Cobourg Council – Cobourg Realizes Big Insurance Savings
By Cecilia Nasmith/Today’s Northumberland
The good news is that the Town of Cobourg stands to save $188,000 in insurance premiums for the year beginning Nov. 1, 2021.
The bad news is, this involves switching companies.
Treasurer Ian Davey reported at this week’s committee-of-the-whole council meeting that the $674,065 quote from Marsh Canada Limited compares favourably with the $862,000 quote from their current carrier Frank Cowan (now rebranded as Intact).
The Marsh quote is only slightly higher than what the town paid last year, Davey said, and the town’s broker has negotiated long and hard to come up with this figure – even though changing companies is not a recommendation he makes lightly.
Policy parameters will change, Davey said, citing replacement-value coverage. When a fire destroyed an old dump truck and snow plow a few years back, the Cowan insurance paid for full replacements – meaning new vehicles to replace the old. The Marsh insurance would pay for the current (depreciated) value of the vehicles if that fire happened today.
On the other hand, the broker added, staying with Intact would cost dearly – not only because of the higher premium but also because they have said a further 15% increase can be expected the following year.
Author: Pete Fisher
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