many coverages which are looked upon as standard in commercial insurance are not even available for purchase through traditional aviation general liability markets, let alone offered as part of a policy wording.
Read more about how Simmlands has incorporated many of the additional coverages available on a CGL wording into our AGL, and how our specialties in other areas will be contributing to making this product even stronger over the coming months … Click Here
CLUBPAC INSURANCE TO VALUE – Knowing the laws of the Game to Keep Your Score
There are several common clauses which form a part of many property insurance policies. These include Co-Insurance, Blanket POED, and Margin Clauses, all three of which form a part of our ClubPac wording.
In this issue we explain in further detail these three clauses and how they affect the Insured’s coverage, and investigate two precedent setting court cases which have changed the landscape of how property claims are being interpreted and settled … Click Here
LEGAL EXPENSE INSURANCE
In an increasingly litigious society, there is a growing need for Canadian companies, institutions, professionals and individuals to have affordable access to legal services for events that are not anticipated. In partnership with CAN-UK Underwriting Services Ltd., STERLON Underwriting Managers Ltd., and Brit Insurance, Simmlands is pleased to present Legal Expense Insurance for such entities, which include … Click Here or visit our product page.
KIDNAP & RANSOM – 101 SEMINAR
Many thanks to customers and friends of Simmlands Insurance Services, new and old, for attending our Kidnap & Ransom 101 Seminar on April 5, 2011 featuring Mr. David Lattin, North American Specialty Products Manager, Lloyd’s Syndicate 5000 and former Kidnap & Extortion negotiator.
The event was a huge success from 2 perspectives. Firstly, the event was oversold and had to be moved to a larger room which told us this is a topic that is of great interest to our insurance community and we were very pleased to have the opportunity to deliver this information to you. Secondly, the feedback received from our participants regarding content and speaker presentation value was extremely positive. On these two notes, we very much appreciate your support and feedback and look forward to repeating the seminar again in the near future.
For further information on our Lloyd’s Kidnap, Extortion, Detention and Hijack coverage, please visit our product page.
Or contact: Sophie Strezos-Egnatis (416) 408-5465
Vice President, Business Development egnatiss @ simmlands.com
Please also check other products on our web-site:
2011 Simmlands PGA of Canada Women’s Championship Pro-Am
Simmlands is pleased to, once again, join forces wtih WICC to present the 2011 Canadian PGA Women’s Championship PRO-AM at the Bayview Golf & Country Club. Building on previous years’ successes, this event will provide a fun filled day prior to the Canadian PGA Women’s Championship all for the cause of cancer research.
Click here for more details.
Occupational Duties & Insurance
OCCUPATIONAL DUTIES & INSURANCE
Over the past twenty years or so, we have all seen a significant expansion of the activities of the “Golf Professional”. Some of this has been as a result of cut backs at the Clubs (no one else was there to do it) and some has been a result of the Golf Professional having to expand his/her services to justify his/her continued value and existence at the club.
This movement into other areas of endeavour has been both good and bad. Increased skills and abilities have made today’s Golf Professional more valuable, which of course means greater income, greater opportunity and greater job security.
Unfortunately it has also brought; longer working hours, greater stress, greater responsibility and greater financial risk. It is this last effect that I would like to address because it has a serious impact on insurance.
ACTIVITY RISK as it applies to business insurance is the potential for third party lawsuits against the Golf Professional for either Bodily Injury or Property Damage that results from the individual’s business activities. Obviously from the Professional’s point of view there are two significant issues: Coverage, and the Cost of Coverage.
The Cost of Coverage is going to be primarily effected by two issues:
• One is Social Expectation. We are all aware that the dollar size and frequency of lawsuits in Canada have been increasing every year and this will likely continue.
• The other is the Level and Type of Activity of the business. It would appear obvious that the cost of liability insurance is greater for large businesses (as measured by revenues) than for small and that it is also greater for “riskier” businesses. Whitewater rafting companies pay higher insurance rates than dry cleaners.
Obviously, there is not much that the individual alone can do to change the “cost of insurance”. The greater concern for each Golf Professional is the question of Coverage.
Are you covered by your insurance policy ?
When considering liability insurance coverage there are two key questions. Who is covered, and What activities are covered ?
The first question is the easier of the two. Do you see your name on the policy as the Insured ? Is your company’s name on the policy as the Insured ? Are you described as the Insured on the policy ? (The PGA of Canada’s Master Liability policy covers “….each & every member in good standing…” ). This is Who is covered by a particular policy.
The second question is much more difficult to answer. When an insurance company agrees to cover you for liability insurance, it needs to know exactly what you do that brings “risk” to the insurance pool. It is YOUR legal obligation to properly inform the insurance company of all your business activities. The insurance company then agrees to assume the risk and assesses the amount of premium that it must charge.
If you have not declared an activity, then it is probably not covered by the policy. (Some activities are legally deemed to be obvious. If you say you are a Golf Professional any reasonable insurance company should assume that you play golf from time to time in the normal course of your business activities. Equally it can be reasonably assumed that you do not repair automobiles as part of your business.)
The problems occur in the not so obvious areas.
Take the PGA of Canada’s Master Liability policy as an example. It covers all members in good standing (resident in Canada), which is pretty clear. But it covers those members only for liability for bodily injury or property damage resulting from their duties and activities as a “Golf Professional”.
Over the past twenty years, the PGA of Canada’s official definition of the “usual duties of a golf professional” has been expanded dramatically and the Master Liability insurance policy has been extended each time to include these new and changing duties. This of course increases the risk to the insurance pool and the cost to you, however still not every activity of every PGA of Canada member is fully covered by the policy.
Operating a ProShop, club repairs, club building, teaching a lesson at the club; playing in a Zone tournament; practicing at the range; officiating at a club tournament, supervising the range, managing course marshalls & managing a club under contract; would all appear to be usual activities of a golf professional that any reasonable insurer would be expected to understand when they assume the risk.
But “some” golf professionals have moved into other activity areas too. While some PGA of Canada members might do these things as a normal part of their business, they would not necessarily be automatically considered as “activities usual to a golf professional”.
For example:
- You OWN or LEASE the golf club. A small number of PGA of Canada members are fortunate enough to be in this position, however including CLUB OWNER’s liability insurance in the PGA of Canada’s policy would increase the cost dramatically for the benefit of very few, so this activity has been excluded.
- You operate the restaurant and/or the bar at the club. Liquor server liability is a major issue today and owning a bar or restaurant is clearly not an expected activity of a golf professional. Liquor Liability insurance is NOT INCLUDED in the PGA of Canada’s policy.
Some “usual” activities may be excluded “by choice”.
- You own or lease a power cart fleet. As recent surveys indicate that less than 3%-5% of PGA of Canada members currently own motorized golf carts, the PGA of Canada’s Board of Directors have decided that the cost of this risk activity should not be included in All Members’ annual dues. As of Jan. 1st, 2006, liability resulting from this activity has been excluded from the PGA of Canada’s policy.
- You import &/or wholesale distribute golf equipment. In order to keep down the overall cost to members, the PGA of Canada Board of Directors has decided not to extend the Association’s liability policy to include liability resulting from these activities.
And, more recently changes and limitations to the PGA of Canada’s liability coverage have been made necessary by the adoption of P.A.C.E. Moving forward it will be possible for individuals working within the golf industry to maintain membership in the PGA of Canada even though they are not actively working as a golf professional. For eample, Course Superintendants; Course designers, Equipment Sales Reps. Equipment Manufacturers, etc. For these members only certain activities will be covered:
Coverage will be limited to liability resulting only from “Teaching”;” Playing”; “Practicing” or “Officiating” in a PGA of Canada sponsored or sanctionned event. Liability resulting from the members personal or other business persuits will not automatically be insured.
Each PGA of Canada member must look critically at all of his or her business activities and ask him/herself:
- Is this activity something that a reasonable person would expect most golf professionals to do ?
- Is this an activity recognized by the PGA of Canada as an “Approved” activity of a PGA of Canada member, and
- Is this something that the PGA of Canada has chosen to specifically exclude from its coverage. (These major exclusions are posted on the PGA of Canada and the Simmlands websites).
If your answer to any or all of the above is yes or maybe, then further investigation is needed and supplementary insurance protection might be required.
Jim Hylands
Simmlands Insurance Services Ltd.
SISL NEWS – April 2011
Welcome to the first edition of SISL News!
There have been a number of developments at Simmlands over the past year – new lines of business and new people. As this edition of our newsletter highlights – our passion for golf is still as big as ever. Visit our updated website www.simmlands.com and you will see that we are now much more.
Our business is driven by adhering to our underwriting fundamentals and business process to deliver excellent products and service. It is through our brokers and advisors that our business thrives.
We are excited about the evolution of Simmlands and look forward to expanding the depth of our relationship with you over the coming years.
GOLF CART RISK MANAGEMENT ARTICLE & TIPS – MAINTAINING YOUR GAME
We are often asked by golf owners and managers if there are insurance industry “requirements” for the operation of power carts. There are no “industry standards” but there certainly are many good loss control practices that have been developed at golf clubs across the country.
The following are some comments on the most significant issues that we see from the “claims” side and some recommended practices that would go a long way towards protecting clubs from losses or lawsuits… Plese keep reading
MOTORIZED GOLF CART RISK MANAGEMENT GUIDELINES
Inspection, testing and maintenance:
• Routine Maintenance
• Brakes, steering, etc. should be checked / tested by staff every time a cart is returned or rented out.
• Any cart with any discovered deficiency should be pulled out of service “immediately”… Please keep reading
CLAIMS – KEEPING YOUR CLUB OUT OF THE ROUGH!
Insurance is a product that we hope we never have to use, however, experience has shown us that claims can and do occur. Unfortunately when they do happen, we need to make sure that we are provided with as much information as possible to help get your game back into shape!
The following guide is designed to assist in filing a claim when you suffer a loss … Please keep reading
PROGRAM CHANGES
During the past year we have made a number of small coverage improvements and/or clarifications to the basic coverages. In response to requests, we have also added a number of new “options” and/or moved some basic coverage into the optional categories so that clubs who do not wish to pay for these do not have to do so … Please keep reading
NEW PROGRAM ANNOUNCEMENT
Destination Insurance
We are pleased to announce the launch of our new multi-line destinations insurance product.
Simmlands Insurance Services Ltd. have been involved with the recreation industry for over 30 years and we have made our name as the leading insurer for Golf Clubs in Canada and now we are expanding our main-line covers to target the following types of risks … Please keep reading
UPCOMING EVENT
On Tuesday, April 5th we are holding our Kidnap and Ransom Insurance 101 and Incident Management Breakfast Seminar featuring David Lattin, former Kidnap and Extortion Negotiator and current North American Specialty Products Manager for Lloyd’s Syndicate 5000. This event being held at the Hilton Toronto, has been moved to the Governor General room due to overwhelming response.
For those of you who have already pre-registered, we thank you for your interest and look forward to seeing you there. At this time, only a few seats remain available. Anyone who is interested in attending, but has not yet registered, please contact Sophie Strezos-Egnatis at 416-408-5465 or via email at egnatiss@simmlands.com by no later than Friday, April 1st to reserve your seat.
For more information, please follow our link on Canadian Underwriter:
http://www.canadianunderwriter.ca/events/event-details.aspx?id=42476
KIDNAP, DETENTION, EXTORTION AND HIJACK PROTECTION
The repercussions of such insured events aree many, affecting not only the victim, but also their families, employers and colleagues. It is a delicate balancing act trying to secure the release of a victim, coping with the loss of a key employee and maintaining business continuity while managing the emotions of the victim’s family and dealing with local and national law enforcement agencies, relevant governments and the media … Please keep reading
Simmlands’ Healthcare Practice – Newly Bound Risks
Since our initial roll-out of our Healthcare product suite, we have bound the following risks:
- Ontario Community Hospitals providing acute and long-term care services.
- National Physiotherapy and Rehabilitation Health Service Provider with over 100 locations nationally including Abuse Coverage.
- Ophthamology Surgical Centre including Excess Coverage for non-residents.
- Orthopedic Surgical Centre for all lines of coverage including Property.
- Physician Partnership Professional Liability coverage within an academic/teaching hospital.
Don’t forget Simmlands on your next Healthcare Risk submission – we can provide both the Casualty and Property Coverages.
Underwriter Contacts:
Neil McRuer
Vice President
(416) 408-5459
mcruern @ simmlands.com
Janet Saunders
Lead Underwriter, Professional Liability
(416) 408-5654
saundersj @ simmlands.com
Kidnap, Detention, Extortion and Hijack Protection
Together with Lloyd’s and ASI Global LLC, we are pleased to announce the launch of our latest product offering:
KIDNAP, DETENTION, EXTORTION AND HICKJACK PROTECTION
With the expansion of the global marketplace, the risks associated with international business travel and foreign operations have made the possibility of kidnap or extortion for ransom a very real threat faced by individuals, businesses and organizations around the world.
The repercussions of such insured events are many and varied, affecting not only the victim, but also their families, employers and colleagues. All parties are placed under an enormous amount of stress as they try to come to terms with the situation. It is a delicate balancing act trying to secure the release of a victim, coping with the loss of a key employee and maintaining business continuity while managing the emotions of the victim’s family and dealing with local and national law enforcement agencies, relevant governments and the media.
Consequently, adequate protection against these events in the form of insurance and access to specialist crisis management support is essential and should be an integral part of every company’s crisis management plan.
Crisis Management – ASI Global LLC
The most important benefit of our coverage is the immediate priority access to ASI Global, a specialist crisis management company providing advice and support throughout the incident. Evidence suggests that, in situations where the advice of crisis management specialists was available, the hostage was released safely in 90% of cases. In the event of an incident, ASI Global will act independently of the Insurer, with their sole priority being the hostage’s safe release.
Included with coverage is a free subscription to ASI Essentials, an online service that provides information and security advice on over 300 top travel destinations around the world. This service is designed to help your clients mitigate the risk of global kidnap and extortion related to international travel.
Travel briefing Information:
- Destination Threat Rating
- Country Overview
- City Overview
- Assessment of Local Police
- Airport Information
- Hotel Information
- Fire Safety
- Communications
- Cultural Tips
- Serving Airlines
- Health Issues
- Emergency Contact Information
In addition to priority access to ASI Global LLC, our product provides a complete insurance solution:
Insured Events:
- Kidnap
- Detention
- Extortion including threats to:
– Kill, injure or abduct a covered person
- Cause physical damage to or loss of property
– Disclose, disseminate or utilize proprietary information
– Introduce a computer virus
– Contaminate, pollute or render your products substandard.
- Hijacking while travelling on any aircraft, motor vehicle or waterborne vessel
Insured Losses:
- Ransom payments or loss of ransom in transit
- Fees and expenses for:
– Response consultants
– Independent negotiators
– Rewards for information
– Public relations consultants
– Independent forensic analysts
– Security guards at incident site
– Travel and accommodation
– Interest on loans
– Communication
– Legal advice
– Interpreters
- Salaries of:
– the kidnapped or detained person
– the replacement of the victim
– other employees specifically designated to assist in negotiating
– a family member who leaves their employment to assist in the negotiation
- Post-incident benefits:
– Personal accident loss schedule
– Psychiatric, medical and dental care
– Cosmetic or plastic surgery
– Rest and rehabilitation
– Job re-training for victims
- Repatriation, burial or cremation
– Legal Liability Coverage
Optional Coverage Extensions:
- Product Recall and Destruction
- Computer Virus Loss of Earnings
- Emergency Political Repatriation and Relocation
- Threat Response
- Loss of Earnings
- Child Abduction
Policy Forms:
Kidnap, Detention, Extortion and Hijacking coverage is available both in Corporate or Individual/Family policy forms and can be purchased as a stand-alone policy or as an option on our Management Shield program.
Stay tuned for announcements regarding upcoming educational seminars on this product and related topics featuring one of the world’s leading experts in Kidnap, Detention, Extortion and Hijacking coverage and crisis management.
For further information, please contact:
Sophie Strezos-Egnatis
Direct Line: (416) 408-5465
egnatiss @ simmlands.com
Product Page
This announcement is intended only as a summary of the coverage provided under the Kidnap, Detention, Extortion and Hijacking insurance product and is subject to the actual terms and conditions of the insurance arranged by Simmlands Insurance Services Ltd. and underwritten by certain underwriters at Lloyd’s.
Read About Our Specialized Contingency Placements
TRY SOMETHING SPECIAL…..
SIMMLANDS INSURANCE SERVICES LTD. SUITE OF CONTINGENCY INSURANCE PRODUCTS
Since the launch of our suite of Contingency Insurance Products in 2009, Simmlands Insurance Services Ltd. have been busy working on some of the following specialized types of Contingency Offerings:
Prize Indemnity
A client was undertaking a fund-raising activity by selling golf balls which were individually numbered.
A prize was offered if the golf ball went into a hole on a golf green when dropped by a helicopter.
All the sold golf balls were put in a bucket and they were flown by helicopter to 150 feet above a golf green and dropped all at once.
Measured Weather Event
A client had a sales promotion in November.
The promotion being that if it snowed more than 10cm on a given date in January, 2011, all customers who had entered into that promotion were eligible to get their money back if it snowed more than 10cm on the specified day!
On that day, it actually snowed approximately 6cm!
Event Cancellation for a conference in France
A client had a conference coming up in France and was looking for event cancellation cover including strike cover.
As a result of our ability to underwrite specific exposures, were able to offer the client event cancellation including cover for strike.
In a world that has endless possibilities, our suite of specialist and bespoke products will cater to your clients who may organize events or put up prizes or rely on the appearance of a celebrity.
WATCH OUT for NEWS on our Hole in One Policies in the very near future!
The core types of Contingency products that we can offer terms are:
- Prize Indemnity
- Event Cancellation
- Non Appearance
- Measured Weather Event
- Adverse Weather (Film)
- Other types of policies available can include:
- Death or Disgrace
- Sports Sponsorship Indemnity
We can also customize our wordings to meet client’s specific needs & events.
For further information, please contact:
Michael McDermott, CIP, CRM
Direct Line: (416) 408-5460
mcdermottm@simmlands.com
480 University Ave. Suite 1100
Toronto, Ontario
M5G 1V2
Main Line: (416)408-1900
Facsimile: (416) 865-0834
Website Launch – Welcome!
We are pleased to announce the launch of our new Website!www.simmlands.com
You will now be able to access information and applications for each of our newest specialty product offerings:
- Management Shield
- Contingency Coverage
- Destination Risks
- Aviation General Liability
- Healthcare and Life Sciences Risks
Continued web access to our Golf Products section, including PGA of Canada member programs is also available, as well as links and more information about our sister company: Hunter McCorquodale Inc.
To find out more information about our website, please contact
Dominique Wilson
403-298-4433
wilsond @ simmlands.com
New Product Announcement: Healthcare
Healthcare Announcement
Simmlands Insurance Services Ltd launches Healthcare and Life Science Industry Practice
Simmlands is pleased to announce that Neil McRuer and Janet Saunders have joined Simmlands. Their collective knowledge and experience from both a broking and underwriting perspective within the Healthcare and Life Science industry segments bolsters our corporate commitment to specialty underwriting supported by technical product and industry knowledge.
Neil joined Simmlands in July of 2010 to develop Healthcare Professional Liability products. Prior to joining Simmlands, Neil was Manager, Hospital Risk Services at a leading Canadian Managing General Agent, where he underwrote hospitals and other complex medical malpractice risks. In collaboration with underwriters at Lloyds, he developed and brought to the Canadian market a number of innovative casualty products for Hospitals, Surgical Facilities, International Medical Students, Provincial Medical Associations, and Air Ambulance providers. Neil was a Senior Vice President and the Practice Leader for the Healthcare and Life Sciences Practice at a national broker where he was responsible for: i) design of client tailored domestic and international insurance programs, and ii) insurance market relationships specific to healthcare and life sciences industry segment. His industry experience includes 13 years in the insurance industry and 6 years in the pharmaceutical industry. He has been an active leader interpreting the unique and changing exposures of the healthcare and life science sectors within the Canadian insurance industry. This involvement has included product innovations and placement strategies for both domestic and global client insurance programs. Neil attended the University of Guelph graduating with a Bachelor of Science degree in Biological Sciences.
Janet joined Simmlands Insurance Services Limited in September 2010 as Lead Underwriter, Professional Indemnity. Her career began in Montreal where she worked for 13 years with an international insurance broker. She worked within the International Client Management team on the global accounting firms and other Canadian and US based accounting firms managing their Professional Liability Insurance coverage with program limits of $50,000,000 to $190,000,000 and included work on captives and finite-risk schemes. Her experience also includes a secondment to London to work at a Lloyd’s broker’s UK headquarters. Janet transferred to Toronto in 1995 and subsequently joined Liberty International as Underwriter, Professional Liability Accounting and Law firms. She spent two years as underwriter before moving to national broker as Manager, Healthcare Institutions and Professional Liability programs. She obtained her Senior Vice President title as head of the Hospital/Healthcare team within the Toronto Healthcare and Life Sciences Practice. She was the Client Executive for Teaching and Academic Hospitals with particular focus on sophisticated professional liability risk transfer products and risk management advice related to contractual agreements.
The Healthcare and Life Science team is pleased to announce our new product offerings including:
- Hospital and Surgical Facilities
- Academic Research Institutes including clinical trial coverage
- Medical and Healthcare Professional clinic packages
- Healthcare Provider’s Professional Liability programs
For further information, please contact:
Neil McRuer
Vice President
Simmlands Insurance Services Ltd
Suite 1100, 480 University Avenue
Toronto, ON M5G 1V2
Direct – 416 408 5459
Mobile – 416 779 0340
Janet Saunders
Lead Underwriter, Professional Indemnity
Simmlands Insurance Services Ltd
Suite 1100, 480 University Avenue
Toronto, ON M5G 1V2
Direct – 416 408 5654
Mobile – 647 228 9913
Are you Keen on Keeping Your Golf Insurance to Par?
January 10, 2011
Are You Keen on Keeping Your Golf Club Insurance to Par?
Our broad range of covers includes, but is not limited to:
- Full cover for property away from your premises
- Leased Equipment can be insured at Full Replacement if equipment is subject to a Buy-Out option
- Boiler & Machinery / Equipment Breakdown cover
- Automatic cover for $100,000 Business Interruption (Profits no-co) cover
- Forced Course Closure
- Event Cancellation up to $10,000 per occurrence for Lost Profits for Course & Greens Coverage only
- Full Crime cover, including Employee Bond cover
- Liability cover includes PUNITIVE DAMAGES
- Sudden & Accidental Pollution Cover (occurrence cover)
- Directors & Officers Liability Cover
- Legal Expenses Insurance
- Coverage enhancements / Risk Management credits available for defibrillation certification / environmental assessments / liquor training programs (SmartServe)
- Loss Control & Rebuilding Cost Evaluations provided at no cost to the club
It is one of the most comprehensive insurance products available to Golf Clubs anywhere in Canada.
Our combination of uniquely designed coverages and track record will help keep Golf Clubs out of the rough and on the fairway!
Can you afford not to be a part of our CLUB?
CLUBPAC – THE PREMIER GOLF CLUB INSURANCE PRODUCT, SUPPLIED BY SIMMLANDS INSURANCE SERVICES LTD. HAS BEEN AVAILABLE FOR OVER 35 YEARS PROVIDING PROTECTION TO OUR INSUREDS.
WE HAVE CONTINUALLY REVIEWED AND ENHANCED OUR POLICY TO KEEP IT UP TO DATE AND DURING THAT TIME WE HAVE DEVELOPED A UNIQUE AND IN-DEPTH UNDERSTANDING OF THE EVOLVING CHANGES / EXPOSURES THAT TAKE PLACE AT GOLF CLUBS.
For further information, please contact:
Connie Vaccaro Connie Myles
Senior Account Underwriter Senior Account Underwriter
Direct Line: (416) 408-5451 Direct Line: (416) 408-5467
vaccaroc @ simmlands.com mylesc @ simmlands.com
480 University Ave., Suite 1100
Toronto, ON M5G 1V2
Main Line: (416)408-1900 / Facsimile: (416) 865-0834
Product Launch: Aviation General Liability
January 5, 2011
We are pleased to announce the launch of our Specialty Aviation General Liability Policy.
Simmlands has designed and developed an Aviation General Liability policy specifically for Canadian companies involved in aircraft maintenance and general support of the aviation industry. This support can include aircraft maintenance, repair & overhaul, aircraft painting, avionics repair, aircraft parts distribution, refurbishing, and more. It also includes contractors and trades people working on airport property.
GENERAL COVERAGE
Subject to the terms and conditions of the policy, the three main areas of coverage are:
Premises and Operations Liability – covers the insured for liabilities arising out of accidents occurring on their premises or where they perform work, which result bodily injury or property damage (excluding damage to aircraft covered under Hangarkeepers Liability below).
Hangarkeepers Liability – covers the insureds liability for damage to customers’ aircraft or aircraft parts in their care, custody or control.
Products and Completed Operations Liability - covers the insured for liabilities arising out of their completed work, if that work is alleged to have contributed to an aircraft accident that resulted bodily injury or property damage.
Each of the three liability coverages can be purchased separately or in combination with any of the others. Broad Form Spares coverage can be added as an extension to the main policy, and in-flight Hangarkeepers liability coverage can be selected at an additional premium. Exploring varied deductible options is a practical way of customizing a policy to achieve maximum premium savings.
POLICY EXTENSIONS
The policy features a broad, customized wording created specifically for businesses engaged in the support of the aviation industry, and automatically includes the following extensions, many of which have traditionally not all been available in the aviation marketplace:
- Contractual Provision Coverage
- Compliance with Local Requirements
- Contingent Employers Liability (Limit $1,000,000)
- Fire Fighting Expense Coverage (Limit $500,000)
- Tenants Legal Liability (Limit $1,000,000)
- Non-Owned Automobile Liability (Limit $1,000,000)
- Legal Liability for Damage to Hired Automobiles (Limit $50,000)
- Personal Injury Liability (Limit $1,000,000)
- Voluntary Property Damage (Limit $1,000)
Additional coverage features available can be purchased separately depending on the insureds requirements:
- Non-Owned Aircraft Liability Extension, which can include named employee pilots while working on behalf of the insured;
- In-Flight Hangarkeepers Liability Extension, covering damage to customers’ aircraft while being flown for test purposes by the insured;
- In-Transit Hangarkeepers Liability Extension for Truck/Trailer Transportation of customers’ aircraft or parts by the Insured;
- Broad Form Spares Extension, covering aviation property belonging to the insured or others, while in the insured’s care, custody or control, or whilst in transit anywhere;
- Airport Contractors Liability for general contractors working on airport property.
OTHER BENEFITS
Premium Calculation
At the insureds request, the products liability premium can be quoted on an adjustable basis depending on actual annual revenues during the policy term.
Rate Reduction with Each Renewal
For continuing to renew with us year over year, the insured receives an automatic 2% reduction on their total premium for each successive incident-free year up to three years, then 1% for each successive year up to 15%!
INSURER
This Aviation General Liability coverage is underwritten domestically by Simmlands on behalf of Berkley Insurance Services through Berkley Aviation, LLC. Berkley Aviation is a premier underwriting manager of aviation insurance, offering a wide range of coverage options to insureds both in North America and worldwide.
CONTACT
For more information or to request a quotation, please contact:
Dominique Wilson
(403) 298-4433
wilsond @ simmlands.com
HMI Becomes a division of Simmlands
Click Here to View: Insurance Journal – HMI Becomes a Division of Simmlands Dec 2010
New Product Announcement: Destination Risks
November 19, 2010
New Product Announcement
We are pleased to announce the launch of our new multi-line Destinations Insurance Product.
Simmlands Insurance Services Ltd. have been involved with the recreation industry for over 30 years and we have made our name as the leading insurer for Golf Clubs in Canada and now we are expanding our main-line covers to target the following types of risks:
Luxury / Boutique Hotels / Inns / Resorts / Destination Spas
- Luxury / Boutique Hotels: will differentiate themselves from larger chains / branded hotels by providing personalized accommodation and services
- Resorts: can be categorized as a combination hotel and place for recreational activities including but not limited to: Therapeutic Baths / Mineral Springs / Health Spa / Fitness & Wellness / Golfing / Sailing / Tennis / Biking / Horse Riding Trails / More hazardous sports (e.g. rock climbing / skiing) / Hunting and Fishing
- Destination Spas: this can also be categorized as a combination hotel and place for relaxation, but providing activities for health & wellness.
Bed & Breakfast Hotels
All these risks are much smaller in size in comparison to the above grouping, however we will be targeting the larger risks i.e. those with at least 6 rooms
- Overnight accommodation, which includes breakfast as part of the overall cost
- Accommodation is generally provided in larger homes
- In some instances the operator also lives on the premises
We know that many homeowners Insurance policies will provide a rider / endorsement to provide cover for these additional exposures, however we are targeting risks that have more than 5 / 6 rooms.
The coverage is competitively priced and is subject to a minimum premium of $5,000.
Our multi-line insurance product offering provides the following coverages:
- All Property (including Business Interruption)
- Equipment Breakdown Insurance
- Commercial General Liability
- Crime
- Umbrella Liability
- Management Liability
To find out more information or to request a quotation, please contact:
Michael McDermott, CIP, CRM
416-408-5460
mcdermottm @ simmlands.com
New Product Announcement: Contingency
November 8, 2010
TRY SOMETHING SPECIAL……
Introducing Simmlands Insurance Services Ltd. Suite of Contingency Insurance Products
We are pleased to announce the launch of Simmlands Insurance Services Ltd.’s suite of contingency insurance products.
In a world that has endless possibilities, our suite of unique products will cater to your clients who may organize events, put up prizes, rely on the appearance of a celebrity, etc.
The core types of products that we can offer terms are:
Prize Indemnity
This provides an indemnity in respect of a party’s liability to supply a prize in respect of a competition or event which complies with relevant sales promotion and gaming legislation.:
Examples of types of Prize Indemnity, involve:
- Hole in One Insurance
- Lotteries
- TV Games Shows
- Sporting Events (e.g. Shoot to win / Field Goal kicking contests / etc.)
Event Cancellation
This provides an indemnity in respect of the irrecoverable costs or revenue incurred as a result of cancellation of an Event due to circumstances beyond the control of the Insured.
An “Event” can be
- an entertainment production, such as a concert, theatre production;
- conference;
- exhibition / trade show or
- sporting activity whether indoors or outdoors.
Non Appearance
This cover also provides an indemnity in the same terms as an Event Cancellation, except that cover is extended to include the non-appearance of any person(s) whose attendance is required for the Event to take place.
The majority of events will be related to:
- theatre, pop and other musical events
- cover may also apply to events such as charity dinners and conferences where speakers have been contracted to appear.
Measured Weather Event
This cover provides an indemnity only in respect of a specified occurrence of precipitation (including rain or snow or other weather perils). For example;
- at an event where an organizer of an annually repetitive event is seeking to protect against loss of revenue if attendance is disrupted by rainfall; or
- as a sales promotion tool where retailers offer incentives to customers. For example, a retailer may offer its customers a money-back redemption in the event that any snow falls on Christmas Eve or rains more than a set amount on Midsummer’s Eve.
Adverse Weather (Film)
This cover will provide an indemnity to film producers and advertising agents involved in short – period commercial shoots where these are cancelled or abandoned in the event that specific weather conditions are not achieved during the filming period.
Other types of policies available can include:
- Death or Disgrace
- Sports Sponsorship Indemnity
WE CAN ALSO CUSTOMIZE OUR WORDINGS TO MEET CLIENT’S SPECIFIC NEEDS & EVENTS.
For further information or to request an application, please contact:
Michael McDermott, CIP, CRM
416-408-5460
mcdermottm @ simmlands.com
Motorized Golf Carts
MOTORIZED GOLF CARTS
We are often asked by golf professionals and club managers if there are insurance industry “requirements” for the operation of power carts. There are no “industry standards” but there certainly are many good loss control practices that have been developed at golf clubs across the country.
The following are some comments on the most significant issues that we see from the “claims” side and some recommended practices that would go a long way towards protecting clubs from losses or lawsuits.
The major problem with power carts is that they are “Motorized Vehicles” and their rental and usage should be treated virtually the same as a Car Rental, but golfers and golf clubs tend to treat them like harmless toys. There is also a mistaken assumption by club staff that “everyone” knows how to drive / handle a power cart. ( Something about familiarity leading to contempt.)
If you rent a car or a motorcycle, the agency demands a driver’s license. If you rent a power boat the renter gives you a quick operational lesson and/or checks you out. If you rent a charter boat in the Virgin Islands the charterer requires an experience history and a half-day competency test. If you rent a chainsaw, the rental company asks if you are familiar with their operation, and yet I ( not a golfer ) have never been asked a single question when being given the use of a golf cart at events that we sponsor.
[ A few years ago at an event, one our own staff who had never golfed in her life; never driven a golf cart; and in fact did not even have a driver’s license, was given a golf cart at a reputable course with absolutely no questions asked. She immediately ran it down a slope and into a fence. ( Luckily no injuries and no damage, other than to the fence).]
Power carts are the leading source of injury on golf courses and the second leading cause of death ( after heart attacks) largely because they are “underestimated” and used with a “lack of respect”.
Even worse, over 50% of the “power cart incidents” that lead to damage or injury, involve staff.
A recent incident at Deerhurst Resort in Ontario highlights this fact. One of their volunteer staff who (when returning to the clubhouse) fell off a cart while riding “shotgun” as the third person, on the bag rack. He suffered an apparent minor concussion that led to death within a couple of days. Aside from the tragic loss, this type of incident could easily lead to a major civil lawsuit by the family, and/or fines ( $25,000. to $100,000.) under the Occupational Health & Safety Act against the club, and against the manager, the directors, and supervisors personally.
From a Loss Prevention point of view, the basics are:
Inspection, testing and maintenance:
- Carts should get routine maintenance and RECORDS of it should be kept. (You can’t prove it without records.)
- Brakes, steering, etc. should be checked / tested by staff every time a cart is returned or rented out. ( Make this an operational rule / procedure that staff can testify to after the fact.)
- Any cart with any discovered deficiency should be pulled out of service “immediately”.
- If a power cart is involved in an accident / incident it should be removed from service and checked by the club’s mechanic immediately to ensure that there is no damage and to confirm that there was no “mechanical” failure(s). The mechanic and/or the Superintendant should file a detailed written incident & fitness report with the club Manager.
Driver Restrictions:
- Be able to identify all cart renters / drivers after the fact. ( Name, address, driver’s license. number, etc.)
- Recommended minimum age – 16 years ( with driver’s license) – 21 years without
- Anyone without a driver’s license should be given a short “training session” to ensure their ability to drive.
- Any renter not known to the staff should be “asked” if they are familiar with power cart use.
- These enquiries should be noted on the rental agreement form with a checkbox ( if you can’t prove you asked, it has no value.)
- Post ( with stickers) operating instructions in carts.
- Common sense safety rules should be published (stickers on carts) AND ENFORCED (even for staff):
- Maximum 2 people on a cart ( no exceptions),
- No underage, non-golfing passengers,
- No alcohol consumption on the cart,
- No rentals to already apparently impaired individuals,
- Immediate removal of carts from any golfer appearing impaired,
- Drivers must keep both feet “inside” the cart,
- Both driver and passenger must remain seated during operation,
- Marshalls and staff should be trained to watch for these “bad habits” and enforce the rules.
Waivers & Indemnity Agreements:
- All rentals should be subject to written and signed rental agreement.
- Agreements should include BOTH a WAIVER and an INDEMNITY AGREEMENT ( covering both damage to the cart and damage or injury to others).
- Credit Card Deposits for damage ( both to carts and others) should be taken.
- (For members, an annual Cart Usage Agreement including both Waivers & Indemnity agreements is adequate.)
General:
- Inspect and maintain cart paths
- Post danger signs at steep hills, drop offs, hidden hazards, road crossings, etc.
- If carts must cross public roads, post Road Warning signs for cart drivers; post Cart Crossing signs beside the road for vehicle drivers; and cut back shrubs and bushes to allow maximum visibility to both drivers.
- Keep carts out of parking lots.
Remember:
POWER CARTS ARE NOT TOYS. They are expensive pieces of mobile equipment that are capable of causing serious damage; critical injury; or death, if not handled properly.
As they say in the boxing ring “protect yourself at all times.”
Jim Hylands
Simmlands Insurance Services Ltd.
Simmlands Acquires Hunter McCorquodale
September 1, 2010
We are very pleased to announce that effective September 1, 2010, the firm of Hunter McCorquodale Inc. (HMI) have agreed to merge with Simmlands Insurance Services Ltd.
HMI – based in Toronto – is a leading developer and distributor of special risk disability and life insurance solutions. Together with their selected insurer and reinsurer partners, they have developed a number of niche products designed specifically to offer coverage in situations where appropriate solutions are not available in traditional markets:
Life & Disability (Hunter McCorquodale)
Transition LTD.
Disability Insurance for employees who lose their group Long Term Disability coverage due to job termination
SecureDI
Individual disability insurance for those who have been declined for medical reasons
SecureLIFE
Individual Life Insurance for those who have been declined for medical reasons
Lloyd’sDI
Individual Disability Insurance for unique cases that cannot be issued by a traditional Disability Insurer
Lloyd’s AD&D
An excellent supplement or alternative to life insurance in many situations
HMI commenced operations in 1997, as a result of the common vision of the two founders, Ken Hunter, FSA, and Stephen McCorquodale, MBA, who saw the need and opportunity for a specialized service to help insurance advisors solve client needs that could not be satisfied by their regular insurance suppliers. Prior to establishing Hunter McCorquodale Inc., Ken and Steve both enjoyed distinguished careers within the industry, including executive roles within insurance companies, as well as in personal production.
The formal partnership between HMI and Simmlands Insurance Services Ltd. will serve to expand and enhance our range of product offerings, allowing us to provide superior coverage and service to our broker network and insureds as we move forward.
Golf Carts & Automobile Insurance (British Columbia)
GOLF CARTS & AUTOMOBILE INSURANCE (BRITISH COLUMBIA)
We are often asked, about insurance (both property & liability) for power carts travelling on public roads ?
The first question is really: “Does your Provincial Motor Vehicle Act allow the equipment in question to travel on public roads ? “
If the law in your province doesn’t allow this travel, you shouldn’t be doing it and therefore the question of insurance isn’t relevant.
That said, every province has its own rules and regulations. Some allow transit across roads; some allow transit along shoulders; some require licensing of one sort or another and even then, most don’t actually enforce the law and everyone seems to “assume” that it is OK to just do what everyone else does.
B.C.’s Unique Situation.
After many years of debate, the Insurance Corporation of B.C. (the government run auto insurer in B.C.) recently published its interpretation of B.C.’s Provincial legislation in an effort to clarify the situation in that province. Essentially clubs are required to license and buy ICBC insurance for golf carts that cross public roads or drive on “highways”. Unfortunately “highways” are defined in the B.C. Act to include:
DRIVEWAYS, PARKING LOTS and ACCESS ROADS.
So, if your power carts go into your parking lot, then you MUST have ICBC auto insurance, you must have a license plate & the driver must have a driver’s license.
Private insurers DO NOT establish these rules, nor can they override or substitute them. They are Provincial Law. In order to conform to the requirements in all provinces, insurance policies generally define and limit coverage based upon the individual province’s legal requirement to have automobile insurance in force. Licensed or unlicensed, on or off roads, is not usually a factor.
If the Provincial Law requires that a particular motorized vehicle be covered by a policy of Automobile Insurance ( either because of its nature or its use) or if the vehicle is covered by such a policy regardless of the provincial requirements, then the private ( non-automobile) policies DO NOT apply.
It is the responsibility of the power cart owner / lessee, with assistance from the provincial motor vehicle licensing authority to ascertain which pieces of club equipment are “required” to be insured under an “automobile insurance” contract and which are not.
While Simmlands has always discouraged it, we are well aware that it is (has been) common practice at the vast majority of golf clubs to allow golfers to drive the power carts to their cars and drop off their bags & clubs before returning the cart to the proshop. We are also aware that in many “gated communities” golfers even drive their power carts to and from their homes, along the public roadways.
It would now appear that in the Province of British Columbia, if you wish to continue these practices, you must license your power carts, limit their use to licensed drivers, and buy at least the basic $200,000. ICBC insurance coverage. We understand that (depending upon the territory) the basic premium is roughly $300. per cart per year and an additional $65. per cart per year to increase the limit to $1,000,000. ( “Fleet Coverage” can be available allowing a 15% discount off these rates) Alternatively, you should be installing barriers (posts, parking blocks, landscape rocks, etc.) to prevent your power carts from entering the parking lot or driveways and access roads, &/or leaving the club premises.
If your club crosses a public road, you too, must now license and insure your carts or create alternative passageways ( ie. tunnels).
You should also be aware that the B.C. Motor Vehicle Act makes the “owner” of a power cart “ABSOLUTELY LIABLE” for any injury or damage that its use causes. This means that an injured party does not have to prove “negligence” on your part personally and it becomes YOUR problem to recover from the driver of the cart. “Knowing” your golfers is now as important as knowing the people to whom you might consider lending your car.
In response to this ICBC decision, Simmlands has amended the PGA of Canada’s GOLFPAC policy ( the optional cart liability program) so that the policy will respond to protect members, who purchase the coverage, from lawsuits, “in excess” of the ICBC minimum limit of $200,000.) regardless of the fact that these carts are now considered “automobiles”.
N.B. This DOES NOT replace the need for ICBC coverage. No private insurer is allowed to duplicate or replace the basic statutory coverage offered by ICBC.
Golf Professionals in B.C. should consider a “notification” process for member-owned golf carts, if allowed at their club, as a customer service. They might also consider implementing a system of checking privately owned carts for licenses and insurance, to protect themselves and their clubs from “joint” liability as a result of “uninsured” vehicles.
Jim Hylands
Simmlands Insurance Services Ltd.
New Hire: Dominique Wilson, Specialty Underwriter
July 1, 2010
We are very pleased to announce the hiring of Dominique Wilson effective July 1, 2010. Dominique joins us with 7 prior years of work experience in the insurance industry in the field of Aviation. She will continue to work in this field as a Specialty Underwriter.
Prior to starting at Simmlands, Dominique worked as an Account Executive with the Aviation & Aerospace Division at Jones Brown Inc from September 2008 to June 2010, where she managed a fast growing general aviation insurance book for the company.
Commencing her insurance career at Aon Reed Stenhouse in 2004, Dominique worked as part of a specialized team handling a successful private aircraft book. Later, she became an Account Manager where she handled her own diverse portfolio of aviation business for the company.
Dominique’s pursuits in aviation began in 1998 where she obtained her Glider Pilot License in Gimli, Manitoba, followed by her Ultralight Permit in 1999 in Calgary, AB. Dominique holds a Bachelor of Commerce from the Haskayne School of Business at the University of Calgary, and is working towards her CIP (Chartered Insurance Professional) Designation.
Canadian Underwriter: No Small Potatoes, by John Barclay
Click Here to View: Canadian Underwriter – No Small Potatoes (John Barclay) Jan 2010
New Hire: Michael McDermott, Senior Production Underwriter
September 8, 2009
We are very pleased to announce the hiring of Michael McDermott effective September 8, 2009. Michael joins us with 26 years of insurance industry experience. His role will be Senior Production Underwriter, where he will develop and distribute new insurance product offerings to the Simmlands network of brokers.
Prior to Joining Simmlands, Michael spent over 8 years at Marsh Canada. His most recent role was New Commercial Product Development within Consumer Operations. During his tenure at Marsh, Michael held various roles involving Insurance Program Management for Clients and was a Risk Placement Specialist for both Risk Management & Insurance Programs.
Prior to joining Marsh, Michael spent 18 years with various insurance companies, both in Canada & United Kingdom in various underwriting capacities, handling risks that ranged from smaller enterprises to complex organizations with multi-line insurance portfolios. These involved specialty risks that required coverages such as medical malpractice, commercial general liability, umbrella liability, and personal accident.
During his time at Simmlands, Michael has already launched and manages several product offerings, including the Management Shield, Contingency, Destination Risks suite of products.
Welcome, Mike!
New Hire: John Barclay, President
August 1, 2009
We are very pleased to announce the hiring of John Barclay effective August 1, 2009. John will work with Simmlands as President, with the objective of leading the company into a new and expanded platform of niche products.
Prior to joining Simmlands, John spent nearly 15 years at Marsh Canada Limited. His most recent role was to drive operational excellence efficiency and to develop alternative distribution channels and products within Consumer operations. The unit comprised of: Commercial Programs, Group Home & Auto Programs, and VIP Personal Lines, each involving the delivery of products and services through multiple distribution channels.
During his 14 years at Marsh, John held various national leadership roles, which encompassed Research, Product Development & Distribution, Wholesale Underwriting, National Programs, and executing a series of acquisitions and dispositions for the company. Prior to his national roles, John had the opportunity to manage the following operations at Marsh in Toronto: Health Spectrum Practice, Religious Institutions Practice, Automobile Dealers and Professional Liability Program business segments.
Prior to joining Marsh, John served as risk manager to a large professional association with staff responsibility for all member and corporate insurance programs.
Welcome, John!
Liquor Service Fines and Liabilities
Download: ClubPac News – Liquor Liability and Fines March 2009
Insurance To Value
Employee Labour in Claims
Download: ClubPac News – Employee Labour in Claims, October 2007
By-Laws and Septic Systems
Download: ClubPac News – By-Laws and Septic Systems, October 2007
Waiver and Indemnity Agreements
Download: ClubPac News – Waiver and Indemnity Agreements, October 2007
Motorized Vehicles
Slip and Fall Liability
Download: ClubPac News – Slip and Fall Liability, September 2007
Administrative Practices
Download: Broker’s Notes – Administrative Practices 1 July 2007
Credit Card Scam
CREDIT CARD SCAM
Every few years an old credit card scam resurfaces and unfortunately catches a number of retailers, including Golf ProShops. We have written articles for the old PGA of Canada Bulletin, outlined the scam at seminar presentations, and warned PROPAC participants by newsletter and policy inserts, but it is worth repeating again.
With a few modifications and differences, here is how it generally works:
- You receive a phone call on Monday morning. It’s “Bill Jones” and he claims that he was in the shop on Saturday and saw a set of “ABC’s” on sale for $3,500. He wants to know if they are still available ?
- You / your staff assure him that they are, and he cheerfully commits to buying them. He offers you his Credit Card number and expiry date to pay for them and agrees to come in and pick them up on Wednesday. Its important that he pick them up on this week because “…he’s going on vacation Saturday and wants to take the new clubs with him…”
- Your staff agrees to put the clubs aside with a SOLD tag and they proceed to “key in” his credit card for an “on line” verification. The credit card company confirms that all is fine.
- Late on Wednesday you get a call from “Bill” apologizing for not getting in to pick up the clubs yet, but “…he has been working like crazy so that he can get away on vacation at the end of the week…” You assure him that it’s “no problem” the clubs are waiting for him.
- At about 11:00 a.m. you get a call from “Bill”. He’s tied up in a meeting but he really needs those clubs for his vacation and his flight is at 7:00 a.m. on Saturday, so he is going to send his secretary to pick them up. [ With just a little bit of luck, “Bill Jones” has now spoken to three or four different people in your shop. They all know about the sale, the “tagged” set of clubs set aside for “Bill”, and the urgency of his need to pick up the clubs, but they are not all familiar with the “payment transaction”]
- A couple of hours later a nice young lady (who knows absolutely nothing about golf clubs) shows up to “pick up Mr. Jones’ clubs”. Your shop clerk “knows” all about the clubs, notes that they have already been paid for by credit card, and helpfully carries them out to her car for her.
- All’s well, Mr. Jones has his clubs and the transaction goes through your bank without a hitch. That is until the real “Bill Jones” receives his credit card statement and gets around to looking at it. He realizes that there is a $3,500. (plus taxes) item that he did not authorize and his bank (and yours) immediately reverse the transaction. [ The “Real Bill” has 90 days to look at his statement and protest any transaction, so it might be some time before you get this surprise.]
A number of other unpleasant surprises follow:
- Your credit card company now points out that the Federal Bank Act requires that they immediately reverse any “paperless” transaction that a cardholder notifies them of within 90 days.
- They also point out that in your contract with them, they do not accept any responsibility for payment of any transaction for which you do not have a signature.
- On top of that, many insurance companies do not consider this as a “theft”. You voluntarily turned over and parted with the merchandise. As far as they are concerned, it is just a “collection problem“.
Read you credit card agreements carefully; especially the sections on “YOUR DUTIES” and/or “YOUR RESPONSIBILITIES”.
Make sure that ALL of your staff are trained in the proper procedures for handling credit card transactions and make sure that these procedures are followed “every time”.
If you are uncomfortable with the situation, decline the sale.
If you believe that you are being “set up”, contact your local police department’s Fraud Section. They may want to set up a quick “sting” operation. These Con Artists Scams are not just a “one time” crime of opportunity. These are run by professionals who are very convincing.
Jim Hylands
Simmlands Insurance Services Ltd.
Business Interruption Insurance
BUSINESS INTERRUPTION INSURANCE
Recent flooding at a number of golf clubs in both Ontario and Alberta has highlighted a problem faced by independent ProShops that is not common to most other businesses.
What happens to the ProShop business if the golf club shuts down or dramatically reduces its operations ? The course closure may be due to a natural occurrence, such as a flood or forest fire, or it may be the result of a Board of Directors’ decision to renovate the clubhouse or rebuild the course.
Does Business Interruption insurance cover this resulting loss of revenue to the Golf Professional ?
There are a number of forms of Business Interruption Insurance covering different terms; different maximum indemnity periods and different co-insurance conditions. In addition to the multiple coverage options claims are of course based upon theoretical calculations of potential lost income.
Unfortunately Business Interruption is probably one of the most complex and least understood areas of general insurance. This article is certainly not intended to examine in detail all of the issues that have to be considered when buying coverage or submitting a claim. That’s a university level course of its own. It is only intended to highlight a few “key” concepts that must be understood.
First; you must buy Business Interruption coverage. It is not automatically part of your property insurance. It is a separate coverage. That said, the PGA of Canada’s PROPAC policy does automatically include some basic Business Interruption coverage. It may not be enough to cover your needs and additional coverage can be purchased.
Second, a most important concept to understand is that “DIRECT” Business Interruption insurance is a “dependent” coverage. There is only a Business Interruption claim if some other event / claim has already occurred.
Generally speaking a basic Business Interruption claim can only occur as a result of a business closure or reduction that has occurred because of “insured damage” to “insured property”.
If you do not have “Insured Damage to your Insured Property” that causes the business interruption, then you cannot make a claim.
For example, if there is a fire that damages your cart fleet, the loss of revenue from the cart fleet would be covered by your Business Interruption rider, however if there is a fire in the clubhouse kitchen that results in a reduction in the number of golfers which in turn results in a reduction in your cart rental revenues, you do not have an insured loss. No damage to your property, no Business Interruption claim.
That said, there is a second level of Business Interruption insurance that can be purchased, called “Contingent Business Interruption”. This type of protection effectively allows you to make a claim if someone else (upon whom your business depends) suffers a damage to property loss which would have been covered by your policy (if it was your property) which then causes you a loss of income.
Common examples of this type of loss would be;
- A fire in a neighbouring premises that did not actually damage your property, but the civil authorities require you to evacuate for a few days or;
- A fire that destroys the clubhouse but not the separate proshop building results in a temporary closure of the club and a loss of customers and income for the shop.
Since both these examples involve an event that would be covered under the ProShop policy (FIRE) and damage to property that would be covered if the ProShop owned it (BUILDINGS or CONTENTS) a “contingent business interruption” coverage would apply.
Again the PGA of Canada’s PROPAC automatically policy includes a small amount of Contingent Business Interruption protection, but additional coverage may be required.
The final and most important concept to understand is that in every case there must be “INSURED DAMAGE” to “INSURED PROPERTY”. If either the property or type of property that has been damaged is not covered by your property policy (i.e. sand traps, cart paths greens, etc.) OR if the cause of the loss is not covered (raccoons, landslide, financial collapse of the club, etc.) then there is no claim under your business interruption policy. Remember it is YOUR POLICY that applies not the other party’s. Even if the club has coverage, you might not, or even if the club does not have coverage, you might.
In theory, after you have purchased all of the standard available protection, custom coverages could be designed, but like custom built golf clubs, you have to decide exactly what you want and be prepared to pay the price for one of a kind product.
Again the PGA of Canada’s PROPAC policy is leading the field. As of the 2006, renewal, all PROPAC policies will include a custom designed Weekly Indemnity provision for loss resulting from FORCED COURSE CLOSURE that lasts for more than 5 consecutive days. Certain exclusions do apply, however coverage is much broader than traditional Business Interruption wordings.
Jim Hylands
Simmlands Insurance Services Ltd.
Additional Insureds
Contractors, Employees, and Volunteers
Download: Broker’s Notes – Contractors, Employees, and Volunteers March 2006
Certificates of Insurance
Independent Golf Professionals & Liability Insurance
INDEPENDENT GOLF PROFESSIONALS & LIABILITY INSURANCE
Previous Best Practices articles have touched on the issue of independent subcontractors versus club employees, but what should the Independent Golf Professional do about Liability Insurance ?
The following are some tips to help you in this area:
- We are all aware of all the positive benefits and perq’s of being a self-employed independent contractor, but sometimes in the unique setting of a golf club it is easy to forget that, as an independent, YOU are the only one really looking out for your interests.
- When considering insurance options, it is ALWAYS BETTER to own your own contracts and to control your own destiny. This is often not the “cheapest” way to obtain insurance protection, but remember that quite often you get what you paid for. Free insurance may be worth exactly that. If you don’t own the contract, how do you know if it is paid for and in force ? How do you know if the terms and conditions are being met ? How would you know if the warranties are being breached ?
- Do not assume that someone else is providing you with insurance protection. Even if the club tells you that they are covering you on their insurance policy, get written confirmation and read and understand the terms and conditions. They may be incorrectly “assuming” too.
- Club managers, and club directors are usually not insurance experts, and may have seriously misunderstood the terms of their own policy. Even the club’s insurance agent may not have fully understood the relationship between the club and you as an independent. Or, remember that the agent’s answer to a coverage question is based upon the question asked. If the question was imprecise, then the answer may be too.
- The PGA of Canada provides every member of the Association with $5 million of Commercial General Liability insurance as an automatic benefit of membership, but the policy does not necessarily include coverage for all of your specific duties and activities at your particular club. Review all of your business activities and all of the services that you provide (both contractually and extra-contractually) and make sure that if an activity is not covered by the PGA of Canada’s group policy, that you have other appropriate insurance protection in place.
- It is extremely important that whenever possible your contract with the club should require that the club adds you to their liability policy as an “ADDITIONAL INSURED”. In this way, you are covered for liability for activities that should rightly be the responsibility of the club, but which are imposed on you in whole or in part by a court. For example, a member becomes drunk at the club and sustains an injury. You are not the liquor license holder and you did not sell him the alcohol, but he names you in a subsequent lawsuit because you failed to notice his condition. Even if you are not found liable, you will incur substantial legal costs to defend yourself. The PGA of Canada’s policy does not include “Liquor Liability” coverage. You should be protected by the club’s policy. Employees would automatically be protected by the club’s insurer, but an independent sub-contractor would only be protected if he/she were added as an Additional Insured.
- That said, you should also be aware of the limitations of an Additional Insured clause. Many people (including a significant number of insurance agents/brokers) mistakenly assume that it protects against all liability resulting from any activities at the club. This is NOT TRUE. An additional Insured is only protected for liability resulting from the activities of the primary policyholder. The extension would not provide coverage for a loss resulting from your activities and duties.
- Make sure that your contracts are clear and unambiguous. “Good fences make for good neighbours and good contracts make for good business relationships”. Over and over, we see contracts between golf clubs and independent golf professionals that are ambiguous, inaccurate and/or silent on the specific duties and responsibilities of each party. For example; members store their golf clubs at the club; the service is provided automatically as a part of the annual dues and the professional is paid a fee for providing this service on behalf of the club. Who is responsible if 50 sets of equipment (worth $3,000. each) are destroyed in a fire ? The Club or the Professional ? All Commercial General Liability policies EXCLUDE damage to property in the Care, Custody or Control of the Insured. Which one of you should have purchased extra insurance ?
Obviously this list is not exhaustive but hopefully it helps to highlight that as an independent self-employed contractor, you are “on your own” and your insurance protection is only as good as YOU make it. Don’t make unsupported assumptions and always start with the conservative premise that you do not have insurance coverage unless YOU have verified it.
Jim Hylands
Simmlands Insurance Services Ltd.
Higher Deductibles
Self-Employed, Part 2
How Much Liability?
Liability Insurance – How Much is Enough?
LIABILITY INSURANCE – HOW MUCH IS ENOUGH?
No too long ago, this was a question for American residents only. The American judiciary system was out of control, but “everyone” agreed that Canadian courts were much more conservative and did not hand out massive awards.
The PGA of Canada provides $5 million of Third Party Liability coverage to all its members and golf clubs participating in our ClubPac program all have a minimum of $5 million and sometimes $10 million.
What does your club carry ? Have Canadian awards every exceeded $1 or $2 million ? Unfortunately yes; and it is occurring with ever increasing frequency.
Surely that’s only in the Ontario ? And surely it doesn’t involve the sports and recreation industry ? Our customers “assume” the risks when they decide to participate in our activities. Don’t they ?
There are a couple of major lawsuits pending against golf clubs, but admittedly we have not yet heard of an actual settlement in excess of $2 million. However lets look at a few recent Canadian case decisions involving sports, recreation or host liquor:
- Aug 1997 – 22 year old woman in Ontario received an award of $13 million. The car in which she was a passenger was leased; the driver’s insurance only paid $3 million so the leasing company must pay the other $10 million.
- Feb 2005 – A couple in Ontario was awarded $2.6 million for injuries sustained in a tiger attack at an African Lion Safari.
- Nov. 2004 – A 25 year old woman injured in a car crash in B.C. was awarded $2.8 million. With prejudgment interests and costs, this award will exceed $3.5 million.
- Nov. 2004 – The Quebec Superior Court found a small town 50% responsible for injuries suffered by a snowmobiler who struck a snowbank and awarded him $2.2 million. With an additional award to the snowmobiler’s wife, interest and costs the final payment will exceed $3 million.
- Aug. 2004 – The B.C. Court of Appeal upheld a lower court award of $7.5 million to a 16 year old woman who was injured in a car crash.
- Aug. 2004 – The Supreme Court of B.C. awarded a 47 year old woman injured in a car crash $3.2 million.
- Aug. 2004 - A Saskatchewan court awarded a 14 year old boy injured in a car crash $2.4 million because he was identified as a “promising” hockey player by a New York Rangers scout.
- June 2004 – A Saskatchewan Court handed down a $13.2 million award to a girl struck down by a car while walking to school for her first day of kindergarten. The court found the City of Moose Jaw 45% responsible, the Police Chief 20% and the vehicle driver 35%. Unfortunately the driver carried only the legal minimum insurance limits of $200,000. so the City will have to pay the rest.
- May 2004 – An Ontario woman was awarded$5.3 million plus $750,000 in legal fees following a car crash in Sarnia Ontario.
- March 2004 - A B.C. Court awarded $2.9 million against a B.C Ski Resort and a School Board as a result of snowboarding injuries suffered by a 17 year old student on a school outing.
- Dec. 1993 – An Alberta court awarded $3.1 million to a 19 year old student injured during a school outing to a “mountain climbing” facility.
- Nov 1993 – A B.C. Court awarded $4.1 million to a young hockey player checked from behind.
- Oct. 1998 – An Alberta Court awarded $4 million to an 11 year old girl injured in a gymnasium accident.
- June 2004 – A Nova Scotia Appeal Court has upheld a $2.7 million award to a 14 year boy injured when he fell 4 feet during a “rope game” at an outdoor adventure camp.
The trend is clear. Huge liability awards are being handed down in every province in Canada and everyone even remotely involved is being apportioned some blame. Remember the concept of “Joint & Several” liability. If you are found 1% liable, you are responsible for up to 100% of the award.
Enough insurance is …”a little more than you are ever sued for”.
Jim Hylands
Simmlands Insurance Services Ltd.
Liquor Liability
LIQUOR LIABILITY
Numerous articles have been written in newspapers, magazines and government circulars about the issues of “Host Liability” as a result of serving alcohol. Whether you believe that it is fair or reasonable to hold a liquor host responsible for injuries suffered by, or caused by, impaired patrons does not matter. It is a fact that the courts in every province in Canada have routinely ruled against liquor servers on these issues.
At one time, this trend would have held little relevance to the Golf Professional, but the world is changing and this liability exposure and the potential insurance ramifications must be considered. As the role of the golf professional evolves and as his/her “usual duties” at a typical golf facility expand, it is essential that each Golf Professional carefully examine his/her position.
[ Each province has its own set of Liquor Licensing Laws, Server Training requirements and Court Decisions. When reading the following comments, it is important that you check the actual conditions in your province.]
The traditional golf professional’s only involvement with alcohol service at his/her club was for purposes of personal consumption and these issues were easily understood, however many professionals have, or are, moving into the food and beverage service areas at their clubs and must now consider the insurance implications.
If you are involved in the service of alcoholic beverages at your club it is essential that you are very certain of your employment status and your duties. (Remember a contract alone does not automatically make you “self-employed”.)
Employees of the golf club are included in the club’s Liquor License and are included in the club’s Liquor Liability insurance coverage. Self-employed subcontractors are not !
There are generally three situations that we see at golf clubs today.
If you are an Employee the club’s liability insurance should cover you automatically. Server training is highly recommended and in some provinces it is mandatory. The PGA of Canada’s master liability program will protect you in the event that there is a problem with the club’s policy or if the limits of coverage are exhausted. The PGA of Canada’s policy provides you personally with excess coverage, but it does not cover the club.
If you are an Independent Subcontractor working in the capacity of the CLUB MANAGER then generally the club is still the Liquor Host and must carry a liquor license. You should ask the club to add you to their policy as an Additional Insured. It is important that your contract with the club specifies that they are to provide you with liability insurance protection and that their policy is extended to cover you. Many club policies will only cover you if your contract requires it.
The third scenario is the one of greatest concern, the PGA of Canada member who is an Independent Subcontractor and has the food and beverage concession at the club for “his/her own account”. This individual is essentially renting space from the club and running the restaurant operation for his/her own profit or loss.
The golf club’s policy DOES NOT automatically cover you and many insurance companies will refuse to do so. Some insurers will cover you at extra cost. In addition, the PGA of Canada’s Master Liability program DOES NOT cover this situation either. You must arrange for your own liability insurance coverage.
Depending on the Province, you might also have to carry your own Liquor License. Failure to do so might void any insurance that you purchase on the grounds of “illegal activity”.
You should also be careful of any “split” food & beverage arrangements. Most Liquor Licenses require the service of food along with alcohol. Some (but not all) provinces allow these services to be provided by two different companies and some provinces are unclear. If you are involved in one of these situations, get confirmation (IN WRITING) from the Liquor Licensing Authority in your province and make sure that your liability insurance is extended to cover this activity.
One further and often surprising complication is the issue of responsibility for Course Marshalls. It has traditionally been the responsibility of the Golf Profession to select and supervise the “volunteer” course marshalls. With the advent of “on course” liquor service, many provinces now require that Course Marshalls be “Liquor Server Trained” and that they assume some responsibility for monitoring the behaviour of drinking patrons. Even without any direct involvement in the liquor sales and service at the club, the independent golf professional may be brought into any lawsuits resulting from over-service on the course.
This is a new and complex area of risk for golf professionals and the lawsuits resulting from alcohol related losses often run into multi-million dollars. This is not an area to just “assume” that you are covered. Review your personal situation carefully and make sure that the appropriate licenses, training and insurance are in place.
Jim Hylands
Simmlands Insurance Services Ltd.
Liability Insurance for “Inactive” Members
LIABILITY INSURANCE FOR “INACTIVE” MEMBERS
The PGA of Canada provides a $5 million of General Liability insurance benefit to all members resident in Canada as part of their National membership. The question is often asked by Assistants, Head Professionals who are club employees, and Life & Retire members; “why do I need this coverage ?”
The answer rests in a problem faced by all “professional” people, not only PGA of Canada members. When are your activities PERSONAL and when are they PROFESSIONAL ?
Unfortunately, in many cases, this decision will be made by a judge in a court of law AFTER a large lawsuit has been filed against you.
There are basically two types of general liability insurance that most people require; BUSINESS and PERSONAL. (Automobile liability is of course purchased separately.) The first, they obtain through their (or their employer’s) business policy and the second through their Homeowner’s or Tenant’s insurance contract.
Insurance companies define the coverages to be “mutually exclusive” so that if an activity results in a lawsuit, they can decide which policy must defend and pay for the loss. Business policies cover activities “related to the specified business or profession of the Insured” and personal policies exclude “activities related to any business or profession”. While the clauses clearly ensure that they do not duplicate each other and provide double cover, the exclusion of coverage by one policy does not necessarily guarantee the inclusion of coverage by the other.
The second problem that often arises is a disagreement about the apparently simple definition of “business or professionally related”. This is particularly difficult when the activity, like golfing, is both a business activity (for some) and a personal activity for others. Obviously a PGA of Canada member can play a round of golf strictly for his/her own personal pleasure, but where is the “line” drawn ?
Sometimes the issue is pretty simple. If a PGA of Canada member is playing in a golf tournament sanctioned by the Association, with a cash prize available, this is clearly an activity related to a business or profession, regardless of whether the member actually wins any money or not and regardless of the member’s status as Employee, Self-employed, Life or Retired.
But what about a game of golf with friends ? Anybody who has seen me golf is well aware that this is clearly a recreational (not to mention humourous) activity and as such it is clearly covered by my residential insurer. But what about a golf game between four friends who all happen to be PGA of Canada members (retired or not) and who are all playing at a club, “no charge” or at “a professional discount rate” because of their PGA of Canada membership status ?
One major Canadian insurance company has stated unequivocally that in their opinion “all golf activity” by a golf professional would be considered as “excluded” by their residential policies and another uses “did he pay admission fees” as one of its main criteria for deciding if their residential insurance policies cover or exclude an activity.
If your residential insurer denies coverage under their Personal Liability contract who protects you ?
The other key issue is the extent of coverage provided by Business Policies. If a PGA of Canada member is clearly an employee of the club then he/she is covered by the club’s general insurance policy for any activities relating to his/her job duties.
Would the above “friendly” game of golf be covered by the club’s policy ? Very unlikely !
What if the PGA of Canada member plays in a Zone or National tournament. Is that a “requirement” of his/her job, or is it “beyond the scope of his/her employment duties” ? Would failure to play in professional tournaments be grounds for dismissal from his/her job ? If not ,then it is likely not within the scope of his/her duties. It would therefore also not fall within the scope of the club’s insurance policy.
What about the PGA of Canada member/club employee who teaches golf to club members’ children on a direct remuneration per hour basis, or teaches at a local high school or recreational center ? These activities would likely be considered as “outside his/her job duties” and therefore not be covered by the club’s insurance.
Even worse, what about the PGA of Canada member/club employee who offers to teach golf to some of his/her neighbourhood kids at no charge on a Saturday morning in the local park ? Clearly not part of his/her job duties at the club, but is it a PERSONAL liability issue covered by his/her residential insurer or is it excluded as “related to a business or profession” ?
The PGA of Canada’s liability policy is a BUSINESS INSURANCE contract designed to meet the needs of the members. The most obvious needs are those of the self-employed member who owns his/her proshop independently of the golf club. However the policy has been “customized” to try to meet the golf-related insurance needs of all PGA of Canada members and to try to “fill the coverage gaps” that could leave a member facing a serious lawsuit with no insurance protection.
“Do you need the PGA of Canada’s liability insurance protection ?” Absolutely !
There is no question that some members need it more and others less, but every PGA of Canada member benefits from the Master Liability Insurance coverage.
Jim Hylands
Simmlands Insurance Services Ltd.
Money & Securities – Cash
MONEY & SECURITIES – CASH
Thankfully the advent of credit cards, debit cards and electronic fund transfers has substantially reduced the risk of robbery, hold-ups and safe burglaries in retail businesses.
That said, there are still many customers who prefer to pay cash, especially for smaller purchases, such as green’s fees, cart rentals and equipment incidentals. On a busy weekend these “small” items can add up to significant amounts of cash in your proshop.
For obvious reasons, CASH INSURANCE is very expensive. On a “per thousand” basis, the annual premium for comprehensive cash coverage can be 7 to 15 times the cost of coverage for shop inventory or equipment. Cash is readily stolen; easily destroyed; virtually untraceable and does not have to be “discounted” to be “fenced”. Unfortunately cash thefts are often accompanied by violence and physical injury.
Here are some tips on protecting your cash and reducing your insurance costs:
- Try to discourage the use of cash as your preferred mode of payment. Make it convenient for customers to use credit or debit cards by having fast and efficient electronic funds equipment in your shop and prominently display the card logos.
- Replace equipment that breaks down or is slow to process, and DO NOT install Automated Teller Machines (ATM’s).
- Keep cheques and credit card receipts in a separate “cash drawer” or box. Thieves ransacking your cash register do not take the time to sort out the paper. It may be worthless to them, but it may be your only collectible record.
- Make frequent bank deposits. It may not be convenient to make more than one trip to the bank each day, but do not “save up” deposits over a long week-end or over multiple days. At the very least empty cash drawers when the total starts to escalate and move bundles to a safe, or locked cabinet. Multiple smaller bundles secured in different places is better than “all your eggs in one basket”.
- If possible make bank deposits during daylight hours. Most violent robberies take place at night in front of night deposits boxes. Aside from the cash loss, you or your employees could be seriously hurt.
- Install a quality safe that is difficult to steal. Most proshops only require a small safe. Unfortunately these can be quickly stolen and broken into later. Cylindrical floor safes set in concrete are inexpensive, easy to conceal and almost impossible to steal.
- Install a quality alarm system with “Central Reporting”, “Line Cut Security” a loud local bell or siren and automatic lights. It is very difficult to break into a safe while dealing with lights, sirens and knowing that response is on the way.
- Do not leave money in the shop overnight. Cash that cannot be taken to the bank should be securely locked in the safe or taken home with you. MOST INSURANCE COMPANIES EXCLUDE OVERNIGHT CASH THAT IS NOT LOCKED IN A SAFE.
- Cash taken home with you is covered by most cash insurance policies, but ONLY ENROUTE or INSIDE YOUR LIVING QUARTERS. Do not leave cash in your parked car.
- Do not lock cash registers at night. In fact do not even close the drawers. Leave them open. Many an expensive cash register or point of sale system has been destroyed by thieves who got away with just the $100. change float.
- Proshops also often have the unusual exposure of holding someone else’s money; the Club’s. Many proshops collect greens fees and cart rental fees on behalf of the club. If you do this, there are a number of special procedures that you should put in place. While this money is in your care, you are 100% responsible for it.
- Make sure that your point of sale system can clearly identify whose money is whose.
- Make sure that your contract clearly establishes who is responsible for the funds. If you are not responsible, this MUST be in writing. Without a waiver, the Club’s insurance company will likely try to recover their claim from you.
- If possible make frequent small deposits to the club, and get a signed receipt or at least have a copy of the deposit slip initialed by the club’s accounting staff each time.
- If you are responsible, make sure that you have adequate insurance to cover the total loss. (Yours and theirs)
When you purchase “Money Insurance” make sure that you are buying Broad & Comprehensive coverage. Robbery, Burglary, Theft, Safe Burglary, Destruction, and Loss do not all mean the same thing. Inside, Outside, Custodian, Custodian’s Home, Depositor’s Forgery, Counterfeit Money and Employee Theft are all different losses and insurance coverage is often sold separately for each one. Safe and Alarm Warranties will be enforced.
Make sure that you understand what you bought. That bargain coverage may not be a great deal if your loss is not covered.
Jim Hylands
Simmlands Insurance Services Ltd.