CCFMS Insurance Program Information

Published by Central Canadian Federation of Mineralogical Societies 
Original produced May 2001; Updated for web June2013

 

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5. ADDITIONAL COVERAGES AVAILABLE

THIRD PARTY INSUREDS

This covers risk to a third party; i.e., a non-member, at a specified event ,at a specified time and place.

This insurance may be required by the owner of a property such as an exhibition hall or a collecting site.

Your original policy protects your club or society and its members. If they are responsible for damage to the property the owner could claim against the original policy. Additional third party coverage protects the owner for suits against him during the specified event.

If an additional third party is to be named as an Insured for a specified field trip, show or other event, then the 3rd Party Insurance Form should be completed and e-mailed to executiveofccfms@gmail.com at least 30 days before the event.

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6. PERSONAL COVERAGES TO BE PROVIDED BY INDIVIDUAL

PERSONAL LIABILITY INSURANCE

Although the Federation policy covers the federation members for liability actions when acting with or on behalf of the club or society in federation related activities, it does not replace the requirement for personal liability insurance where a person, acting on their own behalf, injures another person or damages their property. This type of insurance is normally carried as an addition to a homeowners or tenants insurance policy.

PERSONAL PROPERTY INSURANCE

Most members will have a personal property insurance policy covering their home, furniture and valuable personal effects. Often they don’t realize how valuable their mineral or craft collection, nurtured over several years, has become. Members should consider having their collection properly catalogued and added to their personal property insurance policy. Your own insurance agent can assist you in this, and if you regularly enter exhibits or displays, consider a floater that also covers your materials on display.

Another area requiring attention occurs when your hobby grows toward being a business. Check with your agent to verify that your activities or that propane torch in your basement is not voiding your household policy.

PERSONAL ACCIDENT AND SICKNESS AND SALARY CONTINUANCE INSURANCE

Provincial medical and hospital insurance has greatly improved coverage in this area in the last decade, but members may also look at the desirability of two areas of additional coverage:

  1. Income continuance in the event of prolonged illness or incapacity caused by an accident.
  2. Medical and hospital coverage for trips outside Canada. There have been some real horror stories of medical costs in some states and countries.

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7. INCORPORATION VERSUS INSURANCE

From the questions received, it appears that there is a lot of confusion between the need for incorporating or the need for insurance for the individual club. Actually, each is independent of the other, and having one does not give you the benefits of the other.

An unincorporated club is very similar to a partnership in that assets owned by the club are actually owned by the individual members at any one time. By the same token, any debts or obligations taken on by the club are actually debts or obligations that each individual member is responsible for.

An incorporated club, on the other hand, can own assets in its own right and can also incur debts and obligations without passing their liability on to the individual members.

We strongly feel that each club owes it to both their members and their executive to become incorporated bodies. Having been incorporated, the need for insurance to protect the club, its executive and its members from claims for personal injury or property damage caused by the supposed negligence of one or more members of the club remains the same. Even if no negligence is involved, the cost of legal counsel required to prove your case justifies the small individual cost involved in having proper insurance.

Thus, the need for incorporation and proper liability insurance are both requirements that any responsible organization should undertake.

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8. FIELD TRIP LEADERS AND INSURANCE

The CCFMS encourages all member clubs to have, on all sponsored field trips, a field trip leader who has had proper training and who has the authority to remove a member from the trip for unsatisfactory conduct.

The field trip leader should be familiar with the Federation Insurance Policy, especially the geographical areas of coverage and the actual types of coverage such as the General Comprehensive Liability and the Non-Owned Auto coverage as outlined in this booklet.

Third Party Insured Coverage, which will add the owner or operator of a mine site to our policy for the period of the trip, is a very valuable assist in opening many previously closed locations and its use should be investigated by every field trip leader.

It is incumbent upon field trip leaders to not only know where good specimens can be collected, but also the procedures necessary to collect them safely. In this respect, a liability waiver that is normally required to be signed by all participants on a field trip is still a desirable instrument in that it reminds the participants that many field collecting sites are potentially dangerous and do require additional precautions and awareness.

REMEMBER, BEING COVERED BY INSURANCE DOES NOT MEAN WE CAN BE CARELESS ABOUT ACCIDENTS. IT IS EVERYONE’S RESPONSIBILITY TO SEE THAT ALL CLUB ACTIVITIES ARE DONE IN A SAFE MANNER. IF WE ALLOW UNSAFE PRACTICES AND UNNECESSARY CLAIMS, WE WILL FIND THAT OUR INSURANCE FOR SUBSEQUENT YEARS WILL EITHER INCREASE SIGNIFICANTLY OR BE UNOBTAINABLE. WE MUST CONTINUE TO EDUCATE MEMBERS IN SAFE CRAFTSMANSHIP AND COLLECTING PROCEDURES AND INSIST THAT ALL MEMBERS FOLLOW THESE PROCEDURES.

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9. HEALTH, SAFETY AND INSURANCE

Some clubs have a safety officer as a member of the club executive, but in most clubs the concerns for safety are spread between many members of the executive; e.g., field trip chairman, education chairman, program chairman, etc. Actually, the responsibility rests with every member of the federation. We should attempt to become aware and to make all members aware, of any risks or dangers associated with our hobby. The best insurance coverage against health hazards and accidents is a well-informed membership.

The following are a few key health and safety concerns:

Make sure that all of your regular insurance coverage is up to date and valid for the activities you are currently engaged in. For instance, you might be storing flammable liquids in your basement beyond the limits allowed by your policy, or perhaps that new oxy-acetylene outfit voids your coverage. A frank discussion with your insurance agent should clarify the limits.

If you are aware of any medical problems, verify that proper medical facilities would be available near the destination of your trip.

Even on a trip in Canada, try to ascertain the location of the nearest medical facility in case such services are necessary.

If your hobby is starting to approach a semi-commercial operation, verify that your private passenger car and private household property coverage is still valid.

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10. CONTRACT DESIGN

One master contract will be issued for the Federation and certificates of insurance for each of the affiliated clubs; then if a club required a certificate for anyone to prove that they are covered, the club can photocopy the certificate and provide the copy for the Third Party. If a Third Party wishes to be added as additional name Insured for that particular event, the club would have to complete the application form and the agent would provide the additional necessary documents.

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11. CCFMS DUES AND PAYMENT INFORMATION

Membership for insurance purposes is understood to mean the number of members on each club’s roll on December 31st of each year. Family memberships are considered to be one member. If 42 members are paid for and several new members join during the year and some old members drop out, all members are still covered providing the membership roll does not increase by more than 10%. If the membership roll increases by more than 10% during the year, it is expected that additional dues (including insurance) will be forwarded to the federation to cover the increased membership. The federation, in turn, will forward the additional premium required to the insurance company as a year-end adjustment. Currently, as set at the 2011 AGM, dues are $4.75 for a single membership and $5.00 for a family.

IMPORTANT NOTICE

WE CANNOT ISSUE CERTIFICATES OF INSURANCE UNTIL WE RECEIVE THE FOLLOWING FROM EACH CLUB BY February 15:

1. Name of Club as Registered
2. Mailing Address of Club
3. Membership List as of December 31
4. Name of Persons on the Executive and Positions Held

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12. CCFMS INSURANCE AGENCY INFORMATION

The Co-Operators
#201-1265 Morningside Ave.
Scarborough, On.
M1B 3V9

Phone; 416-396-0707
Agent Senthooran Punitavel

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13. QUESTIONS AND ANSWERS

Q Are dealers who rent space at a club show covered by the Federations General Liability policy?

A No, dealers are not covered by the Federations policy. Clubs holding shows should request insurance certificates from dealers. Just as a member would need to provide insurance coverage if they were exhibiting at a show other than their own club show, dealers also require insurance certificates. The minimum General Liability request should be in the amount of no less than the Federations coverage of $5 million dollars.

Q If a CCFMS member club operates a workshop containing equipment owned by the member club is the club covered under the Federations General Liability coverage.

A Yes the club is covered. This was changed a few years ago. The intent of the Federation’s policy is to protect the society and club members involved in a third party liability claim which occurs in conjunction with the actions of the CCFMS events like shows or field trips or events or a workshop.

Q Are there any age restrictions on who is covered by the Federations insurance policy?

A No, there are no age restrictions but members responsible for field trips should ensure that all field trip participants meet the minimum legal age requirements for entry into active quarries and that young children under the age of 14 are accompanied by their parents or guardians and not under the care of the field trip leader.

Q Our club is considering using a public or high school library as a meeting place. The school is asking for proof of $5,000,000 coverage. Do I understand correctly from the CCFMS web site that some of the coverage includes $250,000 for Tenants Legal Liability for such things as fire?

A The CCFMS policy includes a $5,000,000 Commercial General Liability and a $500,000 Tenants Legal Liability.

Q What’s the difference between Commercial General Liability and Tenants Legal Liability?

A The short version is this. If your club occupies a public or high school library, or any other building that is rented from others, and you are at fault for doing damage to the building such as a fire, Commercial General Liability would cover you for damage to that building except for the area you are occupying. The room that you occupy would be covered under Tenant Legal Liability. Thus both coverage's are needed and included under the CCFMS policy.

 

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