The Western Journal 2018 - 25

calls for participants to assume more
of the risk that they once paid insurance companies to cover. In a captive,
part of the premium is dedicated to
the initial capital outlay required to
establish and maintain the program.
That capital is also used to calculate

included within the captive. Aon does
have a competitive program that we can
provide a quote on in relation to any
other coverage you may purchase, but
it is not mandatory to use Aon for those
coverages. You can keep your current
broker and also use Aon.

the dividend paid to members, which
is also subject to any losses paid. The
better the captive does financially, and
the lower a member's losses paid, the
higher the dividend - with the net result
of lower insurance costs.
In short, the new MCAC captive,
administered by Aon, offers members
the potential for more efficient payment
of claims, lower insurance costs, and the
ability to participate in profits. For contractors facing an increasingly complex
operating environment and challenges
in the traditional insurance marketplace,
it's an idea whose time has come.

3. Are multi-trade contractors
eligible to join the captive?
Yes, they are eligible; the company
must still have a less than 70% loss ratio
across all of the five lines of coverage.
4. Who decides if dividends get paid
and how are they calculated?
The decision will be made by the
Captive Board. Upon receipt of the
financial results, any available surplus
could be either provided in a dividend

or used to offer additional benefits to
members, such as availability of additional coverage lines. No more than 75
per cent of any surplus is eligible for
dividend, and the dividend percentage
for each organization will be determined
considering the amount of capital contributed plus premiums paid less any
claims paid.
5. I am interested. How do I sign up?
Initially, we ask companies to sign a
Letter of Intent indicating their interest. The next step will be to provide
necessary information to Aon to allow
us to provide a quote. Next, you must
sign the membership agreement, which
represents your company's commitment to pay the capital required as
well as the necessary premiums for the
coverage lines.
6. What if I have a business division
that is not mechanical? Can my company still join the captive?
Yes, although such a request needs
to be evaluated to ensure it is within the
risk appetite of the captive. Companies
with the following divisions can qualify:
Mechanical, HVAC, Plumbing, Electrical
and Civil, whether industrial, commercial, institutional or residential.

Based in Calgary, Lois Gardiner is
Senior Vice President & National
Director, AGRC at Aon Risk Solutions.

Six things you should know
about the MCAC Captive
1. What coverage lines are in
the captive?
The captive will initially insure
Commercial Liability, Property,
Contractor's Equipment, Automobile
Liability and Crime coverage. The captive will consider writing additional
lines of coverage once it is established,
such as Surety and Automobile Physical
Damage coverage.
2. I am not currently an Aon client.
Do I have to become one?
Yes, the captive is exclusive to Aon;
however, your organization only needs
to utilize Aon for the coverages that are
Mechanical Contractors Associations of British Columbia, Alberta, Saskatchewan & Manitoba 2018

25



Table of Contents for the Digital Edition of The Western Journal 2018

Message from MCA Canada
Message from MCA Alberta
Message from MCA British Columbia
Message from MCA Manitoba
Message from MCA Saskatchewan
Innovation in the Mechanical Industry
Four MCA Presidents Speak
Membership Advantage Programs
What if You Could Get a Total Of 20% Reduction in Insurance Costs Annually?
The Western MCAs – Year at a Glance
The Western Journal 2018 - Intro
The Western Journal 2018 - cover1
The Western Journal 2018 - cover2
The Western Journal 2018 - 3
The Western Journal 2018 - 4
The Western Journal 2018 - 5
The Western Journal 2018 - Message from MCA Canada
The Western Journal 2018 - 7
The Western Journal 2018 - Message from MCA Alberta
The Western Journal 2018 - 9
The Western Journal 2018 - Message from MCA British Columbia
The Western Journal 2018 - Message from MCA Manitoba
The Western Journal 2018 - 12
The Western Journal 2018 - Message from MCA Saskatchewan
The Western Journal 2018 - 14
The Western Journal 2018 - 15
The Western Journal 2018 - Innovation in the Mechanical Industry
The Western Journal 2018 - 17
The Western Journal 2018 - 18
The Western Journal 2018 - Four MCA Presidents Speak
The Western Journal 2018 - 20
The Western Journal 2018 - 21
The Western Journal 2018 - Membership Advantage Programs
The Western Journal 2018 - 23
The Western Journal 2018 - What if You Could Get a Total Of 20% Reduction in Insurance Costs Annually?
The Western Journal 2018 - 25
The Western Journal 2018 - The Western MCAs – Year at a Glance
The Western Journal 2018 - 27
The Western Journal 2018 - 28
The Western Journal 2018 - 29
The Western Journal 2018 - 30
The Western Journal 2018 - cover3
The Western Journal 2018 - cover4
The Western Journal 2018 - outsert1
The Western Journal 2018 - outsert2
The Western Journal 2018 - outsert3
The Western Journal 2018 - outsert4
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