Frequently Asked QuestionsFootnote 1
1. Will the Government of Canada compensate me for financial loss resulting from the Summit?
The Government of Canada may consider making payments to commercial businesses, non-profit organizations and individuals to mitigate adverse financial consequences as a result of Extraordinary Security Measures implemented at the Summits hosted by Canada as part of its international obligations. Claimants must make every effort to mitigate the impact of the security measures on them. One-time payments may be made to those who experience financial loss and who submit reasonable, justifiable and substantiated claims. The Government of Canada has developed Guidelines for Payments on an Ex gratia Basis that outline eligibility criteria for claims.
2. What is the purpose of the Guidelines?
The Guidelines provide a framework for assessing claims related to financial loss as a result of the Extraordinary Security Measures for the Summits. They have been developed to provide potential claimants with information on what claims might be eligible and how they will be assessed.
3. Where can I find the Guidelines and Claim form?
The Guidelines and Claim form are available by:
- Visiting the Web page on Guidelines for Payments on an Ex gratia Basis
- Calling the Global Affairs Canada Enquiries Services line at 1-800-267-8367 or local 613-944-4000
4. Who is covered under the Guidelines?
Commercial businesses, non-profit organizations and individuals located or residing inside the security perimeter, which suffered Loss of Net Profits or Loss of Net Revenues due to Extraordinary Security Measures, could be eligible for payment.
Commercial businesses and non-profit organizations located outside the security perimeter, but who have significant operations on a routine basis within the security perimeter, could be eligible for payment in relation to their operations in those areas.
5. Is any type of commercial business eligible for payment?
Commercial business is defined as a person or an organization with activities consisting of the exchange of goods and/or services for the purpose of profit. Such activities must be permanent in character without necessarily being neither the main nor even the sole activity of the operator. The activities must be carried out on a routine basis rather than a casual basis. Commercial businesses will need to demonstrate loss of net profits.
6. Can governments or law enforcement agencies submit claims?
Separate agreements have been developed or are being discussed with governments and law enforcement agencies. According to these guidelines, additional costs incurred by Governments, including government agencies and Crown corporations at the federal, provincial and municipal level, or to any additional costs incurred by law enforcement agencies are not eligible.
7. Are all non-profit organizations eligible?
Only those non-profit organizations considered as such under the Income Tax Act are eligible for claims.
8. What percentage of my claim will be covered?
Payment could cover up to 100% of the loss of net profits or loss of net revenues or extraordinary costs that are eligible subject to approval of funds available for this purpose.
9. What is covered under the Guidelines?
According to Section 8-(d) of the guidelines, “Payment will not be provided for losses and damages that are insurable under normal insurance coverage. Only losses and damages arising from Extraordinary Security Measures above and beyond the amounts covered by insurance policies could be eligible for payment.”
Payment could be considered for the following:
- a) Commercial businesses – Loss of Net Profits
- b) Non–profit organizations – Loss of Net Revenues
- c) Individuals – Extraordinary costs
All amounts claimed for payment must be proven, justified, appropriate and reasonable, and only those amounts that cannot be paid out by means of other financial instruments are eligible.
10. What costs are not considered eligible under the Guidelines?
According to Section 8-(c) of the guidelines, the following claims shall not be considered eligible for payment:
- a) damages caused by third parties, including vandalism;
- b) damages for personal injury (bodily harm);
- c) damages for emotional distress; and,
- d) amounts that can be paid out by means of another instrument, such as statutory or regulatory scheme, Treasury Board policy, program, grant or contribution; and
- e) private protection measures.
11. Why are the costs listed above not covered?
Vandalism is covered by regular insurance and under these Guidelines, payments are not provided for losses that are insurable under normal insurance coverage. Damages for personal injury and emotional distress are also compensated by other means. Also, private security measures are not eligible, as security agencies will be providing the required security. Insurance deductibles related to ineligible costs will not be covered by the Guidelines.
12. How can I claim for damages not covered under the Guidelines?
Insurance may cover losses and damages not covered under the Guidelines. You are encouraged to review your protections to determine your coverage.
13. How are claims to be calculated by eligible commercial businesses, non-profit organizations and individuals?
In arriving at the amount of Loss of Net Profits or Loss of Net Revenues or extraordinary costs, the following could be considered:
- a) The insurance company’s deductible (up to a maximum of $500). This deductible must be linked to damages arising from Extraordinary Security Measures. Deductibles for ineligible expenses mentioned above will not be considered;
- b) Specific, justified and reasonable incremental expenses incurred as a result of the Extraordinary Security Measures (e.g. relocation expenses, transportation expenses, accommodation and living expenses);
- c) Justified, appropriate and reasonable cleaning expenses attributable to removal of any chemical or other material used by the Security Authority, where it is not covered by insurance, provided such expense is incurred within 30 days of the Summit.
14. What information must accompany a claim made by a commercial business or non-profit organization?
For Commercial businesses and non-profit organizations, the claims must include the following information, with each item claimed supported by appropriate substantiating documentation:
- a) Actual revenues based on monthly sales or other revenues and actual expenditures for the immediate past three consecutive financial years, or from the date of inception if later.
- b) Actual revenues from end of last completed fiscal year, or the date of inception if it is a new Commercial business or non-profit organization, to the commencement of the Extraordinary Security Measures of the Summit.
- c) Actual expenses from end of last completed fiscal year, or the date of inception if it is a new commercial business or non-profit organization, to the commencement of the Extraordinary Security Measures of the Summit.
- d) Estimate of Loss of Net Profits or the Loss of Net Revenues for period for which the Extraordinary Security Measures were in effect as well as for such period as determined by the Organizing Department immediately before or shortly after the implementation of the Extraordinary Security Measures during which there was an economic impact due to the Extraordinary Security Measures put in place for the Summit.
15. Can claims also be submitted by businesses or organizations whose revenues increase as a result of economic activity generated by the Summit?
Claimants that have experienced a significant increase in revenues as a result of economic activity immediately before and/or immediately after the duration of the Extraordinary Security Measures of the Summit will be required to set-off the increased revenues against the Loss of Net Profits or Loss of Net Revenues suffered during the period that the Extraordinary Security Measures were in effect.
16. Businesses can differ in terms of how cash flows and expenses come into effect. Is there any flexibility in applying the Guidelines in these cases?
Different methodologies may be available to calculate the estimated amounts of the loss of net profits or loss of net revenues. Claimants can choose one that is most appropriate for their circumstances. In all cases, claimants are expected to provide adequate substantiating information as stated under “Methodology for calculating estimated amounts” of the Claim form. Loss of net profits and revenues should be based on Canadian Generally Accepted Accounting Principles.
17. What can I do prior to the Summit to lessen the impact of security measures on my organization?
The claimants have an obligation to keep the losses incurred in their operations to a minimum. Where operations are primarily conducted through appointments and where there is normally the flexibility to reschedule business appointments and affairs, there is an obligation to minimize disruption during the time when the Summit is scheduled. Claims will be refused if due diligence is not demonstrated.
18. Can businesses that choose to close down during the Summit submit claims?
Places of business must remain open during the Summit to be eligible to make a claim for Loss of Net Profits or Loss of Net Revenues unless their closure is dictated by the Security Authority.
19. When can I submit my claim to Global Affairs Canada?
Claims can only be submitted after the Summit has ended, once the extent of financial loss is determined.
20. What is the deadline for submission of claims?
Claims must be submitted within 90 days of the date of conclusion of the Extraordinary Security Measures of the Summit unless otherwise authorized by Global Affairs Canada.
21. What is the time frame over which a claim can be based?
Claims can only be presented for the period during which the Security Authority prohibits public access inside the perimeter. However, if eligible beneficiaries can demonstrate that they have suffered losses immediately before or shortly after the duration of the Extraordinary Security Measures of the Summit due to reduced traffic as a result of these measures, they may submit such losses in their claim for consideration.
22. Where can I send my claim?
Claims should be sent to Summits and Official Events Office, Global Affairs Canada, 125 Sussex Drive, Ottawa (Ontario), K1A OG2.
23. When will claims be processed?
The Government of Canada is committed to processing claims as soon as possible upon their receipt at Global Affairs Canada.
24. Who is responsible for processing claims?
Global Affairs Canada is responsible for processing claims. Any payment under these Guidelines is wholly ex gratia and is not to be construed as an admission of liability on the part of the Government of Canada. Any amount paid pursuant to this Claim for Payment may be subject to an audit, at the discretion of Global Affairs Canada.
25. Who is the security authority?
The Minister of Public Safety will be accountable for security measures for the event and for establishing Extraordinary Security Measures (such as the security perimeter). For the Summit, the RCMP and other security partners are working together to coordinate security measures.
26. What constitutes an extraordinary security measure?
Measures implemented by the Security Authority, such as a security perimeter, and other exceptional actions, to protect the security of Internationally Protected Persons and delegates and ensure the proper functioning of the Summit, and to respond as part of contingency plans.
27. What is the security perimeter?
The security perimeter is the area where public access is restricted or prohibited during the Summit.
- Date Modified: