The Ontario government is reviewing the issue of insurance liabilities for municipalities following issues raised at the meeting of the Association of Municipalities of Ontario on Monday.
Representatives of Hastings County met with Minister Downey to discuss again the issue of rising insurance costs and the issue of joint and several liability.
Municipalities have experienced unsustainable increases of 20 and 30 percent of their insurance premiums and a key driver in the premium increases is joint and several liability.
Adams tells Quinte News, “This cost is especially unsustainable as pandemic financial relief programs are being scaled back by the government. Downey recognized that the costs that municipalities face with respect to insurance diverts funding for other important investments such as capital projects and service delivery costs that municipalities must manage.”
The Association of Municipalities of Ontario, the Eastern and Western Warden’s Caucuses and others have raised the alarm over the years about the financial burden insurance premiums have placed on municipalities across the province.
It is common for a municipality to be named in an action even though there is no apparent liability on the part of the municipality.
The Deputy Warden continues, “It encourages plaintiffs to target “deep pocket” municipal defendants who are general insured. This can effectively cripple risk-exposed defendants, such as municipalities. Even if lawsuits are ultimately dismissed, the cost of defending against them puts an enormous burden on our budgets and ultimately the taxpayers.”
Adams says, “As a result of the concerns expressed by many municipalities, Attorney General Downey advised that he is putting together a Technical Table in collaboration with AMO to review the effects of joint and several liability on insurance issues.” This will include a detailed analysis of the issue.
Adams tells Quinte News, “I believe the meeting was productive and look forward to seeing the Technical Table report on a solution for this complex issue.”
