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>> Uses and Occupancy Requiring Liablity Insurance
>> General Requirements for Liability Insurance

Insurance is an important issue in any situation which has the potential to cause a financial loss to the Ministry. Since a person risks damage to self or property any time he or she steps out or takes a piece of equipment onto the right-of-way, anyone using or occupying provincial highways will need proof of adequate insurance.

Contractors on BC highways will find useful information about Certificates of Insurance and Hired Equipment guidelines at the Contract Management website.

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Uses and Occupancy Requiring Liability Insurance

Ministry of Transportation policy states that all permits and agreements must contain an indemnity clause and an insurance requirement clause. This protects the Ministry, the applicants and any other named insured from financial loss due to damage or harm. In addition to claims from third parties for loss or damage, the Ministry may suffer damage to the highway surface, structures, or damage to the right-of-way.

The financing of these transferred risks is handled by a requirement for Liability Insurance in the permit. To prove that the applicant has adequate insurance, the insurance agent or broker must fill out a Certificate of Insurance (H-0111).

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General Requirements for Liability Insurance

For information about the Ministry of Transportation's Risk Management Program, go to Construction and Maintenance Branch Claims Unit.

For comprehensive insurance or Commercial General Liability, include the following:

  • Additional Named Insured Clause: This should name "Her Majesty the Queen in right of the Province of British Columbia as represented by the Minister of Transportation, together with the employees, agents and servants of the Minister".
  • Extension of Coverage: insurance policies should include all liability arising out of completed operations, blanket written contractual, contingent employers liability, non-owned automobile liability, and liability assumed by the Contractor in connection with the contract.
  • Cross Liability: insurance shall apply equally to each party as if they had applied separately for insurance. If one insured party breaches a condition of the insurance, the other parties are still protected by the policy.
  • Exclusions Not Permitted: hazardous operations such as excavation, pile drive, shoring, blasting, underpinning or other work must be covered by the insurance policy if the work is to be carried out by the Ministry or the Contractor, subject to prior notification to the insurance company.
  • Products and Completed Operations Hazard: this coverage shall be provided and remain in force for 12 months after the work has been completed (or 24 months for Design Build Minor Contracts) irrespective of the expiry date of the policy.

For property insurance (where applicable) include the following:

  • Additional Named Insured Clause: This should name "Her Majesty the Queen in right of the Province of British Columbia as represented by the Minister of Transportation, together with the employees, agents and servants of the Minister".
  • Loss Payable Clause: pay to "Her Majesty the Queen in right of the Province of British Columbia as represented by the Minister of Transportation".
  • Waiver of Subrogation: in the event of any third party loss or damage, or damage to the work or Contractor's equipment, settlement of the claim shall be made without the right of subrogation against the named insured.

For all policies except ICBC Auto Insurance and Professional Liability (E & O) Insurance, include the following:

  • Cancellation: This policy shall not be cancelled, removed, reduced, materially changed or altered without thirty (30) days' prior notice in writing by Registered Mail to:
    The Manager, Insurance and Bonds
    Ministry of Transportation
    PO Box 9850 Stn Prov Govt Victoria BC V8W 9T5

For Professional Liability/Errors and Omissions Insurance, include the following:

  • Cancellation: The required insurance shall not be cancelled or endorsed to reduce limits of liability, without 30 day's notice in writing by Registered Mail to:
    The Manager, Insurance and Bonds
    Ministry of Transportation
    PO Box 9850 Stn Prov Govt Victoria BC V8W 9T5
    Notification of the policy being endorsed to restrict coverage mid-term, must be provided in writing by Registered Mail to the same address, not later than the effective date of such change.

A Ministry Certificate of Insurance (H-0111) is to be used as evidence of insurance. This certificate of insurance is the only certificate of insurance acceptable to the Ministry. The certificate must be signed and dated by a person authorized to sign on behalf of the insurance company (e.g.: insurance company personnel or an insurance agent who has signing authority on behalf of the insurance company). Only an original of the Ministry Certificate of Insurance is acceptable. Ministry staff will not accept photocopies

For agreements where Automobile Liability insurance is a requirement and where such vehicles are insured through the Insurance Corporation of British Columbia, there are three acceptable means of providing evidence:

  • A duly completed I.C.B.C. Form APV47 issued by the Insurance Corporation's agent
  • A copy of the Contractor's insurance/registration form
  • Completion of the Ministry Certificate of Insurance
If vehicles are insured by a private insurer, then the Ministry Certificate of Insurance must be completed by the equipment owner's insurance agent or insurer.

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This guide is a living document; it is subject to change without notice. Please check the Rural Subdivisions Website (http://www.th.gov.bc.ca/permits/Subdibision_Home.asp) to make sure you version is sufficiently current.