Hurricane season is back in full force in the U.S. and Caribbean. This Bulletin, previously issued and newly revised, will be of assistance if you are providing help to utilities in the U.S. or Caribbean.
MEARIE understands some LDCs may be answering the much needed call for help from utilities to the South. Accordingly, please consider the following regarding liability and fleet/vehicle coverage.
Will the MEARIE Fleet/Vehicle policy extend to your company’s licensed vehicles that are dispatched to the United States or Caribbean?
Subject to the terms and conditions of the policy, the MEARIE Fleet/Vehicle Policy covers you and other insured persons for incidents occurring in Canada and the continental United States of America. The MEARIE policy is based on the Ontario statutory standard which does not extend coverage to Caribbean islands. If a licensed vehicle is being taken to any Caribbean island, please let MEARIE know beforehand and we can work with you to arrange for other coverage.
Will the MEARIE Comprehensive Liability policy extend to rent licensed vehicles in the US or Caribbean islands? While there is some coverage for mainland US (Applies to use or operation of automobiles within United States of America for a period not exceeding 30 days); there is no coverage for rental vehicles in the Caribbean. Please be sure to protect your interests by purchasing the requisite local insurance coverage available at the rental car company for both liability and vehicle damage.
Will the MEARIE Comprehensive Liability policy extend to cover your company’s activities associated with this recovery effort in the United States or Caribbean islands?
Again, subject to the terms and conditions of the policy, the answer is yes – mainly for legal defense and compensatory damages your company becomes legally obligated to pay. The MEARIE policy territory is worldwide and the policy will respond to legal suits covered under this policy. Such a suit must be brought forward in North America.
Is non-admitted insurance permitted in the Caribbean? Non-admitted insurance refers to an insurance company that is not licensed with the state to provide insurance. MEARIE would be non-admitted insurance and may not be permitted in all parts of the Caribbean. Caribbean countries’ laws vary on the validity of insurance contracted with companies licensed outside the region. If you have a question about specific countries in the Caribbean, please contact MEARIE at insurance@mearie.ca.
NOTE: It is possible, despite the fact that your crews are working under the direct supervision of the host utilities, that your company could face civil actions of consequence. By contrast to the Canadian experience, it is important to understand that juries and courts in the United States have imposed significant punitive damage awards from time to time. Your MEARIE liability insurance policy does not cover punitive damages even where otherwise permitted in a foreign jurisdiction (similarly, not all US states allow for coverage of punitive damages, as this is considered contrary to public policy).
How can your company help manage the risk involved with working in the United States or Caribbean while assisting another utility?
MEARIE recommends that you work with your legal counsel to obtain an Indemnity Agreement and/or a Hold Harmless Agreement to protect and defend your company from any liabilities or claims for damages (whether such loss is potentially covered by insurance or not).
Similarly, MEARIE strongly recommends that your company obtain a current Certificate of Insurance from the utility authorities who you will be assisting, preferably adding your company as an Insured, or, at minimum, as an Additional Insured, with respect to your operations conducted solely on their behalf.
Finally, as a reminder, you will want to be sure to work with WSIB to ensure your out of country workers’ compensation needs are met and that your company meets any local requirements that may be in place.
For more information, please contact MEARIE at insurance@mearie.ca.