Environmental Policy

100 King Street West, Suite 5140, PO Box 342 / Toronto, ON M5X 1E1 / (844) 811-1118 / nfp.com/Canada Insurance services provided by NFP Canada Corp. NFP Canada Corp. is an entity established through the legal amalgamation and/or combination of NFP Canada Corp. and, among others, Rhodes & Williams Limited and S.M. Hill Insurance Brokers Ltd.. NFP® is a registered trademark of NFP Corp. NFP is the registered business name used by NFP Canada Corp. in each of the provinces and territories of Canada, where permitted. June 28, 2024 Premier Bulk Systems Ltd and 2407396 Ontario Ltd. PO Box 591 Gormley, ON L0H 1G0 Dear Kevin, RE: Policy Delivery Thank you for allowing NFP Canada Corp. the opportunity to serve you and your insurance needs. We have attached the following policy: Policy Policy # Carrier Term (MM/DD/YY) Pollution Liability PSG575887 Markel International Insurance Company Limited 06/30/24 - 06/30/25 The policy premium of $7,286.76 including any taxes and/or fees, is represented on the attached invoice. Please remit payment as shown. It is important to take a moment to review your policy for accuracy and to ensure that you have sufficient limits to meet your needs. If at any time during the coming year, you make any changes to your operations (i.e. adding a new location, purchasing new equipment, acquiring a business, etc.), it is important that you contact us. We can discuss coverage options with you and make any changes necessary to keep your insurance protection up-to-date. In an ongoing effort to ensure you have adequate protection in the event of a covered loss, we ask that you review the following recommendations, warranties and conditions that may or may not form part of your policy. Please feel free to contact us if you wish to discuss further. We hope that you will keep in mind that NFP Canada Corp. provides a full line of insurance coverages including Property, Auto, Bonds, and Life and Health Insurance for both individuals and businesses. We appreciate your business and value your input on how we can better serve you. Sincerely, Yasha Singh, CIP Client Manager P: (905) 944-4095 E: Yasha.Singh@nfp.ca Enclosure(s) 100 King Street West, Suite 5140, PO Box 342 / Toronto, ON M5X 1E1 / (844) 811-1118 / nfp.com/Canada Insurance services provided by NFP Canada Corp. NFP Canada Corp. is an entity established through the legal and/or combination of, among others, Foster Park Brokers Inc. . NFP is the registered business name used by NFP Canada Corp. in each of the provinces and territories of Canada, where permitted. NFP Canada Corp. is affiliated with NFP Captive Management (Alberta) Corp., NFP Canada Corp. o/a HEP MGA, Group Force Benefits Inc., and Northern Premium Financing Corp., through common ownership. Northern Premium Financing Corp is a premium payment option available to some NFP Canada Corp. clients. Neither NFP nor its subsidiaries provide tax or legal advice. CO INSURANCE Most standard commercial property insurance policies contain a 90% co-insurance clause. This clause requires that insurance be maintained to at least 90% of the value of the property at the time of the loss. This does not mean that the insurer will only pay 90% of the loss. If insurance is carried to at least the 90% of the value of the property at the time of the loss, the insurance company will pay the whole of the damage up to the limit of the policy. If the insurance limit is not carried to 90% of the value at the time of the loss then the claim settlement will be calculated using the following formula: Amount of insurance carried x amount of damage Amount of insurance required For Example: Value of property $ 300,000 Insurance Required (90%) $ 270,000 Insurance Limit at time of loss $ 200,000 Total Amount of Loss $120,000 The claim settlement would be calculated as follows: $200,000 x $ 120,000 = $ 88,889 $270,000 At the time of the loss the insurance limit was not within the 90% value of the insurance limit required. Therefore, the insurance company would pay $88,889. This means that you the insured would be penalized for not insuring the property to value and you the insured would be responsible for the $31,111 of the loss that would not be covered by the insurance carrier. It is recommended that you review your policy declaration page for any property coverage that is subject to co-insurance. To avoid a co-insurance penalty, it is advisable to insure 100% of your property at all times. 100 King Street West, Suite 5140, PO Box 342 / Toronto, ON M5X 1E1 / (844) 811-1118 / nfp.com/Canada Insurance services provided by NFP Canada Corp. NFP Canada Corp. is an entity established through the legal and/or combination of, among others, Foster Park Brokers Inc. . NFP is the registered business name used by NFP Canada Corp. in each of the provinces and territories of Canada, where permitted. NFP Canada Corp. is affiliated with NFP Captive Management (Alberta) Corp., NFP Canada Corp. o/a HEP MGA, Group Force Benefits Inc., and Northern Premium Financing Corp., through common ownership. Northern Premium Financing Corp is a premium payment option available to some NFP Canada Corp. clients. Neither NFP nor its subsidiaries provide tax or legal advice. PROPERTY POLICY RECOMMENDATIONS Earthquake: Earthquake includes snow slide, landslide or other earth movements occurring concurrently with and directly resulting from an earthquake shock. This is a standard exclusion on your policy and can be purchased for an additional premium. Flood: Flood includes the rising of, the breaking out or the overflow of any body of water whether natural or man-made and includes waves, tides, tidal waves and tsunamis. Flood is a standard exclusion on your policy and can be purchased for an additional premium. Sewer Backup: Sewer Backup coverage can be purchased to cover loss or damage to Building(s), Stock, and/or Equipment caused by the backing up of sewers, sumps, septic tanks or drains. Sewer Backup is a standard exclusion on your policy. By-Laws Endorsement; provides coverage for increased building costs due to the imposition of a bylaw or ordinance. Equipment Breakdown Coverage: Equipment failure could mean the end of a business. Under all property policies, there are standard exclusions. An Equipment Breakdown policy can be purchased to protect against these exclusions. Equipment Breakdown Insurance will cover the loss when equipment breaks down suddenly and accidentally. It pays for the cost to repair or replace the damaged equipment; coverage can also be purchased to cover business income loss, consequential loss and other costs that you may incur to speed up restoration of business operations when breakdown interrupts your operations. Business Interruption: Examples of items with this coverage extension are: loss of profits and continuing expenses such as interest on loans, municipal taxes, key management salaries, occasionally all salaries. It is important to consider not only the above noted points but also the time required for the business in question to reach the organizations expected performance levels prior to the loss. As such, the indemnity period must be carefully chosen to allow for continued indemnity necessary to not only assure the organizations continued operation but its growth. Indemnity Period for Business Interruption: The indemnity period or maximum indemnity period is the maximum length of time specified in in months, that the policy will support the business following and insured event causing an interruption to the business. Depending on your loss, the standard indemnity period of 12 months may not be sufficient, please contact our office for a quote to increase your indemnity period to 24 or 36 months. Contingent Business Interruption: Contingent Business Interruption is also available which provides coverage in the event one of the insured’s key clients or suppliers suffers an insurable and results in a financial impact to your operation. PROPERTY POLICY CONDITIONS & WARRANTIES- Please refer to your policy declaration page Alarm Warranty/Condition: It is noted and agreed the insured will maintain an Alarm system in proper working order and connected electronically and activated where there is no authorized person(s) physically present on the premises. Failure to comply with this warranty/condition will render coverage Null and Void. Please refer to the policy wording for details. 100 King Street West, Suite 5140, PO Box 342 / Toronto, ON M5X 1E1 / (844) 811-1118 / nfp.com/Canada Insurance services provided by NFP Canada Corp. NFP Canada Corp. is an entity established through the legal and/or combination of, among others, Foster Park Brokers Inc. . NFP is the registered business name used by NFP Canada Corp. in each of the provinces and territories of Canada, where permitted. NFP Canada Corp. is affiliated with NFP Captive Management (Alberta) Corp., NFP Canada Corp. o/a HEP MGA, Group Force Benefits Inc., and Northern Premium Financing Corp., through common ownership. Northern Premium Financing Corp is a premium payment option available to some NFP Canada Corp. clients. Neither NFP nor its subsidiaries provide tax or legal advice. Changing Your Business Operations, Occupancy or Ownership: Your policy is rated based on the information you provided at the time your policy was issued. It is important that you advise our office of any changes in business ownership, operations or occupancy. Communicable Disease Exclusion- The policy will not provide insurance coverage for any loss, damage, claim, cost, expense or other sum, directly or indirectly arising out, attributed to, or occurring concurrently or in any sequence with a Communicable Disease or the fear or threat (whether actual or perceived) of a Communicable Disease. This includes but is not limited to, a) Coronavirus Disease (COVID-19); b) Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2); c) any mutation or variation of SARS-CoV-2, or any fear or threat of a), b) or c) above. Locked Vehicle Warranty: This warranty applies to tools and equipment within a vehicle or trailer. It is your responsibility to ensure that these items are secure at all times. Warranted by the Insured that property, which is carried in any vehicle or trailer, shall be contained within a fully enclosed metal body or compartment of the vehicle. The Insurer shall be liable in case of loss by theft from an unattended vehicle only as a direct result of forcible entry (of which there shall be visible evidence) into such body or compartment, all points of entry of which shall have been securely locked. Tobacco Warranty/Condition: It is noted and agreed that Tobacco products stored, are in a locked cabinet in the front of the store and in a Class II Safe at the back of store. Failure to comply with this warranty/condition will render coverage Null and Void. Please refer to the attached wording for limits and conditions. Vacancy Clause: If your property is vacant for more than 30 days, failure to notify your broker may result in voiding of coverage as a result of a claim. Welding, Cutting and Open Flame Warranty/Condition: It is noted and agreed that precautions as outlined in the attached warranty will be taken on by you or others on your behalf, while performing welding, torch cutting operations, or other operations involving the application of open flame. Failure to comply with this warranty/condition will render coverage Null and Void. Please refer to the policy wording for details. LIABILITY RECOMMENDATIONS Umbrella/Excess Liability: Increased limits of liability can be purchased for additional protection over the underlying liability insurance policies. An Umbrella policy increases the overall limits of liability carried to protect against large or catastrophic losses. Cyber Liability: Effective November 1, 2018, the Federal Government introduced an amendment to the Personal Information Protection and Electronic Documents Act (PIPEDA) making it mandatory to report a data breach. Cyber Insurance covers your business for a data breach involving access to sensitive customer information such as personal health information, credit card information, driver’s license numbers and the like. Cyber attacks are occurring on a daily basis. No business is immune. Contractors Professional Liability (Errors & Omissions): Contractors Professional Liability protects contractors against allegations of errors, omissions or negligent acts in the performance or professional services for commercial construction projects, design-build projects as well as errors made by third-parties hired by the contractor. Contractors Pollution Liability: Contractors Pollution Liability provides third-party coverage for bodily injury, property damage, defense, cleanup and related defense costs as a result of pollution conditions 100 King Street West, Suite 5140, PO Box 342 / Toronto, ON M5X 1E1 / (844) 811-1118 / nfp.com/Canada Insurance services provided by NFP Canada Corp. NFP Canada Corp. is an entity established through the legal and/or combination of, among others, Foster Park Brokers Inc. . NFP is the registered business name used by NFP Canada Corp. in each of the provinces and territories of Canada, where permitted. NFP Canada Corp. is affiliated with NFP Captive Management (Alberta) Corp., NFP Canada Corp. o/a HEP MGA, Group Force Benefits Inc., and Northern Premium Financing Corp., through common ownership. Northern Premium Financing Corp is a premium payment option available to some NFP Canada Corp. clients. Neither NFP nor its subsidiaries provide tax or legal advice. (sudden/accidental or gradual) arising from contracting operations performed by or on behalf of the contractor. Directors’ and Officers’ Liability: This policy covers Directors and Officers for the personal liability they incur, based upon an allegation of negligence, error or omission or wrongful act in the managing of an organizations’ corporate affairs. Directors and Officers of large companies, small operations and non-profit organizations are all at risk. Employment Practices’ Liability: Provides employers with Liability protection for claims arising from employment related exposures such as discrimination, harassment, assault, unfair dismissal and infliction of emotional distress at work. Environmental Pollution Liability: This coverage helps to protect you from the liability and financial loss that can result from gradual and sudden & accidental pollution events such as fire, explosion or sudden spill or seepage over time. It covers third party clean-up expenses, bodily injury and property damage. Coverage is available for site-specific projects, owned and non-owned locations as well as transportation exposures. Professional Liability Insurance or errors and omissions insurance protects businesses when mistakes are made in the professional services they provide to their customers or clients. And if your client or customer thinks an error in your professional services caused a financial loss, they can seek damages from you. Suits can be brought against all professionals, from doctors and lawyers to hair stylists and florists. This insurance is required because general liability insurance does not offer protection against allegations arising from negligence, malpractice, mistakes, or misrepresentation, including the cost to defend oneself against such claims. Non Owned Automobile coverage (OAP#6): This coverage is used to protect employers when employees, on behalf of the employer, operate non-owned automobiles. Employers need protection against being sued when an employee has an automobile accident while on company business. There are four categories of vehicles that represent a non-owned exposure to an employer; hired or rented automobiles, employees’ automobiles, independent contractors’ automobiles and other automobiles. Legal liability for damage to hired automobiles: Covers certain vehicles that your firm may rent from a rental company, on a short-term basis. This is liability coverage provides physical damage coverage. CONTRACTORS RECOMMENDATIONS Contractors Equipment Ice & Muskeg: Ice and muskeg provides coverage for contractor’s equipment damaged as a result of sinking in soft soil conditions such a muskeg and swamp, or breaking through ice. This is not automatic coverage under the standard contractor’s equipment form. Rental Reimbursement: A coverage that assists in paying for the cost of rental similar equipment while yours is in the shop for repair as a result of damage from an insured loss. Rented Leased or Borrowed: This provides for loss or damage to unscheduled contractor’s equipment while lease, rented or borrowed from others. MICELLANEOUS COVERAGES 100 King Street West, Suite 5140, PO Box 342 / Toronto, ON M5X 1E1 / (844) 811-1118 / nfp.com/Canada Insurance services provided by NFP Canada Corp. NFP Canada Corp. is an entity established through the legal and/or combination of, among others, Foster Park Brokers Inc. . NFP is the registered business name used by NFP Canada Corp. in each of the provinces and territories of Canada, where permitted. NFP Canada Corp. is affiliated with NFP Captive Management (Alberta) Corp., NFP Canada Corp. o/a HEP MGA, Group Force Benefits Inc., and Northern Premium Financing Corp., through common ownership. Northern Premium Financing Corp is a premium payment option available to some NFP Canada Corp. clients. Neither NFP nor its subsidiaries provide tax or legal advice. Product Recall Expense: Product Recall Expense insurance provides risk transfer and risk management solutions to issues related to business continuity in times of crisis for manufacturers and retailers. The coverage is available to respond to both first and third party losses arising from product recall, malicious product tampering, or accidental product contamination. This coverage should be considered by manufacturers, wholesalers and retailers of consumable goods such as food and beverage manufacturers, as well as manufacturers of component parts. Recall Expense will assist the client with such things as the cost to notify the public of the recall, public relations support to preserve a client’s reputation, shipping back defective product, warehousing defective product and provision of additional staffing. Increased Liability Limits: Increased liability limits are recommended for those clients with an elevated exposure to severe bodily injury, multiple bodily injuries or catastrophic property damage exposure and clients with US premises, products exposure or vehicles operating in the US. An insurance loss is not always discovered immediately, as in the case of product liability losses. Even if a loss is reported promptly, its full severity may become apparent only after several years, perhaps as the trial date draws near. You do not have to be the principal defendant in a lawsuit to be exposed, as large lawsuits tend to attract several fringe defendants. Thanks in part to joint and several liability and the hunt for 'deep pockets', the blame can shift quickly from those who are most responsible to those who can most afford to compensate victims. Manufacturers Errors and Omissions: Many manufacturers are exposed to this very risk and it is not covered by the Commercial General Liability policy. Errors & Omissions insurance is needed if your product has the potential to cause a third party financial loss. E &O insurance is designed to fill a gap in product liability. It provides coverage for a legal obligation to pay the financial damages caused by and arising out of the insured’s products or services. An E&O policy will respond to a claim from your customer if they sue to recoup their financial loss resulting from additional expenses and loss of profits caused by the need to recall its product to remove and replace your component. Legal Expense: Legal Expense provides coverage where the CGL falls short. It provides unlimited access to a toll-free Telephone Legal Advisory Service for assistance on any business matter. If the issue cannot be resolved by the telephone service, the legal fees of a lawyer appointed to represent you will be paid, subject to the terms and conditions of the policy by the Insurer. Examples of insured events would be: Disputes over contractual terms Landlord and tenant disputes Criminal charges Staffing and employment issues Human Rights complaints Personal injury claims Defective Product 'Rip & Tear': Coverage is available for the removal and replacement of material, including the associated labor costs when such work does not meet contract specifications, even if there was no resulting bodily injury or property damage limits available $50,000 to $1,000,000. Higher limits which are generally required in the construction and manufacturing/distribution industries are available through specialty casualty. To be considered in cases of construction, where service providers and manufacturers produce materials and services which become an inherent part of a final product, for example cement, paint, roof trusses, siding etc. Rip & Tear is also applicable in cases such as infrastructure installation, general plumbing and electrical work Abuse: The liability arising out of the abuse of individuals, whether verbal, physical or sexual in nature is generally excluded from liability policies. Specific coverage can be acquired and is highly recommended in cases where organizations provide personal services or care to adults, vulnerable adults and children. Working with organizations to secure abuse coverage often results in advantages such as operational, procedural review with an eye towards implementation of protocols which protect clients, employees and the organization itself. However; accusations or claims brought forward, whether justified or not have the 100 King Street West, Suite 5140, PO Box 342 / Toronto, ON M5X 1E1 / (844) 811-1118 / nfp.com/Canada Insurance services provided by NFP Canada Corp. NFP Canada Corp. is an entity established through the legal and/or combination of, among others, Foster Park Brokers Inc. . NFP is the registered business name used by NFP Canada Corp. in each of the provinces and territories of Canada, where permitted. NFP Canada Corp. is affiliated with NFP Captive Management (Alberta) Corp., NFP Canada Corp. o/a HEP MGA, Group Force Benefits Inc., and Northern Premium Financing Corp., through common ownership. Northern Premium Financing Corp is a premium payment option available to some NFP Canada Corp. clients. Neither NFP nor its subsidiaries provide tax or legal advice. potential to damage reputations of both organizations and their employees, generate significant defense costs and of course be subject to substantial sums either as a result of a court decision or settlement. Kidnap and Ransom: Although rarely publicized, instances of kidnap, ransom and extortion occur every day in particular regions of the world. Coverage is available to respond to these tragic and stressful events. In addition to insurance coverage most insurers provide significant risk control support. We strongly recommend, as minimum that a $1,000,000 policy be secured. In addition, and of equal importance the policy also provides access to extremely useful Intel and access to a crisis response team. Trade Credit: Accounts Receivables (Trade Credit) are one of a corporation’s largest and most vulnerable assets. It is the second most liquid asset after cash and represents a significant investment of working capital. Trade Credit Insurance protects against non-payment of receivables by your customers due to insolvency, creditors’ protection arrangements, or protracted default (late payment). Trade Credit Insurance is not for corporations that have poor credit management or are seeking to transfer high levels of bad debt to an insurer. Credit Insurance compliments credit management and can add significant resources and intelligence to prevent losses and aid decision-making through access to the insurer’s buyers’ database.