Effective: April 1, 2008
Responsibility: Vice President and Chief Financial Officer
AUTHORITY TO PURCHASE COMMERCIAL INSURANCE
The Corporation’s Risk Management insurance program is designed to mitigate the Corporation’s financial exposure to property loss and/or damage and third party casualty liability.
The Corporation will purchase commercial insurance to provide coverage against major unforeseeable and unavoidable losses. The Corporation will retain the services of insurance brokers for procurement of insurance coverage, as required.
When commercial insurance is unavailable, or where experience shows that insurance premiums are likely to exceed predictable losses, the Corporation will self-assume some risks. For those risks that are insured, the Corporation will use historical claim information to determine optimal deductible levels and minimise insurance policy premiums.
With a few noted exceptions, which are specifically designated in the Risk Management – Property and Casualty Insurance Procedures (e.g. insurance for vehicles in foreign countries), the Risk Management & Insurance office within Corporate Finance and Administration is the only area authorized to purchase commercial property and casualty insurance.
The Vice-President, General Counsel and Corporate Secretary, must be advised of all third party claims made against the Corporation, whether they are insured or not.
CBC employees must immediately report any loss (whether insured or not) to their designated Regional Risk Reporting Officer if:
- It involves injury to third party person or damage or loss to third party property, and/or
- Damage or loss to CBC property where it is expected to exceed $5,000.
This policy does not cover insurance related to employee benefits (e.g. life, health, disability, etc.), which fall under the responsibility of the Senior Vice-President, Human Resources.
The Vice-President and Chief Financial Officer is responsible for the administration of Corporate Risk Management’s – Property and Casualty Insurance program, and in consultation with senior management, is responsible for assessing potential risks to the Corporation and deciding where it is appropriate to purchase commercial insurance.
CBC management and staff are responsible for developing and following prudent operating policies and procedures that protect the Corporation against preventable losses.
Senior Finance and Administration officers in the networks and regions are responsible for ensuring compliance with this policy and Risk Management – Property and Casualty Insurance Program procedures and guidelines in their locations.
- This is a new policy.
PERSON RESPONSIBLE FOR INTERPRETATION AND APPLICATION
All questions pertaining to the interpretation or application of this policy should be referred to the Director, Policy and Internal Control. The responsibility for interpretation of this policy ultimately resides with the Senior Director, Strategic Initiatives and Resource Planning.
DEPARTMENT RESPONSIBLE TO UPDATE THIS WEBPAGE
Corporate Secretariat.
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