The cost for insurance coverage in Wellington North is going up by two per cent, council was told by its insurer Monday.
The increase means council will pay $188,420 for insurance this year up from $185,000 last year. The increase is due to coverage on new equipment and buildings and four per cent inflation, insurer Jeff Coburn of Coburn Insurance Brokers Inc. of Mount Forest told council at its meeting Jan. 14.
Coburn was joined by Barb Anne Vaspori, public sector vice president with Jardine Lloyd Thompson Canada, the company that holds the insurance policy.
In a report to council, the insurers presented other coverage the township may consider, including insurance for municipal volunteers working on behalf of Wellington North. The annual cost for $50,000 worth of accident coverage would amount to an additional $750 a year. Council could also increase its risk events liability that offers insurance coverage for events held at municipal facilities such as wedding receptions. Coverage is offered for low-risk events, as well as high-risk events where alcohol is served. Council noted facility renters are required to have their own insurance coverage for events. However, the insurers noted that should an accident occur the township could also be found liable.
Coburn said high-risk coverage at a cost of $2,000 to $3,000 annually could be built into the cost of rental agreements.
Wellington North has around 120 such events annually, charging renters about $250 each.
Councillor Andy Lennox, chairman of the township finance committee, asked whether the township could realize more savings by increasing its deductible from $25,000 to $50,000.
The township’s maximum liability in the new policy is $25 million, something Vaspori suggested Wellington North should reconsider and raise to $50 million.
It’s an option the insurer will explore and present to council along with a report on volunteer coverage.
Wellington North has realized considerable savings on insurance since it switched insurers a year ago. The saving by switching last year was about $70,000 and council was pleased with the two per cent increase this year.
