Since hitting a high of US$1.1039 on November 7, 2008, the Canadian dollar has declined steadily and has slowly crept back to reality, trading in the 80-cent range compared to the U.S. dollar. As commodity prices decline and the economy struggles along in a recession, the loonie has been hit hard.

Most commercial liability and auto fleet policies are written for limits of Cdn$2 million or less, which is totally inadequate for Canadian companies operating within Canada, let alone those with U.S. exposures. Even in a full-blown hard market, the incremental cost to raise policy limits to $10 million or $20 million remains affordable.

The figures below clearly illustrate that a dollar isn't necessarily a dollar.

Canadian limit	U.S. Equivalent	Shortfall
$ 1,000,000	$ 792,400	$ 207,600
$ 2,000,000	$ 1,584,800	$ 415,200
$ 5,000,000	$ 3,962,000	$ 1,038,000
$ 10,000,000	$ 7,924,000	$ 2,076,000
$ 20,000,000	$ 15,848,000	$ 4,152,000
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Other E&O covers
We offer a full range of in-house E&O capabilities supported by first-class, licensed markets. Architects & Engineers Our program provides broad E&O cover at competitive terms. The program features: Practice policies Design and build (including first-party cover) $2-million in-house capacity (higher limits available) Worldwide cover available Cover for architectural and engineering technologists and technicians also available Supported by specialist Underwriters at Lloyd's, London Minimum premium $2,500 applies. Product Manufacturers E&O This program provides cover for the product design or advice exposure. Cover complements the standard general liability (GL) and/or product liability policy and is especially suitable where the GL is written with a design E&O exclusion. The program features: Cover for consequential financial loss where a manufacturer may be legally liable for damages to a customer or other third party, third-party recall and rectification costs, and litigation defence costs arising from a design or advice error $2-million in-house capacity Suitable for manufacturers and suppliers Supported by specialist Underwriters at Lloyd's, London Minimum premium $3,500 applies. Insurance Brokers E&O Our program features: Broad claims-made form National program-meets or exceeds regulatory requirements in all provinces Competitive terms $5-million capacity (higher limits available) Triple annual aggregate deductible Broad definition of insured Optional extended reporting period, at a predetermined premium and non-cancellable Supported by first-class, specialty Underwriters at Lloyd's We have more than 10 years of experience handling this class of business Minimum premium $1,500 applies. Medical Malpractice Our program provides cover for a full range of medical risks, including: Hospitals and medical clinics Nursing homes Alternative medical practitioners Executive and corporate health providers Other medical practitioners Veterinarians. The program features: $10-million in-house capacity Primary or excess cover available Competitive terms Supported by specialist Underwriters at Lloyd's, London Minimum premium $1,125 applies. Environmental Consultants E&O Our program is designed for: Environmental consultants Engineers practising in the environmental field who are unable to obtain appropriate cover from their regular markets Testing laboratories, including analysis of soil, liquids and chemicals Biologists Geologists Chemists Other consultants in the environmental field. The program features: Policy limits up to $2 million Broad claims-made policy form Cover includes prior acts exposures No environmental exclusion applies Underwritten in-house and supported by domestic licensed insurers Minimum premium $2,500 applies. Miscellaneous E&O Our program offers E&O cover for a wide range of business and professional risks, including: Adjusters Employment agencies Graphic designers Interior designers Management consultants Property managers Many other classes, too numerous to mention here. The program features: $2-million capacity (higher limits available) Supported by specialist Underwriters at Lloyd's Worldwide cover available Minimum premium $2,500. Application forms for all of our E&O programs are available from our website-www.elliottsr.com. We'll accept the applications of other markets in most cases. So give us a call-even if your account isn't listed here, we'll try it on for size.
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Cover for Design/Build Contractors under Ontario's Bill 124
We are pleased to announce our new program for designers without professional qualifications. The program is designed to satisfy the requirements of Ontario's recently enacted Bill 124. Coverage is available in two areas: Design services only-designing for third-party customers Design and build services-for contractors with in-house design staff. The program features: $2,000,001 limit only Costs inclusive No first-dollar defence Ontario territory and jurisdiction only Based on Bill 124 fees only-no coverage for any other work Minimum premium $3,000. The program is underwritten on behalf of: Scottish & York Insurance Company Limited Economical Mutual Insurance Company Sovereign General Insurance Company Underwriters at Lloyd's. Coverage for designers with professional qualifications is available within our Architects & Engineers program. Bill 124 was enacted in June 2002 and after several amendments, was implemented this year. The bill requires that any firm submitting designs of any type to municipalities in connection with a building permit must be registered and must obtain a ministry-issued designer registration number. This number (Building Code Identification Number or BCIN#) is issued to firms and individuals after specific conditions are met, including the successful completion of the appropriate ministry examinations based on the Ontario Building Code. The bill also requires these firms to carry set amounts of professional liability insurance. More information on Bill 124 is available at: http://www.obc.mah.gov.on.ca. Application forms are available from our website-www.elliottsr.com.
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Township building inspector must pay $11.2-million to developers
Two developers have won a massive award as a result of building inspection errors by the staff of the resort village of Bobcaygeon, Ontario in the 1990s. The plaintiff developers had obtained guaranteed financing for the construction of four rental buildings. During the final phase of construction, serious building code infractions were found in all four structures. Tenants left, and when the project went into receivership, the lender foreclosed on its mortgage and tied up the other assets of the guarantors. The court found that the building code violations were so numerous that the building inspector could not have conducted proper inspections during construction. The court rejected the defendant's argument that the developers had partially contributed to their loss. Instead, the court found the village, which is now part of the City of Kawartha Lakes, solely responsible for the developer's loss. According to Lawyers Weekly, the lawyer who represented the village's insurer has recommended an appeal.
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