Atlantic Task Force releases final report on insurance
November 23, 2005
The Atlantic Task Force on Insurance Availability and Affordability released its final report at a press conference in Halifax on Wednesday, November 23, 2005. The report makes a number of recommendations intended to help the voluntary and nonprofit sector while calling for action from the insurance industry and government.
The report comes in response to the fact that legal liability and the need for insurance protection have become major issues for many nonprofit and voluntary organizations as they become more aware of the need to protect their volunteers and their property. At the same time, volunteers are more cautious about the potential risk they personally assume when they get involved in voluntary and community service, and many organizations with insurance have experienced enormous increases in cost.
Leaders in the voluntary sector throughout Canada have been seeking ways to work with the Insurance Industry and governments to find ways to resolve these concerns.
In February 2005, the Insurance Bureau of Canada (IBC) in the Atlantic Region established The Atlantic Task Force with representatives from the nonprofit sector to look at ways to improve the situation. Penelope Rowe, CEO of the Community Services Council, was a member of the Task Force which commissioned the study.
Key recommendations to have a lasting impact
One of the most striking pieces of information brought to light by the report is the excessively high rate of sales tax premiums charged on insurance by the provincial government of Newfoundland and Labrador - close to 20% - a full 15% higher than in any other Atlantic province. Reducing or eliminating this high cost for the nonprofit sector could significantly reduce the overall cost of purchasing insurance.
Rowe said she is particularly pleased with the recommendation calling on the governments of the four Atlantic Provinces, in partnership with the Insurance Industry and the voluntary sector, to establish a process to provide independent information regarding the type and nature of insurance best suited to the needs of voluntary organizations.
According to Rowe, one of the biggest challenges facing small organizations with limited resources is learning about what type of insurance they really need and how to obtain the best buy. Unfortunately, individual agents and brokers are not always well versed in this type of insurance issue, leading to a recommendation to carefully consider volunteer protection acts in each province.
Download Atlantic Task Force on Insurance Availability and Affordability - Final Report
(PDF | 59 Pages | 205 KB)
New report outlines solutions for insurance challenges facing businesses and non-profit organizations in the Atlantic provinces
PRESS RELEASE – November 23, 2005
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Copyright 2003 Community Services Council Newfoundland and Labrador
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