The township will pay an additional two per cent in insurance premiums next year. However, insurance providers stress the extra charges are to cover additional property, not a rate increase.
The township is carrying additional “builders risk” coverage for construction of a new maintenance centre for a little over $5 million, plus increased property value in the form of new graders. Property values have also been increased to reflect inflationary trends.
“Your premium is up just over two per cent and majority of that is increased property,” Steve Smith, regional manger for the Frank Cowan Company, told Mapleton council on Oct. 27.
Smith said council could consider additional options being offered, including accident coverage for councillors or board members injured while not on duty.
“Some of the municipalities are looking at that because council is not under WSIB,” explained Smith.
He noted he policy contains few changes from last year and he pointed out the township had “an extremely good year on liability side, not much in the way of claims.”
Smith attributed the low claims totals to “good management” on the part of the township staff and council “and a little bit of luck.”
He also noted the province still has not acted on requests from the insurance industry and municipalities to alter joint and several liability provisions, under which municipalities are often compelled to pay the lion’s share of large insurance settlements despite being found only marginally responsible.
“We’re still hoping for some change on that,” said Smith.
Council approved a motion to accept the renewal at a premium of $198,998 for 2016. The 2015 premium was $194,592.
