TAMRMS#: B06
7.10
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Insurance Renewal - Request for Budget from Financial Reserve - Risk Management
Presented by: Darija Slokar, Manager, Strategic Services
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RECOMMENDED MOTION
recommendation
1. That Council approve the withdrawal of up to $200,000 from the Financial Reserve - Risk Management to cover increase in property insurance premiums to ensure proper insurance coverage for 2021 and 2022.
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PURPOSE OF REPORT
The purpose of this report is to obtain Council approval for the withdrawal of funds from the Financial Reserve - Risk Management to cover additional, not planned, increase in insurance premiums to ensure that the City has appropriate level of insurance coverage in place for City owned buildings.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Not applicable
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Management of the CIty's Insurance Program
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
Council Policy C-FS-01 Financial Reserves - Risk Management
Purpose: To provide funds for the management of unexpected risk as managed and defined by the Legal Services Department.
Application: To be used for stabilizing budgetary impacts resulting from changes in insurance and risk management related costs, including but not limited to premiums, risk control and prevention, and losses that exceed the claims retention fund.
BACKGROUND AND DISCUSSION
As a result of the current changes in the insurance market and increased property values for City-owned buildings, the insurance premium for the City has increased from $146K last year to $184K this year and the coverage for property decreased from 350 million to 100 million. The cost associated with increasing the coverage back to the original $350M is presently unaffordable for the City. It is recommended that the coverage be increased to $200M which, at this time, is believed appropriate to cover the City's risk. Administration requires additional funds ...
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