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Stay alert, slow down and stay in control — the three key elements to safe winter driving. Drive according to current road and weather conditions. Keep a safe distance between you and the vehicle in front of you. Avoid situations where you may have to brake suddenly on a slippery surface.

Be Prepared — Driver's Checklist

Get your vehicle winter-ready with a maintenance check-up. Don’t wait for winter to set in to have your battery, belts and hoses, radiator, oil, lights, brakes, exhaust system, heater/defroster, wipers and ignition system checked.

The condition of your vehicle’s tires is important. Worn and damaged tires pose a serious problem to driving safety. Have them checked or replaced before winter begins. Also, remember to check tire air pressure frequently as it decreases in colder weather.

While regular or "all-season" tires, including wide and high-performance tires, may be adequate in some areas, they may not be suitable for driving in the snowbelt regions of southern Ontario and throughout the north. If you live and drive in these areas, consider using winter tires. They improve driving safety by providing better traction and handling through snow, slush and on ice. Installing four winter tires provides even greater control and stability. Never mix tires of different tread, size and construction.

Check weather and travel conditions before heading out. Don’t take chances if the weather is bad. Give yourself extra time for travel, or wait until conditions improve. Call the Ministry of Transportation’s information number on road conditions, listed in your local phone directory, or see the online Winter Road Condition Reports.

If you are traveling a long distance, plan your route ahead of time. Let someone know of your destination and expected time of arrival.

Wear comfortable clothing that doesn’t restrict your movement while at the wheel. Keep warm clothing for getting out of your vehicle.

Clear snow and ice from all windows, lights, mirrors and the roof. After starting your vehicle, wait for the interior of the windows to clear of fog so you will have good visibility all around.

Make sure your vehicle is mechanically ready for the rigours of winter and keep your gas tank sufficiently full — at least a half of a tank is recommended.

Make sure you have sufficient windshield washer fluid in the reservoir and that it is rated in the -40°C temperature range. Keep an extra jug in the vehicle.

If you are in an area with cell phone service and have a cell phone, use it only when necessary. When you need help, pull well off the road to make or receive a call. Remember, dialing *OPP will connect you to the nearest Ontario Provincial Police communications centre.

PLAY IT SAFE!

Severe winter driving conditions may make you nervous, uncomfortable or fearful. Unless your trip is absolutely necessary, stay off the road. Proper preparation and the right skills will help you face the challenge of winter driving.

On The Road

Visibility

It’s critical for drivers to see and be seen in low light conditions, and when blowing snow and white-outs impair your visibility. Turn on your vehicle’s full lighting system in poor visibility.

Spacing

It takes longer to stop on a slippery road. It’s important to leave plenty of space between you and the vehicle ahead. A guide to safe spacing under normal driving conditions is the two-second rule. In winter, and especially during poor weather conditions, double the two-second rule.

Two second rule:

1. Pick a marker on the road ahead, such as a road sign or telephone pole.
2. When the rear of the vehicle ahead passes the marker, count "one thousand and one, one thousand and two."
3. When the front of your vehicle reaches the marker, stop counting. If you reach the marker before you count "one thousand and two," you are following too closely.

Braking

Make sure you know how to use your braking system in all weather and road conditions. Consider taking an advanced driving course that teaches emergency driving skills.

Skidding

In a skid, it’s important to regain control of your vehicle, especially if it skids sideways. To do this, decelerate by taking your foot off the brake, step on the clutch or shift to neutral, then look where you want your vehicle to go and steer in that direction.

Snowy Roads

Snow on a road may be hard-packed and slippery as ice. It can also be rutted, and full of hard tracks and gullies. Or, it can be smooth and soft. Wet snow can make for slushy roads. Heavy slush can build up in the wheel wells of your vehicle, and can affect your ability to steer. Remember, look far ahead as you drive, so you can recognize hazards and other situations for which you will have plenty of time to respond. Adjust your driving to the road and weather conditions. Slow down and avoid sudden turns of the steering wheel, and sudden braking and accelerating that could cause a skid.

Ice

Be careful when approaching shaded areas, bridges and overpasses, as these sections of road freeze much sooner in cold weather and stay frozen long after the sun has risen. Watch out for black ice — areas of the road that appear black and shiny, and where your vehicle can lose traction suddenly. Slow down, keep your foot off the brake and be ready to shift to neutral or step on the clutch as your vehicle crosses these areas.

TAKE TIME

To ensure you are prepared to handle winter road conditions consider an advanced driver- training course that teaches emergency driving skills.

The Unexpected

If you get stuck or stranded, don’t panic. Stay with your vehicle for safety and warmth. Wait for help to arrive. If you are in an area with cell phone service and have a cell phone, call for help. Remember, dialing *OPP will connect you to the nearest Ontario Provincial Police communications centre.

Be careful if you have to get out of your vehicle when on the shoulder of a busy road. If possible, use the door away from traffic.

If you attempt to free your vehicle from the snow, be careful. Dress warmly, shovel slowly and do not overexert yourself. Do not attempt to shovel or push your vehicle if you have a medical condition. Body heat is retained when clothing is kept dry. Wet clothing, due to the weather or perspiration, can lead to a dangerous loss of body heat.

Draw attention to your vehicle. Use emergency flashers, flares or a Call Police sign. Run your motor sparingly. Be careful of exhaust fumes. For fresh air, slightly open a window away from the wind. You may have to exit your vehicle occasionally to make sure the exhaust pipe is clear of drifting snow before running the engine.

Winter Driving Survival Kit

t’s a good thing to keep a winter survival kit in your vehicle. Having essential supplies can provide some comfort and safety for you and your passengers should you become stranded. Recommended items:

• Ice scraper/snowbrush
• Shovel
• Sand or other traction aid
• Tow rope or chain
• Booster cables
• Road flares or warning lights
• Gas line antifreeze
• Flashlight and batteries
• First aid kit
• Fire extinguisher
• Small tool kit
• Extra clothing and footwear
• Blanket
• Non-perishable energy foods – e.g., chocolate or granola bars, juice, instant coffee, tea, soup, bottled water
• Candle and a small tin can
• Matches

In blizzard conditions, especially overnight, make sure one person stays awake as help could take some time to arrive. Maintain circulation by moving your feet, hands and arms.

DID YOU KNOW . . .

Alcohol is not a good survival item and should never be part of your survival kit. And remember: Never drink and drive!

http://www.mto.gov.on.ca

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If you purchase a home over 30 years old, and contact your insurance broker for a quotation for homeowner’s insurance coverage, you will find that he/she will ask you to provide details about the home’s plumbing, wiring, heating, and roof.

Electrical Service

If you are advised that the home has 60-amp electrical service and/or knob and tube wiring, you may find it is difficult for your insurance broker to source economical premium quotes.

In the case of 60-amp electrical service, insurers are concerned that the service may not be adequate to meet the strain imposed by today’s electrical appliances - washing machines, dryers, stereo systems, computers, air conditioners, etc. Canadian Electrical Code permits 60-amp electrical service in new construction where the floor area, excluding basement, is less than 80m squared (861.20 ft squared). But since most exceed that figure, 60-amp electrical service poses the threat of over-use, over-heating, and a possible fire. As an affordable alternative to upgrading the electrical service to 100-amps, the option exists of installing a switching device, which allows only one major appliance to operate at a time. In that event, the risks of over-use and over-heating is reduced.

Unfortunately, obtaining insurance coverage for a home with knob and tube wiring poses a much greater challenge. This type of wiring is typical of homes built prior to 1940, and is comprised of wiring strung through a system of two-piece porcelain knob-shaped clamps and hollow tubes. Modern electrical codes don’t permit this of wiring since the wires are now aged and susceptible to wearing and exposure. Ontario Hydro inspections usually require that all exposed knob and tube wiring is replaced with approved permanent wiring material. If you are purchasing a re-sale home, it might be wise to incorporate an inspection into the purchase agreement as a condition of sale. The result may be a much lower insurance cost.

Oil Tanks

Another key factor in maintaining insurability at a reasonable cost is the type and age of the heating system within the home. Oil tanks are becoming increasing unpopular due to the environmental hazards they pose. A pinhole leak can spill 750 litres of oil in eight hours and have cleanup costs ranging from $5,000 to $150,000. Depending on the extent of damage, a home's entire foundation may need to be replaced.

If the home you wish to buy has an oil tank, consider the following things:

1. Where is the tank kept? Most insurers will only offer coverage if the tank is located within the house. Tanks located outside or underground are not typically accepted.
2. Is it accessible? Tanks encased in walls or vaults are very difficult to service or replace. If you cannot see the entire tank, you are not as easily able to monitor its condition, thus rust and deterioration may go unnoticed.
3. How old is the tank? Tanks 20 years or older are considered an increased hazard for leakage. A new tank costs anywhere from $700 to $1,500 to replace.

Woodstoves

Woodstoves are also considered undesirable by most insurance companies as they increase the hazard for fire. However, unlike old oil tanks, homes with woodstoves are insurable as long as they are installed to code and proper clearances are observed. If the woodstove is acceptable to the insurance company, an auxiliary heating surcharge (usually about $50) is added to your premium. If the woodstove is not installed properly, or has inadequate clearances, you will be required to have the unit brought up to code, which could prove to be a costly exercise, or to have the unit removed before insurance coverage will be offered.

Roof

A home’s roof is one of the most important things a potential homeowner should consider. Damaged or worn shingles give way to endless opportunities for damage and deterioration of the home. A leaking roof can cause rotten walls and ceilings, mould, spores, and poor circulation within the house. Leaking or damaged shingles also prevent heat retention in the winter and allow for excess humidity in the summer. Signs of roof leakage can include:

• Yellowish markings or rings on ceiling tiles,
• Bubbled or cracked walls and/or stucco ceiling coverings, and
• Mildew or "stale" odour.

Although the average shingled roof has a life of approximately 20-25 years, weather and environment may warrant replacement prior to this. Insurance is not designed to cover wear and deterioration of maintainable items such as roof shingles. As a result, the costly damage caused by a leaking roof is not covered by insurance.

Plumbing

One of the most forgettable things a potential homebuyer should worry about is the plumbing within the home. Even though you do not see a whole lot of the plumbing throughout your house, it is no less important than the roof or furnace. Depending on the age of your home there could be a number of concerns that exist with the plumbing system:

1. Galvanized Steel Piping – this was used into the mid 1960’s and is characterized by the 1" diameter pipes which utilize threaded connections. Problems include corrosion and mineral deposit build-ups in the connections which could lead to ruptures or leaking.
2. Lead Piping – this was used up until the 1950’s. Most common issues are health related.
3. Cast Iron – this was used until the 1950’s as a drain or waste pipe, and was not designed to hold water. Pipes are susceptible to corrosion on the inside, which causes the escape of gases and odours, and leaks.

The recommended type of plumbing within the home is copper and plastic (A.B.S./P.V.C.). Copper has been used in most houses built since the 1960’s. Pipe diameters vary from ½ " to ¾ " and have soldered joints. P.V.C. are used in some more modern applications. Joints can be threaded or glued.

Purchasing a home is one of the biggest investments a person can make. Protecting that investment is one of the biggest responsibilities a person will have. Regular inspections of heating, electrical and plumbing systems are always recommended, no matter how new they are. Preventative maintenance will save homeowners thousands of dollars in the long run by eliminating potential problems before they cause costly damage or injury. If you are considering a home that has one or more of these conditions present, make sure the asking price of the house is reasonable considering the upgrades that will need to take place prior to, or immediately upon applying for insurance coverage. If you decide to proceed with the house, notify your insurance broker immediately so that he or she may advise and counsel you on what you will need to do and in what time frame you will be given.

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Driving a vehicle is a privilege, not a right. When we operate a vehicle, we have the responsibility and obligation of maintaining complete and total control of the vehicle at all times. We are also expected to operate the vehicle in a safe manner and adhere to all rules of the road.

Unfortunately, there are times when people ignore the rules, become distracted or make decisions that do not turn out the way they had hoped. These things are essentially what causes all accidents. Accidents are called "accidents" because though we may not always be driving exactly as we should be, people generally do not drive with malice, or the attempt to cause injury or damage.

That said, determining fault does not mean determining intent. A collision will always have at least 1 person who is at fault, but will seldom have someone who had intent. It is this separation of intent and fault is where most of the confusion and upset is generated.

When a driver is told they are at fault for an accident, they sometimes feel that they are being told that they intentionally did something wrong, or somehow chose for the accident to occur. This, however, could not be further from the truth. In fact, most accidents happen because, as mentioned, people become distracted or influenced by external factors or make split second decision that turns out to have unpleasant results.

Failing to maintain complete control of your vehicle is the most common reason collisions occur. Take for example a driver on an icy road. If you fail to maintain control of your vehicle on the ice, you are responsible for the consequences, including any collisions that result. If you swerve to avoid an animal or an out of control vehicle, and as a result lose control of your vehicle, you become responsible for the damage you cause. Because driving is a choice we make, we assume the responsibility to maintain full control of our vehicle each and every time we drive. If external factors exist that causes us to question our ability to have that full control of our vehicle at all times, then our choice becomes to either accept that risk and the consequences of our actions, or to choose not to accept the risk and thus not drive.

Distractions account for another good portion of accidents. Many things can startle and distract a driver from giving their full attention to driving. Spiders on the rear view mirror, children in the back seat, the sun in your eyes, the end of your CD, your cell phone … these are all things that can deter our attention from the road long enough for us to get into an accident. While we cannot turn off the sun, or the world around us, we can usually take preventative measures to reduce the effects these things have on our ability to focus on the road. Turning off the cell phone, pulling over before tending to children and wearing good sun glasses are all simple things that all of us can do to help cut down on distractions.

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Christopher Jackson, Financial Times

You and your partner have owned a successful business for several years. One evening your partner complains of chest pains and a few days later he dies of a heart attack.

What happens to you and your business? Without a current buy-sell agreement and adequate life insurance, you may not have a business at all.

Without such plans, your late partner's shares pass to his estate which distributes them to his relatives, spouse and favorite charities. Suddenly you find you are in business with someone you don't know - and who doesn't know you. The new owner may be able to sell his shares to someone else, at the best price he can get, and may well do so without concern for your interests. Key employees, suppliers, customers and creditors can become nervous. Unsecured creditors may press for faster payment. Any banker concerned about his retirement will think twice before renewing credit lines. Without warning people who unquestioning loyalty you had commanded are pressing you on all sides with their concerns and your business starts to seem much less secure. Worse still, you have lost perhaps the only other person who understood the business as thoroughly as you do and on whose business experience and personal qualities you relied completely.

All this doesn't have to happen if you plan correctly. If you partner dies, it is usually best for all concerned if his business interest passes to you, not to a family member who may not want to own it or know ho to handle it.

To make sure of this, you should have a buy-sell agreement, a document that requires each partner to sell his interest to the other partner, and requires the other to buy it. The agreement will also set out the worth of your business and tell how to evaluate it exactly if a part is to be sold. Thus the business can survive the death of a key person and keep the same management, while your partner's family will get the full value for his share of the business.

Valuing the business is a key feature in this buy-sell agreement. If it's a fairly new company, value should perhaps be based on an agreed floor value, though market value should also be taken into account because it affects capital gains liabilities. Businesses are commonly valued on their earnings history. Don't base the value on a single year's earning, though. If you have a bad year, it could mean less money for the estate. Financing a buy-sell agreement is critical.

If you partner dies, where do you find the money to quickly buy out his interest? Unless a business has large cash reserves you'd have to either finance the purchase out of future profits, or borrows the funds. Such solutions have severe disadvantages. If the business encounters difficulties, it may be unable to meet its obligations no matter what the agreements says. Such arrangements weaken the balance sheet and reduce cash flow.

Borrowing may be a problem if a lender is reluctant to commit after the death of a key person. Life insurance may be the best method to guarantee the necessary funds without increasing your obligations or affection cash flow. Your circumstances will determine the insurance arrangements but the idea is to have enough to buy out the stock of a deceased partner.

You and your partner can both have insurance on each other's lives so that if one dies, the other can use the proceeds to buy the partner's interest from his estate and vice versa. If you business is incorporated, you have even more scope. Individual shareholders may insure each other, just like partners. The disadvantage here is that each shareholder must pay life insurance premiums personally.

A better method is to have the company own and pay for the insurance. When a shareholder dies, the insurance proceeds are paid to the company, which in turn pays them to other shareholders so they can purchase the dead shareholder's shares from his estate.

Another solution is for the company to purchase the shares directly from the deceased shareholder's estate, thus increasing the proportionate holdings of the surviving shareholders. Consider having power of attorney for each principal business owner as well. If you partner is incapacitated for a length of time, such a precaution might prevent delays in making crucial business decisions.

Conditions change rapidly in business, so review all such agreements and insurance arrangements annually to ensure they meet your needs and have not been affected by changes in legislation.

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Have you ever had a disgruntled employee? Have you, or a staff member, ever sat on a board of directors for a non-profit charitable group, professional association or networking group? Have you ever faced a competitor, client or employee who felt you had misrepresented yourself or your firm? If you have answered yes to any of these, than you have been exposed to financial loss.

Designed to help protect both the assets of the company and the personal assets of the individual, Directors' & Officers' insurance covers those liabilities that may result from an individual or group performing their task(s) as directors or officers.

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Having a commercial policy doesn’t mean you are covered.

Many ask, "What’s the difference, and why does it matter to me?" There is a significant difference between a Claims Made commercial insurance policy and an Occurrence based commercial insurance policy that is worthwhile understanding. It could affect you in the event of a claim and mean the difference between being covered and not.

Here’s the major difference:

Claims Made

This form of insurance is based on the premise that the policy in force at the time of a claim being made will respond even though the event that gave rise to the claim may have pre-dated the existence of the policy.

Example: A flooring material within a design project completed two years ago was inappropriate for its intended use, giving rise to an injury. When you created the design, you were with a different insurer and have since changed to a new insurer who offers a claims-made form…your present insurer addresses the claim.

Occurrence

In this form of insurance, a claim can be made against a previous insurance policy which may, in fact have expired, but was in force at the time the bodily injury or property damage occurred, giving rise to said claim.

Example: Given the same incident as in the example above, if you had changed from one insurer to another and both used occurrence forms of liability, the policy in place at the time of the injury would respond.

When you are changing from one policy to another and it is the same type of form (i.e. occurrence form to occurrence form or claims-made form to claims-made form), it is relatively straight forward as illustrated above. Likewise, if you go from an occurrence form to a claims-made form, there should be no problem with coverage. In fact, there are two insurance companies who are theoretically responsible for addressing the claim: the present claims-made policy and the occurrence policy in force when the incident occurred.

Coverage Gap

Risk arises when one changes from a claims-made to an occurrence based policy, because when the claims-made policy is cancelled, so is all coverage it may afford. Your new occurrence policy will not respond to any incident or claim, which pre-dates the inception of the policy. Using the example of the improper flooring material noted above you will not have coverage. If you completed the design project two years ago and a claim is made against you for an injury that occurred, your occurrence based liability policy will not respond because it was not in place at the time of the incident. Likewise, the claims-made policy, which is now cancelled, will not respond because the claim did not occur while the policy was in effect. Thus, you have a gap in coverage and risk paying out of pocket for any damages and defense costs.

Tail Coverage

One can avoid the aforementioned gap in coverage by ensuring a retroactive date or extended reporting period often referred to as ‘tail coverage’, for the duration of time that a claims-made insurance policy was in force. There are various forms of tail coverage, which can be acquired for varying periods, and should be discussed with your insurance broker.

Why Not Just Have One Form?

There are pros and cons to both and they are often used in different applications. Most often we see claims-made forms when dealing with professional errors and omissions insurance. This is because professions are regularly advancing and developing and as such, insurance coverage must also. Professional standards were different 10 years ago and so were insurance policies, often with lower, inadequate limits of insurance by today’s standards, and a lack of coverage for current issues, which may be prevalent. It is not unheard of for a claim to be made years after a consultation or design project, and by having your current policy respond (claims-made form), you are ensured that adequate insurance limits are being applied and that the coverage is reflective of industry advancements.

Commercial general liability policies are frequently occurrence forms. There have been situations where courts have found that injuries (generally bodily injury or property damage) may have occurred successively over a longer period of time. In this respect, there could be an accumulation of policy limits from each occurrence policy over the duration of the injury. For example a product that is manufactured over a period of 15 years and found to be a health risk due to a number of injuries, could result in a law suit involving several plaintiffs who suffered said injuries at different points over the span of 15 years. If there were three different insurers providing occurrence coverage to the defendant over the period, the insurers benefit from sharing the loss between them and the defendant benefits from having three separate limits to address the multiple injuries and legal costs.

As you see, there is a significant difference and one worth understanding, at very least to the extent to be able to ask your broker the appropriate questions. If you are uncertain of your policy wording, you are well advised to inquire prior to a claim arising. 

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As many of our clients are design professionals, the commercial coverage normally required is a professional office policy. The primary coverages afforded by this policy are a) office contents (furniture, computer equipment, etc). b) commercial general liability and c) business interruption insurance.

Many of the questions posed on applications pertain to CGL coverages. Accordingly insurers will pose questions that will allow them to gain relevant details of the insurer's exposures. It is also standard practice for insurers to inquire if a firm is involved with international work, particularly if staff are travelling outside of Canada where they may sustain injuries which are not covered by workers compensation and accordingly the commercial general liability insurer may be forced to respond.

You may find the following information helpful in understanding why some of the questions are posed;

1. Errors and Omissions Insurer - any insurer offering commercial general liability insurance to a business that has a potential for a professional liability claim will normally ask for confirmation of errors and omissions insurance. This is because the commercial general liability insurer does not want to be drawn into court for a profesional liability related claim where the insured business does not carry coverage. Although commercial general liability policies exclude professional liability claims, the defense costs alone can be quite expensive.
2. Gross receipts - business receipts are asked for most business operations as a standard commercial question. Insurers use income as a way to calculate liability premiums as well as loss of income coverage . Since the latter provides reimbursement for income loss as a result of a fire, water damage, or other insured peril, the insurer will need verification of income in order to determine the appropriate premium. Likewise, payroll figures are often requested due to the fact that the general liability insurance is priced based on payroll figures. Insurers use payroll as an indication of liability exposure taking into account that employees are covered by the policy contract as additional named insureds.
3. Subcontracting Work - is required because your insurer may be forced to respond to a loss arising from the work performed by subcontracts that you have hired. If your subcontractors do not carry their own insurance, there is a greater risk of your insurer paying liability claims arising from your subcontractors work.
4. Details of coverage required - this information allows your broker to review your coverage limits in order to ensure that they are appropriate.

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