Councillors here weren’t necessarily happy to find out the town’s insurance premium is up 5% this year, but they were told there is not a lot they can do about it.
A 14-page report from insurance provider Frank Cowan Company explained claim costs are driving up premiums, thanks to such factors as future care costs included in settlements, joint liability, class actions, climate change, the harmonized sales tax and municipal claims inflation.
For Erin, Frank Cowan representative Steve Smith explained that means a 5% premium increase – to $147,047 – for 2010.
The town’s plan includes a maximum of $25-million for municipal liability claims, with a $10,000 deductible for that item. Smith also noted town property is now valued at about $32-million. Town council voted unanimously to renew its insurance policy with Frank Cowan at a price of $147,047.
