BOARD REPORT. Contractor Liability Insurance Policy A-31 Amendment

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1 CSRD 5.3 BOARD REPORT TO: Chair and Directors File No: FROM: Darcy Mooney, Manager Operations Management Date: SUBJECT: Contractor Policy A-31 Amendment June 3, 2015 RECOMMENDATION: THAT: the Board endorse the amendment to Policy No. A-31 "Contractor Coverage" and approve its inclusion into the CSRD Policy Manual. APPROVED for Board Consideration: Meeting Date: June 18,2015.l:A r^t-^i^charles Hamilton, CAO SHORT SUMMARY: The existing Policy A-31 "Contractor Coverage" does not allow for liability insurance limits to be adjusted based on the risk level of work being undertaken. An amendment to the policy will allow for the appropriate liability insurance requirements to be in place for Contractors performing services for the CSRD. VOTING: Unweighted Corporate Weighted Corporate D Stakeholder D (Weighted) BACKGROUND: The current Policy A-31 was developed in 1986 with amendments to This policy identifies that all service providers other than those working at refuse disposal sites carry commercial general liability (CGL) coverage of three million dollars. Contractors at landfill sites are required to carry five million in CGL. Staff have investigated a liability coverage model that would allow flexibility based on the risk of the activity. Additional liability coverage is necessary in many instances for vehicles, equipment, professional liability etc. Staff have performed benchmarking with other jurisdictions and have consulted with the Municipal Association of British Columbia in drafting the latest amendments to the policy. POLICY: Policy No. A-31 "Contractor Policy". KEY ISSUE(S)/CONCEPT(S): Apply appropriate requirements for liability insurance coverage based on the risks associated with the work undertaken at CSRD sites. Page 1 of 2

endorse the amendment to Policy No. A-31 "Contractor Coverage" and approve its inclusion into the CSRD Policy Manual. APPROVED for Board Consideration: Meeting Date: June 18,2015.

2 BOARD REPORT Policy No. W-31 Contractor June 18, 2015 IMPLEMENTATION: Upon approval. LIST NAME OF REPORT(S) / DOCUIVIENT(S): 1. Policy A-31 Contractor Coverage Attached to Agenda Summary: Available from Staff: DESIRED OUTCOME(S): To update the CSRD Contractor requirements BOARD'S OPTIONS: 1. Endorse the Recommendation 2. Deny the Recommendation 3. Defer the Recommendation 4. Any other action deemed appropriate by the Board COMMUNICATIONS: The Policy manual will be updated to reflect the changes to Policy No. A-31. REVIEWED BY: Operations Management Financial Services Date Signed Off (MO/DD/YR) <7/5 Approval Signature of Reviewing Manager or Deputy Manager : -.' -/ '.00^^ Page 2 of 2

Endorse the Recommendation 2. Deny the Recommendation 3. Defer the Recommendation 4.

3 POLICY CONTRACTOR LIABILITY INSURANCE COVERAGE A-31 Preamble Where there is a liability risk involved in contractual work on CSRD property, the risk should be carried first by the contractor undertaking the work. The following tables provide guidelines for minimum acceptable limits of various types of insurance that may be required for an activity or exposure, depending on the level of risk. The actual types of insurance and coverages will be provided in the contract, permit or other CSRD document. The CSRD will be named as an additional insured on the contractor's insurance policy, and be notified of any extension, amendment, or cancellation of the said policy. Low Risk Low risk activities trigger a requirement for TWO MILLION DOLLARS ($2,000,000) Commercial General. All or some of the conditions listed below must be met in order to be classified as a low risk project or activity. Service does not involve any modification or maintenance to be performed to CSRD property. No engineering or architectural services required. No damage to, destruction or loss of property anticipated or likely. No loss of income or additional expenses anticipated or likely. No bodily injury to others anticipated or iikely.

The following tables provide guidelines for minimum acceptable limits of various types of insurance that may be required for an activity or exposure, depending on the level of risk.

4 Page 2 CONTRACTOR LIABILITY INSURANCE COVERAGE POLICY A-31 Medium Risk Medium risk activities or projects meet all or some of the following conditions: Service involves some minor modification or maintenance to be performed to CSRD property, including engineering and/or architectural services. Some potential risk of damage to> destruction or loss of property anticipated or likely. Some potential loss of income or additional expenses anticipated or likely. Some potential of bodily injury to others anticipated or likely. Activity taking place at locations belonging to others. The insurance requirements listed in the following table will be used to determine liability insurance requirements for medium risk activities or projects: Type of Consultant Independent or Trade Contractor Permit/License/ Lease/Program Commercial General (CGL) Automobile Umbrella or Excess To bring CGL or auto liability to $3 million To bring CGL to $5 $3 million To bring CGL to $3 $3 million Professional $500,000 each claim

Some potential loss of income or additional expenses anticipated or likely. Some potential of bodily injury to others anticipated or likely. Activity taking place at locations belonging to others.

5 Page 3 CONTRACTOR LIABILITY INSURANCE COVERAGE POLICY A-31 High Risk High Risk activities meet all or a majority of the following conditions; A large number of members of the public are present or will utilize the end product. New construction over $5 million in project costs. High risk of damage to, destruction or loss of property possible. High risk of loss of income or additional expenses possible. High risk of bodily injury to others possible. Type of Consultant Independent Contractor Genera! Contractor Commercial General (CGL) Umbrella or Excess To bring CGL to $5 million and auto liability to $5 million To bring CGL to $10 $5 million To bring CGL to $10 Million or auto liability to $3 million Automobile Contractor's Equipment contractors equipment contractors equipment Professional $500,000 each claim $500,000 E&O in wrap up Wrap-up $5 million minimum based on project value Builders Risk Property project FEBRUARY 1989 OCTOBER 2006 JUNE 2015

High risk of loss of income or additional expenses possible. High risk of bodily injury to others possible. Type of Consultant Independent Contractor Genera!

INSURANCE GUIDE I - MINOR CONTRACTS FOR SERVICE

INSURANCE GUIDE I - MINOR CONTRACTS FOR MEETING GUIDE I SPECIFICATIONS DURATION: Project will not exceed 30 calendar days COST: Project cost will not exceed $50,000 RISK: Low, No unusual or high hazards