The city of Cornwall, ON is the latest municipality to face rising insurance costs at the turn of 2021 – and it is not because of climate change-related weather damage claims.
Cornwall is expecting to pay $1,182,960 for insurance this year; officials have noted that this amount represents a 25% increase in insurance costs from last year.
Both the city’s allocation for insurance and long-term financial planning this year contributed to a $1.9 million increase in its operating budget this year – the two largest expenses for the city, Cornwall Seaway News reported. This figure represents a 2.58% increase in Cornwall’s budget from the previous year.
If not for increases in its insurance and long-term financial planning costs, Cornwall’s operating budget would have experienced a 0.89% increase this year.
According to Cornwall chief financial officer Tracey Bailey, the municipality has about 10 different insurance policies, which the city competitively reviews each year. However, Bailey added that the insurance market this year has been tough.
When asked what was driving up insurance costs for the city, Bailey explained that it has something to do with the city’s rising liability costs.
“Generally liability,” the chief financial officer said. “Slips on sidewalks, those types of things. It is where municipalities are exposed the most.”
