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Insurance companies must look at a number of issues in order to provide their best rates and conditions of insurance for building professionals (builders, owners, designers, contractors and construction project managers).

Factors Impacting Insurance Policy Costs

• The base rate is assigned on the basis of the general industry experience or ‘loss history’ for that specific province or area of the province, as well as the specific location, type of construction, and intended use and size of the completed building.
• The greater the Insurer’s comfort level that the risk is “above average” in terms of safety, and that the Insured is experienced, knowledgeable, cooperative, safety-conscious and will take all necessary steps to prevent or minimize losses the better the rate and the coverage provided.

COR Certification (or any other formal Safety Management System) and Third Party Liability

Third Party Liability is the most common and important type of liability insurance. The primary basis of coverage pertains to: Bodily Injury and Property Damage (BI&PD). In other words the Third Party must have sustained either or both of these type damages in order to trigger the policy protection afforded to the Insured.

• Because COR Certification is a form of quality management with detailed documentation of safety and risk management performance:
  • It is much easier for the Insurance Company to defend the insured.
  • It is much harder for the prosecuting attorney to successfully sue.
  • Settlement amounts are more likely to be reduced

CASE STUDY:  A Manitoba Company with a poor safety record and claims history found themselves unable to obtain insurance. Their insurance agent through much persistence eventually found a company willing to underwrite an insurance policy, but the insurance was conditional.  The company was required to do 25 things including implementation of:

• an equipment maintenance and inspection program
• a housekeeping program
• an inspection program
• a prescribed number of retraining hours for employees each year

The owner felt that this would cost him so much money that it would put him out of business. The insurer followed up 4 times in the following 3 months to ensure that the requirements were being met.  Sometime later the owner reported to the insurance company that this was the best thing that ever happened to him:

• productivity increased 30%
• they were able to do more, quicker and better
• machines where not breaking down
• employees were happier, had less accidents, were more productive
• retention of employees increased

In our experience we find Companies who follow good Workplace Safety & Health standards and seek to become COR certified normally are surprised by the increase in bottom line profit even having considered the expense necessary to be COR certified.

Proper workplace habits reap many benefits – increased productivity, less time lost to minor and major accidents, greatly improved efficiency, happier employees, improved insurance coverage including costs to insure, deductible costs and form of coverage, better worker compensation rates and quicker job turnaround. COR Certification will reduce insurance rates by approximately 10 – 40%.

Ken Feasey-  Senior Partner, Ranger Insurance

Do you need help achieving COR Certification or developing your safety plan?
Non Compliance with Safety Requirements means risk to your profits, your important relationships and your business.
Contact 1Life for a FREE no obligation consultation today!