The cost of insurance premiums for the Town of Minto will creep up to almost the quarter-million dollar mark in 2013.
Local insurance broker Randy Ruetz of Larry Grummett Insurance and Steve Smith, regional manager for the Cowan Company presented an insurance renewal proposal to Minto council at the Feb. 5 meeting. The renewal documents show the town’s annual premium increasing by 2.77 per cent, from $242,997 to $249,925.
In a report to council, CAO Bill White noted the increase represents small increases in liability, property and automobile coverage.
“Town risk management programs are strong and have resulted in a reasonable claims history, but premiums can be affected by one or two accidents that are beyond staff control,” White states.
White notes that current market conditions are varied.
“A few years back, even municipalities with good claims histories had premium increases in the rage of 14% due to the issue of joint and several liabilities. This principle costs insurers and municipalities millions of dollars in settlements. Even if municipal liability is found in court to be one per cent, a municipal insurer may pay out 90% or more of a settlement.”
Smith said with claims inflation running around seven or eight per cent, the premium increase is a result of “what’s happening with municipalities right now.
“We’re seeing a lot more litigious society out there. Nobody’s at fault any more, they keep bringing actions against the municipalities and unfortunately they find that you’re the deep pocket.”
White reminded council that in October, as a result of an inquiry from a local insurance broker, council elected not to consider going to proposals on insurance until the summer of 2014. He explained that the Cowan Company has carried Minto’s coverage since amalgamation.
“Insurance providers willing to carry this kind of coverage are not extensive. They include the Ontario Municipal Employment Exchange (OMEX) and Jardines, who recently was successful in obtaining coverage for Wellington North,” stated White, adding this summer staff will provide a report outlining the process for proceeding to proposals if council elects to do so.
