It is another year of increases for municipal insurance for the City of Quinte West.
On Wednesday, at the meeting of council, staff presented a recommendation to approve the insurance agreement with broker BFL Canada for 2025.
The price will increase from 2024’s rate of $1,686,000 by 5.9% ($99,418), resulting in a 2025 price tag of $1,786,000.
Although a 6% increase sounds like a large number, in relation to previous increases, it is quite small:
2024 – 12.66%
2023 – 11.2%
2022 – 20%
2021 – 53.24%
There is going to be a jump of 250% in the deductible for 2025. It will be $250,000 for 2025, from $100,000 in 2024.
Deductible increases over the last several years have jumped as well:
2024 – $100,000
2023 – $100,000
2022 – $50,000
2021 – $25,000
Quinte West Councillor Shelley Stedall was concerned about what is called Joint and Several Liability.
“If somebody else is a bad actor and we’re named as a secondary to that, we’re liable. So somebody else, they have liability insurance and their liability insurance ends up being to a million and the lawsuit’s ten million dollars, we’re on the hook for the balance of it.”
Councillor Don Kuntze spoke in favour of the staff/broker proposal.
“By taking a larger deductible for our insurance policies, it’s all just part of what we need to do for managing our risk management.”
The report indicates there are very few insurance brokers that will take on municipalities as clients.
With the higher deductible, the municipality will save on the cost of the policy.
The municipality has an insurance reserve of around $850,000 by the end of the 2025 term policy.
In the end council voted with the broker/staff recommendation to approve the insurance and deductible increase.
