Council here is expected to choose at its next meeting, between two proposals for municipal insurance for the coming year, one of which could save the town over $27,000 in premiums.
Minto CAO Bill White and Randy Bushey, a consultant engaged to assist the town in evaluating responses to a request for proposals for the towns’ insurance policy, reported to council at the Feb. 3 meeting.
The town received two proposals, one from current insurer Frank Cowan Company and one from Jardine Lloyd Thompson (JLT) Canada. The Cowan submission, presented through broker Todd Farrell of Miller Insurance, which recently purchased Minto-based Larry Grummett Insurance, calls for a premium of $255,712. The JLT submission, brokered by Wylie Insurance Brokers of Harriston, includes a premium cost of $227,953.
The towns’ 2013 premium was $249,000.
“The most attractive thing about the JLT bid is that it is $27,759 lower than Cowan, with a three-year price guarantee on liability and two years on property,” states White in a written report
“The Cowan proposal is more attractive from a continuity and value-added services perspective.”
Bushey pointed out both companies are “strong players” in the municipal insurance field.
“They are very carefully niched in this,” he stated.
Councillor Ron Elliott was concerned with putting too much emphasis on premium costs and wanted to make sure the town wasn’t losing anything in terms of coverage.
“In fact after one claim, we could lose everything we’ve gained on the financial end of it,” said Elliott.
Bushey agreed the risk exists, but noted it’s impossible to guarantee coverage for every possibility.
“All we can do is prudently look forward and try and measure what is the greatest chance of risk and how best do we protect against it. But, if we knew the future, we would maybe choose different.”
White’s report recommended council authorize staff to negotiate the 2014 insurance renewal with JLT and local broker Stephen Wylie.
However, Elliott made a motion to defer the decision until the next meeting for further study and to ensure more councillors would be present to consider the issue. Councillors Dave Turton, Rick Hembly and Ron Faulkner were all absent from the Feb. 3 meeting.
Council passed a motion to strike a committee consisting of White, Bushey, treasurer Gordon Duff and up to three members of council to meet with representatives from the two companies before the Feb. 18 meeting.
