third party liability insurance.pdf
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Third Party Liability
Insurance Guide
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Third Party Liability Insurance Guide
Tab 1 Insurance DefinitionsLiability InsuranceCommercial General Liability Insurance
Tab 2 Third Party Liability Insurance Program for Small Craft HarboursFrequently Asked Questions and Regional Contacts
Tab 3 Templatesa) Insurance Application Questionnaireb) Incident Report
Tab 4 Claims Procedure
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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THIRD PARTY LIABILITY INSURANCE (TPLI) PROGRAM FOR
SMALL CRAFT HARBOURS (SCH) 2006-07
As part of an ongoing Fisheries and Oceans Small Craft Harbours program, HarbourAuthorities (HA) across Canada are supported with a Third Party Liability Insurance
program.
As a result of their operations, HA are exposed to claims from third parties for loss of life,bodily injury, and property damage.
Limit Insured CAD $20,000,000.00 any oneaccident/occurrence.
Deductibles All Classes (A, B, C and D) $1,500.00 any oneaccident/occurrence
Note:Please note that the portion of thedeductible paid by HAs continues to be$500 and, as in previous years, SCH willcover the portion of the deductible inexcess of $500.
Who is covered DFO- SCH, Harbour Authorities, theiroffices, employees and volunteers, whileworking for and on behalf of the harbour,are covered against third party liabilityclaims.
Over 600 HAs across Canada currently benefit from the insurance program.
The program is underwritten by Continental Casualty Company, Toronto, Canada and thebrokerage firm is Marsh Canada Limited.
Following are frequently asked questions that might help answer some of the concernsrelated to the policy coverage.
FREQUENTLY ASKED QUESTIONS
Q.1: Who is covered?
DFO-SCH, Harbour Authorities, their elected & appointed officials,commissioners, directors, officers, employees and volunteers while working forand on behalf of the Harbour Authority.
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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Q.2: What does Legal Liability refers to?
It refers to liabilities (legal responsibilities) imposed by law (Federal, Provincial(common law or civil code).
Q.3: What are the key coverage?
The policy covers third party liability (liability to others i.e. it does not coverdamages to the HA property or of any other insured on the policy) arising out ofthe operations of a HA, more specifically for:
Bodily Injury injury, sickness, disease, death Personal Injury libel, slander, defamation, wrongful eviction Property Damage destruction property , belonging to third parties
because of the HA negligence
Q.4: When does TPLI insurance coverage begin?
The HA has to be incorporated and listed as an insured on the policy in order tobe covered for Third Party Liabilities.
Process: Once incorporated, the HA has to fill out the brokers Applicationquestionnaire (tab 3a) and send a copy to their regional contact who in turnsends the document to Marsh Canada Limited.
Marsh Canada Limited will then issue a certificate of insurance to the HarbourAuthority.
The insurance coverage begins at the effective date of the lease between DFOand the HA.
Q.5: What are the key exclusions of the insurance policy?
The legal liability arising out of property owned, leased or occupied by the HA; Watercraft liability of any vessel or craft owned by the Insured in excess of
26 feet in length; Employers liability (this should be done through workers compensation) and; Pollution except for sudden and accidental pollution incident.
Q.6: What is due diligence?
Due diligence is the discharge of someones duties, in good faith, in a manner inwhich that person reasonably believes to be in the best interests of other partyand with the care prudent persons in like positions with the same background,experience, expertise and knowledge would exercise under similarcircumstances.
Q.7: Who is liable if: Someone is swimming in the harbour and they get hit by a boat? A child drowns in the harbour? A child is running on the docks and trips and falls? A person is swimming in the harbour and gets snagged by someone sport fishing?
Answer to the above four questions: the HA insurer will defend the HA in theeventuality that the HA is sued for negligence. The court will determine theliability.
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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Q.8: Should the HA ask for a certificate of insurance from participants using the
harbour for an event or a festival?
Absolutely, the HA policy will not respond to third party claims because of theactivities of other parties on HA property, unless a claim is made against the
HA. For example: parasailing, diving, etc.
Q.9: Should a license issued by the HA include a clause stating that insurance for
liability and the vessel is required?
This is recommended.Q.10: Are HA owned vehicles insured while traveling on official HA business?
Not on this policy; HA are legally required to have automobile insurance.Q.11: Are the commercial fishing boats insured?
No, unless any damages sustained by the fishing boat are as a result of thenegligence of the HA.
Q.12: If the HA fuel tank leaks, is the HA covered?
Damages to the environment (air, land or water) and to third parties arisingfrom a sudden and accidental leak are covered provided that the incident isdiscovered within 72 hours of its occurrence and reported to the insurer within90 days of discovery. Damage to the tank itself must be separately insured.
Q.13: Are HA owned buildings and equipment covered for fire, theft or damage?
No, this is a liability policy. It only responds to claims for damage to thirdparties. Damage to HA own property must be insured separately by HA itself.
Q.14: Are vessels owned by the employees, volunteers, directors or officers covered
while they are secured at the dock?
No, unless the damages sustained by the boat is as a result of the negligence ofthe HA.
Q.15: If a boat goes aground in the harbour, is the HA covered?
The HA is covered against claims arising from incidents which occurs within theharbour boundaries (mentioned in the lease agreement). The grounding wouldhave to be as a result of the negligence of the HA for the policy to respond.
Q.16: Is the cost of removal of a wrecked vessel covered? The cost could be covered as long as the wreck causes a hazard to the activities
of the Harbour. The cost of removal has to be approved by the Insurer prior tothe removal.
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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Q.17: Is the HA covered if a visitor falls on or off the dock and injures himself?
Yes, the policy will cover for the damage and for the cost of defending any suitagainst the HA should it be found liable, subject to the policy limits, terms andconditions.
Q.18: If the harbour burns down and private property is destroyed, is the HA
protected against a law suit?
Yes, the policy will cover for the private property damage (third partysproperty) and the defence cost of defending the legal action arising from thisevent subject to the policy limits, terms and conditions. This is not a directdamage policy, therefore, the HA and the government are not insured for directdamage to their owned or leased property.
Q.19: If a HA employee or volunteer moves a harbour users boat and damages it, is
he or she covered?
Yes, as long as the employee or the volunteer was in the course of performinghis duty at the harbour.Q.20: Are the damages caused to third parties from a boat owned by HA covered?
Yes, if the boat does not exceed 26 feet in length, the damages would becovered if the HA is found liable for the damages.
Q.21: Is the HA covered if it is sued by a volunteer that has been injured while
working for or on behalf of the HA?
The policy will cover for damages and the cost of defending a legal actionagainst the HA.
Q.22: Are contractors hired by the HA to do work for the HA covered by our policy?
No, they must have their own liability policy.Q.23: Is the HA covered when acting as a contractor to install buoys for the
Canadian Coast Guard?
The HA would be covered for third party liability as long as the buoys areinstalled within the harbour boundaries (mentioned in the lease agreement).
Q.24: What type of contractual liability is covered by the insurance policy? The HA liability is assumed in contract but only to the extent of the HA
obligations and with respect to the HA operations. For example: the HA leases apiece of equipment from a company and the contract requires that the HAassumes the liability of the company in the eventuality that they are being suedbecause of the HA negligence in using that piece of equipment (i.e. it causesdamages to someone else property). The policy would pay for the defence of theHA.
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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Q.25: Are employees, directors, officers, board members or managers of the HA
covered for medical payments if they sustain an injury while conducting business
for or on behalf of the HA?
No, this is not a group accident policy. A separate insurance policy must bepurchased.
Q.26: Does the policy cover Directors and Officers liability?
No, this policy does not cover Directors and Officers for liability arising fromwrongful acts (i.e. any breach of duty, neglect, error, misstatement, misleadingstatement or omission in the administration of the HA). This must be insured bya separate policy.
Q.27: Is the HA insured for the death or injury to an employee?
No, coverage must be purchased from the applicable workers compensationbenefits available in the province.
Q.28: How many claims can a Harbour Authority submit for an accident that re-occurs for the same reason (i.e. the same rock of piece or wood damaging
different boats)?
The HA can report as many incidents as they get. The claims come from thethird party. The insurer will evaluate each claim to its own merit. Naturally, aHA that knows of a situation at their HA that is hazardous should take everystep to fix it. Following a claim, the insurer can also make a recommendation forimprovement of a site and advise the HA that if it does not proceed with therecommendation, the insurer can review its position on the entire account.
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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Q.29: In the event of an incident, what should a HA do?
In the event of an incident involving the liability of the HA, an incident report containing
details of the occurrence must be submitted to Small Craft Harbours (SCH) RegionalOffice. The Regional Office in turn will forward a copy to Marsh Canada Limited and SCH-Headquarter as soon as practicable as stated in the policy. Any and all documents relatedto such occurrence shall be forwarded promptly to the SCH Regional Office.
Step 1 Fill out an Incident Report.
Step 2 If applicable, take pictures or video ofdamage or injury.
Step 3 Send the Incident Report to your regionalcontact.
Step 4 If a potential claim is received, forward toyour regional contact.
For more information on the above program, please contact your regional contact:
Regional Contacts:Pacific: 604-666-9923Central and Arctic: 204-983-6093Quebec: 418-648-7822Maritimes and Gulf: 506-851-2349Newfoundland: 709-772-8491
NCR-Ottawa: 613-993-8919
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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Please complete and forward to:Marsh Canada LimitedCarling Executive Park1565 Carling Avenue, Suite 600
Ottawa, Ontario (K1Z 8R1)Tel.: (613) 725-5253Fax: (613)725-5270
HARBOUR AUTHORITY APPLICATION QUESTIONNAIRE
1. Name of Harbour Authority:_____________________________________________
2. Contact Name and Address:____________________________________________________________________
____________________________________________________________________
3. Telephone: _____________________ Fax:_______________________________
4. Brief description of activities and total revenues projected for each activity for thenext 12 months:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
5. Number of employees:
6. Payroll:
7. A) Description of marine traffic:________________________________________________________________________________________________________________________________________
B) Description of operations in respect of water sounding and cleaning:________________________________________________________________________________________________________________________________________
8. Brief description of installations (buildings, warehouse) owned by harbour, withReplacement Cost Values:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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HARBOUR AUTHORITY APPLICATION QUESTIONNAIRE (contd)
9. Description of harbour installations (piers, breakwaters, etc.) with Replacement CostValues:_______________________________________________________________
____________________________________________________________________
10. Number of Berths: ____________ Berth Meters: __________________________
11. Description of maintenance of harbour installations:A)Work done by Insured: _____________________________________________
________________________________________________________________________________________________________________________________________
B) Work done by independent contractors: ________________________________
________________________________________________________________________________________________________________________________________
12. Description of all contractual agreements and leases (attach copy, if applicable):________________________________________________________________________________________________________________________________________
13. Loss history for the past 5 years. No Losses: ________ or Details:_________
________________________________________________________________________________________________________________________________________
____________________________________________________________________
14. Attach approximate site plan of harbour showing location of docks and buildings.
Date:_______________ Signature:________________________________
Applicant or Authorized Officer
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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HARBOUR ACCIDENT REPORT
THIS REPORT IS REQUIRED FOR EVERY ACCIDENT CAUSING PROPERTY DAMAGE ORBODILY INJURY ARISING FROM OR INVOLVING HARBOUR OPERATIONS INCLUDINGOPERATION OF HARBOUR EQUIPMENT OR VEHICLES OR MAINTENANCE OF
HARBOUR FACILITIES.
THIS REPORT IS USED TO CONVEY INFORMATION REGARDING ACCIDENT TO THEINSURERS AND THEIR SOLLICITORS. THIS REPORT IS CONFIDENTIAL ANDPRIVILEGED. IT SERVES AS BACKGROUND MATERIAL IN DEFENDING ANY CLAIM ORLITIGATION WHICH MAY ARISE.
1. Name of Harbour Authority: ___________________________________________
Contact Name: ___________________________________________________ __
Phone Number: _______________________ Fax Number: _____________________
2. Date of Accident: ___________________________________________________
3. Time of Accident: ___________________________________________________
4. Weather Conditions: _________________________________________________
5. Description of Accident (attach sketch):____________________________________________________________________
______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
6. Name and address of Owner of any property damage: _______________________________________________________________________________________________________________________________________________________________
7. Description of property damage: ___________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________________________________________________________________________
8. Amounts of any estimates of property damage received:______________________________________________________________________________________________________________________________________
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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9. Names and address of injured persons: _______________________________________________________________________________________________________
10. Description of bodily injuries: _____________________________________________________________________________________________________________
___________________________________________________________________
11. Names of any Harbour personnel involved: ____________________________________________________________________________________________________
12. Names and Addresses of any witnesses: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
13. If possible, take photographs and attach to this report.
14. If the accident is serious, telephoned notification of accident to:
Name:______________________________________________________________On (date): ______________________ at (time): ____________________________
Name of person making this report: ________________________________________
Date of report: _______________________________________________________
Send report to:
Small Craft Harbours Marsh Canada LimitedFisheries and Oceans Canada Carling Executive Park200 Kent Street, (14N173) 1565 Carling Avenue, Suite 600Ottawa (ON) Ottawa (ON)K1A 0E6 K1Z 8R1Tel.: (613) 993-8919 Tel.: (613) 725-5253Fax: (613) 952-6788 Fax: (613) 725-5270
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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CLAIMS PROCEDURES
1. The HA will forward the accident/incident report and claim request to the regionalcontact who will forward a copy to Marsh Canada Limited and SCH HQ. This will serve asbackground material in defending any claim or litigation which may arise. Addresses are
as follows:
Pacific Region:Fisheries and OceansSmall Craft Harbours410 Burrard Street, Suite 200Vancouver, B.C.V6C 3S4604-666-9923
Maritimes and Gulf RegionsFisheries and OceansSmall Craft Harbours343 Universit AvenueP.O. Box 5030Moncton, N.B.E1C 9B6506-851-2349
Central and ArcticFisheries and OceansSmall Craft Harbours3027 Harvester Road, Unit 506Burlington, OntarioL7N 3G7204-983-6093
Newfoundland Region:Fisheries and OceansSmall Craft HarboursP.O. Box 5667St. Johns, NewfoundlandA1C 5X1709-772-8491
Quebec Region:Fisheries and OceansSmall Craft Harbours and Real Property
104 Dalhousie StreetQuebec, QuebecG1K 7Y7418-648-7822
2. If the third party wishes to pursue a claim for damages, they should notify the HA whowill then advise the third party of the process for laying a claim i.e. write a letter orstatement of claim to the HA outlining the details of the claim.
3. Marsh Canada Limited receives the information, opens a file and sends the claim to theadjuster. The adjuster works for the Insurance company Continental Casualty
Company (CNA). A copy of the letter addressed to the adjuster is also sent to SCH HQand the SCH Region along with a file number to be used in all subsequentcorrespondence.
4. The adjuster will contact the HA and/or the third party if necessary.5. If the suit is filed against Canada, a suit for which the insurance company would have
the right to defend Canada as an additional insured under the contract of insurance, the
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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insurance company shall quickly contact the Solicitor General of Canada, by registeredmail, to the address below in order to agree on the legal strategy:
Chief General CounselCivil Division
Department of Justice Canada284 Wellington StreetOttawa, ON K1A 0H8Canada
6. The adjuster will provide his report to the insurance company.Once the claim is settled:
7. Justified claims
a. CNA will send a cheque for the total claim amount (including the deductible) alongwith a letter to the third party and/or the company that will repair the damage.
b. A copy of this letter will also be sent to the HA and to SCH HQ so each can issue acheque for its portion of the deductible, to the insurance company: The ContinentalCasualty Company (CNA). A copy of the letter will also be provided to the SCHRegion for their information.
c. The name of the harbour, the date of the event and the file number should appearas reference on the cheque issued by the HA and SCH Headquarters.
d. The cheques should be sent to the insurance broker at the following address:
Senior claims counselMarsh Canada Limited1565 Carling Avenue, Suite 600Ottawa, Ontario K1Z 8R1
8. The senior claims counsel will send the cheque to the Insurance Company.9. Unjustified claims
a. The adjuster from CNA will send a letter to the third party with a copy to the HAand Marsh Canada Limited to inform them of the decision taken;
b. Marsh Canada Limited will also notify SCH HQ and the SCH Region.10. SCH HQ will update a database with the accident reports received from HAs. This
database will be sent to the regions annually.
This document is not intended to replace professional advice. The content of this document should not betaken as being official or unofficial policy of any government body.
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