HomeMy WebLinkAboutFIN-06-002 - Municipal Liability Insurances
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KITCHENER
Financial Services
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Report To:
Date of Meeting:
Submitted By:
Prepared By:
Ward(s) Involved:
Date of Report:
Report No.:
Subject:
Councillor B. Vrbanovic, Chair, and Members of
the Finance and Corporate Services Committee
January 9, 2006
Pauline Houston, General Manager of Financial Services
& City Treasurer
Pauline Houston (2646)
ALL
December 22, 2005
FIN-06-02
Municipal Liability Insurance
RECOMMENDATION:
THAT the resolution of the Town of Essex, regarding Municipal Liability Insurance be approved
and supported as follows:
WHEREAS, municipalities have experienced significant increases in the cost of liability
insurance;
AND WHEREAS, a significant factor in the cost of municipal liability insurance relates to The
Negligence Act RS.O 1990;
AND WHEREAS, The Negligence Act RS.O. 1990 can mandate a municipality to pay 100% of
a loss when in fact they could be as little as 1 % liable;
AND WHEREAS, other Provinces have amended The Negligence Act so that only where a
Municipality is found to be at least 50% liable would the full claim be paid.
NOW THEREFORE BE IT RESOLVED that the Province of Ontario be requested to amend The
Negligence Act RS.O. 1990 so that only where a Municipality is found to be at least 50% liable
would the full claim be paid.
AND FURTHER, that this resolution be circulated to A.M.O.
REPORT:
The Council of the Town of Essex approved the above resolution at its meeting on December 6,
2005 and requested support from other municipalities in Ontario (copy of letter attached). This
resolution has been reviewed by the Board of Directors and the Risk Managers of the Waterloo
Region Municipalities Insurance Pool, all of whom support this initiative.
Joint and several liability has always been of concern to municipalities because it is perceived
that municipalities have "deep pockets" and are often the target for inclusion in liability claims.
This exposure does affect an insurer's perspective of municipal risk and as a result, not only are
our premiums affected, but capacity as well (i.e. the willingness of an insurer to even underwrite
municipal risk). As a result, there are few markets out there that will insure municipal business.
This affects competitive pricing.
Even with our insurance pool arrangement where we have been successful in
reducing/containing costs, provide good risk management and claims administration, there are
still few markets which will quote on our business.
FINANCIAL IMPLICATIONS:
None related directly to this report.
Pauline Houston, CA
General Manager of Financial
Services & City Treasurer
PH/mf