Norfolk County councillors got the news at Tuesday’s meeting that its insurance rates are taking a hike. Norfolk’s Corporate Services Department reported to the Council-In-Committee meeting last night that there is a 39.7% increase. General Manager Frank Gelinas’ report states, “The premium quote for the 2010 insurance renewal is $1,404,964 plus applicable taxes.” The chief reason given for the increase is because “The municipal Liability policy has been impacted the most with a premium increase of 60%.” Also adding to the increase is reported “Excess Liability and Environmental Liability have increased 18% and 25% respectively.” Norfolk County has insured assets totaling approximately $296,000,000 covered under the Property policy. The premiums for this policy have increased 4.8%. The report lists recent acquisitions being; Vittoria fire station, additions to Port Rowan EMS base, two new communication towers, Cedar Street storage building, Delhi bulk water depot, fencing and sprinkler system at the Simcoe soccer fields. The good news is Councillors’ Accident, Conflict of Interest, Legal Expense, Crime and Errors and Omissions policies will remain constant. Councillors were reminded last evening that when the County called for insurance tenders only two submissions were received. One from the Frank Cowan Company and the other, he said “from another company that was not licensed to do business in Canada.” It was stated that over the years some private sector insurers entered the municipal market “and then jumped out quickly after incurring municipal claims.” “Over the past several years, Canadian society has continued to become more and more Litigious,” it was stated. Another factor justifying the increase as stated by the Cowan company is reported, “Currently Norfolk’s Liability loss history stands at 144% for developed claims over the last three years which represents $1.44 paid out for every $1.00 the County pays in premiums.” The insurance premium discussion and its outcome took place last evening (Tuesday) after The Maple Leaf’s press deadline. Look for that discussion in next week’s edition. - December 2, 2009 |
