Insurance rates in Puslinch are jumping over $13,000.
Insurers are blaming the litigiousness of society and “deep pocket syndrome” as reasons behind this year’s increase.
Rates have jumped from $148,728 to $161,949 – roughly 8 per cent.
Councillors held an in-camera with its insurers – Julio D’Antonio, Jeffrey and Spence Ltd. and Steven Smith of Frank Cowan Company – prior to the regular meeting.
Smith, Frank Cowan’s regional manager, noted a few changes this year including the wording to the conflict of interest coverage, which has been updated to apply to all provinces protecting elected or appointed members of council who are charged under the Municipal Conflict of Interest Act (or other similar provisions of other provincial legislation).
“We’re consolidating all our policies across Canada. It doesn’t change any of your coverage,” said Smith.
He offered a number of options for council to consider for the coming term.
These included board members or councillor accident policies to provide coverage while doing business on behalf of the municipality.
Smith also spoke of a cyber-risk policy which deals with potential computer hacking of the municipality where confidential information is compromised.
Even without those options, Smith said, “unfortunately there are some increases.”
Most of that comes from the area of liabilities within Ontario, he said.
“We’ve been lobbying for joint and several liability reform,” he told council.
If that reform happens, Smith believed it would stabilize the situation.
“It seems we are in a very litigious society, and claimants are coming more frequently and courts are awarding much higher awards. Unfortunately the premiums must supplement those costs,” said Smith.
However, even if legislation were to change, Smith did not see an immediate impact for municipalities because of the backlog of claims in the court system.
Councillor Susan Fielding asked if any work was being done to assist municipalities across the province.
“Our increase is over 8% and we’ve been fairly good with our claims. There are others suffering a lot more.”
Smith said what is being sought is a “fair share” type of liability where if a municipal is found at fault to a certain percentage it, may be required to pay up to double that amount.
Currently, if a municipality is found only fractionally at fault, it may still be required to pay the entire claim – if the other parties cannot pay.
“The Negligence Act is not fair to municipalities,” Smith said.
Mayor Dennis Lever was also concerned with the increase.
While he said Puslinch was fortunate over the last few years in terms of insurance claims, “it doesn’t mean (the increase) is any easier to take.”
Lever commented that in light of the current increase, he doubted council would approve any options which would further increase this year’s insurance premium.
Council later approved the insurance rates as presented.
