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2019 Renewal

Each year, CHF Canada sends participating co-ops a full report of any changes to the costs and benefits of the Commercial Insurance Program. The Co-operators distributed the 2019 renewal documents and invoices directly to the co-ops beginning November 28, 2018.

Highlights of the 2019 renewal

• Average increase of 10%
• Higher limits available for some coverages
• Risk Management Program continues

Claims experience differs across the country

The claims experience for each of the three regions varied, resulting in different changes to the rates for each region:


Experience in Eastern Canada was again quite good, which resulted in an overall average increase of 1%.


Experience in Ontario wasn’t quite as positive, resulting in an overall average increase of 12%.


Experience in B.C. has been quite challenging, resulting in an overall average rate increase of 15%.


Experience in the other western provinces has been very good, resulting in an overall average decrease of 1%.

Weather-related and large losses

One factor in the increase in weather and fire loss claims for insurance companies nationally is climate change. The Insurance Bureau of Canada says that our changing climate is creating more weather extremes—more rain, heat, drought and wind. This has a direct impact on the number of claims facing our program. In addition, older buildings experience large fire and water damage claims more frequently and will now be rated accordingly.

On the positive side, co‑ops can make a difference to their program by implementing a Risk Management Program and checking their units for common risks leading to claims by filling out the risk management checklists we send you.

Other factors that impact the renewal

No changes were made to the credit/surcharge table, so the credits and surcharges calculated using your co-op’s loss ratio will be the same as last year. Co-ops that practice good risk management will benefit once again. Your co-op may see an increase or change in the final premium amount you pay due to:

  • An inflation factor applied every year to keep the very valuable guaranteed replacement cost coverage up to
date (this will apply to co-ops that have not had an updated building valuation in the last 18 months). The inflation factor for 2019 will be 2% in all regions.
  • Your five-year loss ratio may result in a credit or surcharge on your premium.
  • Earthquake rates have increased, so if your co-op is located in an area at higher risk for earthquakes (areas in B.C. and the Ottawa Valley) you may see an increase in premiums.

Changes to existing coverages

 Good news! The Co‑operators has increased limits for the following coverages at no extra cost.

  • Legal Liability for Damage to Hired Automobiles (SEF94)—limit increased to $100,000.
  • Sub-limit for paving (parking lots, etc.)— increased to $250,000.
  • Blanket Accident Weekly Indemnity—limit increased to a maximum of $1,000 per week.
  • Volunteer Blanket Accident coverage— volunteers receiving honorariums of $2,000 per year or less remain eligible for coverage as a volunteer.

Higher limits available for some coverages

Our commercial insurance program with The Co‑operators continues to improve to meet the needs of today’s changing world. As a result, higher limits are now available on the following coverages.

  • Directors and Officers liability coverage— We encourage co‑ops to consider increasing this coverage to ensure you’re covered in the event of a large claims settlement. Limits are now available up to $5 million.
  • On-site Pollution clean-up—Limits are now available up to $500,000.

Loss prevention and annual reviews

When a Loss Control Inspector makes recommendations for loss prevention, please be sure to respond promptly to your Co‑operators representative, to let them know what action has been taken or when you plan to implement the improvements. Please reply and respond to The Co‑operators’ recommendations—otherwise, your coverage or premium could be affected.

Risk Management – what’s new for 2019

We will be sending out another checklist in January with different risks to look for in your units.  Slips and falls are very a common, and expensive source of insurance claims and many can be prevented.  The same is true for water claims involving plumbing and washers and dryers.  You’ll see questions on the new checklist designed to look for, and prevent, these common risks.

Why are we doing this?

  • To make sure your co‑op’s members are safe! Our Risk Management program is based on our past claims history. Checking for common risks could help prevent fires, accidents, severe injuries, or massive property damage.
  • To prevent risks, which helps lower insurance premiums for everyone in the program. With fewer claims, everyone in the program saves money.
  • To save money for your own co‑op! Your insurance premiums are based on your individual co‑op’s loss ratio so if you reduce the number of claims, you could get a credit on your final invoice.
  • If you don’t find and fix the risks in your units, it could impact your insurance coverage.

Help to cut costs—increase your deductible

One of the ways your co-op can offset the cost of higher premiums is to raise your deductible. Here’s the deductible savings chart showing the percentage saved on raising to a higher deductible.

Region Raise your deductible Save on your property rate
All Regions $2,500 10%
$5,000 15%

Still included in the program

Help for small co-ops

In order to help keep the program fair to everyone, premiums for small co-ops will again be subject to a separate discount/ surcharge table that considers the lower premium those co-ops pay for insurance. This separate table will continue this year. Small co-ops are identified as those with an annual premium of under $4,000 in the Atlantic and $8,000 in the Western regions.

Claims Free Guarantee replaces the Accident Forgiveness Endorsement

If your co-op has remained claims free for a period of five years or longer, this endorsement will be added to your policy at no additional cost.  Co-ops that have not made any claims in the past five years will continue to qualify for this coverage so that the first time they do make a claim, it’s forgiven and will not count towards their loss ratio or affect their discount or surcharge.  So co-ops should think twice about making small or unnecessary claims and be encouraged to become claims-free to take advantage of this unique and important coverage.  If you have a second claim within five years, a claims surcharge will apply.

Saving your co-op money is still key

  • Claims-free accident forgiveness coverage (at no extra cost). Co-ops that made no claims in the past five years will continue to qualify for this coverage. When you do make a first claim, it’s forgiven; it won’t count towards your loss ratio or affect your discount or surcharge.
  • Increase your deductible by $2,500 and save 10% on your property rate. Increase by $5,000 and save 15%. Ask us how!


If you have specific questions about your co‑op’s insurance coverage, please contact your Co‑operators representative. If you have program questions, contact Linda Stephenson at lstephenson@chfcanada.coop or 1-800-465-2752, ext. 234