Although Ontario’s ban on hand-held devices while driving became effective on October 26, 2009, there was a three-month transition period during which the government and the police focused on educating motorists about the ban rather than imposing fines. This has now ended and police started to issue tickets on February 1, 2010.

What does this mean to you?

While the use of hand-held cell phones and communications devices is banned, hands-free devices are still permitted. What does this mean to you? If you allow your employees to use hand-held devices while driving, you could be held vicariously liable in the event of an accident. This means that a Court could rule that you must pay damages resulting from your employee’s distracted driving.

The best way to protect yourself as an employer is to create and implement a clear and concise policy regarding the use of hand-held electronic devices, and to enforce it consistently across your organization. For information on the Government of Ontario’s ban on hand-held devices, you may refer to their website: www.ontario.ca. For more risk management tips, watch for our Risky Business newsletter.

In November 2009, the Ontario Court of Appeals decided that landlords cannot require tenants to complete snow removal tasks as a condition of their leases.

The situation began when a tenant commenced a legal action against a respondent landlord for damages after she slipped and fell on the premises. The tenant claims that she slipped on ice on the walkway leading to her basement apartment. But in his defence, the landlord argues that the tenant is “responsible for keeping their walkway and stairway clean (including snow removal)” based on the Condition of Lease.

Well, Ontario Court of Appeals made a decision on the case, Montgomery v. Van. The Court found that landlords cannot require tenants to complete snow removal tasks as a condition of their leases as it violates the Tenant Protection Act. The Residential Tenancies Act Regulation 517/06 seems to impose similar maintenance obligations on landlords. If landlords want them to clear their own walkways, driveways, etc., they must enter into a separate contract with the tenants for snow removal.

Feel free to leave a question or comment below regarding this court decision.

The statistics of stovetop fires are staggering and paints a grim picture.  Ontario averages more than 6,000 preventable home fires annually and the majority of these fires start in the kitchen.  68% of all home cooking fires involve stove-tops, and unattended cooking accounts for 69% of these fires.  Multi-unit residences are at the highest risk, where over 43% of all stove-top fires occur.

AM800 Radio Interview with Rusty Thompson
During the holidays I became a local celebrity in the Windsor/Sarnia area when I was interviewed on AM800 about stovetop fires and stovetop safety. Rusty Thompson of AM800 radio reached me in my hotel room as I was travelling to visit my in-laws – so I was in a festive mood! Rusty was well-prepared and introduced the subject well. He referred our work with the Electrical Safety Authority, how our goals in terms of fire safety aligned with them and also with the Ontario Fire Marshal to educate social housing tenants about safe practices, and recommended stove-top fire prevention products such as the Safe-T-Element, which has been endorsed by fire marshals across North America.

I echoed the words of Social Housing Services Corporation CEO, Lindsey Reed, who pointed out that “Something as simple as turning away from the stove to answer the phone or offer your guest a drink can distract you long enough for a fire to start. By following the basic rules of fire prevention and installing fire prevention products, everyone can go a long way to avoiding stove-top fires and protecting themselves and their loved ones.”

I provided a personal story about how I had (accidentally) put a tea towel onto the stovetop, which was still hot – we can all learn some simple rules, I told Rusty.  I ended my interview by giving some simple tips to help prevent fires including:
•    Making sure stove tops and nearby counters are kept clear and uncluttered
•    Keeping curtains, utensils, paper towels and other things that can burn away from the stove
•    Ensuring pot handles are turned inward so they can’t be bumped

If you are interested in stovetop Safe-T-Elements, they are available through the SHSC’s Appliance Bulk Buy Program.

With the 2009-2010 insurance renewal term finally completed, I thought I would talk about the things affecting insurance premiums: losses, economic environment, legislation and the size of an organization.

The first item to consider is loss history.  An organization with a high loss ratio (Ratio = Losses/Premium) is more likely to see a premium increase than one with a low loss ratio.  Generally, your premium will not increase if you incur one loss because you are purchasing insurance for that one catastrophic loss.  This is one reason having a sound risk management program is essential to any organization, not just non-profits.  A successful risk management program will result in a reduction of your overall insurance premiums.  However, insurance premiums are based on a number of other criteria, not just on one’s loss history.

This brings me to my second point, which is economic environment.  You may have heard of “soft” and “hard” markets.  Insurance companies make most of their money from their investments and public investments into their companies, so a soft market is dependent on the buoyancy of the stock market.  During a soft market, insurers are eager to write new business and so they compete to write new accounts, they offer relatively low premiums and they are inspired to identify new coverages and products to meet the needs of our sector.  By contrast, when the economic cycle is on a downturn, generally we move into a harder market.  A hard market brings higher premiums, more restrictive coverages and lower limits.  To generate revenue lost on their investments, insurers increase premiums to make up for the shortfall.  Some coverages may cease to be available or they are severely restricted, limits are reduced and exclusions are imposed.  It is not uncommon for some types of businesses to be unable to find reasonable insurance arrangements.

Legislation is another factor in considering insurance premiums.  Insurance is highly regulated in Canada, with each province and territory having its own insurance legislation.  Insurers are restricted to certain types of investments only and must adhere to strict government regulations when operating their businesses.  For example, insurers in Ontario are not allowed to invest in stock that is deemed to be too risky.  They must maintain cash reserves equal to the amount of business they write at any given time so that they are able to pay for any and all claims to which they may be exposed.  Legislation in Ontario is constantly changing as claims that are brought before the courts are decided and become precedents.  Auto insurers are legislated to provide a minimum amount of liability insurance for all vehicle owners in Ontario in addition to minimum accident benefits.  As precedents are set and reforms to existing legislation are made, insurance rates are affected both positively and negatively.

My final point is about the size of one’s organization.  Insurers consider the physical size of the organization’s structure, the number of employees, the scope of the organization’s business and the number of locations and the environment surrounding these locations. The larger the organization, the larger the spread of risk which helps reduce the rate of insurance and in turn reduces the insurance premium.  That is why group programs are effective when obtaining terms from insurance companies.  The volatility of the marketplace is one of several reasons why purchasing insurance as a group affords a certain level of protection during uncertain times.  A group such as SHSC allows us to consider alternatives to the normal insurance marketplace to meet the needs of our sector.

This is basic summary of a much more complex process. Hopefully, it will give you a basic understanding of how the insurance industry works.  Remember you can access valuable insurance and risk management information in our newsletter, Risky Business.  Check it out under Useful Forms & Newsletters in the Insurance section of our website.

• Damage to buildings under construction and the materials that go into construction are not usually covered by property insurance
• As a member of the SHSC Group Insurance program however your policy does provide coverage for physical damage to property under construction up to a limit of $500,000 on any one project to existing properties
• This saves you money because contractors can eliminate the cost of this insurance from their bids
• For coverage of projects estimated at more than $500,000 you can purchase a dedicated Builder’s Risk Insurance Policy through SHSC Group Insurance
• Wrap-Up Liability Insurance can also be purchased through SHSC to provide liability insurance for everyone involved in the project

Planning a Renovation, Retrofit or Regeneration Project? Make Sure you Have the Right Insurance Coverage

Are you planning a project as part of the Social Housing Renovation and Retrofit Program? SHSC can help with your insurance needs, which will be above and beyond the regular requirements of your day-to-day operations.

Typically, damage to buildings under construction and the materials that go into the construction are not usually covered by property insurance. However, as a member of the SHSC Group Insurance program your policy does cover physical damage up to a limit of $500,000 on any one project for changes, alterations, repairs or additions to existing properties. This is important to know as your contractors can eliminate the cost of this insurance from their bids and save you money. To make sure this cost does not get reflected in your bid, we can provide standard wording to exclude this insurance from your contract.

If you need coverage for a project with a contract price of more than $500,000, you can purchase a Builder’s Risk Insurance Policy through SHSC Group Insurance. This may be a good option to consider, as purchasing this policy through the group may be more cost-effective than getting the contractor to buy this coverage through their own broker.

You may also want to consider purchasing additional Wrap-Up Liability Coverage, which is not included in the standard policy of the SHSC Group Program. Wrap-Up Liability Coverage provides liability insurance for everyone involved in the project – building owners, consultants, contractors and all sub-contractors – for injury or damage to property of third parties. By purchasing this coverage yourself you will know the insurance limits everyone in your project carries and will be confident that all parties, including sub-contractors, are adequately insured.