Duane Hicks
The subject of liability insurance in the town’s draft business licence bylaw is among one of the items businesses have been seeking clarification on prior to an open house today from 4-6 p.m. at the Civic Centre.
The draft bylaw states a business licence applicant shall maintain liability insurance acceptable to the Issuer of Licenses (i.e., the town) throughout the term of their licence.
The liability insurance shall consist of a comprehensive policy of public liability and property damage insurance in an amount of not less than $2 million per occurrence, unless otherwise specified elsewhere in the bylaw.
The liability insurance shall name the Town of Fort Frances as “an additional insured” (this is corrected from the wording “a co-insured” currently in the draft bylaw), with a cross liability endorsement and severability of interests provision.
But town clerk Lisa Slomke said this won’t necessarily affect all businesses.
“Depending on the business type you have or the services you provide, the new bylaw permits the town the ability to ask to be ‘additional insured’ on somebody’s insurance if we perceive there is a risk to the town and/or to the residents of the town,” she explained.
“Really, there’s no change to how we’re handling the liability insurance,” Slomke stressed.
“The current bylaw permits us to ask for it and so the new [draft] bylaw also permits us to ask for it—just the wording is going to be much better,” she noted.
Slomke clarified the current bylaw doesn’t mention the $2 million per occurrence amount, but that amount has been specified in the draft bylaw because it’s the province-wide standard.
Most businesses have $5 million or higher.
“Additional insured” is defined as “a person or organization that enjoys the benefits of being insured under an insurance policy, in addition to whoever originally purchased the insurance policy.”
“In basic terms, if you have a business on Scott Street and someone comes in and they fall inside your premises, if we’re named as ‘additional insured,’ it means that if they name us as partly responsible, I believe then it falls under that business owners’ insurance.
“It doesn’t come to the town insurance at that point.”
Slomke said being named “additional insured” is meant “to alleviate future, unnecessary insurance claims.”
“It’s in our best interest—and we do things in the best interests of the residents—to be asked to be named as ‘additional insured,’” she remarked.
“An example of that would be a circus coming to town,” she noted. “They’re setting up on our property—we’re going to ask for ‘additional insured.’
“It’s the smart thing to do.
“Basically what we’ve done with the new one [bylaw] is try to keep ourselves open so that we can ask for it from anybody, but we’re not going to ask absolutely everybody for it,” Slomke reiterated.
“We want to have the ability to ask for it, and that’s what the wording in the new bylaw is supposed to provide for us.”
Under “Item 3: Operating Criteria for All Businesses” in the draft bylaw, the documents lists the licence categories (automobile service, beauty salon, bowling alley, etc.), as well as any required approvals, inspections, or documentation the town needs, before approving a business licence application.
For nearly every licence category, it lists liability insurance as a requirement. However, that doesn’t mean the town necessarily will require that category of business to get the insurance, Slomke said.
“We’re listing it because we want to have the ability to ask for it,” she noted. “If we don’t foresee any concern or issue with your business, then we’re not going to.
“But we want to have the ability to.”
Slomke said a good example is a home-based business.
“If you’re a home-based business, it doesn’t apply to you because your business is covered under your home insurance,” she explained.
“But if you decide you’re setting up shop on Scott Street, you should have insurance,” she added.
“You’ve got the public going into your building to purchase or obtain a service. What if they get hurt?”
Another question some businesses have had is the WSIB requirement mentioned in the Operating Criteria listing.
Slomke noted WSIB is a provincial matter, not a municipal one, but if you need WSIB to run your business, the town could ask for a copy of it from you.
However, this doesn’t mean a business that does not now need WSIB, such as one run solely by its owner with no employees, will need it down the road.
In other words, businesses currently licensed with the town already have met the WSIB requirements, or weren’t required to meet that requirement based on staff numbers.
Nothing is changing.
You can find the draft bylaw online at www.fort-frances.com
