1. April 11, 2007 Strengthening Communities Conference Managing Your Risks Ron Dennill Northern Communities Insurance Program

2. April 11, 2007 Agenda What do you have at Risk? Property Risks Automobile Crime Risks Liability Risks Construction Projects

3. April 11, 2007 Construction Projects Why do you need a contract? Surety Bonding & Insurance Conditions Course of Construction Insurance CCDC

4. April 11, 2007 Construction Contracts Make sure you have a contract in place. Contract spells out who is responsible for what and the work that is to be performed Lots of different Contracts will work but CCDC contracts are known to Owners, Contractors, Brokers and Insurance Companies

5. April 11, 2007 Insurance Conditions Often poorest written sections of most contracts Include your insurance conditions in your tender What is normally in the Insurance Conditions? Bonding Liability Property Insurance ( COC Insurance)

6. April 11, 2007 Surety Bonding Surety Bonding is Not Insurance It is the Guarantee of the Performance of a Promise This will help insure that your project will be completed as per the contract and people will be paid It is the Contractor who bids on the projects that must obtain the bonding.

7. April 11, 2007 Surety Bonding Three Parts: Bid Bond – Usually 10 % Performance Bond – Usually 50 % Labor and Material Payment Bond – Usually 50 % Contractors must qualify to obtain Surety Bonding Surety Underwriters don’t expect to have a loss

8. April 11, 2007 Surety Bonding Surety Underwriters look for the three Cs Cash Capacity Character Not all Contractors can obtain Bonding You need to decide if you want the project bonded Spell out the requirements for bonding in your tender

9. April 11, 2007 Liability Commercial General Liability Contractors and Subcontractors Wrap Up Liability Owner and All Contractors Professional Liability Architects and Engineers Auto Liability Owner and Contractors Aviation and Watercraft Liability

10. April 11, 2007 Property Insurance Construction Project itself Contractor’s Equipment Property in Transit Property at an Unnamed Location

11. April 11, 2007 Course of Construction Insurance Course of Construction Policy covers: Materials and labor going in to the Project for Owner and Contractors at the site Property In Transit Property at unnamed locations Can be purchased by owner or contractor Insure for the cost of the completed value Does not cover Contractors Equipment

12. April 11, 2007 Course of Construction Insurance Start at least 30 days before the work is to start Will require a completed Course of Construction application Soils report Break down of the values Project Schedule

13. April 11, 2007 Course of Construction Insurance Insurance very difficult to get after the project has started Insurers may impose some warranties Fencing of the entire project Watchman warranty Hot works warranty Need advance warning of any extension requirements

14. April 11, 2007 Other Insurance Conditions Owner as additional insured Indemnification clauses 30 Days notice of Cancellation Match your insurance with your project Have your insurance section reviewed by an Insurance Broker or Risk Manger Certificates of Insurance

15. April 11, 2007 Canadian Construction Document Committee Who are they? What do they do? Why use their forms?

16. April 11, 2007 CCDC - Who are they? National Organization responsible for the Development and review of Standard Canadian construction contracts and forms Formed in 1974 One owner representative from the public and private sector Volunteer Members from:

17. April 11, 2007 CCDC - Who are they? Canadian Construction Association Construction Specifications Canada Royal Architectural Institute of Canada Association of Consulting Engineers of Canada Legal Council

18. April 11, 2007 CCDC – Why Use these Documents have evolved over a long time through Input from experienced people in the industry Familiar and Fair to all involved in the projects. Not one sided. Insurance conditions are known by Brokers and Insurance Companies

19. April 11, 2007 CCDC – Where can I get them? Forms can be purchased through the NWT Construction Association

20. April 11, 2007 Your Other Risks Property Vehicles and Mobile Equipment Crime Liability

21. April 11, 2007 Property Risks Buildings Contents Computers Vehicles Mobile Equipment

22. April 11, 2007 Buildings Most losses to buildings are from fire Poor maintenance Poor house keeping Improper storage of material Improper training or planning

23. April 11, 2007 Vehicles & Mobile Equipment Most accidents are caused by: Driver error Lack of experience Not familiar with the vehicle Improper maintenance

24. April 11, 2007 Vehicles & Mobile Equipment Focus on: 1. Your Drivers Hire good experienced drivers Provide proper training 2. Maintenance Daily inspection Report problems and fix them right away Scheduled maintenance

25. April 11, 2007 Crime Includes Employee bonding Coverage for your money on and off premises Counterfeit paper currency and Money orders Depositors Forgery

26. April 11, 2007 Crime Key to preventing losses are: Good physical security Proper screening of employees Good policies and procedures

27. April 11, 2007 Liability Public Works Roads and Side walks Water and Sewer Recreation Building Maintenance Administration Errors and Omissions Bylaws, Policies and Procedures