INSURANCE:

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INSURANCE
What Property Managers Should Know
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Insurance Experts

• Miriam Weerasooriya, BBA, FCIP, CRM
• Account Executive, Real Estate
• Jones DesLauriers Insurance Management Inc.
• Over 15 years experience in the insurance
  industry
• Risk Manager of large public/private real estate,
  property management,
  and development company
• Underwriting for premiere Canadian and
  International insurers
• Experience also extends to claims adjustments at
  all levels

3
Insurance Experts

• Marilyn vanGansewinkel, CIP, RPLU
  
• Manager, Corporate Risk
• Trisura Guarantee Company
• Over 11 years underwriting experience
• Responsible for broker relationships,
  underwriting product development
• Experience includes risk analysis, business
  development, portfolio management and
  training/staff development

4
Insurance Experts

• Karim Jaroudi
• Senior Underwriter, Environmental Solutions
• Chubb Insurance Company of Canada
• Over 7 years extensive training and experience in
  the field of Environmental Impairment Liability
• Worked for leading, multi-national solutions
  providers
• Also working towards an MBA in Business
  Sustainability
• (Triple Bottom Line principal) with a leading
  Canadian business school

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Agenda

• Overview of Insurance
• Property Claims- Landlord/Tenant interactions
• Liability Claims- Process Issues
• Errors Omissions Insurance
• Environmental Insurance
• Documents- Leases Certificates
• Questions/Answers

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Overview of Insurance
Property
Boiler
Liability
Environmental
Terrorism
Crime
Errors Omissions
Directors Officers
Automobile
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Overview of Insurance

• Rate X Declared value Premium

• Rate drivers
• Information
• Procedures

• Insurance to Value

• Role of Broker
• Your advisor, representative advocate

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Property Claims

• Damage to building tenant space

• Who is responsible for what?

• What do insurers do?

• What should PM do?

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Liability Claims
IMMEDIATE RESPONSE

• Co-ordinate your people

• Incident report

• Secure the area

• Take pictures

• Write everything down!

• Admit nothing but acknowledge something

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Errors Omissions
Ownership Interest Insurance Coverage

• Named on the Policy

• Minority Ownership and need for Insurance

Top Sources of Claims

• Leasing Problems

• Tax Errors

• Insurance Claims

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Errors Omissions
Improving Insurance Premiums

• Strong Contracts, clearly outlining

1. Services to be Provided
2. Obligations

• Ongoing Education

• Strong Financials

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Environmental

• Typical Pollution Insurance Drivers
• Financial institution loan requirements
• Property transfer - Legacy
• Balance sheet protection
• Lease agreements
• Contractual obligations

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Environmental

• Property Owners
• Clear chain of liability
• Concept of polluter pays antiquated and being
  phased out legislatively

• Property Managers
• Placing coverage on behalf of owner?
• Legacy exposure
• Due course of operations
• on my watch - assumed liability via contract?

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Environmental
What Are Your Concerns?

• Pollution releases from manufacturing/other
  operations
• (On-site clean-up costs)
• Underground/Aboveground storage tanks
• Business interruption
• Unknown and undiscovered pollution conditions
• Mould
• Midnight dumping
• Legacy liability exposures

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Environmental
Manufacturers Industrial Tenant Exposures

• UST/AST spills or leaks
• Releases from process equipment causing soil and
  groundwater contamination
• Waste water treatment operations
• Fire/explosion with pollution following
• Air emissions
• Historical Disposal Practices

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Environmental
Commercial Building Exposures

• AST/UST spills or leaks
• Carbon Monoxide from heating systems
• PCB contamination from old transformers,
  capacitors, light ballasts
• House cleaning and maintenance chemicals
• Mold/bacteria in heating and cooling systems
• High exposure tenants
• Dry cleaners
• Gas stations
• Mould

• Neighboring operations
• Historical exposures

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Environmental
Residential Building Exposures

• Tanks?
• Mould
• Neighboring operations
• Historical exposures

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Environmental
Results of a Pollution Incident

• Damages to third parties
• Cleanup costs for own contaminated property
• Natural resource damage claims
• Fines and penalties for violations
• Adverse public reaction

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Environmental
How much can it cost if I have a pollution
incident?

• Some Large Losses
• 315,000 Discovered lead contamination in soil
• 425,000 Contaminated soils found during
  excavation
• for foundation of building
• 1.3mm Mold remediation at class A office
  building
• 450,000 Contamination found during refinancing
  due diligence
• by Bank- Insured defaulted on original loan

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Environmental
Environmental Site Liability The Chubb Solution!

• Insurance solution for clients who have an
  interest in real property
• Designed to cover liability as a result of a
  polluting your neighbor, as well as remediation
  costs for your own site

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Environmental
Environmental Site Liability The Chubb Solution!

• Major Features
• To pay losses or damages arising from sudden and
  gradual pollution incidents or conditions that
  are on, under, or migrating from a covered
  location
• Pre-existing vs. New Conditions
• Optional coverages include Business
  Interruption, Mould, UST and Transportation
  coverage

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Environmental
Environmental Site Liability The Chubb Solution!

• New and Pre-existing Conditions
• Coverage for bodily injury, property damage, DIV
  and clean-up costs
• if operations at your site pollute your
  neighbour
• Coverage for clean-up costs for your own site
  discovery trigger

Limits / Pricing Ballpark

• 10,000 minimum premium for 1million in limits
• Large capacity available (50MM)
• Flexible deductibles/SIR

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Leases Certificates
Commercial Tenant Leases

• Business Interruption/Gross Rents

• Boiler machinery insurance should be mandatory

• Insurance Sections

Certificates of Insurance

• General Liability/Excess/Umbrella

• Named Insured/Additional Insured

• Not a policy but can change a policy

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Questions
Thank you for your participation!