1. - Insurance 101 - CBC’s Risk Management and Insurance Office (RMIO) Presented by: Nata Maggio and Lynn Ward Finance – Lunch & Learn

2. - Insurance 101 - RMIO roles and responsibilities CBC’s Broker - Aon Reed Stenhouse Insurance Program Claims Reporting Deductibles – Loss Sharing Formula Insurance and Contracts Proofs (Certificates) of Insurance Things to come… Agenda 2 Finance – Lunch & Learn

3. - Insurance 101 - Main goal is to mitigate exposures to liability or property losses : purchase insurance to cover major losses ensure claims are reported and documented expedite and facilitate claim settlements minimize insurance premium increases Other roles and responsibilities : coordinate the Risk Management Framework and Reporting to the Audit Committee of the Board review of contract language (insurance / indemnity clauses) assistance in obtaining and reviewing proofs (certificates) of insurance review and provide support for Risk Assessment process Risk Management & Insurance Office (RMIO) 3 Finance – Lunch & Learn

4. - Insurance 101 - Aon Reed Stenhouse (replaced Marsh Canada Ltd.) 5-year contract as of January 1, 2011 provides expert advise in risk management and insurance for the review of various contracts acts as our broker for the placement of property and casualty insurance handles the issuance of insurance certificates (proofs of insurance) conducts annual facility site reviews in our major sites across the country Insurance Brokerage and Risk Management Services 4 Finance – Lunch & Learn

5. - Insurance 101 - Property Coverage worldwide coverage includes buildings, improvements to leased properties, equipment, office furniture, fixtures, artwork, mobiles, antennas & towers and other physical assets losses are covered at replacement cost (if replaced) replacement of undamaged equipment necessitated by incompatibility extra and expediting expenses following a loss includes boiler and machinery coverage (damage resulting from sudden and accidental breakdown of boilers, pressure vessels, other) CBC Insurance Program 5 Finance – Lunch & Learn

6. - Insurance 101 - Property in Transit covers property in transit via marine and/or air cargo pay-as-you-go basis both within Canada and internationally maximum per shipment value of $2,000,000 (higher limit can be arranged with authorization) premium is charged back to the component, program, or cost centre responsible for the shipment strategy is to have major special event transits insured separately under more competitive terms based on the volume of shipments notification to RMIO is required prior to shipment to ensure marine/transit insurance is effected CBC Insurance Program (continued…) 6 Finance – Lunch & Learn

7. - Insurance 101 - Declaring and Insuring Equipment in Transit Air Cargo/Marine Shipments Click on link below to view iO! page: https://io.cbc.ca/io/content/content.aspx?folderId=755&contentId=543 3&locale=4105 Finance – Lunch & Learn 7

8. - Insurance 101 - Automobile Coverage 3 rd party bodily injury and property damage accident benefits (bodily injury to CBC staff - drivers and passengers) excludes physical damage to CBC vehicles (self-insured) * Mobiles and SNGs are covered for damage under property policy. foreign vehicles insured locally by bureaus/offices Liability provided by Commercial General Liability (CGL) insurance with extra limits and protection supplemented by Umbrella and Excess policies covers 3 rd party liability resulting from bodily injury, property damage, and personal injury CBC Insurance Program (continued…) 8 Finance – Lunch & Learn

9. - Insurance 101 - CBC Insurance Program (continued…) 9 Finance – Lunch & Learn Non-Owned Aircraft Coverage CBC’s legal liability arising out of the use of non-owned aircraft (charters) includes operations at Canadian airports including while on the tarmac in connection with CBC activities for aircrafts up to a total seating capacity of 40 there are no CBC employee pilots covered by this policy provided in excess of the hired charter company’s own insurance

10. - Insurance 101 - Use of Charter and Private Aircraft – Policies and Procedures Click on link below to view iO! page: https://io.cbc.ca/io/content/content.aspx?folderId=755&contentId=539 3&locale=4105 Finance – Lunch & Learn 10

11. - Insurance 101 - Claims Reporting 11 Finance – Lunch & Learn All reporting information is available on iO! Fill out forms and follow procedures for these types of claims: Automobile accidents (Fleet vs. Rental vehicles) Damages to CBC owned or leased properties, caused by flood, fire, earthquake, windstorm, etc. Damaged or missing (lost or stolen) property and equipment. Liability claims and incidents – bodily injury or property damage caused to third parties.

12. - Insurance 101 - Finance – Lunch & Learn 12 Claims Reporting Click on link below to view iO! page: https://io.cbc.ca/io/content/content.aspx?folderId=677

13. - Insurance 101 - Purpose is to allocate the insurance policy deductible between component and RMIO. Deductible applicable to most losses is $50,000 component /unit is responsible for first $10,000 RMIO is responsible for remaining $40,000 Excludes losses of property funded under capital budget. Deductibles – loss sharing formula 13 Finance – Lunch & Learn

14. - Insurance 101 - Property (building) Claim Financing 14 Finance – Lunch & Learn Projects are financed by Real Estate. Real Estate pays first $10,000 and RMIO contributes $40,000 as per loss sharing formula. Year-end receivable set up for losses above deductible, based on claim costs to date and anticipated insurer reimbursement. Timing and amount of insurer reimbursement is often difficult to estimate.

15. - Insurance 101 - 15 Finance – Lunch & Learn CGL – Slip & Fall Accidents (trip over cables, walked into and knocked over glass display stand causing injuries from spilled hot tea) Auto – Bodily Injuries (CBC vehicle rear-ended 3 rd party vehicle) Property – Damage to Buildings or Transmission Sites (Whitehorse, Chicoutimi and Toronto water damage, Montreal and Courtenay fires) Environmental Incidents (Jackhead and St-John’s diesel fuel tank spills, spill at Montreal casino from Mobile’s fuel tank) Claims Examples

16. - Insurance 101 - 16 Finance – Lunch & Learn Most important insurance coverage required is CGL (3 rd party liability) Minimum limit required is $2,000,000 (varies depending on exposures) CBC named as additional insured (protected under terms of policy, allows some coverage in case of loss) Cross liability clause (each insured treated as separate entity) 30-day notice of cancellation (CBC receives notification if insurance is to be cancelled) Waiver of subrogation (eliminates the right to recover from CBC) Contract Guidelines (insurance clause)

17. - Insurance 101 - Commercial Automobile Liability Insurance (optional): Coverage is necessary if contract requires third party to come onto CBC premises with a company vehicle. Professional Liability Insurance (optional): Coverage is necessary if contract requires third party to provide “professional services” as defined by services that require special expertise. Common examples include accountants (CA, CGA, CMA), lawyers, engineers, architects, etc. Default limit (for both) is $2,000,000. These limits can be modified under “PART A”, depending on exposures, risks and size of contract. Contract Guidelines (insurance clause) 17 Finance – Lunch & Learn

18. - Insurance 101 - 18 Finance – Lunch & Learn

19. - Insurance 101 - Usually required when shooting on location, to fulfill contract requirements, or to rent equipment. Fill out all required fields of the form (iO!) include limits required (CDN, US or other) indicate special requirements Submit request by e-mail (can also attach copy of insurance clause) Send request to contacts provided for our insurance broker (Aon) and copy RMIO (insurance@cbc.ca)insurance@cbc.ca Insurance Certificates 19 Finance – Lunch & Learn

20. - Insurance 101 - Requesting a Certificate of Insurance Click on link below to view iO! page: https://io.cbc.ca/io/content/content.aspx?folderId=755&contentId=529 5&locale=4105 Finance – Lunch & Learn 20

21. - Insurance 101 - Keep an eye on Corporate Insurance section of iO! for information on : Contracts – insurance clause guidelines General insurance terms and definitions Things to come… 21 Finance – Lunch & Learn

22. - Insurance 101 - Thank You ! Email: insurance.assurance@cbc.ca Finance – Lunch & Learn