Municipal asset and liability insurance will cost the Town of Hawkesbury 3.9 per cent more for 2025-2026 than it did for the 2024-2025 term.
On May 26, town council approved renewing the municipal insurance contract with BFL for $648,014.00, plus a $250 Cyber Policy Fee, and the eight per cent provincial portion of sales tax.
According to a staff report, the recommendation was made to renew the existing contract because current economic conditions do not make it worthwhile to proceed with a public tender process. The main reason a public tender process is not advisable is because all insurance companies are consistently paying for damages associated with severe weather damage to municipal infrastructure, while the municipalities are struggling to upgrade infrastructure to be more resilient to severe weather events. Liability costs for municipalities have also continued to increase.
Councillor Jeanne Charlebois asked if the renewal cost was less than originally budgeted. Treasurer Philippe Timbers said a five per cent increase had initially been projected in the 2025 budget.
“When do we think we can go back to tender?” asked Councillor Tony Tsourounakis, inquiring if it would be possible in 2026.
Timbers said last time the asset and liability insurance went to tender, staff found out that many insurance companies no longer want to insure municipalities due to the associated risks.
Tsourounakis remarked that the amount of the increase is small for an entire town.
“We’re in a society of lawsuits.” “We have to be prepared for whatever comes our way,” Charlebois commented, referring to liability insurance.
Mayor Robert Lefebvre said insurance considerations are important in terms of risk management for the town. He said reduced risk reduces premiums.
