Hi Everyone,
Thank you to the almost 300 members that attended the emergency meeting. The meeting was intense and many members are hurting. The following notes represent the discussion. We continue to pursue legislative and alternative insurance remedies. In the meantime there are lots of great suggestions in the notes. Please be politically active. Visit your MPP and tell your story.
Landscape Ontario emergency meeting on snow sector liability insurance crisis
Jan. 9, 2020
Toronto Congress Centre
Convened and chaired by Executive Director Tony DiGiovanni
Meeting was suggested by Baldo Gucciardi of International Landscaping, with five objectives:
- Brainstorm
- Allow contractors to tell their stories
- Hear from insurance professionals
- Raise awareness about LO initiatives
- Encourage political action
Nearly 300 contractors participated. A panel of five contractors, all LO Snow and Ice Management Sector Group members, led off with their comments on weathering the crisis.
Jon Agg of Pristine Property Maintenance, after losing coverage, formed a self-insurance retention group with other contractors. The group retains its own adjuster and lawyer, and fights every claim.
Brian Perras of B.P. Landscaping and Snow Removal, advised contractors to know clients, watch for red flags, keep great records, and keep checking the insurance market. He also recommended using LO’s suggested charge-out rates. LO’s Standard Form Contract will help secure insurance, but only 25% use it.
Jamie Perras of the same company said contractors are guilty of not understanding contracts. Undercutting is still a problem, and prevents creating a safe environment. Documentation is huge, and technology solutions are on display at Congress.
Jim Monk of Markham Property Services advises contractors to take a holistic approach to risk management, and learn our weaknesses. Contracts must be defendable, and scope of work is key. He says it is possible to negotiate contracts into a fair middle ground.
Dan Schissler of International Landscaping says to watch for slip reports, even if no claim results. Property managers are providing insurance companies with the information, which is affecting rates. Negotiation can result in better rates. Local weather stations are one new tool available to contractors.
Participants were then invited to make comments from the floor.
Ryan Kucharew of Valley Green Grounds Care thanked LO for fighting for the sector, and reported receiving a 60-day cancellation notice. Discussion ensued on the timeframe; David Amadori of Marsh Insurance advised 60 days is standard, but best practice should be 90 days. DiGiovanni said perhaps LO can help with government relations in this area.
James Walke of Total Gardening Services mentioned problems with insurance companies specifying you may only earn a set percentage of your revenue in snow. He asked, why can undercutters pay less for insurance?
An unidentified participant complained about insurance companies settling claims automatically. He advocated taking bogus claims all the way to court.
Carmine Filice of Greentario Landscaping advised contractors to start saying ‘no,’ and to write on contracts. "We are an emergency service, so charge accordingly." He also recommended researching insurance companies for their histories of fighting claims.
Discussion turned from long-term strategies to short-term options, such as driving trucks to form a blockade at Queen’s Park. DiGiovanni asked for a show of hands from participants willing to protest this way, and response was nearly 100%.
Heidi Novak of Novak Landscaping advised to make sure your coverage matches your company’s activities. Also to avoid sending out warning letters, since this could be interpreted by courts as taking responsibility.
John Veldman of Courtland Professional Property Management received a 200% rate increase notice. He wondered if the association could start its own underwriting.
What is LO doing?
DiGiovanni detailed association activities on the crisis:
- MPP Norm Miller’s private member’s Bill 118 aims to reduce the Statute of Limitations claims period from two years to 10 days. This period matches current standards for municipalities. He stressed this is critically important, and LO members should contact their MPPs in support. Communicate any way you can, but a personal visit or call is best.
- Please see sample letter at this link: https://horttrades.com/
important-message-to-snow-and- ice-contractors-please-take- action - LO has hired a government relations consultant. The strategy is to seek legislation that would Accredit professional snow contractors and limit liability for accredited contractors. A similar program is working well in New Hampshire. Smart About Salt accreditation could be the delivery mechanism.
- In partnership with Marsh Insurance, best practices and risk management guidelines are free and available at https://horttrades.com/snow-and-ice-operations-risk-management-guidelines-released.
Insurance models
LO has asked Marsh to do a feasibility study on self-insurance, and insurance professionals were invited to speak.
Mark Jackson of The Insurance Market acknowledged the seriousness of the issue and suggested a self-insured, retention-based program as a solution. Industry would manage its own claims, using insurance companies for catastrophic coverage only. He also said the industry must fight back against personal injury lawyers.
David Amadori of Marsh explained the traditional insurance industry is cyclical. We are currently in a "hard" market, which affects other industries as well. Enactment of Bill 118 would help, since 35% of claims are filed 90 days after the incident. In response to the crisis, Marsh is turning to specialized legal representation to fight slip-and-fall claims more effectively. His company spends as much on lawyers fighting claims, as is does on paying claims. He reports closing 71% of slip-and-fall claims at zero liability.
Patrick Ferguson of Marsh spoke on the captive insurance model, which is another form of self-insurance. In this case, the group actually creates an insurance company which can issue certificates of coverage. He answered a question from the floor about including vehicles, that the group could decide on products and limits. It could also decide if it wants to adjust rates based on factors such as experience.
DiGiovanni summarized the following multifaceted solution:
- It starts with the contractor enhancing their risk management processes. This includes using contracts that clearly delineate the scope of work. Landscape Ontario makes available a standard form contract that is fair to all parties. Please see this link: https://horttrades.com/snow-contracts
- All operations must be documented including weather. Currently technology exists to track all operations including the use of cameras, local weather stations, truck sensors, salt application sensors etc. The industry is encouraged to use technology as much as possible
- Landscape Ontario has developed a Risk Management manual that assists contractors. This document is available at this link: https://horttrades.com/snow-and-ice-operations-risk-management-guidelines-released
- We urge members to support Bill 118 by writing and visiting their MPPs. Please see the following link: https://horttrades.com/important-message-to-snow-and-ice-contractors-please-take-action
- We are currently asking the government to support legislation that would Accredit Professional Snow Contractors and limit liability for contractors who are accredited. This is the New Hampshire model. We will need member support on this activity.
- We are exploring various self-insurance models.
Ultimately DiGiovanni believes that some form of self-insurance is the best solution for the long term.
