Insurance

Churchwardens are responsible for:

  • the care of the land and buildings, furnishings and effects belonging to the church
  • keeping them adequately insured against loss by fire
  • maintaining insurance against any other insurable hazard to the church, its property, the incumbents and the churchwardens (Canon 15, Section 4 [10]).

All parishes and congregations are required to purchase minimum insurance from Aon Reed Stenhouse Inc., the broker designated by the Diocese.

Insurance Renewal Policies and Applications

Aon will send all parishes their Renewal Policies, together with the Renewal Applications, at the end of November each year. These are to be returned to Aon by January the following year. If you’ve made changes to your policy during the current year, please contact Aon for your adjusted renewal premium.

2020 packages

There has been a delay at Aon in processing the insurance renewal policy. The packages were sent to parishes during Christmas, so you should get them in the next couple of weeks. Contact Dennis Hinh at dennis.hinh@aon.ca if you don’t receive yours by mid-January.

Why are our church’s insurance premiums increasing?

Over the last decade, insurance rates and premiums have been either declining or flat, while at the same time claims costs have been rising every year. Catastrophic losses are occurring with more frequency around the world, and the cumulative effect has been the need to increase premiums to a level in line with claims payments.

Over the last five years, the Diocese has also experienced an upward trend in claims frequency. Aon’s detailed analysis of the Diocese’s property performance indicates claims frequency is too high. Water damage claims are also driving the negative performance with their frequency.

Until now there was sufficient competitiveness and capacity available from the insurance companies to hold off premium increases. This past year has seen a dramatic change in the insurance marketplace, with insurance companies raising premiums across the board or reducing their participation on accounts, or non-renewing accounts altogether, without much flexibility in the process.

For this renewal, the initial proposed increase across all lines from Ecclesiastical Insurance was much higher, but through the leveraging of not only the Diocese’s long history and relationship with Ecclesiastical, but also Aon’s standing in the industry itself, we were able to negotiate lower rates for each line.

Why is the renewal arriving so late in the year?

Negotiations for this renewal were tough and required significant analysis and time. Aon, working with the Diocese, believed it was best to continue to negotiate for better terms, understanding that this would take time and result in a later renewal delivery.

We pay our insurance premium directly to Ecclesiastical Insurance. Do we still need to pay the invoice from Aon?

Yes. If you are on direct bill with Ecclesiastical, your payments would not include the premium for your Umbrella, which is insured with Markel Insurance, nor the Aon service fee. Aon has included a self-addressed stamped envelope in your renewal package for you to use to send your payment to Aon.

Vacant/Unoccupied Properties

In accordance with insurance company requirements, buildings that are vacant and/or unoccupied must be inspected on a regular basis to ensure their ongoing security and integrity. These important protocols must also be followed to ensure that insurance coverage is maintained on all properties. Reporting requirements vary depending on the specific circumstances and season.

All parishes are required to immediately report all vacant and/or unoccupied properties to Aon, which will then advise of the inspection requirements and provide any necessary reporting documentation.

All property inspections should be documented in writing. An inspection log is provided as a courtesy for parish use. Inspection records must be kept on file for reference.

Contacting Aon

Please refer to Aon’s contact list for both the Aon Service Team and the Ecclesiastical Service Team.

For more information, please contact Lilian Qian, Treasurer and Director of Finance, at 416-363-6021, ext. 238 (1-800-668-8932); fax: 416-363-7678.