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Are municipalities being lulled into a false sense of security?

Presented by Jonathan Di Pasquale
in Planning

Sponsored by Instant Risk Coverage

There are several hazards connected to managing a municipality. This includes protecting residents who take part in events within municipal borders.

Municipal governments must ensure that renters using their properties have proper coverage. If not, municipalities will find themselves liable for compensation costs. And, as a result, taxpayers will pay more as municipalities try to balance their books.

Standard insurance certificates will not show gaps or exclusions in renters’ insurance coverage. But municipalities can take preventative measures with a proactive risk management strategy.

Three Key Identifiers in a Municipal Insurance Certificate

Physical harm and property damage are just two identifiers to consider. Event insurance, sport insurance, and a waiver of subrogation must be included as well.

1. Event insurance – Being listed as an “Additional Insured” on the event organizer’s policy is not enough. It will not cover claims made by independent vendors. Do not rely on the organizer to gather certifications from the suppliers. The municipality must have the certifications on record and issue a waiver of subrogation. Ensure your municipal certificate indicates coverage for Liquor and Blanket Vendor.

2. Sports insurance – Does the coverage extend to physical injury to participants? Is there participant-to-participant coverage? This is critical for any sport with contact or where one person can injure another. These specific endorsements must be added to a general liability policy to be covered.

3. Waiver of subrogation – In the past, you could request a hold harmless and waiver of subrogation within a contract. Now, insurers are subrogating after a liability claim has been settled or awarded. The waiver of subrogation should be made in the municipalities favour. Ensure that it is clearly indicated on the certificate provided by the renter’s insurance representative.

How Can We Solve This Sense of False Security?

Municipalities need to revise procedures for accepting certificates of insurance. Certificates must properly identify coverage and exclusions. The following are a few significant changes to consider:

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Adopt a mandatory certificate form with the proper identifiers – Identify insurance providers who exclude coverage or don’t provide a waiver of subrogation. Front line staff will need training. Perform audits to ensure that they are following procedures.

Increase risk management in municipal service division – Verify all certificates have proper coverage.

Collaborate with a facility user insurance provider – Ensure that you have not only all three extensions of coverage, but also a waiver of subrogation.

Municipalities can now partner with a provider that is bringing new technology to managing municipal transfer of risk. Instant Risk Coverage’s new software allows municipalities to check certificates of insurance. The system ensures that the proper coverage and waiver are present in other insurance providers. This removes the cost of management of renter certificates from the municipalities. It also ensures proper coverage is in place.

To learn more, visit

Municipal World Insider and Executive Members: You might also be interested in Alex Ciccone and Hannah Ruby’s article: Selective by-law enforcement: Do municipalities need to enforce their by-laws?

Jonathan Di Pasquale is a Founder of Canadian Insurtech, ensuring a seamless insurance experience for event hosts and the venues hosting them.

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