Canada - Bee Overwintering Insurance Program (Alberta)
Author: AFSC
Bee Overwintering Insurance Program
AFSC is offering a program to Alberta producers who over-winter honey bees in Alberta. The Bee Overwintering Program provides coverage for the loss of bees, in excess of normal losses, resulting from naturally occurring perils beyond management control.
Who is eligible?
Commercial producers who:
Have a minimum of 100 hives; are registered members and operate according to the Bee Act, Revised Statutes of Alberta, 1980, chapter B-2 and amendments; and have declared the number of hives they intend to over winter in Alberta.
What are the eligible perils?
Adverse weather, disease and pest infestations or epidemics for which there is no adequate means of protection.
What is excluded from coverage?
- Hives over-wintered out of province;
- Wildlife damage, vandalism, theft, and unverifiable diseases or infestations;
- Beehives that are, in AFSC’s assessment, too weak to survive the winter;
- And leaf cutter bees and nuc’s
Over what Period is Insurance Coverage in effect?
Coverage commences once the beehives have been accepted for insurance by AFSC adjusters in the fall, and remains in effect until the hives have been inspected by AFSC adjusters in the spring or May 15th if AFSC is not notified at the time of unwrapping.
What is the deadline for applying for insurance?
Not later than June 20th apply at an AFSC Insurance office, then select coverage options, and report or “declare” the number of hives you intend to overwinter in Alberta.
How is coverage determined?
Dollar coverage is calculated by multiplying the number of insurable hives AFSC determined at fall inspection, by the $100 or $120 dollar per/hive coverage selected by the client. Limits and penalties apply when a fall inspection determines there are 20% more or 20% fewer insurable hives than declared.
How will penalties work?
During fall inspections AFSC will estimate the number of hives by counting a random sample. Insured hives and coverage will be limited to 120% of the hives declared, and premiums will be charged accordingly.
If the number of hives found at fall inspection is less than 80% of the hives declared, a penalty will be calculated as 80% of the hives declared in June, times the premium rate. Coverage and losses will be based on the actual number of insured hives.
When is the premium due?
Billing will occur after AFSC completes the fall inspection. When payment is received by AFSC within 15 days of the date of the billing, clients will receive a 2% discount. Interest at the CIBC prime rate plus 2% will begin accruing 30 days from the billing date, and will be applied to the account the 1st of the following month and each month thereafter, until paid in full.
What reporting requirements apply to clients?
Ÿ By June 20th - Applicants must apply, select coverage options, declare the number of hives intended for overwintering, make changes to an existing contract, or cancel insurance. Bee overwintering is a continuous contract and will be auto-renewed after the first year.
Prior to the reporting deadline; it is the client’s responsibility to review renewal information and request changes.
Ÿ Must Notify AFSC within 14 days of wrapping hives, for the winter, contact AFSC to request an adjuster. The adjuster will determine the number of hives to be insured by completing a random hive inspection. Coverage will not apply to hives wrapped after November 1, however a penalty equal to premium will be charged for 80% of the number of hives declared.
Ÿ Must Notify AFSC within 10 days of unwrapping hives in the spring, contact AFSC to request an adjuster. The adjuster will conduct a random inspection of some hives to estimate the percentage of loss. Coverage will be null and void when AFSC is notified that hives are being unwrapped after May 15, however premium will apply.
What distinguishes an insurable hive from an uninsurable hive, during the fall inspection?
Insurable hives are determined by AFSC adjusters based upon the following criteria: (1) adequate feed, (2) medication, (3) the extent of mite infestation, (4) the number of good frames and brood condition.
During the spring unwrap inspection what is considered a dead hive?
The table below demonstrates loss calculations for a dead hive and a weak hive. Weak hives will be prorated 2/3 to reflect the potential salvage value. For example: 120 weak hives will be adjusted by 2/3 to represent equivalent of 80 dead hives.
|
|
Good Frames in a: |
|
# of frames |
Dead Hive |
Weak Hive |
|
Single Brood stored indoors |
9 |
0 to 2 |
3 |
|
Double Brood |
18 |
0 to 3 |
4 |
|
Triple Brood |
27 |
0 to 3 |
4 |
The methodology used to determine a good frame is established by AFSC adjusting procedures and implemented by adjusters.
How are insurable losses determined?
When the fall inspection determines that all hives are insurable and they do not exceed 120% of the “declared” hives, the client will be eligible for a claim if the number of dead hives exceeds their deductible.
Indemnity = (% dead hives – % deductible) x total liability
If the fall inspection determines some hives are deemed not insurable by an AFSC Adjuster, or if hives are determined to exceed 120% of those “declared”, then losses will be reduced accordingly. Examples of loss calculations are at the end of this document.
How is the deductible determined?
The minimum deductible represents normal, average losses, above which compensation is provided.
The deductible is determined by AFSC based on various industry sources and in consultation with the Ministry of Agriculture and Rural Development’s apiculturist, and varies by honey risk area. Producers have the option of selecting a higher deductible at a lower premium cost.
|
Schedule of Deductibles Honey Risk Areas |
1, 2, 3 |
4 |
|
Minimum Deductible |
20% |
30% |
|
Optional Deductible |
25% |
35% |
How is premium calculated?
Premiums are equal to the premium rate times the number of insurable hives times the dollar coverage per hive, subject to the 80% and 120% limits referred to above. Premium rates are set at the risk area level, and may be adjusted to reflect the client’s program experience and management practices.
Coverage is limited based on the number of hives you report or “declare” that you intend to overwinter. When AFSC adjusters conduct fall inspections and find a variance of less than 80% or more than 20% of the hives declared, coverage is limited and penalties may apply. The examples below demonstrate the impact and importance of reporting accurately.
In all of the following examples assume the following: that “declared” hives intended to overwinter were reported as 1000, and that $120.00 coverage per hive with a 20% deductible were elected. This client’s risk area premium rate is 5%
2009 Rates and Coverage
|
AFSC Bee Overwintering Insurance Program Risk Area |
Deductible
Percentage |
Premium Rates |
|
Client |
Provincial |
Federal |
Total |
|
South 01 |
20 |
2.80% |
1.68% |
2.52% |
7.01% |
|
25 |
1.96% |
1.17% |
1.76% |
4.89% |
|
Central 02 |
20 |
2.80% |
1.68% |
2.52% |
7.01% |
|
25 |
1.96% |
1.17% |
1.76% |
4.89% |
|
North 03 |
20 |
3.17% |
1.90% |
2.86% |
7.93% |
|
25 |
2.37% |
1.42% |
2.13% |
5.92% |
|
Peace 04 |
30 |
2.29% |
1.38% |
2.07% |
5.74% |
|
35 |
1.79% |
1.07% |
1.61% |
4.48% |
Dollar Coverage for All Risk Areas
High: $120 per hive
Low: $100 per hive
| 
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