Calvin Township has agreed to renew its insurance policy with Marsh Insurance for $44,862, marking a 6 percent increase over last year's premium.
Tim Hutchison, president of Municipal Insurance Services based in North Bay, presented the policy details to the council. He explained that his company has been insuring municipalities for over 40 years and currently services "more than 100 municipal and First Nation clients" from their North Bay office.
"We try to target somewhere in the 4 percent range for our clients, but there has been some turmoil in the insurance markets since 2020 when we faced a hard insurance market, and then Covid, and then a lot of catastrophic losses that have pushed rates up," Hutchison told council.
The policy structure combines a primary policy with an excess insurance policy to determine the total liability limit. The primary component provides $5 million in coverage, which according to Hutchison, is sufficient for most scenarios.
"The majority of claims, including ones with loss of life, can be settled under that $5 million limit," he stated.
The comprehensive liability policy covers numerous situations, including slip and falls, errors and omissions claims against the township, and wrongful dismissal claims. The policy now covers all municipal property, valued at just over $3 million, and includes protection against theft, though not if caused by cyberattacks.
Additional coverage extends to the township's approximately 10 vehicles, each with $5 million in protection. Council members receive accident coverage worth $200,000 each, which includes out-of-province emergency medical coverage and death benefits while in service to the township.
Volunteer firefighters are also protected while on duty with maximum benefits of $100,000 for injuries. The renewed policy will also cover residents who rent municipal spaces for events.
Municipal Insurance Services works in partnership with Marsh Canada Insurance, which Hutchison described as "the largest insurance brokerage in the world."
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