By: Jim Grieve, CAIB, CRM, vice-president,
Sinclair-Cockburn Financial Group
The HortProtect Commercial Insurance Program designed for landscape trades
continues to expand the broker-servicing network to provide members with insurance advice at a local level. The servicing network now reaches from coast-to-coast (with the exception of Quebec). The latest broker appointments are Charlie Cooke Insurance Agency in PEI; Smith, Petrie, Carr & Scott Insurance Brokers in the Ottawa Region; and Stevenson & Hunt Insurance Brokers in the London, Kitchener-Waterloo Region.
The commercial insurance market continues to witness double-digit rate increases in the 25 to 50 per cent range, with most insurance companies withdrawing from writing landscape trades business due to either the pesticide liability exposure or the increase in liability claims with respect to snow removal. HortProtect continues to be a market for these type of businesses and has held rates increases to just 10 to 15 per cent over the past year. A rate increase of 15 per cent is expected in the last quarter of this year, but the majority of this increase will be witnessed by those businesses involved with snow and ice removal.
To assist snow removal contractors in controlling their insurance costs, HortProtect will introduce a standard Winter Services Contract for use by those customers involved with snow and ice removal. The contract is the outcome of much work done over the past year by Landscape Ontario’s Snow Committee (see the August issue of Horticulture Review for more detail).
It’s no secret that the landscape trade industry in Canada is witnessing an increasingly more litigious socio-legal environment, similar to that in the U.S. Ontario and Alberta, in particular, produce a high number of costly “slip and fall-type” occurrences. Sadly, snow removal contractors and their insurers are the unsuspecting recipients of many of these legal actions. No one can stop from being sued, however a contractor’s first line of defense against such actions is a solid contract that addresses the liabilities fairly and sets-out the scope of work precisely. It is hoped that with the promotion and endorsement of all the stakeholders in the landscape trade industry, the adoption of the new Winter Services Contract will gain widespread use and acceptance. This is absolutely necessary for all parties to enjoy the benefits of insurance that can be reasonably afforded and on entirely acceptable terms. The planned release date for the new Winter Services Contract is scheduled for September 3.
Another area of concern of members across the country is the dramatic increase in commercial automobile insurance rates, particularly fleet-rated policies. Insurance companies adjusted their rates upwards in response to unfavourable claims experience. Rising health care costs, fraud and increased auto repair costs are the main factors affecting escalating claims cost.
It would appear, a rate adjustment will help return profitably to the automobile insurers. Although, reacting quickly to make the necessary rate adjustments can be difficult for insurers operating in Ontario, Canada’s largest automobile insurance market. In Ontario, insurance companies must file for approval for any rate change with the provincial regulator. Delays in the implementation of needed premium income can be very costly to an insurer, especially since the recent demise of one such insurer, Markham General Insurance Company.
In the Maritimes, provincial governments are looking at alternatives to the current automobile insurance system, which might include “government-run” automobile insurance, as in BC, Saskatchewan, Manitoba and Quebec, or a form of privately-run “no-fault” automobile insurance, as in Ontario and other jurisdictions in the U.S.
Regardless of these changes in the insurance marketplace, we are pleased to report that HortProtect continues to serve the landscape trade community with a comprehensive plan that is specifically designed for the industry and offers competitive terms and pricing. The program is experiencing excellent support from the membership and for that, we thank you. As the saying goes, there is “strength in numbers” and HortProtect customers are discovering first-hand the benefits of membership with their provincial landscape trade association.
If you have any questions about HortProtect, please feel to contact your provincial association or the Program Director, Nadia Romano at 1-800-328-7887.
