At the September 2014 AGM the membership voted in favor of expanding coverage in two significant areas, both of which will take effect as of January 1, 2015.
Associate Members Coverage will now be extended to individuals, groups and associations that provide services for, or on behalf of our members, upon request of an MIABC member, up to a limit of $5,000,000. These individuals, groups and associations must be individually sponsored by a member in order to qualify for “associate member” status. Once accepted as an associate member, these parties will be entitled to full coverage under the Liability Protection Agreement, but only for services provided for, or on behalf of, the sponsoring member.
In order to qualify as an associate member, the following conditions must be met:
- The associate member is sponsored by an existing MIABC member;
- he sponsoring member has a written agreement for the provision of services with the associate member (the “Service Provider Agreement”);
- The services provided are services to the community provided for or on behalf of the sponsoring member;
- The Service Provider Agreement has been approved by the sponsoring member’s council or board by resolution or bylaw; and
- The MIABC has received payment of a premium from, or on behalf of, the associate member.
It is important to understand that the sponsoring member’s deductible will apply to claims brought against the associate member and the sponsoring member will be responsible for the payment of any costs incurred below the deductible. In addition, all claims brought against the associate member will form part of the sponsoring member’s claims history and experience rating.
The MIABC has drafted a service provider agreement template for your convenience, which can be obtained by emailing Susan Ackerman or Megan Chorlton.
Claims for Breach of Contract
Coverage in 2015 will be expanded to include liability for breach of contract. The extension applies only to any compensatory damages (damages for what was lost due to the breach) that our members must pay as a result of a breach of contract claim. We will also cover breach of contract arising from the assumed liability of others, but only if the member is found to be at least partially liable for the loss.
Please contact Susan Ackerman or Megan Chorlton if you have any questions about the implementation of either of these resolutions.