The cost of insurance for the Town of Hawkesbury’s infrastructure and assets has increased 8.6 per cent.
On June 3, town council approved the renewal of the municipal insurance contract with BFL for $623,491 plus a cyber policy fee of $250.
A report prepared by Clerk Sonia Girard indicates various reasons for the increased cost of insurance. One is an increase in insurance claims resulting from catastrophic events such as severe weather and wildfires. According to the Insurance Bureau of Canada, the cost of losses due to catastrophic events in Canada reached $3.1 billion in 2022. In 2001, it was $302.3 million.
“Municipal budgets are continuously being stretched and this can limit the amount of funds a municipality has to upgrade their assets leaving their facilities and infrastructure more vulnerable to costly property damage claims if their community experiences a severe weather event or large fire,” explains Girard’s report.
The report also explains how insurers are increasingly expecting municipal governments to take increased responsibility for mitigating the risk of cybersecurity breaches and hacking.
Councillor Antonios Tsourounakis asked about how well the Town of Hawkesbury’s computer system is protected against cybersecurity breaches.
Treasurer Philippe Timbers said information technology services at the Town of Hawkesbury are maintained under contract by the United Counties of Prescott and Russell.
“We’re as well protected as the counties are,” Timbers said, adding the level of protection is likely above average.
Chief Administrative Officer Samuel Cardarelli said everything involving computer access for municipal employees is individualized.
“It’s very strict on restrictions on who can have access to what,” he said.
Cardarelli said data storage is largely cloud-based and employee passwords are regularly changed.
